Paper on The True State of Globalization: Not Dead, Not Completely OK

The True State of Globalization: Not Dead, Not Completely OK

In the previous centuries, there have been several efforts put in place to enable nations across the globe come together in all facets of life. These features of human life comprise of social, political and economical elements. The integration attempt has had some positive impacts. At the moment, the world has been envisaged as being a global village, where people can interact in the same manner to the interactions that occur in villages or locality. Approximately all parts of the world are connected to the rest of the world in different forms. The barriers, which originally cut off nations, have been eradicated. Over the years, advanced levels of integration have been attained. In the beginning, many nations only interrelated economically an aspect that is outdated. Other aspects of human life across the earth have been integrated, which is commonly referred to as globalization. Globalization entails the process in which nations, financial systems, and regions have been incorporated in a global system (Buckley and Pervez 82). Several nations’ financial systems, civilizations, and societies have been integrated in the global networks of communication, trade, transportation, and immigration among others forms. Nonetheless, globalization has been incorporated but some elements of it are not well interpreted. The big question in this point is whether globalization is dead or not completely okay.

In the article “The True State of Globalization: Not Dead, Not Completely OK, many people and nations have misunderstood the concept of globalization. Many organizations are worried about the next big thing to come since they believe it is the end of globalization. The author attests that most businesses leaders are scuttling to fine-tune to a world only some anticipated possibilities. The main globalization inspiration of a borderless seems to have failed with conventional giants of open markets, the US and UK trembling while China is placing itself as globalization’s serious defender.

In the article, there have been extensive explorations on the concept of globalization and it is apparent that the subject has been misunderstood. Most people think that globalization provides a flat world unimpeded by boundaries, distance and culture, which is a clear exaggeration. According to the author, he coins the globaloney, which means the inclination to overrate the intensity of global business activity compared to local activity, as well as undervalue the constrictions imposed by distance and cultural differences (Berger). The current discussion about the drawback of the global organization symbolizes an overreaction in the reverse direction. Despite the fact that some of the excitement about globalization has changed to obscurity, particularly in the United States, the author affirms that globalization has yet to experience a solemn turnaround.

Nonetheless, just because globalization has not been reversed, it does not imply that everything about globalization is fine. Most nations, particularly the US, UK and a great deal of continental Europe are quivered by an indiscriminate, deep-felt annoyance against globalization whose political repercussions are not easy to foresee. The author affirms that protectionist strains could trigger duties and trade conflicts. Many people are even suggesting that organizations respond by pulling back and going home. However, the author suggests that this is the perfect time for organizations to reappraise their globalization approach, for example, think about where and how to do business across the globe. According to author, globalization approach should be grounded on three consistent elements: adaptation, aggregation, and arbitrage (Berger).

Adaptation involves reacting to disparities among nations through fashioning products and services to meet the needs and demands of local tastes and wants. Nonetheless, these local variations add expenses and intricacy, therefore, decreasing the benefits of collective and economies of scale. Elegant adaptation necessitates the need for restraining the amount of local differences on top of adapting them most effective way of incorporating such variations. Different policies provide an effective way of good of offering the aggregation benefits of an ordinary platform basis, while each nation or region can come up with its unique environment of platform associates, whose product and services are tailored to local needs.

Secondly, the author states that aggregation is used to provide economics of scale and capacity through intensifying operations across countrywide borders (Berger). Aggregation impels efficiencies and output besides being the most common validation for having a global research and development, industrialized and logistics approach. Nonetheless, these advantages usually have to be huge in order to conquer the abode court benefit of local competitors. On the other hand, organizations that have operations in markets where they are only slightly thriving needs to make economies.

Arbitrage influences economic disparities between national and regional markets, for instance, labor expenses and levy enticements. In recent years, arbitrage prospects have fairly lessened in because of the increasing affluence of numerous emerging markets. The US GDP per capita, for instance, is seven times as compared to that of China and 33 times that of India, not mentioning other poorer nations in Asia and Africa (Berger). This implies that labor arbitrages not likely to vanish in the predictable future, neither will tax arbitrage, provided the huge disparities in tax systems across nations and the sluggish development in restricting tax havens. Moreover, differences in nation’s security, health, and environmental principles continue to carry on too despite the fact that abuse of these disparities raises ethical anxieties.

The article provides practical recommendations to assist international organizations to continue to benefiting from the advantages of adaptation, aggregation and arbitrage at the same time being receptive to increasing protectionist forces. Organizations need to consider regional policies that rational methods and concession between one-size-fits-all global policies that pay no heed to local disparities. This is also an effective way that disregards the unproductive and expensive highly localized approach. With such approaches in place, organization will then make use of advantage of similarities between bordering nations within the same region. According Berger, a scrutiny of 29 distance variables indicates that in more or less all cases nations from the same region average higher similarity achieves more as compared to nations from different regions and frequently by very broad margins.

This article affirms that the criticism against globalization is also, partly, a reaction against big organizations. The general standing of business is at a record down. International organizations need to create governmental and societal programs that are both localized and connected across nations. Moreover, anti-globalization anxieties necessitate that global corporations bring more local benefits and converse about them, particularly in the nations where they function. These efforts must go well outside conformity to take in contributions in the form of employment, expertise, and many more. Much of the problem of globalization is that global corporations have generally acted in response to the exigent economic environment by emphasizing principally on sinking their operational expenditure. Regardless of the spectacular development in technology, organizations have generally overlooked the prospects to pursue expansion through inventive new products and markets.

 

 

 

Works Cited

Berger, I. Wladawsky. The True State of Globalization: Not Dead, Not Completely OK. THE WALL STREET JOURNAL. 2017. https://blogs.wsj.com/cio/2017/10/06/the-true-state-of-globalization-not-dead-not-completely-ok/ Accessed 7 April 2018.

Buckley, Peter J., and Pervez N. Ghauri. “Globalization, economic geography and the strategy of multinational enterprises.” Journal of International Business Studies 35.2 (2004): 81-98.