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Book Review - Barry C. Lynn, End of the Line: The Rise and Coming Fall of The Global Corporation (2005) - [Barry C. Lynn, End of the Line: The Rise and Coming Fall of The Global Corporation (New York: Doubleday, 2005, ISBN: 0-385-51024-1). CAN$ 21.00]

Published online by Cambridge University Press:  06 March 2019

Abstract

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Type
Developments
Copyright
Copyright © 2007 by German Law Journal GbR 

References

1 Mr. Zhang Shuhong's tragic story provides a glimpse into: a) the pressures that suppliers might be enduring from lead firms, and b) the risk lead firms assume by outsourcing production. Mr. Shuhong was a co-owner of the Lee Der Toy Company, which supplied toys for Fisher Price, a subsidiary of the American toy giant Mattel. On August 2, 2007, Fisher Price recalled almost one and a half million toys supplied by Mr. Shuhong's company, after learning that they were coated with non-approved paint pigment that contained a dangerous level of lead. See: Toys recalled over safety fears, BBC News (2 August 2007), available at: http://news.bbc.co.uk/2/hi/asia-pacific/6927156.stm, last accessed 14 August 2007. On August 13th, it was reported that Mr. Shuhong hanged himself in his factory. See: Chinese toy boss ‘kills himself’, BBC News (13 August 2007), available at: http://news.bbc.co.uk/2/hi/asia-pacific/6943689.stm, last accessed 14 August 2007. The following day, after a two-week review of the work of Mattel's Chinese subcontractor, Mattel reported that it would have to recall over 18 million toys. See: Mattel recalls millions more toys, BBC News (14 August 2007), available at: http://news.bbc.co.uk/2/hi/business/6946425.stm, last accessed 14 August 2007. As the story progressed, after even more recalls and the firing of several firms, Thomas Debrowski, Mattel's executive vice president for world operations, made a statement to the press stating: “The vast majority of these products that we recalled were the result of a flaw in Mattel's design” and not the fault of Chinese manufacturers. See: Mattel sorry for ‘design flaws’, BBC News (21 September 2007), available at: http://news.bbc.co.uk/2/hi/business/7006599.stm, last accessed 28 September 2007.Google Scholar

2 Barry C. Lynn, End of the Line: The Rise and Coming Fall of The Global Corporation (2005), 16.Google Scholar

3 Id., 16.Google Scholar

4 Id., 17.Google Scholar

5 Id., 16-17.Google Scholar

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34 For the important of reformer laborlabor markets for securing economic stability and growth in the European context, see for instance: Can Europe's recovery last?, The Economist 384:8537 (July 14th-20th, 2007). For the connections between gross domestic production, and social conditions and well-being of citizenry, see generally: Organisation for Economic Co-operation and Development, Economic Policy Reforms: Going for Growth (2006).Google Scholar

35 David Millon, Why Is Corporate Management Obsessed with Quarterly Earnings and What Should Be Done About It? 70 Geo. Wash. L. Rev. 890 (2002), and also Leo E. Strine, Jr., Toward Common Sense and Common Ground? Reflections on the Shared Interests of Managers and Labor in a more Rational System of Corporate Governance, The Dorsey & Whitney Foundation Lecture, 10 March 2007, forthcoming, J. Corp. L. (2007), available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=989624, last accessed 28 October 2007; for a comment on Strine's paper (and Stephen Bainbridge's reaction), see Peer Zumbansen, Varieties of Capitalism and the Learning Firm: Corporate Governance and Labor in the Context of Contemporary Developments in European and German Company Law, University of Cambridge, Centre for Business Research, Working Paper No. 347/2007 & CLPE Comparative Research in Law & Political Economy Research Paper 21/2007, forthcoming, Eur. Bus. Org. L. Rev. 2007, available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=993910, last accessed 28 October 2007.Google Scholar

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45 The capacity of the nation-state to control transnational corporations has been in decline throughout the twentieth century. For example, nation-states have faced erosion of the corporate tax system, resulting in a lesser ability to redistribute wealth within society. See John Braithwaite, Markets in Vice, Markets in Virtue (2006), 16-34. Enforcement issues aside (which are significant), Braithwaite observes the catch-22 of tax policy in the age of globalization between “attracting capital and securing growth on a small-government, low-taxation-of-capital, weak-safety-net trajectory, or having a bigger-government, lower-growth trajectory where the gulf between rich and poor is not allowed to widen”. The challenge for smaller nations to maintain sovereignty against transnational corporate interests is grossly amplified. See Raymond J. Michalowski and Ronald C. Kramer, The Space between Laws: The Problem of Corporate Crime in a Transnational Context, 34 Soc. Prob. 34 (1987). In addition, other aspects of the decline of the nation-state in the age of the transnational corporation and globalization has been well documented, see amongst many others: Merry, Sally Engle, Anthropology, Law, and Transnational Processes, 21 Annual Rev. of Anthropology 357 (1992); Falk, Richard, Towards Obsolescence: Sovereignty in the Age of Globalization, 17 Harv. Int'l L. Rev. 34 (1995); Schmidt, Viven A., The New World Order Incorporated: The Rise of Business and the Decline of the Nation State, 124 Deadalus 75 (1995); ed, Gunther Teubner., Global Law Without a State: Studies in modern law and policy (1997); Teubner, Gunther, Societal Constitutionalism: Alternatives to State-Centred Constitutional Theory?, in Transnational Governance and Constitutionalism, 3, (Christian Joerges, Inger-Johanne Sand, and Gunther Teubner, eds., 2004); Jack L. Goldsmith and Eric A. Posner, The Limits of International Law (2005); Hathaway, Oona A. and Lavinbuk, Ariel N., Rationalism and Revisionism in International Law, 119 Harv. L. Rev. 1404 (2006); Kennedy, Duncan, Three Globalizations of Law and Legal Thought: 1850-2000, in: The New Law and Economic Development: A Critical Appraisal, (David M Trubek and Alvaro Santos, eds., 2006); and Lobel, Orly, The Paradox of Extralegal Activism: Critical Legal Consciousness and Transformative Politics, 120 Harv. L. Rev. 937 (2007).Google Scholar

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58 For an example of result of such fallacious assumptions, see: Joel Bakan, The Corporation: The Pathological Pursuit of Profit and Power (2004), 160-164.Google Scholar

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63 Duncan Kennedy, Three Globalizations of Law and Legal Thought: 1850-2000, in: The New Law and Economic Development: A Critical Appraisal (David M Trubek and Alvaro Santos, eds., 2006); and also Teubner ed., Global Law Without a State, supra note 45.Google Scholar

64 Philip C. Jessup, Transnational Law. Storrs lectures on jurisprudence (1956).Google Scholar

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67 Calliess and Zumbansen, supra note 47, at 8-9.Google Scholar

68 Calliess and Zumbansen comment on the role of law in shaping processes of “private” interaction by comparing the role/non-role of law within this interaction to the anti-parable of “before the law” presented to K., the protagonist of Kafka's The Trial, by a priest. This passage can be found in the chapter entitled “In the Cathedral” within the book. See: Calliess and Zumbansen, supra note 47, at 7. Also see: Franz Kafka, The Trial (1957).Google Scholar

69 For evidence of such a project, take seriously the significance of: Richard A. Posner, Creating a Legal Framework for Economic Development, 13 The World Bank Observer 1 (1998).Google Scholar