W04: National Borders and International Strategies Flashcards
Globalization
- refers to the broadening and deeping of interactions and interdependences among individuals and organizations from different countries
Broadening: Extension of economic and geographic linkages to encompass virtually all major societies and states
Deepening: An increase in the frequency and intensity of interactions
Forces of Global Integration: Thomas Friedmann (3 Globalization stages)
Thomas Friedman:
Gloablization 1.0: 1492 - 1800
> Countries and government as protagonists of globalization, military force
Gloablization 2.0: 1800-2000
> Interrupted by WW
> Multinational corporations drove global integration
Globalization 3.0: 2000-present
> Individuals are the primary force driving globalization
> New technoligies open the door to the global marketplace to individuals from all over the world
Friedman about political implications of economic globalization -> Friedmans gold straitjacket
> Economic ties lead to political and social cohesion
Gold straitjacket to facilitate economic growth, individual counties must sacrifice some aspects of their economic sovereignty to global institutions
Friedman’s 10 flatteners
- Collapse of the Berlin Wall
- Netscape / Internet
- Workflow software (machines communicate with machines)
- Uploading (collaborative online projects)
- Outsourcing
- Offshoring
- Supply-chaining
- Insourcing
- Informing
- Steriods (wireless internet, file sharing, etc.)
Global market integration (Implications)
Markets become much larger
- the growing importance of emerging and developing marking for international business
- New talent sourcing at a lower rate
- new technology enables entry into the global marketplace
- Three billion new costumers
Economic constraints on global market integration (Globalization´s three unbundlings)
- Trade costs
> Technological advances reduce moving costs from 1820. First unbundling meaning dividing production and consumption - Communication Costs
- Second unbundling: Reduced communication costs - Face-to-face costs
- Technology
Opposing voices against globalization (tension between for and against)
See for quotes Slide 175ff in the merged deck
- need to look at nationalism and values as well as economics in understanding global trade and investment
- technological forces make the ability to extend markets and production networks across national borders easier.
- law, regulation, and society remains national
- social and political factors that reinforce the importance of national borders: Civilization identity
What do we identify with? National or Global? Many countries feel like globalization does not fit the identity and do not want to be led
Cross Border Integration of markets framework
Localization vs. Globalization
Localization: Values, Security, Protectionism, Sovereignty
Globalization: Technology, Free Trade Policies, Global Supply Chains, Multinational Enterprises
Social and Political Forces against Globalization
Social factors
a movement that questions many of the assumptions of the mutual benefits to trade, open borders, and immigration (Globalization Backlash)
Political Factors
growing contestation between sovereign countries and who shall set and enforce the rules of world politics and trade.
Downward globalization cycle (Harold James)
- politicians will treat foreigners as scapegoats
- power and nationalism will matter again (zero sum game in international relations and trade)
- business leader will focus on local traditions (not global practices)
- countries willing to fight trade and currency wars
Globalization as a cycle
after periods of increase interchange (goods, people, capital) people feel there has been too much interaction and draw back from the global setting and look back to protected areas (retreat to nationalsm)
