Cross cultural management - Globalization

Résumé du document

Globalization is a very up-to-date and highly debated topic, since economists have realized that the human society has really changed since the beginning of globalization. However, this observation is not new. Human society has always practiced international exchanges with trade routes like the Silk Road in Asia. Marco Polo is one of the forerunners of this trend. This open topic means different things to different people, and it is very hard to give a real definition. We may only say that globalization is very close to the ideas of a global village, single world society, and modernization. The world is becoming interdependent, and interconnected with respect to economy, as boundaries do not exist anymore.

To explain globalization we will first see what the different theories which appeared through centuries from mercantilism to International investment are. Then we will identify the link between the origins and the benefits. There are several benefits, but globalization also has limits which we cannot ignore.

Extraits

[...] Nowadays, corrupted and anti-democratic countries still exist in some coutries. Moreover, some regions in the world still don't respect for example the women's rights, or more seriously the Human Rights like children labour, discriminations. The problem is also the deficit of social protection: about 80% of the population has no social protection like social security, jobless indemnities. It seems necessary to create institutions for the global world in order to preserve equality between countries and populations because today, there is no real democratic discussions about problems that sets globalization The problem of democracy According to Sen, Nobel prize in 1998, the world needs a certain stability thanks to a global orgnisation resulting from global institutions. [...]

[...] Benefits, but globalization has also limits we can not overshadow. I. Globalization: theories Globalization is said to be fundamental departure from the past but with the growth of small communities world trade really appeared thousand years ago Mercantilism One of the earliest theories is mercantilism (1500 to 1800). The characteristic of this conceptualisation is that it is based on gold: The wealthiest country is the one which owns the biggest quantity of gold; Countries are bound to trade in order to obtain gold (more exportations than importations). [...]

[...] And this process should be profitable for all countries. In fact, globalization and trade exchanges enabled productivity efficience. This is what comparative advantage theory has demonstrated: each country is able thanks to globalization to improve and maximize the productions for which it has a comparative advantage. Ricardo has been the first to explain that globalization was a sort of cure for the fatal exhaustion of the growth of the national capitalist economies. Actually, without glabalization, coutries would not have been able to produce goods indefinitely because of their lack of natural ressources, and the demographical growth. [...]

[...] Nowadays, the world needs global institutions that would define limits of production, distribution of global earnings, and an education programme for the population to be aware of the environmental problems. Bibliography: 1. Saee J. (2002) Strategic Global Management: Cross-Cultural dimensions Lepage H. and Adès B. (2001) Entretien avec Amartya Sen, Pour en finir avec l'économisme Abella M. of the bureau international du travail, Mondialisation, marchés du travail et mobilité 3. Le Cacheux J. Mondialisation économique et financière : de quelques poncifs, idées fausses et vérités. [...]

[...] Trade liberalization but also financial liberalization: it started in the early 1980s'. Financial liberalization means the deregulation of the domestic financial sector in industrialized countries and the introduction of convertibility on capital account in the balance of payments. The development of technology on information and communication between the 1960's and 1990s' has permitted to connect the entire world and to favour exchanges: satellites, transports But the most important innovation is internet in the 1990s' which allowed instantaneous exchanges. More and more people are connected all around the world at the same time globalization: Facts and Figures Since the 2nd World war, world trade in good and services has expanded twice as fast of world gross domestic product. [...]