Definition Globalization. Description.
Globalization is a broad term referring to increased
integration, interconnectedness and interdependence of international economic
activity and social relations. It includes an increase of international:
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Trade.
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Investments.
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Labor force movement.
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Migration.
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Production.
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Products, services and technology usage.
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Research and Development.
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Exchange of ideas and knowledge.
types of Globalization. Dimensions
In a 1996 AMR article Taylor, Beecheler and Napiet distinguish 3 globalization dimensions:
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Globalization of Production: encouraged by the cost
advantages that can be won by establishing an international production network.
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Globalization of Products: favored by the significant
rise in costs generated through the constant need to present ever-newer
products.
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Globalization of Markets: access to more and more
foreign markets since the fall of international trade barriers, creating
new opportunities as well as stiffening competition.
Other major dimensions that can be distinguished are:
- Globalization of Services
- Globalization of Labor, work, people and talent
- Globalization of the Financial System, banking and insurance
- Globalization of Information, knowledge
Reasons for globalization. Causes
This increasing world-wide integration of markets for goods,
services, labor and capital is caused by developments in:
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Modern communication technology (Internet, TV, telephone).
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Transport mechanisms.
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Freer international capital flows.
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Changes in economic, cultural, political, social, and legal
systems.
Debates on Globalization. Opinions and Conflicts
An important consequence of globalization on businesses is
the increased power that multinational organizations have. This in turn has
led to an increased call for
Corporate Transparency,
Corporate Accountability,
Corporate Responsibility,
and Stakeholder Management.
A number of paradoxes are relevant:
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New Era vs. Business as Usual: Is G. a new global
age, or is there really nothing new under the sun and will governments and
regions retain distinct strengths?
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Autonomous Process vs. Intentional Project: Is G.
an unintended process, or is G. a deliberate, ideological project of economic
liberalization?
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Hard vs. Soft: Is G. caused by the pursuit of material
interests or is G. rooted in an expanding consciousness of living together
on one planet?
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Good vs. Bad: Is G. to be celebrated because of product
progress, better democracy, empowering of people, or is G. dangerous because
of its consequences for the well-being of various groups, the sovereignty
and identity of countries, the disparities among peoples, and the health
of the environment?
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Global Sameness vs. New Differences: Does G. lead
to cultural homogeneity, or will G. lead to new mixtures of cultures and
is integration likely to provoke a defense of tradition?
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Compare with: Cultural Dimensions
| Cultural Intelligence
| Competitive Environment
| Macro-Environment
| Economies of Scale
| Emerging Markets
| Nationalization
| PEST Analysis |
Bottom of the Pyramid
| Glocalization
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