Globalization and Its Further Analysis

Essay: Globalization under Fire: how should leaders respond? This essay reflects, how the perception of globalization is misconstrued from the actual reality. It also addresses the need to develop a cosmopolitan attitude by business firms so that they can foster changes, which will benefit the humankind at large.

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
GLOBALIZATION AND ITS FURTHER ANALYSIS
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Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
Essay: Globalization under Fire: how should leaders respond?
As argued in the book, World is flat by Thomas Friedman, globalization is not a new
phenomenon, he elaborates three stages of globalization, one where the countries initiated the
discovery of new land, refereeing to the age of discovery (Friedman 2005). Then, in the age
of industrialization, the companies initiated globalization, where extracting of man labour
was at peak, last but not the least, globalization imitated by the individuals because of the
increasing de-distanciation aided by technology and science. In the essay Globalization
under fire: how should leaders respond? by Pankaj Ghemawat, explains the phenomenon of
globalization premised on the political turmoil, where there is constant rise of anger without
over reaction (Ghemawatm2005). It also addresses the need to develop a cosmopolitan
attitude by business firms so that they can foster changes, which will benefit the humankind
at large. This essay reflects, how the perception of globalization is misconstrued from the
actual reality (Papastephanou 2015). He states various facts, where the percentage is
exaggerated and are informed with the notions of post-truth. He tries to understand the laws
of globalization in relation to the future, thus he suggests three strategies: adaptation,
aggregation and arbitrage. He also argues the extent in which globalization is affecting the
world trade relation amongst political crises of Brexit to changes of regulation of NAFTA
renegotiations. The value chain management is not limited to local unit again the
international business firms cannot run if they do not take account of the local, as the author
has suggest, it needs to adapt and also aggregate to newer market forces, along with
necessary arbitrage plan (Gereffi and Kaplinsky 2001). Owing to these kind of political and
economic turmoil, the authors concludes that globalization is not an choice but an imperative
and recommends that there is need for growing a cosmopolitan behaviour because it is very
essential to recognize the need in the local level.

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
It is very important to understand that globalization, and the extent of impact it has on
the corporate culture and its percolating to the effect to the people living in community. As
suggested by Thomas Friedman, Globalization 3.0 has cause individuals to effectively
interact Trans borders, thus not only there is an economic flow but also the cultural flow. This
entire phenomenon has been summarised by Marshal McLuhan when he coined the word
“Global village” (McLuhan et al 1992). He wanted to acknowledge to the fact that, with the
advancement of technological changes in transportation and communication, other entity of
the world has shrunk because each person can access to any kind of information pleased (Wei
and Peters 2018.). It is in this juncture that author is trying to decipher the role of the human
agency embedded in the structural changes. Both the terms globalization and
internationalization are used synonymously, however, it is important to the understand the
difference between because internationalization refers to the geographical spread of economic
activities, which is not new phenomenon (Sturgeon 2013). The history of the world we live
in, witnessing, internationalization, where globalization a relatively new phenomenon
because, unlike internationalization, globalization refers to the functional; integration
between internationally dispersed activities (Dicken 1998:5). Globalization is the productive
sphere that accentuates functional integrating between internationally dispersed activities,
where the value chain perspective forms an effective means of conceptualizing the forms that
this integration takes. With the help of the value chain management, one can focus on the
whole range of activities from designing, to marketing, unlike only the production activities.
In accordance to the value-chain management, the problems of governance can be
highlighted, which will enable to arrest the global inequality that is dispersed across globe.
The sentiments regarding globalization and the global value chains has exceeded the real
picture of it (Pankaj). Global value chain is related to the rapid development phenomenon
known as “international fragmentation of production”, this refers to the where there is global

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
division of labour and work procedure is divided between nation. The author in the article
Globalization under fire, warns us about the erroneous perception that has accelerated mental
imagination of process of globalization, and shows us that the things are quite different when
analysed scientifically. The world is flat by Thomas Friedman is still a distant dream because
still there are hindrances like distance and language which constraints the international
activity (Friedman 2005). According to the latest DHL Global Connectedness Index, shows
that the rate of globalization has slowed in 2015 and it did not go reverse. The trade depth too
has declined in 2016 than in 2015 (Ghemawat et al 2011). Even though the FDI flows were
increasing in 2015 by a wave of the overseas corporate inversions, FDI flow depth in 2016
have unwound only a fraction as compared to the previous year. Thus the entire blame game
politics that are being played, where the global north is in a better position that the global
south is a matter of the local value chain management of the domestic economy. According to
the IMF (international monetary fund), rapid pace of trade, financial globalization and the
rise in income inequality has been observed in most of the countries and within the countries
(Dabla-Norris et al 2015.). Literature also shows that with the rise in global trade, the
indigenous markets are being hampered. In order to understand the dual process one needs to
understand that the current trends of globalization, one needs to understand the globalization
is not a homogenous terms because it reflects two offsetting tendencies like trade
globalization and financial globalization. Trade globalization is associated with the reduction
in inequality and financial globalization is associated with the increase in equality (Dabla-
Norris et al 2015.). This article did not make in distinction between the trade and financial
globalization and hence painted the intensity globalization in the same light (Industry et al
2019). However, it has provided us with three laws, which can be treated as good strategies to
implementing the global trade so that it will be able to include more and more firms and as a
result, it will employ inclusive development of nations. Daniel Bell was one prominent

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
sociologist who addressed the emergence of post-industrialism society. It is in this era of
globalization that the America is facing emergence of new principles of innovation, or new
modes of social organization. The rise of the tertiary sector, along with change in financial
and human capital. He states that the infrastructure of the industrial society was transportation
and the infrastructure of post-industrial society is communication. Thus he address the aiding
factors of globalization were the same for rise of tertiary sector too.
In this article, the author also mention about the US Company making a major
commitment to the Mexico. He states that anything that moves out of the home country,
involves a difficult process to return to the home country. Then he states this phenomenon
using the example of the electronics manufacturing. He states that even if the entire electronic
industry shifts back, the entire ecology needs to be rearranged because there is lot of
automization. According to him, electronic robotic instrument will be taking the job of the
man labour. The per hour cost of robot is same as the typical manufacturing hourly wage in
china. The cheap labour, which was to be available in the developing or the populous
countries, will remain jobless because the of the digitalization (Sorgner et al 2017). This
statement is highly debatable because inventing better methods in technology can actually
lead to the reskilling of the blue-labour economy. Increasing digitalization of manufacturing
industries creates newer avenues of job, and it is very important for an economy to invent
newer job categories (Sorgner et al 2017). Stagnate economy with the old style of
employment will not help to improvise the job role and it can also be detrimental to the
growth of the commercial business industries. Again technologization can be assist in
eradicating the informal nature of job and propel the labour sector to upskilling (Modestino et
al 2015). Technologization does not automatically lead to digitalization; studies show that
place of women in the manufacturing sectors, are in the unstrategic sector. This is the story of
most of the developing countries, the kind of job role is not only hazardous to the health of

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
the woman but it also lowly paid (Sorgner et al 2017). Thus technologization in this sector
will help the labour retain the humane status, although apparently this will result in the
vacuum of joblessness but from the other angle it will help in restoring the status of the job
(Bernstein et al 2018). Technology too has a lot of categories like that of basic technology,
which is actually required by every business for engaging the mass production. There is
another kind of technological improvisation that will help the firm to get an upper edge
against the rival firms. Again, technological need not always require to innovate with no
connection to past technologies which are in use, in China, there is an increasing tendency to
infused the new technology with the old technology, in this way, they will provide avenues,
and that in turn will provide employment opportunities, instead of cutting them in short.
Therefore, the debate, which is premised on whether globalization has to recede or proceed,
displays complicated issues that needs a careful investigation. Globalization leads to the
intensifying of the trade activity and it also provided various avenues through which it can
assist the under-developed or developing economy to a sustainable development (Lund et al
2016). For example, UK is providing relief aid to underdeveloped countries and it too many
other developing country, so is Germany, and so is USA. However, with the initiation to
development for a sustainable future, there are also facing, charges of corruption. In UK, the
Corruption has become an endemic reality in their country. However, the corruption is not in
their use of the financial power but is spread across the overseas business.
Owing to this kind of scenario, one needs to apprehended the intensity and depth of
the globaloney, because only after this one can act in accordance to the present need.
Globalization is not the choice, but it is also not an imperative, because globalization has led
to the mixing up of avenues and opportunity. It is not any force that can be retreated but the
impact of the effects should not be generalised. Erroneous conception about globalization can
inhibit firm’s competitive position and its capabilities for managerial international operations.

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
In this article, the nonmarket strategies were also discussed along with the need of the
cosmopolitan attitude (Barbalet 2014). With the increase in the global activity across the
globe, business leaders should also address the facts like rising in income inequality, large
swath of the population in advanced economies for being left out by the giant multinational
economies (Ghemawat 2005). One of major reason for this kind of misconstrued
communication is due to the rise of the global social media platform. Due to the acceleration
of the digital communication, along with the rise in e-journalism, people are often
miscommunicated with information that has no connection or partial connection with reality.
Since the rise of e-journalism or open journalism, people are free to state there opining across
the digital platform. This has, no doubt accelerated the freedom of expression, but sometime
unwarranted information with lack of substantial foundation can aggravate the fears in the
minds of the people. Thus there is a need for an governing management or global constitution
that will cater to this kind of crisis. but for the business leader can help in creating
atmosphere of clean and clear communication, so that there is more international openness,
connectedness and integration is possible, also coupled with domestic polices which can
remedy the side effects that will lead to more prosperity and well-being.
Moreover, heterogeneity of the local demands should be accompanied with the
cosmopolitan attitude in the organizational structure as well (Igarashi and Saito 2014). As the
author suggest, if the company can constitute themselves with the leaders coming from
different cultural background they can better address the local needs. According to him, there
is a strong dearth of non-native employees in the multinational companies (Papastephanou
2015). If the companies tries to experiment with the employment opportunities in the host
countries, they can make the communities more aware of the practices and the functioning of
the company. The cosmopolitan culture will not only adapt to the need of the bottom down
model but also the top-down model, in this way they can serves as the connective tissue

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
across the far-flung corporations. This process will involve culture-building actives, which
will encourage one to introduce newer ways and mediums to recruit, support specific
initiatives and side projects. Thus, globalization as a process can yield to inclusive
development.

Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
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Running head: GLOBALIZATION AND ITS FURTHER ANALYSIS
1219 Geneva, Switzerland Tel:+ 41 22 917 8492–E-mail: ictsd@ ictsd. ch–Website: www.
ictsd. org Publisher and Chief Executive: Ricardo Meléndez-Ortiz World Economic Forum
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