Globalizations Pro-View - Assignment Example

Globalization’s Pro-View Economic perspective - Globalization’s pro-view is that it would promote free trade that would encourage healthy competition that would drive down prices which is beneficial to citizens. The view against this perspective is that underdeveloped economies cannot compete directly with stronger countries. There is an unhealthy competition since the developed economies dictate he policies in the tariff agreements. Environmental – The pro-view is that Multinational Corporations would act ethically and promote corporate responsibility by taking care of the environment and ensuring sustainability in the conduct of its operations. The anti view is that MNCs have abused the resources and environment where they are operating. Socio-cultural – Pro-view supports the claim that globalization would expand people’s minds by absorbing other cultures that would make them globally competitive. Amongst these is the increased efficiency in the use of English as a second language. The anti-view is that culture is diluted and young people have been adversely affected by negative externalities like mass media from other cultures.Political/institutional – The pro-view asserts that globalization would promote greater cooperation between nations. Conversely, some nations have used the weakness of globalization to rally for their sovereignty. E2. The unique characteristics o f Palmisano’s globally integrated enterprise is that business would be able to conduct its operations in a very efficient environment since its transactions would be borderless and flexible. E3. The new global economic order would establish countries that are gaining economic and political might such as the new Russia and the awakened giant- China. These countries are now members of the G20 along with India and Brazil. Thus, it must be recognized in the New World Order that USA will not be as powerful as before since there are many players in the arena, yet, it would maintain a high status in terms of influence over other powerful countries. The New World Order would then recognize countries like China, which is now an economic giant, that it would play a major role in free trade agreements as well as political concessions. Slowly, the New World Order puts America in the background, yet obviously, it doesn’t mean it would not wield its power from behind. E4. One argument that did not make sense was the relationship between welfare, unemployment and globalization asserted by Rodnik. It seems that Rodrik’s claims in this matter is paranoid since economies have long suffered from problems of increased welfare even before globalization. On the contrary, Rodnik’s arguments about free trade markets made sense. He is often being misinterpreted as anti-globalization. Rather, what Rodnik espouses is that markets should be regulated well by policies set by the government since an open market may hurt the economy. Being concerned with domestic economy does not mean one is “anti-global’. Rodnik is just telling us that rules would help govern the market so trade would not be unfair. That’s all. E5. One of the roles of state in globalization is ensure security. United Nations cannot protect a country lest that country has a political will to protect itself. Annan was explicit in citing the case of Geneva, Switzerland. The issue at hand is that multiplicity of language or states does not warrant a weak government. It all depends on the state’s conviction through its laws. Another role of the state in globalization is the protection of the environment. Annan is calling for “new ethic of stewardship" and a system of "green accounting" in his 21st century action plan last March 2000. He wants governments to make companies accountable to the environmental costs in exchange for their operations. Thus, the government must draw economic policies that would consider issues of sustainability and social responsibility among corporations. The third argument that Koffi Annan promoted to its member states is to reduce poverty. According to him, poverty can be reduced when states embrace the power of Information Technology. Therefore, the state must be aggressive in promoting IT through education so human development can push through. A good example would be that of South Korea and Sweden which have become leaders in digital infrastructure. Because of the state’s active role in making policies for IT, the aforementioned countries have cutting-edge technology that made its citizens cross the digital divide. E6. In “ Thinking Global, Acting Local” , the company would be McDonalds. It has modified its menu offerings to Japanese and Filipino customers by offering Rice burger. It is trying to adjust to the taste of its local customers. Although there are many instances where it fails to deliver, the lesson learned here is that companies must be aware of the environment where they exist. Food is part of subculture which must be considered by international food giants. As for the “Applying Local Insights on a Global Scale ”, a food company in the Philippines that markets local vinegar as gourmet food to suit European taste would be a good example. E7. Is sustainability compatible or feasible in globalization? In the case of GE’s Ecomagination, it is. This just proves that when a company feels accountable to the environment, it makes actions that would ensure sustainability. Because of GE’s commitment to minimize its greenhouse gas emission, it has become a model for other companies in taking a step to contributing to the environment. However, it must also be considered that the United States government is vigilant in its efforts towards promotion of sustainability. Groups such as Business Leadership Economic Council which is made up of Fortune 500 companies have shown that sustainability is a thrust by excellent companies that are competitive without sacrificing quality or profitability . By doing this, it is hope that other companies would become environmentally aware. E8. I agree with Mr. O’Reilly’s statement since corporations are established for the purpose of profit. In fact, being profitable is the key to corporate sustainability for without profits, a business would collapse. As Henry Ford said” profit is a requirement of business”. Milton Friedman in his articles was logical in pointing out that a corporation is not an individual; moreover, it has no social responsibilities for it is an artificial entity as he argued. Fortunately, many corporations nowadays exercise social responsibility which is still an option. However, it still the government that has the primary role in taking care of the environment. It is the entity that has legal and executive powers over its domain. When a company begins to act responsibly, it is doing so since it believes in popular participation which can help the government in achieving its goals. Nevertheless, the organization is not a substitute for the government since the organization’s main goal is profit while the government’s goal is public service. E9. I learned that corporate social responsibility is a complicated matter since it can also backfire to the company. The Anglo American case was a generous example of how far a company would go to help its employees in their fight with AIDS. In fact, the company has already played a big role in assisting the government since it spend so much in the health benefits of its employees. MNCs must carefully study a country or geographical region that they intend to operate in lest they fall into the same trap of the Anglo American company. An MNC can be socially responsible but it is no substitute for the government to do its duties to the citizens. Fighting AIDS is already a Millenium Development Goal that states must achieve. E10. When doing international outsourcing, there is always a greater risk than normal business since transactions are virtual. People or employees can fail to deliver which is vey counterproductive. Thus, rigid structures must be set to anticipate further complications in outsourcing. Communication should be always clear, to the point of being explicit all the time. There is also the consideration of different time zones which makes it hard to schedule meetings and activities. One group may always have to sacrifice for another department’s benefits. Before outsourcing, companies must be very clear in their contracts so that expectations may be met. If deliverables fail, additional cost is often the penalty for the company. Nevertheless, outsourcing has its merits too. It can also be financially beneficial since there are lesser commitments to employees. Benefits are not mandated in outsourcing and providers have cheaper rates than getting real time employees. A lot of middle size companies have been outsourcing already for the past decade, the only key is a tight operations management. If a company decides to outsource, it must have a good feasibility project and consider heavily the external environment of the country where it intends to operate. A1. One of my preconceived beliefs about globalization is that it is purely good for the whole world. It would bring economic development and prosperity to any country like the Midas touch. However, the article of Fareed Zakaria challenged my viewpoint on globalization on the “Future of American Power”. This just shows how insidiously USA has crept into the psyche of many government leaders so that its agenda of influencing countries towards imperialism can be achieved. One of them is the promotion of English language which extensively came with globalization. Another article which I found very challenging was Rodrik’s article. Through his article, my mind was opened about the possible disadvantages of free trade and why countries should also be protective of their economy. A2. One globalization force that would have a great impact on Colorado would be immigration. This is one undeniable problem that globalization can bring to a state. As more jobs are created, illegal aliens would try to get a job which would prompt the state to create a dragnet so that the aliens would be traced. Even if Colorado has strict immigration laws, there are still many cases of illegal immigrants who even have criminal cases before them. Another globalization force would that be of informatization. The state government must invest heavily in creating a sound digital infrastructure so that constituents can benefit from technology. Universities must not only be a bastion of learning but as a center of IT interactivity. The graduates from educational institutions must be well trained so that they can compete globally. The state then can prevent industries from outsourcing since it has enough manpower to sustain its needs. A good collaboration between academe and industry must be promoted by the State. The third force is innovation. The local industry must focus on its core competencies and develop industries that can possibly withstand recession. The state should appropriate larger budget into Research and Development so that the local industries can compete with foreign subsidiaries. A3 . I agree with Zakaria’s projections that “United States takes up less space, but it is one in which American ideas and ideals are overwhelmingly dominant”. Until now, the U.S. is politically active but in a low-profile as the case of Hillary Clinton’s trip to Asia. The United States may not be an active colonizer nowadays since that era has passed. It doesn’t have to since it has already permeated most cultures of the world. Even foreign policies and economic policies have been patterned similarly to the US with the help of IMF . Read More