More Thoughts on Globalization

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In January I wrote about the era of protectionism and populism, which we seem to have entered. As discussed, these trends seem to indicate a globalization backlash, voiced by Brexit and Trump supporters, who probably haven’t felt the benefits of a globalized market. As one Financial Times article puts it, the current socio-political climate is the ‘revenge of globalization losers’. Indeed, it would be dishonest to equate globalization with prosperity and development for everyone. It is actually much more fitting to use the currently prevailing VUCA acronym, which reflects the volatile, uncertain, complex and ambiguous times we are living in. The same also relates to job markets.

On one hand, globalization means freedom of movement, be it information, people or goods. It is common for students to study abroad, for graduates to apply for jobs across borders, for professionals to move overseas for better opportunities, and for businesses to look for untapped markets around the globe to find new customers. As a matter of fact, one doesn’t even need to physically move to benefit from globalization. For example, as discussed in some of my earlier posts (and here), a smartphone and internet connection is all one needs to participate in the digital global market. In this scenario, globalization stands for opportunities and possibilities. It is also not very surprising that people, who embrace globalization, benefit more from it. Several studies indicate that rates of business ownership are higher among immigrants than natives. For example, according to the Global Entrepreneurship Monitor report, immigrants are three times more likely to be entrepreneurial than British born citizens, and in the U.S. ‘the population of immigrants now start more than a quarter of new businesses’. It is probably also quite accurate to assume that the cities that most benefit from globalization are today’s multicultural global hubs, such as London, Berlin, New York and alike.

Yet, for many globalization doesn’t spell opportunity and possibility, but rather uncertainty and anxiety. Rightfully so, because many do not have access to the benefits of globalization.

INSEAD professor Gianpiero Petriglieri argues that what we are currently witnessing is not a failure of globalization, but rather a failure of leadership, namely ‘of leaders’ ability to distribute the value created by globalization in a fair and humane way’. Professor Petriglieri believes there is a problem of trust towards current nomadic leaders, who struggle to create a shared future outlook, which would engage also those who either can’t or are not willing to relocate or embrace changes.

Currently, protectionist leaders seem to do better at such engagement… the only question remaining is whether stepping back from globalization and closing the borders so that ‘jobs don’t leave and are not stolen by others’ is a long-term solution? Can we really go back to the days of lifelong skilled factory careers or small and competition-free family businesses?

Obama said that globalization could not be rolled back, yet it certainly needs a ‘course correction’. Hence, leaders need to work together to distribute the benefits of globalization more equally, and to deal more explicitly with globalization costs. However, in the aftermath of what has already failed, global leaders also need to regain trust, create a future vision for everyone, and restore a positive outlook towards globalization. As Professor Petriglieri puts it, people want leaders to say, ‘Yes, I get the anxiety, but there is hope’.”

10 thoughts on “More Thoughts on Globalization

  1. yeah everyone should think about our mother Earth, The natural environment. Saving them is saving our life, our children’s life

  2. Yes, I agree with your points. Mostly people wants to enjoy the life, but un-fortunity work load is very high that’s why they can’t enjoy the life.

  3. Well, I think globalization is something that scientists had predicted long long ago. It would come, sooner or later.. the world changes, it happens. So I basically think that what we can do is to adapt to it very well, and that’s a special gift that has been given to human being.

  4. I am interested with the more explanation of what Obama said “Course Correction”.. But anyway, I think everything has a cost. The cost for globalization must be very big, so is the advantages.

  5. I can’t imagine if Marine Le Pen won the President of France, how the world would be. If Frexit come true, there will be no more globalization. The world need to act now to prevent the rise of populism.

  6. Many bookkeeping majors in school will graduate and enter into open bookkeeping employments. The United States is the main nation which utilizes Generally Accepted Accounting Principles as the technique for bookkeeping. This implies when understudies go into the workforce and manage customers abroad, they are not utilizing a similar bookkeeping hones. Understudies are not shown the greater part of the essentials of IFRS International Financial Reporting Standards and in addition GAAP Generally Accepted Accounting Principles.

  7. Good post! I don’t completely agree with you but I appreciate your points.

    I’m don’t agree that there is a failure of leadership. If you subscribe to the “laissez faire” viewpoint that problems with globalization are self-correcting, then leadership isn’t required. In fact, interfering to make things more equitable would inject inefficiencies.

  8. I believe this post is very useful for people. You cannot deny the fact that globalization happens to be the hot topic everywhere hence you should also diversify your knowledge about it. Always remember that globalization has dozens of benefits for the masses. It has also contributed for the betterment of the society and with that it has made everyone’s life easy from all aspects. Now accomplishing different daily life tasks is not a difficult task for anyone. You should know that the internet happens to be the great symbol of globalization. It is the internet which has made possible for people to opt for online shopping and with that it also enables you to keep up with latest happenings from all across the world. Globalization is the opportunity for companies to expand their business internationally. It is beneficial for the economy of the world that improves the living standard of the masses.

  9. overall i think globablisation produces more gain than losses, sadly people’s concern with self interest (including multi national corporations) means that the gains are not produced as much as it should be (trade barriers) or that it produces negative social/economic effects on the countries being exploited. this is where the government is vital in ensuring maximum benefits are gained from specialisation, and minimum loses inccurs to those who may suffer from globalisation. Protectionism, in my opinion , can be used for a short term to buffer the transistion of industry but should not be used as mean to shield industries from competitive oversea exporters.

    It is true that one effect from globalisation is countries may lose it national identity and become increasing interdependent with other countries, but what is the problem with that? dont you think it’s great that we have people from so many countries in wmg? wouldnt it be great if that is in china, japan, taiwan ? people understand each other better and greater harmony could be enjoyed by you and me?

    now time to go to bufet dinner i think… starving

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