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Chapter 1 Introduction

Chapter 1 Introduction. Globalization is a transnational phenomenon – contrasted with nationalism and national interests The globe is one place, but differences in… Culture Language Currency Entry regulations Mobile phone frequency Voltage, etc. … still exist!. Current Debates.

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Chapter 1 Introduction

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  1. Chapter 1Introduction (c) C. Gopinath, 2018

  2. Globalization is a transnational phenomenon – contrasted with nationalism and national interests • The globe is one place, but differences in… • Culture • Language • Currency • Entry regulations • Mobile phone frequency • Voltage, etc. … still exist! (c) C. Gopinath, 2018

  3. Current Debates • Nationalism versus Globalization • Positions of Presidents Trump and Xi Jinping • Are they really contradictory? • Neoliberalism versus Populism • Neoliberalism: Individual freedoms and minimum state intervention in the economy • Populism: Meeting the needs of the people as opposed to the elite (c) C. Gopinath, 2018

  4. First-order effects of globalization: Actions: Measures a country takes to adjust to the rest of the world. • Second-order effects of globalization: Consequential actions: Measures to deal with the consequences of its actions on its people by adjusting to the changes or retracing steps. (c) C. Gopinath, 2018

  5. Globalization raises strong emotions: Positive • Variety of foods • Through all seasons and from all parts of the world • Freer trade • Reducing unemployment • Aiding economic development Negative • Insult to religious sentiments • Unfair treatment: Poor prices for commodities (c) C. Gopinath, 2018

  6. Many view globalization as: • Forces that are beyond their control • ‘Village’ with over 7 billion people • Standardization (same music, clothes, shops) • Americanization (c) C. Gopinath, 2018

  7. Macroeconomic arguments for globalization: • Competitiveness • Availability of goods and services at a lower price • Gradually increasing employment that new businesses provide • The cost of globalization: • Threats to indigenous culture and the environment • Growing inequality of income distribution • Negative effects of the power of multinationals on smaller businesses (c) C. Gopinath, 2018

  8. Three main streams in the globalization debate (Heldt, et al.): • Hyperglobalizers: Globalization is a new era – everyone subject to a new set of rules and disciplines of a global marketplace. • Skeptics: Globalization is a myth – nation-states still strong, governments powerful, world economy dominated by major regional trading blocs. • Transformationalists: Globalization bringing about unprecedented change – nations adapt and adjust while nature of the trends remains uncertain. (c) C. Gopinath, 2018

  9. World events have indirect and direct ways of affecting businesses. • A global manager needs to have a perspective on events that go beyond the conventional business or economic theories. He/she must be able to connect and synthesize the diverse bits of information. • Globalization is an evolving phenomenon and is all around us. It is a process and not a state of affairs. • Important globalization implications to keep in mind: • Burden of history • Trends in society and politics (c) C. Gopinath, 2018

  10. Course Objective: • Not to argue FOR or AGAINST globalization but to build the skills to analyze issues and events in the context of globalization. (c) C. Gopinath, 2018

  11. Let’s debate: Globalization: Zero-sum game or win-win situation? (c) C. Gopinath, 2018

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