A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward supranational organizations such as the World Trade Organization. the communist states of eastern Europe and central Asia. the medium-size and small U. S. multinationals. the national governments of the countries participating in globalization. nations that have authoritarian forms of government.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.