GLOBALIZATION AND
MANAGEMENT
MPA G1-E – Summer 2023
Thursday – 5:30 PM to 8:00 PM
Dr. Corazon B. Floresca
Group 10
Farhat, Laila S.
Fontilla, Francine Kayle D.
Lidasan, Hannah Farinah M.
What is globalization?
(Hannah Farinah M. Lidasan)
There are two things to consider in globalization: First, globalization is an
inevitable phenomenon, characterizing our development era, a phenomenon that the
human society is forced to understand because it questions the surviving and evolution
of the human society. Second, globalization as a socio-historical phenomenon,
manifested itself firstly as a theory, then as a practical necessity, becoming a strategy
for the constitution of a sole market, spread across a huge surface, the engulfs states,
regions, and continents.
Since the invention of the concept, globalization has inspired numerous
interpretations definitions and has had a history going back in time to the great
commercial and imperialist movements throughout Asia and the Indian Ocean since the
fifteenth century.
There are different views in the advent of globalization, it has been regarded as a
result of technological development, but also derived from free market. Globalization, in
its general definition by Yeates in 2001, it is an extensive network of economic, cultural,
social, and political interconnections and processes which goes beyond national
boundaries. There is another claim by Glazter & Rueschemeyer 2005, that globalization
is an outcome of the capitalist progress.
The term globalization comes from English, as base of the word “globalization”
which refers to the emerging of an international network, belonging to an economical
and social system. One of the earliest uses of the term "globalization", as known, was in
1930 - in a publication entitled Towards New Education - to designate an overview of
the human experience in education.
In 1897, Charles Russel Tazel used a near-term “giant corporations” to describe
the big national trusts and other large enterprises of the time. Since 1960 both terms
began to be used interchangeably by economists and researchers in social sciences
and were used until about mid 1980.
Globalization as defined by Vladislav Inosemtsev, as one of the most popular
social studies of today but is at the same time an empty term. It was first mentioned in
literature in the mid 1940s, but up until the mid 1980s it was mentioned only
occasionally.
After the Cold War the term began to be used to describe the world becoming
more interdependent in its economical and informational dimension . Because of the
complexity of the concept, research projects, articles and debates have remained
mostly focused on one aspect of globalization.
Roland Robertson, a professor of sociology at the University of Aberden, was the
first person who defined globalization as “the understanding of the world and the
increased perception of the world as a whole.” Martin Albrow and Elizabeth King,
sociologists, define globalization as “all those processes by which the peoples of the
world are incorporated into a single world society.”
Anthony Giddens in his paper “The Consequences of Modernity”, he used the
following definition: "the globalization can be defined as the intensification of social
relations throughout the world, linking distant localities in such a way that local
happenings are formed as a result of events that occur many miles away and vice
versa.
Globalization thus contributes to a more efficient global economy because goods
—and many services—can be shipped around the world to create more value. They can
be produced where it is most efficient to produce them and sold where they are valued
the most. Globalization as a force that makes the world a more productive place. Yet
globalization has vehement critics. Protesters have taken to the streets around the
world to complain about it. And the recent era of globalization has seen mixed results in
terms of economic success. Some economies—particularly in East Asia—have
exploited the opportunities of globalization to their advantage. But other countries—
most notably in sub-Saharan Africa—remain stuck in poverty.
How government influence competitiveness?
(Hannah Farinah M. Lidasan)
There are several ways that governments can influence competitiveness. Some
common ways include:
1. Research and development (R&D) funding: Governments can provide funding
or tax incentives for businesses to invest in R&D, which can lead to innovations
and more competitive products or services. This can include funding for basic
research, applied research, and development of new technologies.
2. Infrastructure investment: Governments can invest in infrastructure, such as
transportation, communication, and energy systems, to improve the efficiency
and competitiveness of businesses. This can include building new highways,
airports, and ports, as well as expanding broadband networks and renewable
energy sources.
3. Entrepreneurship and small business growth: Governments can create policies
that promote entrepreneurship and small business growth, such as providing
access to financing, reducing regulatory barriers, and offering training and
education programs for aspiring entrepreneurs.
4. Trade agreements: Governments can negotiate trade agreements, such as free
trade agreements or bilateral investment treaties, that open up new markets for
businesses and reduce trade barriers, making it easier for companies to compete
globally.
5. Education and training programs: Governments can provide education and
training programs to help workers acquire the skills needed for in-demand jobs,
which can enhance the competitiveness of businesses in the long run.
6. Fair competition: Governments can promote fair competition by
enforcing antitrust laws and preventing monopolies, which can create a level
playing field for businesses to compete and innovate.
Brief history of globalization
(Francine Kayle D. Fontilla)
People have been trading goods for almost as long as they’ve been around. The first
item to be traded was silk, it was the most luxury good and then they added the spices
that were traded between Asia and Europe. But These exports had a very low value but
global trade links were establish, the purchase price to final sales price went sky rocket.
It is one of the process of globalization that continues to alter the world. Globalization is
the relationship and connection between countries. As the year goes by, they have
more contact with each other especially economically. It influenced the world in different
ways like the culture, politics and economy. As time has passed, as the world develop,
the economy’s progress through trading globaly also yields. We have 5 categories in
related to how the globalization evolve throughout the years. The Age of Discovery
(15th-18th centuries), First wave of globalization (19th century-1914), Second and third
wave of globalization, Globalization 4.0. These five global revolutions demonstrate how,
over time, differences in economic development between multiple countries emerged. It
demonstrates how technology has influenced globalization over time. The flow of
capital, goods, and services across international borders has been facilitated by
globalization, opening up new corporate and individual opportunities and It has helped
international trade and foreign investment to expand; giving opportunities to people to
come out from poverty. There are many places that have not yet developed, and people
still live in extremely primitive ways from thousands of years ago But because of the
transportation and technology, these places altered quite quickly. The products
produced by many countries are internally marketed thanks to globalization. That is why
we have we goods from different countries, they have more advance technology and
machinery than us. Raw material also needs to be transported like for example, an
Apple product- Iphone; all its raw material are from the United State of America but it
assembles in China. As I have mentioned, globalization doesn’t revolve around raw
materials and its finish product, the manual labor also contributes in how the economic
progress as the time goes by. Because of the advance technology of different countries
they may also developed an advance machinery in order to make a good product and
distribute it across the globe. In summary globalization is a complicated and diverse
process but it helps us, our economy, our world in unique and remarkable way. It gave
us opportunities and challenges that has a big impact on societies and economic. In
order to create a more diverse and sustainable global community, it will be essential to
create a balance between maximizing the advantages of globalization and dealing with
its shortcomings.
Global Business Practice
(globalization across different cultures; manners and prejudice; women in the
international workforce; Japanese Approaches)
(Laila S. Farhat)
Globalization has transformed the world into a tightly interconnected and
interdependent community. With this unprecedented level of interconnectedness,
businesses have expanded beyond geographical boundaries, leading to the rise of
global business practices. In this reflection paper, I will explore the significance and
complexities of global business practices, the challenges they present, and the lessons
learned from my studies and experiences.
Global business practices have become crucial for companies seeking growth,
sustainability, and competitive advantage in today's globalized economy. By expanding
their reach to international markets, businesses can tap into diverse customer bases,
access new talent pools, and benefit from lower production costs. This
interconnectedness allows for the exchange of ideas, technologies, and best practices,
fostering innovation and economic development on a global scale.
Although global business practices offer immense opportunities, they also come
with numerous challenges. Cultural differences, language barriers, and varying
regulatory environments can complicate international operations. Adapting products and
services to meet local preferences while maintaining a consistent brand image demands
a delicate balance. Additionally, political instability, currency fluctuations, and trade
disputes can significantly impact business outcomes. These challenges necessitate
careful planning, cultural sensitivity, and proactive risk management strategies.
International Business basically means commercial transactions that involve
two or more countries. These transactions can occur between private entities as well as
government agencies. The only prerequisite of such transactions is that they should
involve multiple nations.
For example, a lot of big companies import their products from one country and
sell them in another.
Even governments do so in many cases. These transactions can also include an
exchange of finance, technology, people, services, etc.
International management refers to the practice of managing these kinds of
international businesses and global practices.
This field of management has gained a lot of prominence after globalization.
Even small and medium-sized companies these days transact with foreign entities.
Features of International Business
A cross-border business is very different from one that involves a single country.
1. The main feature of such businesses is that they operate on very large scales and
involve multiple jurisdictions.
2. Another feature of international businesses is that they integrate the economies of
multiple countries. Functions like importing, exporting, financing, hiring, selling and
managing may all happen in separate nations.
3. Thirdly, international businesses and MNCs also have the distinction of emerging
from only a few developed countries. Companies from large economies like the USA,
UK, Japan, China, Germany, India, etc. dominate international trade.
4. Another feature of cross-border businesses is that they face fierce competition.
Smaller companies from developing nations often have to compete with MNCs that
have no shortage of resources.
Importance of International Business
International business offers the following benefits to the economies and
organizations it involves in its transactions:
Since import and export are common functions of cross-border business, they
involve the use of foreign exchange.
The country exporting goods and services, thus, can earn foreign exchange from
the country importing them.
Cross-border operations offer businesses the opportunity to earn higher profits. This
is because they can sell their products to a large customer base from multiple
countries.
Since international business helps a nation’s economy, governments often provide
benefits to attract foreign business. Such government benefits may be in the form of
tax sops, subsidized resources, financial incentives, etc.
International businesses also facilitate optimum utilization of resources. Companies
use natural and human resources from various countries in their operations.
It is very easy for international businesses to diversify and expand their activities.
This is because they earn very high profits and receive many governments benefits.
Globalization across different cultures
In a global environment the ability to communicate effectively can be a challenge.
Even when both parties speak the same language there can still be misunderstandings
due to ethic and cultural differences.
Over the last decade, there have been countless examples from the business
sector that demonstrate how poor communication can lead to poor organizational
performance.
Understanding the impact of globalization on cross-culture communication is
imperative for organizations seeking to create a competitive advantage in the global
market.
Global businesses must understand how to communicate with employees and
customers from different cultures in order to fulfill the organization’s mission and build
value for stakeholders. The use of technology has had a profound impact on how
businesses communicate globally and market their products and services.
Manners and prejudice
Every country has its own etiquette and customs for business meetings and
general interaction.
International business customs make up the rules and behaviors that should
guide the interactions with potential clients in other countries.
Example:
1. etiquette surrounding lateness
2. handshake firmness
3. how long you’ll need to spend getting to know someone before diving into business;
and much more.
However, conducting business with people from other cultures means being
aware of ways in which they do things differently.
References:
1. “Globalization”. Online etimologi dictionary. www.etymonline.com/index.php?term=globalization.
2. "Globalization". Oxford English Dictionary Online. September 2009.
http://dictionary.oed.com/cgi/entry/50297775?
single=1&query_type=word&queryword=Globalization&first=1&max_to_show=10.
3. ''The Battle of Armageddon'', October, 1897 pages 365–370". Pastor-
russell.com. http://www.pastor-russell.com/volumes/V4/Study_07.html. Retrieved 31 July
2010.
4. https://saylordotorg.github.io/text_macroeconomics-theory-through-applications/s09-06-
globalization-and-competitiven.html#:~:text=Overall%2C%20the%20marginal%20product
%20of,and%20the%20transfer%20of%20technology.
