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Globalization
GLOBALIZATION SENSE AND NONSENSE

• No country, no economy and no society can expect
  to remain an island
• Raul de Gouvea Neto, PhD

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GLOBALIZATION MODELS - 1
A - OPTIMISTS UNMIXED BLESSINGS DESTINED TO
INCREASE ECONOMIC PRODUCTION, REDUCE POLITICAL
TENSIONS, AND CREATE NEW FORMS OF COMMUNICATION
OVER AND ABOVE NATIONAL LOYALTIES AND CUSTOMS B
- PESSIMISTS GLOBALIZATION INCREASING THE WIDE
GULF BETWEEN THE HAVES AND HAVE-NOTS
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GLOBALIZATION MODELS - 2 PARADIGMS
A - INTERDEPENDENT GLOBALIZATION SYSTEM WIDE
INCREASE IN RECIPROCAL TIES BETWEEN COUNTRIES.
B - CIVILIZATION AND EMPIRES INCREASING
CONCENTRATION OF COMMUNICATIONS WITHIN CLUSTERS
OF COUNTRIES, OR AROUND CLUSTERS OF COUNTRIES C
-HEGEMONIC GLOBALIZATION INCREASING CENTRALITY
OF A SMALL CORE OF RICH COUNTRIES AND PERHAPS
DOMINATION BY A SINGLE POWER.
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GLOBALIZATION MODELS - 3
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FEATURES - 1

• MAIN FEATURE NOT THE FLOW OF GOODS, BUT THE
  FLOW OF CAPITAL, PEOPLE, AND INFORMATION
• SPACE AND TIME ARE NO LONGER BARRIERS
• INTERNET

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FEATURES - 2

• INTERNATIONAL MERGERS AND ACQUISITIONS
• TRAVEL AND TURISM HAVE INCREASED
  SUBS-TANTIALLY
• COMPANIES SEEK PRODUCTS, SERVICES, OR CONCEPTS
  THAT TRAVEL EASILY ACCROSS CULTURES

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CHALLENGES - 1
A - ECONOMIC INTERDEPENCE - WITHOUT POLITICAL
INFLUENCE B - MORE OPEN MARKETS WITHOUT
POLITICAL STABILITY C - ECONOMIC AND INDUSTRIAL
TRANSITIONS WITHOUT SOCIAL SAFETY NETS HAVE AND
HAVE NOT'S
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CHALLENGES - 2
WASHINGTON CONSENSUS HOW TO ACHIEVE SHARED
PROSPERITY. WORLD OF GREATER INEQUALITY IN
HISTORY TIME FOR A G-16 ! D -
GLOBALIZATION DOES NOT MEAN HOMOGENIZATION. IT
DEMANDS STRATEGIES THAT ALLOW ADAPTATION
GLOCALIZATION
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OPPORTUNITIES
A - INFORMATION AND COMMUNICATION TECHNOLOGIES
THAT FOSTER GLOBAL MARKETS B - GLOBAL
CONSOLIDATION IN INDUSTRIES THAT PROMOTE FURTHER
GLOBALIZATION C - STRATEGIES THAT PROMOTE GLOBAL
STANDARDS
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FORCES - 1
A - HIGH TECH COMPANIES HAVE A GLOBAL
STRATEGY B - ELECTRONIC PROCUREMENT ALLOWS FOR
RAPID COMPARISONS C - NEW COMPANIES ARE BEING
DEVELOPED TO FACILITATE AND DISSEMINATE THESE
DATA - BLOOMBERG, CNN
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FORCES - 2
D - CREATION OF A WORLD BUSINESS ELITE LOCALS
AND COSMOPOLITANS, FLUENT IN SEVERAL LANGUAGES,
INCLUDING ENGLISH E - COSMOPOLITANS CONFORTABLE
IN MANY PLACES AND ABLE TO UNDERSTAND AND BRIDGE
THE ECONOMIC AND CULTURAL DIFFERENCES PORTABLE
SKILLS, BROAD OUTLOOK, AND LINKAGES TO WIDER,
DIVERSE NETWORKS LOCALS SKILLS NOT UNIQUE,
LIMITED CONNECTIONS
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COMPETITIVENESS - 1
THREE CS A- CONCEPTS CONTINUOUS
INNOVATION Soutwest Airlines, Dell computers
through catalogues B- COMPETENCE ABILITY TO
EXECUTE AND DELIVER VALUE TO CUSTOMERS Education
by companies is a US55 billion industry, need
for lifelong learning
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COMPETITIVENESS - 2
C- CONNECTIONS PARTNERS, LINK TO NEW MARKETS,
LINKS TO NEW TECHNOLOGIES AND OPPPORTUNITIES.
Strategic importance of key relationships.
"Boundaryless Organizations" emphasizes the
value of collaboration across territories inside
and outside company walls.
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ADVANTAGES - 1
THERE ARE THREE WAYS THAT GLOBAL ECONOMY
CAN CREATE LOCAL BENEFITS REGIONS ARE
DEVELOPING INTO THINKERS, MAKERS, OR TRADERS
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ADVANTAGES - 2
A - THINKERS SILICON VALLEY, CONTINUOUS
INNOVATION, SELL KNOWLDGE AND KNOWLEDGE INTENSIVE
PRODUCTS B - MAKERS POSSESS SKILLS,
HIGH-PROCESS QUALITY, INFRASTRUCTURE, TO SUPPORT
COST-EFFECTIVE PRODUCTION C - TRADERS SIT AT
CROSSROADS OF CULTURES, MANAGING THE
INTERSECTIONS AND ALLIANCES
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SOURCES
KANTER, R. (1999). "Global Competitiveness
Revisited."The Washington Quarterly, Vol. 22(2),
Spring, p.39-58. LOUCH, H., HARGITTAI, E., AND
CENTENO, M. (1999). "Phone Calls and Fax
Machines The Limits to Globalization."The
Washington Quarterly, Vol. 22(2), Spring,
p.83-100. RIFKIN, J. (1999). "Anatomy of
Gillete's Latest Global Launch."Strategy
Business, Issue 15, p. 34-41. SACHS, J. (1998).
"Global Capitalism." The Economist, September
12th, p.23-25. The Economist (1998). "The World
Economy."September 5th, p.19-21.