Management Assignment: Critical Research on Globalization

Question

Task:

This management assignment aims at ensuring that students have familiarised themselves with a general framework of at least one management related topic. Students will be required to apply relevant theoretical concepts with the use of practical examples in most cases in a written research paper.

Selected topic:

Globalisation General Framework
In this topic, you are to research globalisation. The business press bombards us with ideas about ‘The shrinking world’, ‘the flat world’ and ‘the border-less world’ – all catchphrases to describe the impact of globalisation. But are the (trade) borders really collapsing or are we seeing, post GFC, resurgence in them? What is behind the extreme demonstrations against globalisation at G7 and WTC conferences?

Individual Components

1. World 3.0: P Ghemawat’s questioning of whether the world really is as ‘global’ as we are being told it is and his ideas about how it could be globalised more effectively.
2. Anthony Giddens’ ideas on globalisation.
3. The “End of Poverty” movement and the contrary assertion that “Trade NOT aid” is the way to a more globalised world that mitigates against poverty.

Answer

Executive Summary
As evident in this management assignment, since globalisation and technological advancements, the world has become more integrated as the rise of the internet; free travelling and cheap telecommunication services have effectively connected people and economy regardless of geographical, political and socio-cultural limitations. However, it has become an integral property of modernised society as the concept of a global citizen is emerging prominently across the globe. The urgency of fair wealth distribution, movements against poverty and illiteracy and other global problems can only be achieved through the systematic implementation of corporations and industries across the globe. However, international trade policies, regional regulations and psychographic and socio-cultural limitations are creating massive limitations for multinational organizations to incorporate prosperity and accountabilities within international business. This study describes the actual reality of globalisation while discussing Ghemawat and Anthony Giddens views and exaggerate techno-centric visionaries that are essential to amplify corporate goals. 

Introduction
Globalization can be defined as the interaction process which can integrate upon people, several companies and different governments. This can be considered as a very complex process but through this process, the local and national economies can be enlisted to the global economic market (Beck, 2018). Globalization was not so much advance before but, in this century, it has grown bigger than ever due to the advancement in transportation and communication technology. Globalization involves the exchange of goods, services, technology and data globally. Through this globalization can decrease the poverty rate in every country in the world. But globalization among the countries depends on diplomatic relations. Sometimes when the diplomatic relation is not stable among the countries then the process of globalization can be distracted which can cause the increase of poverty rate, this situation is referred to as Global Financial Crisis or GFC. To recover the process of globalization the reasons for GFC are explained at several economical conferences like G7 & WTC among the global countries.

The collapse of trade borders post GFC
There are several impacts of globalization in global economics which can be positive at the poverty rate of any country. But the collapse of trade borders can create Global Financial Crisis (GFC) and due to this situation, the global economic graph can be changed negatively. The collapse of trade borders was very sudden and serve. After world war 2 this situation came across 3 times globally. As an example, between 2008-2009 the collapse of trade border occurs and after this time, the world trade decreased by approximately 15% and caused an unstable GDP throughout the world. World Trade Organization or WTO reports trade graphs of a total of 104 countries annually (Chodor, T., 2019). This organization calculates that the collapse of trade borders in the year 2008-2009 was the biggest trade drop in history. During this time the prices of every good increased and this was one of the main causes of trade drop. Prices of several goods like oil, animal products, agriculture products were increased. But the manufacturing prices were constant at this time. At that time the selling procedure becomes very hard for the exporters and when this type of situation came to them, they faced a huge loss. To recover this the prices of the products increased. Throughout this situation, the exporters reduced their production to overcome the loss. But this also seems like a threat to the world trade platform. Crisis of those products increased the demand for the product and when the product came to the market the prices of those increased.

This is the reason why most people can afford to buy those kinds of products. In this type of situation, the profit rate becomes less than normal. At this type, the GDP of the exporting countries decreased because of low selling and profit. The oil industry became profitless and the price of raw oil becomes 3 times greater than the normal time. For this reason, the importing countries couldn't afford to buy the exact amount of oil which they need. The collapse of trade borders is associated with the diplomatic relation between the countries (Nagengast and Stehrer, 2016). When there is not a suitable relation available between the country the trading graph goes downward. In the year 2008-2009, the diplomatic relation between the powerful countries was no so good. That's why they were unable to create a good trading relation. As a result, the exporting countries faced a huge loss in trading. At that time the trade policy was changed also. By these changed trade policy several sectors faced a specific barrier. Because of that the transportation process become difficult. The cost of transportation increased and for this reason, the prices of the products increased. In this collapsing year, the sectors which were profitable and help to increase the GDP of the country faced huge loses. International trading was not profitable at the time of GFC. But after that time this situation recovered by several conferences among different countries. Business strategy and trade policy were changed after that year to recover the globalization.

Reasons behind extreme demonstration against globalization at G7 and WTC
There are several reasons explained behind the demonstration against globalization at G7 and WTC. The country of North Korea was against globalization after world war II. According to them, the globalization was not good for small industries and they didn't follow the globalization process. But several countries follow the process of globalization to increase the GDP of their country. Now let's talk about the reasons behind extreme demonstration against globalization which is mentioned by the G7 and WTC organisation-

• People from several countries think that using international products can decrease the local market because of the low price of imported products (Azzam, 2017). For that reason, they are very much insecure to support globalizing. This kind of situations can be seen several times which is the cause of worst globalizing for the country. 
• The anti-war movement is also a reason for an extreme demonstration against globalization. In the time of war between several countries, the trading borders become closed. When there is a war in Iraq the civilians protest against the international products, which acted as the decreasing factors for globalization.
• Several critics also support anti-globalization by which the process becomes difficult in those countries. When the influential persons of a country talk about something then the people of the country follow the instruction of the person (Baylis, 2020). In various countries, some characters don't support the globalization and this is why the globalization in these countries is not so effective than other countries.
• Several nationalists of several also think that globalization can destroy the local market. For this reason, they can't promote globalization. The trading process for those countries becomes very difficult.
• Several local organizations also involve in anti-globalization process. They try to promote their products and for that, they share fake news about imported products. By this, they secure their market in the country but they don't think about the international business. This becomes the reason behind the extreme demonstration against globalization.

World 3.0: P. Ghemawat's Questioning Regarding Globalization
The perception of a globalised world has fueled multinational companies and global citizens to create standardised and vibrant connections between different identities while considering regulatory compliances, political uncertainties and geographical barriers. However, in 2011, professor Pankaj Ghemawat has shed light on the argument of a complete globalised world in his book, World 3.0: Global Prosperity and How to Achieve It. He claimed that the world is not as globalised as we think as the barriers regarding geographical, cultural and social differences have created comprehensive challenges for people to explore societal behaviours, fundamental requirements and work-quality issues (Ghemawat, 2017). 

He believed that miscommunications, misinformation and lack of authenticity in data-driven perceptions have created the instructed thoughts. The actual degree of connectedness, psychographic integrations and demographic characteristics are significantly lower than people's generic perceptions. In the modern contemporary world, the disconnected and assumption-based beliefs of both organizations and people are far from reaching out to the actual reality, where the differences in society and personal well being still upload a significant gap (Tijssen, 2019). Economic development, public accommodations and lifestyle of generic citizens are still lacking to reach global standards especially in comparison with developed countries. He argued that misconceptions regarding the transformative effects of technology, lack of fact-driven decisions, minimal understanding regarding actual globalization, poorly maintained foreign investment policies and inaccuracies in representation of globalization have negatively influenced people to believe in complete globalization (Erixon, 2018). As a potential set of evidence, P. Ghemawat has mentioned cross-border transactions, foreign investments percentage and laws of distance that fueled his literary work. 

However, the author has provided a systematic empirical framework of evidence that encompasses societal changes, techno-centric visionaries and more data-driven policies to ensure complete globalization and integration while mitigating barriers between countries, societies and demographics. For multinational companies, he suggested, the company must consider cultural and geographical barriers as an ample opportunity to exaggerate regulatory compliances and regional perspectives into business activities (Crane et al. 2019). Productivity and profitability alongside operational excellence only can be achieved effectively if the organizations are capable to relate cultural and political values of the targeted location with its origin and regional interactions. Psychological understanding, biological needs, environmental consequences of globalisation and cross-border interactions are essential to disclose within business strategies to protect cherished cultures, economic wellness and overall psychographic components including language, religious diversity and inclusive differences in social and cultural attributes. As each geographical location is differentiated from language, culture and traditions, the organization must recognize those differences, similarities and social urgencies within its corporate governance policies to ensure productive growth (Kang, 2018). Accuracy in predictions, social understanding, regulations and regional economic activities and people's purchasing behaviours can facilitate organizations to create standardised and prosperous futures within targeted locations. 

Anthony Giddens' Ideas on Globalization
In contrast to the contradictory perspective regarding globalisation, Dr Anthony Giddens has highlighted the essence of reshaping in social, political and economic perspectives from family to governance, corporate outlets to political strategies. As the scope of the global trading market, mass migration, passport-free travelling, currency exchange and international cosmopolitan culture is gradually increasing, a concurrent change in basic institutions is becoming more prominent to streamline the consequences of globalisation. As argued by Giddens, most individuals conceptualized globalization as a new economic forum, but they failed to mention the urgency of social, cultural and political changes. Various international activities including cross-border trade, communication and fluidity of information are improving, however broader perspectives regarding macro-system, nature of sovereignty and emotional well-being of individuals are highly motivated by globalization (Maleševi?, 2019). He argued that the information revolution has changed the shape of globalisation which successfully raised the questions regarding the essence of advocacy in regional governance, regulatory changes in economic and trade policies and development of cosmopolitan society across national boundaries to assist the up-gradation of sociocultural attributes.

To simplify government roles in controlling and streamlining globalisation, Giddens has mentioned three core perspectives such as empowerment of corporations, the scope of global inequality in numerous fields and articulation of government regulations to create standardised and transnational democracy. As argued by the fist perspective of Giddens, globalization has been leveraged by the development of non-profit organizations (NGOs) as they uphold significant transparency and accountability within business practices, and public relations, CSR standards and sustainability-conscious strategies are creating more balanced and collaborative society across national boundaries. He claimed that the future of globalisation significantly lies in non-profit organizations. Furthermore, Giddens has challenged the various distinct statistics which stated that globalization has brought inequalities across the globe (Buse, 2016). He argued that on a broader spectrum, literary and health services alongside employment and economic reformations are improving due to free trade and cross-border interactions. Tourism is one such example which has become one of the most prominent contributors to gross domestic product (GDP) growth. In addition, techno-centric visionaries, technological advancements and efficiency of high production is growing exponentially across the globe. He argued that skill shortage, availability of expertise and adequate usage of resources are creating a more flexible and adaptable workforce which is playing a fundamental role to enrol income distribution and economic prosperity at ground level. Based on the third concept, Giddens mentioned the term "global governance". As suggested by Giddens, the national government must rearticulate a few legislative regulations, taxation policies and trade obligations to embrace the fundamental transformation that globalisation brought in the form of collaboration and partnership. More responsibility and enlightenment in politics, policies and economic framework can assist to bring prosperity within social and economic forums (Moghaddam, 2017). To protect cultural and historical diversity, the government should think creatively such as dedicated city places, tech parks and region-based industrial civilization to maximize the success of organizational and global trends. 

End of Poverty Movement and on Contrary Assertion -" Trade Not Aid" 

The reach of Globalization is increasing rapidly as private sectors, civic society and national government are focusing on community development initiatives to uplift people from suffering from poverty. The urgency of poverty removal movements is becoming more prominent as still there are 700 million people who live under extreme poverty across the globe. The end of poverty initiatives is parallelly enriched by various society-focused initiatives by various recognised international organisations including UNO, The World Bank, WHO, UNESCO and many others. As reported by the World Bank, 700 million people are uplifted from extreme poverty within 2 decades since 1990 (Sheppard et al. 2020). Thanks to globalisation and technological advancements, poverty reduction has been driven by the creation of millions of employment opportunities, and 90 %of these jobs are coming from private sectors. Multinational companies are adequately investing in developing countries including Brazil, India, South African countries and others to gain profit as well as improving economic climates. Meanwhile, the International Finance Corporation has invested a record $20.4 billion in 103 developing countries to create employment opportunities of 2.5 million in 2019 (Werhaneet al. 2020). Also, the United Nations has introduced ending poverty initiative 2030 by two distinct strategies such as ending poverty within 2030 and maximizing income growth up to 40% in every country. However, globalisation demands systematic and high-end accommodations including upgraded infrastructure, transportation services and regulatory compliances that the national government needs to provide to assist foreign investors. 

In building the global movement against hunger and poverty, civil society plays a fundamental role to protect the rights of indigenous communities while addressing scientific, political and economic challenges involved in combating poverty. In collaboration with multilateral organizations, private firms and NGOs, the United Nations has taken major initiatives to transform global consequences of poverty by providing job opportunity, sustainable economic development. Various international organisations are promoting the collective efforts of civil society against poverty while eliminating individual mandates, geographical and cultural barriers. The collaboration between civil society, government and private sectors are inevitable to optimize strategic development programs to leverage high investments, foreign assistance and cooperation support (Edward and Sumner, 2019). The fundamental goals of national governments should focus on ground-level development including health, education and food safety. In the current scenario, the global leaders especially G7 countries and developed nations must rely on sustainability and infrastructure investments to end poverty and boost shared prosperity while attracting foreign investments. Globalization has created a diversified opportunity for the world to work generously and strategically towards ending poverty. Globalization can play a significant role in reducing income inequalities, economic insufficiencies by providing financial services, job opportunities through emerging economies. Private funds must consider ethical and profitable business development strategies by investing in developing countries while earning potential revenue and uplifting millions out of poverty. 

Framework of Globalization
Globalisation is the foundation of modernized commercial ventures as it allows exploring new markets to increase worldwide footprints while decentralising company's affiliates and creating synergistic models for each projected location (Paul, 2019). In order to gain competitive advantages and benefits of globalization, the business needs to think globally and act locally to mitigate regional requirements. Organizations need to conduct Industry-specific research to streamline operations, strategy and communication to understand core competencies and customer requirements (Djelic and Quack, 2018). To succeed globally, organizations must incorporate cultural, social and economic differences to understand customer perceptions and responsibleness towards the company. Integrated e-governance services, regional regulatory affairs and level of collaboration must comply with organizational culture and capabilities while creating a global workforce and distributed information system. 

Impact of Globalization
Globalization is a newly designed platform that is highly capable in making the market more efficient, increasing competitiveness, limiting political conflicts and spreading wealth more prominently across the globe. The fundamental purpose of globalization included economic, socio-cultural and geographical connectivity while minimizing occupational hazards, excessive protectionism and unethical business practices (Salles-Djelic and Quack, 2018). Globalization has leveraged businesses with ample opportunities with profitability as increasing foreign investments, infrastructure development and implementation of citizen-centric solutions in education and healthcare have facilities to build a multistage societal structure to optimize global business strategies (Zeibote, 2019). In fighting against poverty, inequalities and unfair wealth distribution, global business policies have assisted national governments to confine adequate frameworks to sustain productive growth of the economy. In this systematic empirical framework, we intended to highlight the economical benefits of globalization. 

Foreign Direct Investment (FDI)
FDI is growing rapidly that facilitates both companies and government to restructure industry, economic forum and trade affiliates by transferring technology, resources and regulations. Higher FDI is boosting the regional economy by providing direct employment and subsidiary opportunities.

Economies of Scale
Globalization facilitates multinational companies to realise economies of scale that allows reducing costs and timelines to incorporate adequate growth. However, domestic companies may be affected by enormous competition. Reductions of transportation and logistics may enhance productivity and efficiency within the regional areas. 

Technological Innovation
Incense competitions by globalization have forced companies to incorporate disruptive innovations to optimize desirable and profitable business strategies (Cartwright, 2017). Development of portfolio, availability of expertise and production speed is leveraged by various promising technologies including automation, artificial intelligence, robotics and IoT. 

Recommendations

• Organizations must consider regional regulations and environmental policies to make the business sustainable
• Differences including cultural, geographical, social and demographics must be taken into consideration to amplify corporate goals.
• Adequate public relations, CSR standards and regional trade policies are necessary to comply with core business activities. 

Conclusion
Globalization is the future of the modernised world as the world is undergoing a remarkable transformation in economical, political, cultural and social changes since western industrial civilization. However, it raises significant concerns for the economic and cultural wellness of society. Many argue globalization has brought prosperity in living as information, technology and employment opportunities have rescued millions from poverty alongside assistance to improve basic social infrastructure including healthcare, education and transportation services. However, many believe globalization is a threat to national sovereignty, independence, trafficking and protectionism and equity distribution, especially in developed countries. However as suggested by P. Ghemawat and Anthony Giddens, the government must address the degree of integration and urgency of economical reformation through globalization while reshaping regulations, societal perceptions and international trade conventions. This systematic empirical framework has collected a handful of globalization and provided extensive recommendations to incorporate globalization as a prominent platform to improve economic development and diminish poverty within 2030.

Reference List
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Baylis, J., 2020. The globalization of world politics: An introduction to international relations. Oxford University Press.

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Cartwright, R., 2017. Mastering the globalization of business. Macmillan International Higher Education.

Chodor, T., 2019. The rise and fall and rise of the trans-pacific partnership: 21st century trade politics through a new constitutionalist lens. Management assignment Review of International Political Economy, 26(2), pp.232-255.

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Erixon, F., 2018. The Economic Benefits of Globalization for Business and Consumers. European Centre for International Political Economy.

Ghemawat, P., 2017. The laws of globalization and business applications. Cambridge University Press.

Kang, J., 2018. The modern mechanism of cultural globalization.

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Moghaddam, A.A., 2017. Tow Concept of Globalization: Wallerstein and Antony Giddens.

Nagengast, A.J. and Stehrer, R., 2016. The great collapse in value added trade. Review of International Economics, 24(2), pp.392-421.

Salles-Djelic, M.L. and Quack, S., 2018. Globalization and business regulation (No. ARTICLE).

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Appendix