Globalization Under Fire: How should leader respond?

Running Head: MANAGEMENT 0
Globalization Under Fire: How should leader respond?
Article Review
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MANAGEMENT 1
Article Review
The word ‘Globalisation’ means the approach by which the organisation develops
international scale operations. It is the process in which products, job, information and
technology spread across the national borders (Guttal, 2017). Globalisation describes
interconnectedness between the different countries around the globe, which encourage the
development of freedom in trade. There are different types of globalisation from which
economic globalisation is the most important one. The economic globalisation purpose is to
provide market, to the large corporations with a wide range (Ekberg & Lange, 2014). In
addition, globalisation helps the companies by providing cheaper resources, which is the most
efficient form of usage and allocation. Therefore, the impact of globalisation is inevitable as
it provides a variety of goods and services easily available to the people across the nation
with the cheapest rates. In addition, it helps in increasing the capital and labour mobility,
which help in boosting the economic scale all over the world.
In the world history, globalisation plays an important role. It is the historical process started
earlier because the people want to trade freely across the countries by travelling longer or
shorter distances delivered their ideas, services and products to the new places as merchants
and migrants. To understand deeply the history of globalisation, Thomas L. Friedman, who is
the political commenter made the division of globalisation in historical years into three
periods (Friedman, 2005). First, Globalisation 1.0, was the period of pre-world war I (1492 to
1800) in which globalisation launched due to the historical drop in the costs of trade. At that
time, the government is not in the favour of globalisation. In this year, the globalisation
evolves among the countries, when there were forms of mechanical powers made it practical
to devour merchandise made far way. Second, Globalisation 2.0, was the period of the years,
1800 to 2000. In these years, the globalisation evolves among the companies, when there
were the requirements of labours and new markets, to sell the goods and services. In addition,
this was the period of IT revolution. The reason behind this revolution is globalisation. Third,
Globalisation 3.0, was the period after 2000 in which the globalisation evolves among the
individuals. In this era, individuals start using the advanced technology to access the markets
and new ideas without being relocated (Siddharthan & Narayanan, 2018). These divisions of
period help to understand globalisation evolution.
Globalisation in the economy is one of the significant ideas that slowly shift the market to be
fully integrated and this seems to the biggest advantage for the industries (Jain, 2017).

MANAGEMENT 2
However, every concept has its own pros and cons. In addition, to understand the
globalisation concept needs changes or not, there is the discussion in the below paragraphs.
This discussion provides the analysis on the article ‘Globalisation Under Fire: How Should
Leader Respond?’ which helps to understand the role of globalisation in a dynamic
environment and respond of leaders to it is also discussed.
‘Globalisation Under Fire: How Should Leader Respond’ (Ghemawat, 2017) is the article
provides the overview of globalisation. It acknowledges the readers about the temper of anger
in the domestic market due to globalisation, but it does not over reacted. At the same time
writer also seems to be in the favour of changing the perspective of globalisation. According
to this article there are dangerous myths generated for globalisation (Cheah, 2015). In
addition, this article suggested two laws of globalisation. Moreover, the article covers the
non-market strategy and at the end, it argued that firms should support cosmopolitan. In
addition, discuss that there is the need for foster of this change. In this article writer, pulls the
attention of the reader towards the anti-globalisation anger, which is powerfully forward in
the domestic market and the people who are against the globalisation had won some of the
political victories. However, in this situation, it is compulsory for the leaders not to overreact.
According to this article, it is very important for the company to rethink about the concept of
globalisation before working on international strategy of the company. In addition, the
leaders have exaggerated perceptions about globalization, which leads to the development of
wrong strategies in the organisation and later on it can also hamper the profits and reputation
of the organisation. This article helps to remove these wrong perceptions about the
globalisation and it gives recommendations for new strategies and corporate
cosmopolitanism. In addition, this article also helps in understanding that globalisation is
irreversible (Pettinger, 2018). These recommendations can easily pursue by any organisation
with the help of law of semi globalisation and law of distance states. These are the two laws
of globalisation.
In this article, according to Jeff Bezos (Amazon, CEO), the strategies of the organisation
should be stable in nature as it helps in building the enduring value of the company in this
dynamic environment (Mudede, 2018). In 2016, writer of this article, Pankaj Ghemawat
published a book name as ‘The Law of Globalisation and Business Applications’ in which he
states that globalisation should be followed according to the two laws of globalisation
(Ghemawat, 2016). For example, the law of semi globalisation signifies that in the case of
hard Brexit, the United Kingdom and the United States both had international flows, which is