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全球化的概述与研究
在上世纪80年代，全球化从许多方面给企业和国家创造以前未开发的或无法访问的财富机会。这种“急于全球化的影响在国际商务上是一个爆炸性的增长”Bloch（1998引Ball和McCulloch 1996，第13页）。全球化通过贸易和投资自由化为企业提供更多的市场机会。此外，国际贸易使企业能够利用一个国家作为资产的资源优势。然而，对积极参与全球化的国家来说，带来的好处是新的风险和挑战。本文件解释了市场全球化、生产全球化、比较优势、贸易壁垒和投资壁垒，以及作为国际贸易的主要驱动力。在文献中进一步阐述了全球化对国际贸易的经济、环境、政治和社会影响。它还侧重于国际贸易的优势和劣势，并通过各种例子和教训，强调这些概念。
简介
时间停顿了,空间也消失了,我们现在住在一个世界村|同步发生。-McLuhan
在这个新的时代，国际化的影响现在无处不在被称为全球化。这在世纪后半叶，维持全球经济的发展发挥了重大作用。
全球化似乎正在缩小，这个星球作为贸易壁垒，被拆除，运输和通讯成本下降，以及全球生产系统的形成和管理的大型跨国公司。全球化可以被定义为二战后开始的经济、技术、社会和政治一体化。
这一动态过程有几个维度，包括经济市场的国际化程度的增加，例如，在贸易和金融资本流动方面的反映。本文的主要目标是提出一个概念框架，人力资源战略管理作为一种应对日益增长的全球化和业务表现的相互作用。
An overview and study of globalization
In the 1980s, globalization was praised from many quarters as offering firms and countries a wealth of opportunities that had previously been unexploited or inaccessible. The impact of this "rush to globalization has been an explosive growth in international business" Bloch (1998 cited Ball and McCulloch 1996, p.13). Globalization has provided businesses with more market opportunities by liberalizing trade and capital investment. Moreover, international business allows businesses to take advantages of the resources that a country has as an asset. However, for countries that are actively engaged in globalization, the benefits come with new risks and challenges. This document explains the globalization of markets, globalization of production, comparative advantage, the falling trade barriers and investment, and territorial competitiveness as the main drivers for international trade. The economical, environmental, political and social impacts of globalization on international business have been further elaborated in the literature. It also focuses on the advantages and disadvantages of international trade and in addition highlights these concepts through various examples and lessons.
简介-Introduction
"Time has ceased, 'space' has vanished. We now live in a global village|a simultaneous happening."- McLuhan
In this new era, the effects of internationalization now known as globalization are everywhere apparent. This has played a major role in sustaining the economic expansion of the global economy in the second half of the 20thcentury.
Globalization is seemingly shrinking the planet as barriers to trade are dismantled, transport and communications costs fall, and global production systems are formed and managed by giant multinational corporations. Globalization can be defined as the ongoing economic, technological, social, and political integration of the world that began after the Second World War.
There are several dimensions to this dynamic process, including the increased internationalization of economic markets as reflected, for example, in trade and financial capital flows. The primary objective of this paper is to present a conceptual framework for strategic management of human resources as a response to the growing interaction of globalization and business performance.
There has been a rapid integration of the world economy through increased trade and investment, which has been fueled by new technologies, the spread of information and the knowledge based industries.
全球化和国际商务的定义-2.Defining Globalization and International Business
2.1 Globalization
According to OECD (2005), the term "globalization" has been widely used to describe the increasing internationalization of financial markets and of markets for goods and services. Globalization refers above all to a dynamic and multidimensional process of economic integration whereby national resources become more and more internationally mobile while national economies become increasingly interdependent.
Globalization has been defined by many authors in a variety of way due to the varied approaches that their definitions are based upon, such as economical, political, financial, technological, etc. However, one common thread that runs through these various definitions of globalization is that it is primarily an economic phenomenon, involving the increasing interaction or integration of national economic systems all over the world through growth in international trade, investment and capital flows (Omprakash. et al, 2008).
2.2 International Business
According to businessdictionary.com, international business can be defined as:
"The economic system of exchanging good and services, conducted between individuals and businesses in multiple countries."
International business can also be referred to business activities that involve the transfer of resources, goods, services, knowledge, skills, or information across national boundaries.
2.3 The international trade model as a paradigm for international business and globalization
International trade is integral to the process of globalization (World Trade Report, 2008). The neoclassical model of international trade provides a picture of a truly global world. This is so as in the neoclassical international trade model with the twin assumptions of a perfect market and a complete market there are no barriers to trade, no transactions cost of any kind, information is equally available to all the participants in the market and all countries are small relative to the world as a whole. In such a world trade is governed by factor intensity in such a way that the total welfare (wealth) of the world is maximized. The location of production, the distribution of goods among the different countries, and the allocation of the resulting welfare are all determined in one global market. This is really the utmost of globalization (Agmon, 2009).
全球化的国际商务驱动力-3. Drivers of international business due to globalization
The 1990s and the new millennium clearly indicate rapid internationalization and globalization. The entire globe is passing at a dramatic pace through the transition period. Globalization has given rise to global market opportunities. Globalization has led to developments in information technology, removal of trade and investment barriers, privatization, and deregulation of trade and investment policies, which have provided firms seeking international markets with tremendous opportunities.
Let's analyze the opportunities that globalization offers to international business:
Comparative advantage
It is true that globalization helps to maximize the benefits of trading according to "comparative advantage," but this is not the only benefit. In this economic perspective, globalization actually improves each nation that engages in free trade because it simply seeks to efficiently manage resources; that is comparative advantage. According to this concept, each nation has an endowment of the four factors land, labor, capital, and entrepreneurship, but because these resources are scarce, international policy should guide trade to best maximize these resources use.
To take theory and put it into real world application, the situation with China as a rising power perfectly exemplifies comparative advantage. China, with its one-billion-plus population, has a massive comparative advantage in labor-intensive industries. So, for nations that do not have comparative advantages in labor, it is cheaper to outsource labor-intensive manufacturing to China, and this is being done more and more each year with nearly every major nation.
Globalization of Markets
It refers to the merging of national markets into one huge global marketplace. Now selling internationally is easier due to falling barriers to cross-border trade. Technical and logistic improvements have accelerated the ease with which commodities are transported across the globe and hindered the traceability of goods (Hulme, 2009). A company doesn't have to be the size of these multinational giants to facilitate and benefit from the globalization of markets. It is important to offer a standard product to the worldwide. But very significant differences still exist between national markets like consumer tastes, preferences, legal regulations, cultural systems.
For example, Coca-Cola and Pepsi-Cola, which are globally standardized products sold everywhere and welcomed by everyone. Both successfully cross multitudes of national, regional and ethnic taste buds trained to a variety of deeply ingrained local preferences of taste, flavor, consistency, effervescence and aftertaste (Lewitt, 1984).
Globalization of Production
It refers to the sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production. The idea is to compete more effectively offering a product with good quality and low cost. Moreover, this also happened due to the natural resources of countries have and how much they facilitate the foreign investment to come to their counties and invest their money in those countries. By keeping various actions the company can reduce over cost of the production, can produce innovative products and can compete in the market in the better way.
For example, BMW is a manufacturer of high-performance and luxury automobiles. They specialized in the manufacture of engines. BMW offers premium automobiles with its brands - BMW, MINI, and Rolss-Royce. Today, BMW is one of the German's largest and most successful companies. In order to remain competitive and to protect its niche market, BMW opened manufacturing plants in South Africa, the United States, and China. This strategy allowed the auto industry to reduce the overall cost of transportation by using methods such as mass production which is making several products at once, rather than one at a time, mass marketing which is selling products nationally rather than locally, and globalization of production that pertains to assembling products with parts made worldwide.
Falling Barriers to Trade and Investment
The falling of barriers to international trade enables firms to view the world as their market. The lowering of barrier to trade and investments also allows firms to base production at the optimal location for that activity. Thus, a firm might design a product in one country, produce a component parts in two other countries, assemble the product in another country and then export the finished product around the world. The lowering of trade barriers has facilitated the globalization of production. The evidence also suggests that foreign direct investment is playing an increasing role in the global economy.
For example; The EU concluded FTA negotiations with Peru and Colombia at the beginning of March 2010. Although the substance of the agreement has been agreed in principle, it still needs to be approved by the Council and the European Parliament. The proposed agreement covers a wide range of trade matters, including trade in goods, trade in services and non-tariff barriers. Under the presently agreed terms, manufactured products from Peru and Colombia will immediately be eligible for duty-free access to the EU, whereas the same EU products will receive duty-free access within 10 years. The agreement also contains provisions on technical barriers to trade (product standards), intellectual property enforcement, establishment, investment, government procurement and development related issues. A key aspect in the area of investment is that all parties provide guaranteed access to the manufacturing sector (potentially opening opportunities for many EU companies), (Smith, H., and Stibbe, G.L., 2010).
3.5 Territorial Competitiveness
Territorial Competitiveness is one of the main drivers that push businesses to move to international business. In a globalizing economy, territories and not just firms increasingly find themselves in competition with each other (Camagni, 2002). Territorial competitiveness means the ability to attract investments, labour, etc. Infrastructure networks sustain public and private sectors, and to be effective they operate at different scales (global, national, regional, local) by means of interaction with soft networks (Capinery and Leinbach, 2004). Globalization has made countries to be competitive, in terms of infrastructures, falling trade barriers, communication, and technology amongst others. Globalization has increased the level of competition in many countries which attracts businesses. And today, information has become a fundamental resource for economic activities and the declining cost of access to information has stimulated gains from trade (Capinery and Leinbach, 2004).
For example, in terms of infrastructure, Mauritius, Namibia, and Tunisia are the top-ranked countries in Africa, ranked 43rd, 33rd, and 34th, respectively. These countries are characterized by good transportation infrastructure by regional standards, particularly their roads and ports (World Economic Forum, 2009). These developments make a country competitive in the market of investments, since international businesses seek for infrastructures where goods can easily be transported and distributed.
全球化对国际贸易的影响-4. Impacts of globalization on international business
Globalization is a process which cannot be stopped or slowed. What we can do is to ensure that globalization is shaped by common and deliberate efforts so that all involved, people and countries, are benefited by it. It is not a new concept. Globalization has been around throughout history with mankind exchanging goods and services, shared social traditions and blended cultures. The difference today is the development of new technologies, primarily tools of communication like the internet, which have played a major role in accelerating exchanges.
Economists have proven that those countries experiencing the most accelerated growth have also been those with greatest increase in exports. For countries with small population, export-led growth is the principal source of jobs and government revenue. However, increasing exports is just part of the development challenge that both governments and private sector face. They have to prepare people to take advantage of globalization and one of the best ways to promote globalization is to promote well-paying, high-skilled jobs through investment in education which is essential for the development of any business.
International business community plays a vital role in helping to reduce the downsides of globalization while availing the benefits. Reducing the disadvantages in the long run help to create wealth in a country and thus playing an important role in reducing global poverty through economic development.
Most international businesses try to gain a foothold in a foreign country by formulating sustainable development so that repay the community they work in. International business community sees globalization as a way of reaching out to the masses and this has definitely altered the way global business is conducted, the way existing technologies are utilized and the way products are produced and consumed. It has been asserted that globalization is detrimental to the environment because it encourages location of polluting countries with low environmental regulations. However, it has also been suggested that globalization might also have positive environmental effects because global ties increase self-regulation pressures on firms in low-regulation countries. The environmental impact of globalization is contentious. It has been argued that increased international trade and foreign direct investment (FDI) compel government to lower production costs within their jurisdiction by neglecting to enact or enforce laws to protect the environment.
Economic Impacts of globalization
Globalisation has both an emotional and a factual definition. On the emotional side, the term has come to represent all the downsides of large corporations being able to affect the health of small communities by closing factories, shifting investment, managing markets. It's the war of the powerful against the powerless.
The government's response to the economic aspects of globalization can be characterized as building on existing strengths and potency. This includes, for example, the notion of 'clustering' -that is, encouraging firms in particular sectors to concentrate around pools of skilled labor, networks of experts and markets. This can help regions to become globally competitive, but can also create risks. Businesses need to consider whether what is the right strategy to adopt; or whether it would be preferable to encourage greater local diversification. The following below with detailed explanation have been clarified of how globalization is having an impact, in terms of international business.
Impacts of globalization on corporate activities
Changes in the international economic environment, symbolize the continuing appreciation of the yen from the late 1980s to the early 1990s, thus having a tremendous impact on a country's corporate activities and led to progressive changes in its economic structure.
Globalisation and Employment
According to the theory of the relative comparative advantages, international trade should take advantage of the abundance of labor in developing countries and by so doing, trigger a trend of specialization in domestic labor-intensive activities and as a result, this involve an expansion in local employment. However, contrary to this, Heckscher-Ohlin predicted that the analysis of the recent literature supports the conclusion that the employment impact of increasing trade is not necessarily positive for a developing country. In fact, as a consequence of globalization, when "totals factor productivity" increases in the developing countries, the employment enhancing competitive effect has to be compared with the direct labor-saving effect of the imported technologies.
Globalization and poverty alleviation
As far as poverty reduction is concerned, international trade is supposed to be beneficial to a country's economic growth and in view of that, given the expected overall neutrality in terms of its impact on income distribution, hence globalization should be a way to achieve poverty reduction. Indeed, most countries experienced a significant reduction in the proportion of their population living below the poverty line, including fast globalizing countries like China. Conversely, country like Africa registered an opposite trend. On the theoretical side, economic growth is not the only vehicle through which globalization can affect poverty levels. In fact, globalization deeply influences labor productivity and this may imply higher wages on the one hand but job losses on the other hand; the demand for skills (with a possible redundancy of low skilled people concentrated below the poverty line; the need for macroeconomic stability (since stability implies low inflation, international trade affect the poor positively because the poor tend to be hardest hit by increasing inflation, as a result of globalization. It also involves cautious and restrictive macroeconomic policies with an opposite effect; relative prices with possible adverse or positive effects in terms of purchasing power of poor households depending on the basket of tariffs reductions, along with, the changes in the terms of trade; and relative competitiveness of domestic firms.
On the whole, it is true that globalization aids economic growth and that economic growth aids poverty reduction, but not unconditionally, since the final outcome in terms of poverty reduction can be actually either amplified or diminished by the complementary economic factors and policies which are part of the game in international business.
4.2 Social Impacts of globalization
Since the '80s, the world economy has become increasingly "connected" and "integrated"; on the other hand, the decreasing transportation costs and the diffusion of Information Technologies have implied a fast downgrading of the concept of "distance", while on the other facet, gross trade, Foreign Direct Investment (FDI), capital flows and technology transfers have rise significantly. In most countries, the current wave of globalization has been accompanied by increasing concern about its impact in terms of employment and income distribution. "Globalization" is currently a popular and controversial issue, though often remaining a loose and poorly-defined concept. Sometimes too comprehensively, the term is used to encompass increases in trade and liberalization policies as well as reductions in transportation costs and technology transfer. As far as its impact is concerned, discussion of globalization tends to consider simultaneously its effects on economic growth, employment and income distribution - often without distinguishing country inequalities and other social impacts such as opportunities for poverty alleviation, human and labor rights, environmental consequences and so on, in the local context as well as in International business.
Political impacts of globalization
Political - some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. For example, politically, the United States has enjoyed a position of power among the world powers, in part because of its strong and wealthy economy. With the influence of globalization and with the help of The United States' own economy, the People's Republic of China has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power. Many commentators pronounced on this complex and multi-faceted topic with great confidence, but an overview of this literature suggests that we are still struggling to understand it. An obvious characteristic of globalization is that money, goods and manufacturing have become far more mobile than they once were, with the result that corporations are freer than ever to move, and finance to invest, wherever they choose. Therefore, national governments are less able to control the activities of mobile businesses than in the past, while corporations and finance are in a better position to dictate to national governments. They do this by relocating their activities to and buying the currencies of states whose policies they approve and abandoning, or threatening to abandon, the rest.
Environmental impacts of globalization
The past years have seen an upsurge in interest in the nexus of international trade and environmental policies. This reflects in part the need to deal with major global pollution problems, and in part concerns that globalization may have adverse impacts on the environment. The current debate on the environmental effects of globalization is particularly concerned with the question whether a worldwide liberalization of international trade may provoke environmental collapse. Three major environmental concerns related to trade are:
The domestic environmental effects caused by the use of imported products,
The foreign environmental effects caused by the production of exported goods, and,
The environmental effects caused by transport movements needed for international trade.
The rise in worldwide trade and the increasing interaction between countries previously separated by trade barriers have stimulated a significant increase in transportation progresses at all geographical levels. This has caused a wide variety of threats to the environment. Thus, a demanding problem of globalization is formed by environmental decay caused by the rise in international businesses. With the increase in international trade, transportation has a major role to act as a means to transfer goods from one place to another, contributing highly to air pollution, noise annoyance, intrusion to landscapes, overcrowding and high fatality rates. Thus, as a result, it is damaging the global environment. It is contributing to two main global environmental problems, which are the greenhouse effect and the depletion of the ozone layer.
However, even though the effects of globalization contributed to many environmental defects, it has also been argued that free trade and international business will avoid the efficiency losses associated with protection. It will reinforce economies of progression, and entrepreneurs are provided with an inspiration to seek new ways to export or compete with imports- a situation that offers more opportunities for learning and innovation. The key belief is that international trade will likely have a positive effect on the environment by making the contribution of resources more efficient, promoting economic growth as this will generate more opportunities for environmental protection, and increasing general welfare.
Cultural impacts of globalization
"Culture" is defined as patterns of human activity and the symbols that give these activities significance. Culture is what people eat, how they dress, the beliefs they hold, and the activities they practice. Globalization has joined different cultures and made it into something different.
Culture in terms of international business can be referred as growth of cross-cultural contacts, advent of new categories of consciousness and identities which embodies cultural diffusion, the desire to increase one's standard of living and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture". To some extent, it has also been the resulting consumerism and loss of languages. Spreading of multiculturalism, and better individual access to cultural diversity can be termed as the major impacts of cultural globalization. It can be considered that multiculturalism is to promote peace and understanding between people. A third position that gained popularity is the notion that multiculturalism to a new form of monoculture in which no distinctions exist and everyone just shift between various lifestyles in terms of music, cloth and other aspects once more firmly attached to a single culture. In reality, as it happens in countries like the United Kingdom, Canada, Australia or New Zealand, people who always lived in their native countries maintain their cultures without feeling forced by any reason to accept another and are proud of it even when they're acceptive of immigrants, while people who are newly arrived simply keep their own culture or part of it despite some minimum amount of assimilation, although aspects of their culture often become a curiosity and a daily aspect of the lives of the people of the welcoming countries.
Socialization of people for improving business and financial activities across the globe can be referred as globalization. It is not a new phenomenon as people kept searching new places and avenues to increase their business activities. To make term clear, globalization has been defined as the process of rapid integration of countries and happening through greater foreign trade and foreign investment. In essence, it refers to increased possibilities for action between and among people in situations irrespective of geographical considerations as per the definition of social theorists. Given that culture is the new face of imperialism, it is not altogether accidental but the most popular and heavily funded academic area affected by globalization in terms of international trade. International theorists explain culture as national identities being overwhelmed by international cultural norms. It covers the modern world system and the revival of nationalism. Globalization and culture is a live wire theme in constant flux, in lifestyles, cross-cultural encounters, migration, global-local relations, music, media, movies, marketing, fashion, cuisine, and so forth. As the dynamics of globalization change, and in the twenty first century they are changing markedly, even dramatically, so do not just tides but the shorelines of culture.
全球化挑战-5. Challenges of Globalization
Globalization, although not a new phenomenon, is on the rise with the falling trade barriers. Along with this increase, countries of the world are therefore facing many challenges.
As per the UN Development Program (human Development Report, 1999) "Globalization is creating new threats to human security- in rich countries and poora€|New information and communications technologies are driving globalization - but polarizing the world into the connected and the isolated".
According to J. Wolfensohn (1999, the World Development Report of 1999/2000, seeks neither to condemn globalization and localization. Rather, it recognizes them as forces that bring new opportunities but also raise new or greater challenges in terms of economic and political instability.
A major concern when dealing with openness or globalization in general, regards the pressure that this phenomenon puts on nations to change their:
Customs
Norms
Social values.
Customs, norms and social values are viewed in different perspectives in different countries of the world. What may be a custom in one country may not necessarily be a custom in another one. For instance, advertising half- naked women or men on any billboard in Pakistan is against the norms and customs as well as the social values of the citizens, while the same may not be against norm, customs and social values in other European countries. Therefore, organizations should first have a clear knowledge about the host country so that it can operate as needed and most importantly as per the norms, customs and social values of the particular country.
Rodrick 1997 argues that conventional analysis overlooks the fact that social tensions may result as an outcome of globalization.
On the other side, Epstein (2000) argues that more social or safety nets will be required as openness increases, especially for low skilled workers that bear the brunt of instability.
The wide-ranging impact of globalization on human existence means that it necessarily touches on many basic philosophical questions. At a minimum, globalization suggests that academic philosophers in the rich countries should pay closer attention to the neglected voices and intellectual traditions of peoples with whom fate is intertwined in ever more intimate ways (Dallmayr 1998).
Globalization poses four major challenges that are usually addressed by governments, civil society, and other policy actors.
To ensure that the benefits of globalization extend to all countries. That will certainly not happen automatically.
To deal with the fear that globalization leads to instability, which is particularly marked in the developing world.
To address the very real fear in the industrial world that increased global competition will lead inexorably to a race to the bottom in wages, labor rights, employment practices, and the environment.
Globalization and all of the complicated problems related to it must not be used as excuses to avoid searching for new ways to cooperate in the overall interest of countries and people.
Political issues
Politics has equally a great help in the up-going and downfall of globalization. There are issues that can easily be handled by the governing party while others may not be within their reach.
For example; The World Bank has presented the new world development report (1900/2000) under the title "Entering the 21st century" and governments escape responsibility if they change every few years and blame their predecessors. The World Bank lists five major issues of the 21st century:
Poverty
Food security
Water scarcity
Climate change
Cultural preservation.
Therefore, countries for globalization should closely monitor the given five issues so as their efforts are compensated.
5.1 Pros and Cons of Globalization
The pros of Globalization are many and they are as follows:
Now there is a worldwide market for the companies and for the people there is more access to products of different countries.
There is a steady cash flow into the developing countries, which gradually decrease the dollar difference.
Due to the presence of a worldwide market, there is an increase in the production sector and there are lots of options for the companies now.
Gradually there is a world power that is being created instead of compartmentalized power sectors. Politics is merging and decisions that are being taken are actually beneficial for people all over the world.
There is more influx of information between two countries, which do not have anything in common between them.
There is cultural intermingling and each other is trying to know about the other's cultural preferences and in the process of doing so, we are actually coming across things that we like and in the course of time adopt it.
Since we share financial interests, corporate and governments are trying to sort out ecological problems for each other.
Socially we have become more open and tolerant towards each other and they who live in the other part of the world are not aliens as we always thought.
There is a lot of technological development that we have undergone over the years. There are fewer brain drains since people are working in their own country though for a foreign company but are earning foreign exchange for their country.
There are cons as many as pros, which are as follows:
It is true that Europeans are losing jobs and that is posing a problem for them since the companies are outsourcing work to other countries since the cost of labor is low and profits the company considerably.
There is immense pressure on the employed Europeans who are always under the threat of the business being outsourced.
Corporate are building up units in other countries equally well equipped as they have done at their own country, thus transferring the quality to other countries.
There are some experts who think that globalization; along with the positive aspects is also leading to the incursion of negatives like communicable diseases and social degeneration.
There is also a threat of corporate ruling the world because there is a lot of power, which is invested in them due to globalization.
For nations that are at the receiver's end are also giving up the reins in the ends of a foreign company which might again lead to a sophisticated form of colonization.
Countries over the world are now more interdependent and inter-linked world economy any adverse global or regional shock, would affect the entire world.
Unskilled labor; uneducated workers and marginalized population are likely to benefit less in a more competitive world economy since only the educated ones are privileged.
全球化-经验教训-6. Globalization - Lessons learnt
"Globalization has been touted as the panacea for the world's problem".
6.1: Lesson 1
Globalization impacting the Information/Communication Technology
Every silver lining has a cloud. Technology typically conforms to the laws, regulations and style that prevail where it is developed. So a product which might be good for the USA might not be in Pakistan due to the cultural or educational differences.
Furthering global standardization, English is becoming the world language. Notwithstanding this, there remain important language barriers. For example, Chinese and Japanese users prefer software that is in their log language. Therefore, it can be imagined how unsuccessful the World Wide Web would be in Western Europe if browsers only support the Chinese language (Alli, 2007).
Taking the example of Vodafone v/s Telefonica
Big companies make big mistakes.
Vodafone surprisingly had messed up with its globalization drive in the late 90s. After getting hold on Omnitel (the second largest mobile operator in Italy) and Mannesmann which is the biggest player in Germany, the company decided to integrate most function in the UK. However, this integration was taken to be resentful as the same globalization model was be used for these three countries. Many senior executives had resigned but yet the plan still seemed to be working. After all, Italy isn't that different from Germany or UK as a mobile market. This further, encouraged Vodafone to apply the same globalization model to J-phone in Japan in 2001. It's there that the one-size-fits-all strategy bombed and the company lost market share and momentum. So what can be learnt here is that global is not every market. In different countries, people wants, tastes and demand may not be the same, therefore, the mode of conducting business will not be the same, and this also means that different marketing strategies are applied in different countries, thus this why Vodafone's globalization model did not seem to be worked for the Japanese market.
Interestingly, for Telefonica things were different. While they too acquired mobile operators (mostly in various Spanish speaking countries), they left the local management intact. To bring about synergies and efficiencies, they pulled out some respected executives to form an overlay organization that focused on benchmarking and transfer of best practices.
Therefore, the Telefonica approach has worked much better. Telefonica has outperformed Vodafone on almost every parameter. This is because Telefonica had adopted a more thoughtful globalization model.
6.2: Lesson 2
The case of Nigeria and the Ogoni reflecting the negative impact of globalization
Shell has taken colonizing liberties on Ogoni land (Nigeria) because oil is now dangerously construed as a global resource. Shell, a global company, has used the myth of globalization to legitimize its pursuits. A global culture means a planet full of automobiles jetting off into the matrix of the modern world. Nowhere in Shell's efforts in global expansion is there a concern for alternative energy development or the consequences of their actions on local people and lands. According to an official Shell publication, Shell management contends that Ogoni unrest is an "inter-tribal matter" and wishes not to meddle in intergovernmental issues. Furthermore, Shell insists they have no authority to stop, or even protest at, the killing of thousands of innocent people and the destruction of their lands. Also the company had an incredible powerful corporate clout silenced all press concerning the event. For instance, protesters have been jailed, killed and silenced demonstrating against the multi-national company.
This particular example clearly depict that Shell despite is being highly prospered from the Ogoni land(US $30 billion of oil since 1958) but yet refuses to even take a look at its disastrous effect caused to the population of Nigeria. For instance, the company has desecrated virgin lands and done nothing to stop massacres of indigenous populations, which it sees presumably as impediments to oil production and consumption.
6.3: Lesson 3
Impact of the western obsession
Plastic surgery in China: I want to look like Princess Diana
Globalization's Western obsession and velocity are evident in this example. Many Chinese women believed that they need some western features to be "competitive for jobs" in the global market. This is why some of them undergo surgeries at an exorbitant cost fees. For instance, half of their month salary can be spent in many cases for a nose job, dimples, jaw manipulation (to reduce flatness of face), eye slant elimination, larger breasts and so on to look more "beautiful" and Western. Also, because of the varying quality of surgical procedures in China, frequently the surgeries hurt, inflict pain, and demoralize patients.
For example, one woman was having permanent mascara removed after leaving a German company in which she was told to wear make-up all the time (Lee, 1994 cited Steingard and Fitzgibbons, 1995)
From this example, lesson that can be drawn is cultural difference erupted from the globalization effect can at times be very drastic. In the process of adopting the western features, Chinese can be driven away from their own cultural origin. Moreover, globalization entails to racial discrimination and more competition in the global job market. Hence, from this example it can be understood that westerns are considered to be more competent and thus to get aligned with this competency Chinese are ready to pay high cost. This was only one facet of the coin as other kinds of discrimination also take place in the global labor market due to globalization. For instance, on the basis of gender discrimination can occur.
Getting back to this example, high prices, risk of danger, and the loss of one's own culture are the formula for how Western values bring "the good life" to China.
6.4: Lesson 4
American firms in Mexico
As the free-market reaches to other countries, well-established American firms have a higher temptation to exploit workers. Many American firms have relocated operations to Mexico. With training, Mexican workers can accomplish the same quality (or better) workmanship than American laborers at a fraction of the cost. Apparently, more jobs and an increased standard of living seem to be a positive outcome for Mexican society. However, this dream turns quickly into a nightmare.
Ecological degradation resulting from minimal environmental regulation, an authoritarian government that keeps wages artificially low to attract foreign investment as well as ignoring widespread child labor abuses, collusion between the official national union and the government over most labor practices, and basic human rights violations quickly take the bloom off the economic flower. Apart from that, the real problem with such globalization efforts is that they make the host country dependent on American business and prevent that country from achieving their own economic independence. In addition, most American business accelerates the transformation of the local culture to an Americanized outpost while making them compliant to the economic and technological system which has been imposed on them.
Lesson that can be learnt from this case is that in the quest of progress, American firms invest in countries like the Mexico; afterwards the hosts countries are exposed to some detrimental environmental impact, moreover, the cultural wellbeing of the host country are gradually transformed into the American cultures. Hence globalization can be the cause of some countries cultural erosion, also destroying their natural environment, exploitation of labor.
结论-7. Conclusion
As a closing note, globalization can be referred to as the shift toward a more integrated and interdependent world economy. Nowadays, the business world is becoming increasingly global. As more and more business are shifting from the domestic environment to the global, therefore an underlying assumption that can be drawn is that globalization and international trade and investment are growing rapidly and are having a dramatically new and different impact on people's lives. These global impacts could be addressed as being both positive and negative, thus influencing the conduct of business at the international level. On the most optimistic level, globalization has seemingly provided businesses with huge market opportunities internationally by liberalizing trade and capital investment. Whilst on the pessimistic extreme, it was found that our progressive worldview has implanted the seeds of its own destruction through globalization. For instance, it can be the root of cultural erosion in some countries, exploitation of labor, exploitation of natural resources further polluting some countries environment and amongst others. However, business companies are encouraged to go global but at the same time they must explore ways to reduce inequalities and disruption of people's lives. It is suggested that companies must conduct business internationally in a very lawful and responsible way so that to minimize the cost of globalization and to enjoy a global prosper in the worldwide market.
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