Four Drivers Of Globalization3/21/2021
Globalization has also been driven by technology, including use of the Internet, mobile phones and satellite-tracking technology.
Four Of Globalization Drivers Are ImportantGovernment drivers are important in forming the competitive environment because of the presence or absence of favorable trade policies; government-operated competitors or customers; and technical standards.High levels of competitive diversity, industry change and trade increase the potential for globalization.The belief that a single market is no longer large enough to support a competitive strategy is at the heart of cost globalization drivers. The marketing of standardized products and services as consumers in different regions demand similar products is a driver of globalization. However, there are major differences in technology between countries around the world. Looking again at the DGCI from 20012018, Monteiro notes that the share of global flows has never grown smoothly. Theyre so CUTE PROMISE: Our kitties will never sit on top of content. However, it seems beyond dispute that Covid-19 and globalization dont mix well. Of course, all economic activity is suffering in this worldwide recessionbut the global breadth of business may experience an especially acute shrinking effect. To cite just one grim projection, the International Monetary Fund (IMF) is predicting a 12-percent contraction in global trade this year, more than double the already cataclysmic 4.9-percent negative growth prediction for the world economy as a whole. Far less clear, at this stage, is what all this means for global business strategy. Should companies keep a low profile and hope for globalization to rebound, or prepare for hasty repatriation. The pairs combined expertise fueled a discussion that encompassed geopolitics as much as the complex business dynamics affecting global industries. After taking a hit during the 2008 financial crisis, global business never resumed its upward trajectory of the 1980s and 1990s. Instead, it faced intensifying political headwinds as nationalism and populism rose in the developed economies. Covid-19 is just the latest blow in the farrago of unfriendly forces that has battered free-trade regimes since the turn of the millennium. In the post-World War II period, globalization flowered under the aegis of the United States. Now, with China rivaling the United States for global economic supremacy, the center of globalization cannot hold. Whether they like it or not, firms will have to rethink their operations as the world becomes increasingly polarized by the two competing economic blocs. The HBR article lists four steps the United States and U.S.-aligned firms should be prepared to take: Abandon the notion of Hong Kong as a safe haven. Radically uproot supply chains away from Chinas geographical sphere of influence. ![]() Revise risk assessments involving the opposite bloc sharply upward. ![]() I think Russia, in principle, could play off the West against China, he says. The risk, of course, is that at some point you slip up and lose that independence. Usually a small country could argue, Dont worry too much about us. I think those could be configurations that actually help that strategy. Between 1990s the world is flat boosterism and forecasts of globalizations imminent and irreversible demise, there are three level-headed truths he would like us to consider: Globalization is partial. Referencing the 2019 DHL Global Connectedness Index ( DGCI ), which tracks activity flows ranging from tourism to exports of goods and services, he points out that even before Covid-19, the vast majority of the action was local rather than international.
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