Management and Organization in the Global Environment

This document explores the impact of globalization on management and organization in the global environment. It analyzes Ghemawat's and Giddens' views on globalization and discusses the importance of fostering a culture of trade. The document also delves into trade barriers and their effects on global trade.

Running Head: MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Management and Organization in the Global environment
Student’s Name
University Name
Author’s Note

2
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Table of Contents
1. Introduction..............................................................................................................................3
2. Ghemawat’s view of globalisation in world 3.0.......................................................................4
3. Anthony Giddens' view of globalisation..................................................................................7
4. Fostering the culture of trade not aid........................................................................................9

3
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
1. Introduction
In international trade, one of the significant obstructions are the three barriers which hinder the
overall economic efficiency.
There are several forms of trade barriers among which the government induced trade barriers on
global trade are most significant. Other than that there are other forms of trade barriers including
import licences, import quarters, local content requirements, currency devaluation, trade
restriction and many others. Almost all the trade barriers work on a single underlying principle.
The principle is the imposition of some thought of monetary expense on trading. Thereby the
company attempts to hike the price of the related trade product. Economics mostly that trade
barriers are detrimental as well as a reason for decrement of economic efficiency. The theory of
comparative advantage can be utilised to explain this phenomenon. In terms of theory, aspect of
free trade can be expressed as the activity of removing all major trade barriers except those
significant barriers which are important for ensuring health as well as national security. In
practice, no significant exercising of the theoretical understatement is evident. Rather, as
observed by Giudici and Rolbina (2018), even those countries free trade also impose subsidies
on several industry specific products like agriculture and steel. In most cases, trade barriers are
despised because they have on the development of the world. That is because the productive
players of International Trade determined trade policies,for Agricultural Products between the
developing countries The introduction of such policies are the major barriers against conducting
free trade in the world. As such, in spite of having market Monopoly over production and export
of a particular product, the developing countries are not able to enjoy the financial benefit. The
Global trade of a specific product which that country is producing at their peak rate, is being
monitored through the imposition of severe and adverse trade policies by any financially rich

4
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
country. That country is mostly a rival to the other country in terms of global trade over that
particular product.The impact of trade barriers which are perceived to be gradually collapsing
will be analysed in this research study. The researcher for the Undertaker to analyse weather
globalisation is having a significant negative or positive impact of global trade. English context,
Ghemawat's perceptions of global trade will be examined along with Gidden's ideas about
globalisation. In the end, the end of poverty movement will be analysed and the strategies to you
are a more globalised world in terms of reducing the trade barriers will be discussed.
2. Ghemawat’s view of globalisation in world 3.0
As highlighted by Ghemawat (2011), based on the popular perceptions about globalisation, it can
be inferred that the world is becoming more connected as well as independent. The author has a
state of the opinion of several dozens of audiences to collect their idolization about the global
society where trade-flow will be free. Most of them seem to suggest that we are living in a one
and integrated world. In support of this opinion, as the author suggests, most of the recipients
talked about the flattening of the world and the death of distances which resulted in the
disappearance of differences between countries. Majority of them considered these factors to be
the significant agents of global thinking.
However, Ghemawat opines that economics statistics do not allow us to perceive that we are
living in a flat and connected world, even though technology has created chances of
communication between anyone and everyone throughout the time. However, analysing trade
across borders are still circumnavigated by domestic concentration. The example of foreign
investment can be provided (Ghemawat and Jones 2016).

5
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Out of the entire capital invested globally, listen 20% is a foreign direct investment made by
companies outside the countries of their origination. In fact, until 2009 the ratio was 9% and
blessed, and after that used by merger waves, the rate of FDI has reached almost 20% (Zobel and
Ambos 2018).
However, the hyper animation of perception of the general public regarding globalisation can be
perceived in the green bars. This tendency of knowledge is not the outcome of any systematic
thought. People in their academic or professional career witnesses promotional activities of
government as well as corporate forces which make them perceive that Global internal
communication and interconnectivity has had a significant contribution on Trade and global
trade is a reality today.
As observed by Purnell (2018), smart and knowledgeable business people also seems to advocate
the fact that trade barriers are always in coaching and providing the way for fast development of
free Global trade. As analysed by psychologists like White (2017), people tend to believe

6
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
something interesting to what they fear. That is why a business person always advocate for the
unbounded profits in the borderless world. Another set of researchers have a deep-seated fear
that globalisation might exploit our cherished culture; it might turn out to be dangerous for
natural habitats and so on. However, Ghemawat states that all such perceptions are misguided. In
fact increase in integration across the borders helps in developing the potential for large-scale
economic and other forms of gains. However, this is not possible through the development of the
stateless Corporation selling the same things to everyone and everywhere (Prashantham, Eranova
and Couper 2018).
Again, the author also surfaces that the misconceptions regarding globalisation spread because
people perceive that globalisation is a new conception. For a young MBA graduate, nothing can
be more appealing than coming to know that after mastering his course of study he can become
fully equipped to be able to tackle the business problem throughout the world. For the young
innovative and newly emerging business leaders for entrepreneurs, the author always
promulgates that they should always pay attention to the law of distance. This law holds that the
cross border business interactions are a limited and significant share of these introductions
happen across countries that are relatively nearer to each other, not only in terms of geographical
position but also in terms of their culture and politics.
As primary evidence, Reis (2015), the majority of cross border trade between the USA and their
direct neighbour Canada can be highlighted. In terms of bilateral trade, Canada remains the
largest trading partner of the USA and responsible as a primary source for imported oil. Canada
is, in fact, the top destination for the outbound telephone traffic with the USA by far. Because of
these arguments, Reis (2015), states that people associated with business at executive levels
should understand that cross-cultural and international borders do matters in business. Ghemawat

7
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
recommends that will the organisations are deciding to expand across their borders for the first
time, we should initially look for the nature of business and target market of the place where they
are coming from. This is because he has analysed that all successful companies have started
expanding in countries which they could relate along with their own culture as well as political
values. As an outcome of the above statement arguments, it can be analysed that interaction is
the basis of future expansion in business and on a superficial level this is what which goes into
account as globalisation across countries in terms of trade affairs. However, Ghemawat (2018),
states that in contrast, what the Global Business force is building doing accounting for the
development of a domestic business economy based on the same culture and the similar type of
target Market using which they can consolidate their foundation, furthermore.
The limitations of globalisation were exposed at the time of the global financial crisis in the year
2008.
3. Anthony Giddens' view of globalisation
According to Giddens, we are sending through a period experiencing rate economics, political as
well as social changes. Globalisation is a term that has been incorporated in politics as well as
popular discourse referring to the above mentioned changes.
In today's business atmosphere globalisation has made a significant impact as the most business
profession of that the business world has been transformed substantially and fundamentally.
Currently, more cross border trade activities with physical commodities are witnessed. A
dramatic increase over trade in services as well as information has occurred. However, business
analysts mostly calculate on globalisation keeping the economic terms in mind. However, they
fail to analyse the Macro system exchanges of global markets and also the small transformations

8
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
which are impacting the daily and emotional life of people (Swain 2017). However Giddens have
analysed that along with restructuring the texture of everyday life of people, globalisation brings
about other large scale changes also. For evidence one significant difference that globalisation
pulls away from the power of control from the nation-states in terms of economic and trade
policymaking. The translational powerhouses of economy, namely the multinational companies
take away this power from the nation States against providing them resources which can help to
boost the local economy. This facilitates the development of local cultural identity as well as a
strengthening of governance in the form of sub-National units. However, Giddens advocate set
the local documents are steering globalisation to benefit the critical sections of society rather
than only the capitalist forces. To substantiate his view, at first, the opinion of the critics have to
be considered (Morgan 2017). The perception of critics is that the Global corporations are
dictating the world. In this context, advocates that corporate influence over trade as well as
economic policies cannot be disregarded. However, in global society it is not on with them who
can use the same Technologies of organising globally and exiting their political power. There has
also been the emergence of Non-governmental organisations as a significant countervailing force
of the world economy. Such organisation is part and parcel of globalisation also.
The author identifies organisations like Monsanto or Royal Dutch Shell the analysis of their CSR
activities by the NGOs (Intriligator 2017). The Global help that has been done by such
organisations for economic, social as well as educational development of non-growing regions of
the world is more transparent compared to the NGOs activities in similar areas.
Secondly, the author also evaluates the claim of other authors who states that exacerbation
quality has taken place because of economic globalisation as well as free trade policies. In this
context, the states that statistics show that equality has accelerated in the modern world (Cottle

9
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
2016). Counter statistics can also prove that literacy, as well as health, has improved which has
been the primary cause of the decline in global inequality.
Analysing the factors, it can be commented that Giddens advocated the development of middle
ground for the state between the dirigiste model as well as free-market orthodoxy. In this
context, the success of courier and Ireland can be highlighted both of whom have developed
globalisation rapidly as a part of political activities. Thus it is evident that the author is optimistic
about the consequences of globalisation as well as commercial distribution (Srinivasan 2018).
The rich countries are in obligated to help for economic development in the developing and
developing nations. However, it is also true that the countries by themselves should also come
towards financial restructuring. The disadvantage from the global economy is never the way
forward for merging with the developing world.
4. Fostering the culture of trade not aid
Concluding from the contrasting arguments of Ghemawat and Giddens, it can be commented that
the policy of, not support is the best alternative for equal Global development from the
perspective of trade globalisation. On one hand it is true that for fostering similar Global
improvement in terms of local area development, as well as cultural and economic development
of developed and developing countries of the world, favourable trade policies to be formulated
so that it can be broken and treat dictatorship of multinational companies favouring the economy
of their home countries can also be stopped (Addison, Morrissey and Tarp 2017). How is work at
the conference it is also true that developing countries have to initiate the process of unfair
policies and demand for formation of favourable policies of trade? They should also indulge in
trade activities rather than becoming disengaged because of unfair competition.

10
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
The first argument in favour of trades, not a is that for it in the form of treat favour to the
developing economy is wasteful and contributes towards the development of the culture of
dependence. Video this might lead the recipient of trade to help feel low my self-esteem.
However, researchers like Addison, Morrissey and Tarp (2017), Argues that all the foreign aid in
terms of trade favour can increase the insurgents of capital in the developing economies, it is also
true that this will lead to an unnoticeable increment in the allocation of capital towards wasteful
economic projects.
Foreign aid often helps the local capitalist forces of the developing Nations only since trade help
does not encroach into the societies to elevate the living standards of ordinary people mostly.
Government is often associated with bilateral agreements: age to India except for demand for
buying British Exports. Which the private age establishments, there is a worry that it will provide
power to the non elected individuals which will lead them to decide the priorities for the
societies.
On the contrary increase in trade, flow is the best Apple that the developing economy can make
for the real improvement of their mass economics.
Maximum economics are united on the perception of the benefits of free trade areas for
improvement of economic welfare. For evidence, we can talk about the USA and United
European Tariff upon the food which leads to higher food prices for the consumers in the
developing Nations. The eradication of these trade-related areas will enable the reduction of
prices of a global commodity. It can be analysed that search trade-related changes will be able to
make a great deal of difference to monetary and commercial welfare for the developing
economy. As an outcome, the local farmers in terms of agriculture produce or the small scale

11
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
traders and manufacturers did also get the chance to export theirs produces to the developed
world.

12
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Reference List
Addison, T., Morrissey, O. and Tarp, F., 2017. The macroeconomics of aid: an overview. The
Journal of Development Studies, 53(7), pp.987-997.
Cottle, S., 2016. On the violent history of the globalised present. In Reporting Dangerously (pp.
61-87). Palgrave Macmillan, London.
Ghemawat, P. and Jones, G.G., 2016. Globalization in historical perspective. The laws of
globalization and business applications, pp.56-81.
Ghemawat, P., 2017. The laws of globalization and business applications. Cambridge University
Press.
Ghemawat, P., 2018. The New Global Road Map: Enduring Strategies for Turbulent Times.
Harvard Business Press.
Giudici, A. and Rolbina, M., 2018. Pankaj Ghemawat's Distance Still Matters The Hard Reality
of Global Expansion. Macat Library.
Intriligator, M., 2017. Globalisation of the World Economy: Potential Benefits and Costs and a
Net Assessment. In Economics of Globalisation (pp. 85-94). Routledge.
Morgan, W.J., 2017. Local knowledge and globalisation: Are they compatible?. In Globalisation,
education and culture shock (pp. 49-61). Routledge.
Prashantham, S., Eranova, M. and Couper, C., 2018. Globalization, entrepreneurship and
paradox thinking. Asia Pacific Journal of Management, 35(1), pp.1-9.

13
MANAGEMENT AND ORGANIZATION IN GLOBAL ENVIRONMENT
Purnell, M., 2018. Globalisation and its impact on the journal collections of research libraries in
Australia: a Health Library’s perspective. Journal of the Australian Library and Information
Association, 67(1), pp.55-63.
Reis, N.R., 2015. WORLD 3.0: GLOBAL PROSPERITY AND HOW TO ACHIEVE IT Pankaj
Ghemawat (2011), Boston (MA): Harvard Business Review Press, 386 p. Revista Ibero
Americana de Estratégia, 14(2), pp.137-139.
Srinivasan, N., 2018. Empower–Through Trade, not Aid. In Exploring Dynamic Mentoring
Models in India (pp. 125-153). Palgrave Macmillan, Cham.
Swain, S., 2017. Leisure in the current interregnum: Exploring the social theories of Anthony
Giddens and Zygmunt Bauman. In The Palgrave handbook of leisure theory (pp. 799-816).
Palgrave Macmillan, London.
White, R., 2017. The Determinants of Public Opinion on Economic Globalization and the
Influence of Cultural Differences: A Summary of Findings. In Public Opinion on Economic
Globalization (pp. 271-278). Palgrave Macmillan, Cham.
Zobel, N. and Ambos, B., 2018. European business research in perspective: The focus of
regionalisation in the international business literature. In The Routledge Companion to European
Business (pp. 29-40). Routledge.