Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
The Surging Protectionist Sentiment There is a surge of protectionism and populism worldwide. From President Trump’s Protectionist Rhetoric and his America First and Make America Great Again slogans to the rise of Anti Immigrant sentiment in Brexit Britain and the latent hyper nationalism in other countries around the world, there is a backlash against globalization. […]
How the Economic Crisis Due to the Covid Pandemic Has Been Disastrous for the SMEs While the Covid 19 Pandemic has been hard on all, including businesses, individuals, and other entities, it has been nightmarish for Small and Medium Enterprises or SMEs. This is because the SMEs typically operate on a smaller scale when compared […]
Canada is a developed western nation. It does not get nearly as much attention in the world media as it should. This is the reason why Canadian housing market is not being displayed in the news by the mainstream media. Right now the market is going through an incredible bull run. The prices are rising […]
What are Electronic Health Records (EHRs) ? An EHR or an Electronic Health Record is a computer readable store of patient information that is accessible by healthcare professionals. It is also known as a systematic collation and collection of data and information about the patients in an electronic form. The EHRs can store information related […]
The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning. Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. […]
The famous author and cheerleader for globalization, Thomas Friedman, in his book The World is Flat identified some key drivers of globalization. He called these factors the flatteners to denote the premise of the book that these factors were responsible for the flattening of the world.
In other words, globalization has ensured that all countries with minimum infrastructure and educated workforces have the same entry level meaning that there are no “walls” or barriers to trade and hence the world is flat.
These flatteners or drivers of globalization include:
If we take the first driver of globalization, the integration of the global economy has mainly been due to the rapid spread of IT and communications that enabled countries like India and China to circumvent hitherto aspects that were holding them back.
In other words, the increasing interconnectedness was driven by real time communication between the West and the East which enabled these countries to reach out to wider markets and audiences in the Western countries. The classic example in this regard is India that has managed to tap into the booming market for IT and process outsourcing. As the next paragraph points out, China leveraged the spread of IT and communications technologies in a different manner.
Further, the fact that China became a manufacturing powerhouse is largely due to the fact that though the country is still lagging behind in English speaking populace, it has been able to leverage the shift in jobs from the West to the East.
The point here is that with IT, Communications and English spreading rapidly, India was able to leapfrog the Industrialization phase of Globalization whereas China drew strength from its youthful population as well as the tendency for business leaders in the West to look for ways and means of cutting costs.
The way in which western businesses invested in physical infrastructure to support the communications revolution during the dotcom bubble made the process of integration of the world economy easier.
The point here is that after the dotcom bubble burst, there was excess capacity in the broadband infrastructure which meant that communications costs came down drastically. This is also proved by the rapid spread of mobile technologies in Africa, India and China that attests to the trend described here.
Finally, since a major proportion of the world’s population was fluent in English, many of these countries could communicate with the West effectively as well as ensure that they understand the technical and financial aspects of the Western form of capitalism.
In the case of China, the managers and the upper levels of its industries and companies were conversant with the Western methods of doing business that helped its cause greatly.
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