Accounting and Globalization
INTRODUCTION As today's companies become more globally oriented and expand into multinational corporations, there is a growing need to compress financial regulations into a homogeneous unit. To achieve this homogeneity, accounting practices in the modern economic market must strive for a symbiotic relationship with globalization. Because consumer capitalism has spread to non-originating countries, and non-Americanized cultures, the practices of accounting and financial management must standardize their policies. Thus, accounting must be regarded beyond capital market settings, and the different effects that accounting has had in such sites must be examined.
WHY ACCOUNTING IS CHANGING
Since leading companies have
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One such voice, the Organization for Economic Co-operation and Development (OECD), helps international governments tackle the economic, social, and governance challenges of a globalized economy (Graham & Neu, 2003). The OECD places governments under scrutiny, and examines such performance indicators as aging and related pension issues, employment, growth, money laundering, taxation, and transportation (Gebhardt, 2000). Secondly, the OECD's peer review process uses performance measurements both to observe and to direct government performance (Hill, 2002). Internet information, its funding largely provided by the U.S. Department of Defense in the 1970's and 1980's, for the development of advanced communications networks linking the U.S. militaries and universities, is shaped by accounting in the development of informational technical infrastructure (Graham & Neu, 2003). Other agencies that have helped fund Internet communication (The National Science Foundation and the Advanced Research Projects Agency) have relied on accounting technologies to balance technical and economic goals (Graham & Neu, 2003).
FLOWS OF POLICIES To regulate foreign policies, accounting practices are often imposed on distant sites. Through the terms of lending conditionalities, the receiving country is coerced, albeit co-operatively, to adopt mainstream neo-liberal financial policies (Gebhardt, 2000). Such was the case of