GLOBALIZATIONGLOBALIZATION

SENSE AND NONSENSESENSE AND NONSENSE

““No country, no economy No country, no economy and no society can expect and no society can expect

to remain an island”to remain an island”

Raul de Gouvea Neto, PhDRaul de Gouvea Neto, PhD

GlobalizationGlobalization

A - OPTIMISTSA - 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 - PESSIMISTSB - PESSIMISTS: GLOBALIZATION INCREASING THE WIDE GULF BETWEEN THE HAVES AND HAVE-NOTS

GLOBALIZATION MODELS GLOBALIZATION MODELS - 1- 1

A - INTERDEPENDENT GLOBALIZATIONA - INTERDEPENDENT GLOBALIZATION: SYSTEM WIDE INCREASE IN RECIPROCAL TIES BETWEEN COUNTRIES.

B - CIVILIZATION AND EMPIRESB - CIVILIZATION AND EMPIRES: INCREASING CONCENTRATION OF COMMUNICATIONS WITHIN CLUSTERS OF COUNTRIES, OR AROUND CLUSTERS OF COUNTRIES

C -HEGEMONIC GLOBALIZATIONC -HEGEMONIC GLOBALIZATION: INCREASING CENTRALITY OF A SMALL CORE OF RICH COUNTRIES AND PERHAPS DOMINATION BY A SINGLE POWER.

GLOBALIZATION MODELS - GLOBALIZATION MODELS - 2 2 PARADIGMSPARADIGMS

GLOBALIZATION MODELS GLOBALIZATION MODELS - 3- 3

• MAIN FEATURE: NOT THE FLOW OF GOODS, BUT THE FLOW OF CAPITAL, PEOPLE, AND INFORMATION

• SPACE AND TIME ARE NO LONGER BARRIERS

• INTERNET

FEATURES - 1FEATURES - 1

• INTERNATIONAL MERGERS AND ACQUISITIONS

• TRAVEL AND TURISM HAVE INCREASED SUBS-TANTIALLY

• COMPANIES SEEK PRODUCTS, SERVICES, OR CONCEPTS THAT TRAVEL EASILY ACCROSS CULTURES

FEATURES - 2FEATURES - 2

A -A - ECONOMIC INTERDEPENCE - WITHOUT POLITICAL INFLUENCE

B -B - MORE OPEN MARKETS WITHOUT POLITICAL STABILITY

C -C - ECONOMIC AND INDUSTRIAL TRANSITIONS WITHOUT SOCIAL SAFETY NETS: HAVE AND HAVE NOT'S

CHALLENGES - 1CHALLENGES - 1

WASHINGTON CONSENSUS: HOW TO ACHIEVE SHARED PROSPERITY. WORLD OF GREATER INEQUALITY IN HISTORY

TIME FOR A G-16 !TIME FOR A G-16 !

D -D - GLOBALIZATION DOES NOT MEAN HOMOGENIZATION. IT DEMANDS STRATEGIES THAT ALLOW ADAPTATION: GLOCALIZATION

CHALLENGES - 2CHALLENGES - 2

AA - - INFORMATION AND COMMUNICATION TECHNOLOGIES THAT FOSTER GLOBAL MARKETS

B -B - GLOBAL CONSOLIDATION IN INDUSTRIES THAT PROMOTE FURTHER GLOBALIZATION

C -C - STRATEGIES THAT PROMOTE GLOBAL STANDARDS

OPPORTUNITIESOPPORTUNITIES

A -A - HIGH TECH COMPANIES HAVE A GLOBAL STRATEGY

B -B - ELECTRONIC PROCUREMENT ALLOWS FOR RAPID COMPARISONS

C -C - NEW COMPANIES ARE BEING DEVELOPED TO FACILITATE AND DISSEMINATE THESE DATA - BLOOMBERG, CNN

FORCES - 1FORCES - 1

D -D - CREATION OF A WORLD BUSINESS ELITE: LOCALS AND COSMOPOLITANS, FLUENT IN SEVERAL LANGUAGES, INCLUDING ENGLISH

E -E - COSMOPOLITANS: CONFORTABLE IN MANY PLACES AND ABLE TO UNDERSTAND AND BRIDGE THE ECONOMIC AND CULTURAL DIFFERENCES

PORTABLE SKILLS, BROAD OUTLOOK, AND LINKAGES PORTABLE SKILLS, BROAD OUTLOOK, AND LINKAGES TO WIDER, DIVERSE NETWORKSTO WIDER, DIVERSE NETWORKS

LOCALS: SKILLS NOT UNIQUE, LIMITED LOCALS: SKILLS NOT UNIQUE, LIMITED CONNECTIONSCONNECTIONS

FORCES - 2FORCES - 2

THREE CS: THREE CS:

A- CONCEPTS: CONTINUOUS INNOVATIONA- CONCEPTS: CONTINUOUS INNOVATION

Soutwest Airlines, Dell computers through catalogues

B- COMPETENCE: ABILITY TO EXECUTE AND B- COMPETENCE: ABILITY TO EXECUTE AND DELIVER VALUE TO CUSTOMERSDELIVER VALUE TO CUSTOMERS

Education by companies is a US$55 billion industry, need for lifelong learning

COMPETITIVENESS - 1COMPETITIVENESS - 1

C- CONNECTIONS: PARTNERS, LINK TO NEW C- CONNECTIONS: PARTNERS, LINK TO NEW MARKETS, LINKS TO NEW TECHNOLOGIES AND MARKETS, LINKS TO NEW TECHNOLOGIES AND OPPPORTUNITIES. OPPPORTUNITIES.

Strategic importance of key relationships.

"Boundaryless Organizations" emphasizes the value of collaboration across territories inside and outside company

walls.

COMPETITIVENESS - 2COMPETITIVENESS - 2

THERE ARE THREE WAYS THAT THERE ARE THREE WAYS THAT GLOBAL ECONOMY CAN CREATE GLOBAL ECONOMY CAN CREATE

LOCAL BENEFITSLOCAL BENEFITS

REGIONS ARE DEVELOPING INTO: REGIONS ARE DEVELOPING INTO: THINKERS, MAKERS, OR TRADERSTHINKERS, MAKERS, OR TRADERS

ADVANTAGES - 1ADVANTAGES - 1

A - THINKERS:A - THINKERS: SILICON VALLEY, CONTINUOUS INNOVATION, SELL KNOWLDGE AND KNOWLEDGE INTENSIVE PRODUCTS

B - MAKERS: B - MAKERS: POSSESS SKILLS, HIGH-PROCESS QUALITY, INFRASTRUCTURE, TO SUPPORT COST-EFFECTIVE PRODUCTION

C - TRADERS:C - TRADERS: SIT AT CROSSROADS OF CULTURES, MANAGING THE INTERSECTIONS AND ALLIANCES

ADVANTAGES - 2ADVANTAGES - 2

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.

SOURCESSOURCES