The anci ent road: an overview of globalization
Aug 07, 2015
The ancient road: an
overview of
globalization
DefinitionA process by which economic,
political, cultural, social, and other systems of nations are integrating into
world sub-systems
Integration of national/regional
phenomena into world sub-systems
Processes by which this integration occurs
Mechanisms that facilitate integration, by
transmitting influence from one location to
another
History of an idea
Origins in the 15th and 16th centuries
business people (traders), religious missionaries (preachers),
explorers (adventurers), and soldiers (warriors
Migration, cartography, linguistic trends, religion and economics are
agents in the globalizing trends
Globalization is clearly not a recent phenomenon
History of a word
Use of the word ‘global’ to refer specifically to the earth is over
400 years old
The use of global back to 1640 and globalization to 1951
German: Weltanschauung – all encompassing idea of the
universe and of man’s relation to it
France – modialisation and globalization
Marshal McLuhan - ‘global village’.
Levitt - ‘Globalization of Markets’
Measuring globalization
level of nation-state • KOF: The Swiss Institute for Business Cycle
Research (the Konjunkturforschungsstelle, der ETH Zurich
• ATK/FP: Management consultancy firm A.T Kearney and Foreign Policy magazine A.T. Kearny/Foreign Policy globalization index
level of organization (MNC)• TNI: UNCTAD’s Transnationality Index
• Foreign assets to total assets• Foreign sales to total sales• Foreign employment to total employment
Paradoxes of Globalization
Philosophical paradox Logical paradox
Economic paradox
Americanization paradox
Emotional paradox
The future of globalization
Re-emergence
of the political as the world’s
key organizing principle
Reversal of some cultural
flows
Middle class world
ConclusionGlobalization is not a human invention, it is an unintended consequence of human life and human behavior in earth
Part of natural evolution of humanity
Fuller understanding of globalization emerge only from multiple perspectives, across multiple disciplines
Sheer scale, intensity and speed of contemporary cross-border cultural interaction and exchange due to technological innovations in transportation, information processing, and communication, political and
ideological developments (Prasad & Prasad, 2007)
Globalization of markets involves the emergence of
global supply chains, internationalization of wholesale, retail and
transportation firms and development of sales via the
internet (Mattson, 2003)
Globalization is the second modern wave of Value
Migration – the flow of value from old, obsolete business
designs to new, more economically effective ones (Slywotzky, Baumgartner,
Alberts & Moukanas, 2006)
conditions integrating globalization theory and
holistic corporate philosophy include convergence of products, technology,
convergence of markets, standard products, Joint
alliances, low prices, fixed costs, modernity, global
sourcing, harmony (Kustin, 1993)
Globalization is a phenomenon that explains the changes of human civilization and
development
Construction and deconstruction of human processes and systems
Rapid, intensified, radical evolution and interchange of cultural influences within and
among subsystems
Whether for or against it, organizations must address issues engulfing globalization for competitive advantage, sustainability and
strategic planning
Keep an open and quantum mind – possibilities are endless
Innovation, flexibility, adaptability, visionary
ReferencesKustin, R. (1993). A philosophy for globalization. Marketing Intelligence & Planning, 11(2), 4. Retrieved from http://search.proquest.com/docview/213117499?accountid=50192
Conversi, Daniele (2010) 'The limits of cultural globalisation?', Journal of Critical Globalisation Studies, 3, pp. 36–59.
Mattsson, L. (2003). Reorganization of distribution in globalization of markets: The dynamic context of supply chain management. Supply Chain Management, 8(5), 416-426. Retrieved from http://search.proquest.com/docview/216865468?accountid=50192
Prasad, A., & Prasad, P. (2007). Mix, flux and flows: The globalization of culture and its implications for management and organizations. Journal of Global Business Issues, 1(2), 11-20. Retrieved from http://search.proquest.com/docview/223745326?accountid=50192
Slywotzky, A., Baumgartner, P., Alberts, L., & Moukanas, H. (2006). Are you enjoying globalization yet? the surprising implications for business. The Journal of Business Strategy, 27(4), 23-32. doi:http://dx.doi.org/10.1108/02756660610677100