Globalisation in Management and Organisation: A Comparative Analysis

This report provides an analysis of globalisation, focusing on the perspectives of Ghemawat and Giddens. It begins by outlining the barriers to international trade and the theory of comparative advantage. The report then delves into Ghemawat's view of Globalisation in World 3.0, discussing the misconceptions surrounding globalisation and the importance of considering the "law of distance." It also examines the limitations of globalisation, particularly in light of the 2008 global financial crisis. Subsequently, the report explores Anthony Giddens' view of globalisation, emphasizing the significant impact on business and the shift towards increased cross-border activities. It also highlights the importance of considering the macro-system exchanges and the impact on people's daily lives. The report concludes by advocating for a policy of "trade not aid," based on the contrasting arguments of Ghemawat and Giddens, arguing that favorable trade policies are essential for equal global development and to stop the dominance of multinational companies.

MANAGEMENT AND
ORGANIZATION IN GLOBAL
ENVIRONMENT

INTRODUCTION
 In international trade, one of the significant obstructions are
the three barriers which hinder the overall economic
efficiency.
 . Almost all the trade barriers work on a single underlying
principle, which is the imposition of some thought of
monetary expense on trading and thereby hiking in the price
of the related trade product.
 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.

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
 In support of this opinion, as the author
suggest, most of the recipients talked about
the flattening of the world and the death of
distances as well as disappearance of
differences between countries. Majority of
them considered these factors to be the
significant agents of global thinking.

CONTINUED…
 As it is evident in this chart,
the real level of globalisation
related to telephone calls,
University enrolment, long
term migration investment
overstock as well as trade as
a portion of GDP can be
perceived at the blue bars
resembling the data
presented above.

CONTINUED…
 the author also surfaces that the misconceptions
regarding globalisation spread because people
perceive that globalisation is an exciting conception.
 for the young innovative and newly emerging business
leaders for entrepreneurs, the author always
promulgate that they should always pay attention to
the law of distance.
 This law holds that the cross border business
interactions are actually limited and major 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.
 The limitations of globalisation were exposed at the
time of the global financial crisis in the year 2008.

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 most business profession of that the
business world has been transformed in a significant and
fundamental manner.
 Currently, more cross border trade activities with physical
commodities are witnessed. In fact 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 which are
impacting the daily and emotional life of people (Swain 2017).

CONTINUED…
 In order to substantiate Gidden’s 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 the 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 world economy. Such
organisation is part and parcel of globalisation also.

FOSTERING THE CULTURE OF
TRADE NOT AID
 Concluding from the contrasting arguments of Ghemawat and
Giddens, it can be commented that the policy of trade not aid
is the best alternative for equal Global development from the
perspective of trade globalisation.
 On one hand it is true that for fostering equal 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).
 However, in 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 the trade activities rather than
becoming disengaged because of unfair competition.

REFERENCE LIST
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CONTINUED…
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