Global Business Environment - Term Paper Example

GLOBAL BUSINESS ENVIRONMENT By Location Introduction In the last few years, the economies across the world have undergone major transformations. Some of the clear dimensions that have been altered include the diminishing role of the government, increased role of the market, risen economic transactions between different countries, and the growth of the domestic and international financial transactions(Epstein, 2005, p. 19). Ideally, these changes in the landscape have been characterized by the rise of globalization, neoliberalism, and financialization. Financialization has deeply affected most Western countries and paved way for the daunting era of a financial crisis. During financialization, capitalism is often affected by the dominance of the financial sector over the productive sector(Krippner, 2011, p. 9). The essay critically analyzes some of the themes covered by Erturk et al. (2008) and their relevance to contemporary business and economy. Market culture According to (Ismail, et al., 2008, p. 239) there is no outline for a single market culture thesis. Instead, the issues discussed revolve around a variety of themes that touch on the market culture of society and politics. One of the market culture themes that have been identified covers a shift in interest among economical agents, from the inequality to difference; from the market economy of resource distribution in the economy of cultural recognition and identity. Economic actors are less concerned with issues related to the economic equality and are constantly shifting their attention to cultural differences. The dimensions of inequality in the economy have been focused on less, relative to the cultural considerations and differences that have turned to be a major problem. On a standard sociological account, the relation between economics and economies has been interpreted to be quite weak. The reason behind this prerogative ideology is that the economics provide highly abstract market models that are based on behavior and governing assumptions that have no world equivalences in reality. Along similar lines, the academic economics do not have a great deal of importance for businesses, even though it has a recognizable significance for states(Budd & Harris, 2004, p. 74). On the other hand, (Callon, 2004, p. 242)views the economy as a set of reliable technical practices rather than a bad science. He also visualizes the economy as a technology that creates phenomena and allows participation in shaping whatever it describes. The interest in the economy should be based less on the set of accurate representations of the market and more on the part it plays in the performing markets. There has been a major shift to cultural explanations within the economy. The economy should not just be mistaken as an instrument or technical process. Instead, it should increasingly be figured out as a moral and cultural underpin in the market(Ball, 2008, p. 9). The different forms of the economy have different cultural bases that affect their progressive shape and final successes. The analysis of such economic differences and successes should focus more on cultural differences rather than technical and economic processes. Politics is decreasingly concerned with the moral concerns of the economy. The political actors perceive that they have a little or decreasing amount of control over the economy, largely due to the common processes like globalization. The actors, therefore, attempt to pursue changes in the morality and culture of the economy. Also, they perceive that humans live in a world that can only be described to be post-material. In such a world, people enjoy a higher standard of living than in the past and are more concerned with the economic and moral issues that touch on their lives. Hence, political actors are more concerned with the moral government than the economic intervention programs(Burgess, 2004, p. 8). There is a shift from the critiques of consumerism and commodification to their celebration. Ideally, the consumption on the market is visualized as a source of more fulfillment rather than alienation. The ideology goes hand in hand with a major shift from the economic emphases to the cultural emphases. The analyses are seen to be positive from a culturist perspective and problematic to the consumer. The political angle has constantly been cultured, not only in the content, but also the style of the economy(Gottdiener, 2004, p. 3). The stylization of politics and its importance has reached new and greater heights in the hands of media manipulators and spin-doctors. The manipulation of politics and the aesthetic considerations of this field has become an important part of the economy to displace much substance from politics. The new labor and cultural turn Economic redistribution towards individual potential and equality of opportunity has resulted in a shift away from the ideas of equality in the ideas and policies of new labor. The political economy of labor is more concerned with the cultural bases of the success achieved by capitalists. The idea of influence of culture on the economic success of different countries has elicited much debate on its eligibility(Casson & Godley, 2005, p. 156). Labor has explicitly argued that globalization has been the major tie of economic progress. Moral guidance, exhortation, and legislation have played a big role in this agenda, especially on the teaching methods used, welfare, parenting, smoking and hunting, and alcohol among others. Labor modernizers have also constantly shifted their concern from producer interest to those of the consumer. Much has been said over the wonderful care, coordination and manipulation used in the presentation of the image of labor to the public. It is thought that the spin-doctor effect has been taken to greater levels by the media managers of the labor party. In all these respects, there is a huge possibility that the economy is being cultured within the political perspectives. Economy, social justice, and welfare The ever-changing policies and ideas on the economy are based on the notion that we live in a new dispensation. The new dispensation has become a familiar analytical tool to spearhead the development of the economy financially. The world keeps changing both incrementally and qualitatively, and so the economy must change progressively in the same respect(Jones, 2004, p. 147). The new age brings together idea on how modern societies are being transformed by social and cultural forces like globalization. The old class structures and popular political allegiances are quickly disappearing, and society keeps being bound less by tradition. The civil society has become more differentiated, individualistic and pluralistic. The individual subject of the economy has become a fragmented and reflexive tool with regard to its identity. In the economy, the new age represents a flexible give away of mass production to specialization. The giveaway has led to the fragmentation of cultural identities and social relations in society(Boje, et al., 2013, p. 8). For a greater percentage of the new age, society has been marked with excessive social uniformity and the unified subject of the economy has resulted in a social diversified subject. On the welfare and economic state of countries, it is clear that there is no possibility of going back to the political economy of social democracy and state socialism. The free market of reforms, as well as the deregulation and privatization of the labor market, should be retained. The radical modernizer message requires that the reforms of the various years of conservative government be maintained even with the emergence of new governments. Social policy is conceived to be a less means to redistribute wealth and incomes that support the economy. Therefore, social policy cannot effectively contribute to the band – aid of capitalism and the means of increasing the individual opportunities of creating a flexible market in a global economy(Farnsworth & Irving, 2011, p. 85). Governments should help the individuals get in an uncertain world rather than locking them in a social and dependency exclusion. Economy modernizers often advocate the devolution of responsibilities from the state to the individual agencies. The devolution of economic power should be maintained in schools and GPs and to some extent modified rather than reversed. In return, educational and welfare rights have been seen to require greater responsibilities. Global competition is economic and spans between the different forms of capitalism. The different cultural bases are responsible for distinguishing the different forms of capitalism. Economic relationships are less based on markets and more based on long-term bonds. Also, there is greater need to advocatestake-holding in the corporate affairs. Such measures can increase the level of accountability among the stakeholders tasked with the responsibility of building the economy. If implemented, this would lead to a longer and more constructive engagement of the companies involved in building the economy. Society is an entity that allows individuals to take up a special part in steering it ahead. Thus, the young, unemployed, welfare dependent people and the single parents are often excluded from the opportunities enjoyed by other people in society. Such people need to be brought to the stake of society and given a chance to exploit the few job opportunities that would help them contribute to the society. The decision to give opportunities to the economically oppressed should be followed by programs targeted at the welfare-to-work program, the ambition to reform the tax and benefit scheme as well as the desire to provide incentives to the unemployed group of people in society. Economy communitarianism Communitarianism in the economy operates at the sociological, ethical and meta-ethical level. At the sociological level, communitarianism offers the economy a retort to the neo-liberal view that there is nothing like society. Instead, there is consideration that the economy constitutes individuals together with their families. Individuals do not build their personalities outside the community they pay allegiance. The economic achievements people make are constituted through the social relations that are embedded in their families. At the ethical level, the economy is perceived to be communitarian since it believes that the community is a good thing. The level perceives the community to be better than the society which consists of people engaging in financial activities for their selfish interests. The community can do things which the individuals cannot achieve on their own. Also, the economy has particular ideas on which types of communities are good for progressive development. On the meta-ethical level, the economy avoids the relativism of communitarian thinking and instead pursues the common moral agenda(Boswell, 2013, p. 189). There is an economic thinking within the ethical and sociological perspectives that provide modernizers with the right framework for public policy-making. The perspectives have a strong moral flavor that is concerned with the good life in the community. Successful economies do not live by competitive individualism alone. Instead, it relies on community values like collaboration and cooperation which are vital to the success of the market system. Public – private partnerships and the involvement of the state in the provision of training and education are essential aspects for the success of an economy. Also, the welfare of the economy is best left to the private enterprise that can sponsor a greater percentage of development projects(OECD, 2004, p. 145). There is also a greater role for public agencies and governments to ensure those outside the economy are incorporated back to the society. The laissez-faire has contributed to the social fragmentation of the economy, leading to the development of a dangerous cocktail of anomie and poverty. Also, the social cohesion is society is to be rebuilt in part through the welfare of the society. Whether one buys this economy analysis or not, it does not demonstrate possible permanent features of the new economy. Also, it speaks to the complexity of the social and economic relations with the new systems of information and communication. Ideally, the emergence of an integrated service sector and the depreciating costs of innovation and information have been the major reason for the emergence of overlapping characteristics in the international economic system. The future financial market situation The recent measures used within the financial market regulations sector do not affect the financialization of the economy in any substantial way. Policies touching on the increased transparency for the rating agencies, increased capital requirements for banks and the registration of hedge for fund managers should not reduce the level of financialization within the market economy. Measures likely to affect financialization in any possible way should be chosen to pave the way for a successful economy. Financialization has a deep and structural character that requires vigorous activities such as the cross-border capital controls, imposition of the financial transaction tax, de-concentration of the systematic banks, strong curbs on shadow banks and hedge funds as well as the separation of retail and investment banking. The activities are useful in substantially decreasing the level of financialization in the society. Possible measures likely to decrease the level of financialization in society have proved to pose a utopian character seemingly. Also, financialization has been deeply engrained in the political and social structures used in Western societies and also on the mass investor culture within the society. Thus, a broad group of the middle classes have developed a strong interest in the welfare of the financial markets. Furthermore, the system of the revolving doors between the major financial institutions and the financial regulators has contributed to inhibiting the major fundamental reforms expected within the economy. Financialization at work has become a major discursive practice in the society and the economy on the whole. It is likely that the financializationprocess will stay around for the next years unless a diverse economic crisis affects the political support enjoyed by the capitalist formation. Structural long-term perspectives of financialization A greater percentage of the highly financialized economies are inherently prone to crisis, and there is high likelihood that society will witness a major economic crisis in the future(Mitroff & Alpaslan, 2014, p. 43). If this crisis occurs, it will probably be more severe due to depletion of budgets from the Western economies. Also, a crisis in the economy will result in comparable rescue operations and stimulus programs that will lead to a foreseeable financial future. Under such circumstances, it is well possible that the wide support for financialization will dwindle and pave the way to the different economic formations. It is not possible to foresee such exact outlines of the long-term developments expected, but there could be possible emergency of a different kind of state capitalism. A critical breakdown of the existing global economic order is likely to advantage the latter, resulting in a lower degree of financialization in such economies. Conclusion The paralysis in the global credit markets, crisis within the US sub-prime mortgages and the run on the Northern Rock all provide a wake-up call to the growing influence of financial markets over the lives of the ordinary people. Financialization at work prepares the readers and allows them to redefine the financialization debate on their own. Cultural economy: narrative andperformative discrepancies tackles common issues touching on financialization of daily life, the new economy and the new market culture, the performativity and the black-Scholes model as well as the final salary pension’s crisis in society. The chapter possibly challenges the society to bring a new understanding to the financialization aspect in the present day capitalism. The thematic concepts outlined in the book are a good and invaluable resource for researchers and students from the business and management niche, together with all the social sciences interested in the cultural and political dimension. Bibliography Ball, J., 2008. A Strategy for the Welsh Economy. 1st ed. Chicago: Institute of Welsh Affairs. Boje, T., Steenbergen, B. V. & Walby, S., 2013. European Societies: Fusion or Fission?. 1st ed. New Jersey: Routledge. Boswell, J., 2013. Community and the Economy: The Theory of Public Co-operation. 2nd ed. London: Routledge. Budd, L. & Harris, L., 2004. E-Economy: Rhetoric Or Business Reality?. 1st ed. London: Routledge. Burgess, K., 2004. Parties And Unions In The New Global Economy. 2nd ed. New York: University of Pittsburgh. Callon, M., 2004. Laws of the Markets. 3rd ed. New York: Wiley. Casson, M. & Godley, A., 2005. Cultural Factors in Economic Growth. 2nd ed. London: Springer Science & Business Media. Epstein, G. A., 2005. Financialization and the World Economy. 1st ed. New York: Edward Elgar Publishing. Farnsworth, K. & Irving, Z. M., 2011. Social Policy in Challenging Times: Economic Crisis and Welfare Systems. 2nd ed. New York: Policy Press. Gottdiener, M., 2004. New forms of consumption : consumers, culture, and commodification. 2nd ed. Lanham: Rowman & Littlefield Publication. Ismail, E. et al., 2008. Financialization at work : key texts and commentary. 1st ed. London: Routledge. Jones, R. B., 2004. Routledge Encyclopedia of International Political Economy: Entries A-F. 2nd ed. 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