The ability of countries to rise above narrow self-interest has brought unprecedented economic wealth and plenty of applicable scientific progress. However, for different reasons, not everyone has been benefiting the same from globalization and technological change: wealth is unfairly distributed and economic growth came at huge environmental costs. How can countries rise above narrow selfinterest and act together or designing fairer societies and a healthier planet? How do we make globalization more just? According to Christine Lagarde, former President of the International Monetary Fund, “debates about trade and access to foreign goods are as old as society itself ” and history tells us that closing borders or protectionism policies are not the way to go, as many countries doing it have failed. Lagarde defends we should pursue globalization policies that extend the benefits of openness and integration while alleviating their side effects. How to make globalization more just is a very complex question that involves redesigning economic systems. But how? That’s the question. Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. All of this requires, on one hand, global consensus and cooperation, and on the other, country-specific solutions, apart from a good definition of the adjective “just”. Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper. The Engine of Globalization – An Economic Example The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges. In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world. Page 3 of 5 This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays. Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead). Globalization Benefits – A Financial Example At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, Deregulation. The idea was to simplify finance regulations, eliminate mediators and break down the barriers between the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied. Globalization – A Cultural Example Together with economic and financial globalization, there has obviously also been cultural globalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs. 1.3. Delineate the impact of culture on international business.
Read the following excerpt from a detailed article on globalisation and answer the questions that
follow:
The ability of countries to rise above narrow self-interest has brought unprecedented economic
wealth and plenty of applicable scientific progress. However, for different reasons, not everyone has
been benefiting the same from globalization and technological change: wealth is unfairly distributed
and
globalization more just?
According to Christine Lagarde, former President of the International Monetary Fund, “debates
about trade and access to foreign goods are as old as society itself ” and history tells us that closing
borders or protectionism policies are not the way to go, as many countries doing it have failed.
Lagarde defends we should pursue globalization policies that extend the benefits of openness and
integration while alleviating their side effects. How to make globalization more just is a very complex
question that involves redesigning economic systems. But how? That’s the question.
Globalization is deeply connected with economic systems and markets, which, on their turn, impact
and are impacted by social issues, cultural factors that are hard to overcome, regional specificities,
timings of action and collaborative networks. All of this requires, on one hand, global consensus and
cooperation, and on the other, country-specific solutions, apart from a good definition of the adjective
“just”.
Globalization has benefits that cover many different areas. It reciprocally developed economies all
over the world and increased cultural exchanges. It also allowed financial exchanges between
companies, changing the paradigm of work. Many people are nowadays citizens of the world. The
origin of goods became secondary and geographic distance is no longer a barrier for many services
to happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example
The most visible impacts of globalization are definitely the ones affecting the economic
world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a
multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies accelerated the
globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This
significantly contributed to increasing the interactions between different regions of the world.
Page 3 of 5
This acceleration of economic exchanges has led to strong global economic growth. It fostered as
well a rapid global industrial development that allowed the rapid development of many of the
technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation among the brightest minds speeded
things up. According to some analysts, globalization has also contributed to improving global
economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed
– more information ahead).
Globalization Benefits – A Financial Example
At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies,
the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and
the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation,
Decommissioning, Deregulation.
The idea was to simplify finance regulations, eliminate mediators and break down the barriers
between the world’s financial centers. And the goal was to make it easier to exchange capital
between the world’s financial players. This financial globalization has contributed to the rise of a
global financial market in which contracts and capital exchanges have multiplied.
Globalization – A Cultural Example
Together with economic and financial globalization, there has obviously also been cultural
globalization. Indeed, the multiplication of economic and financial exchanges has been followed by
an increase in human exchanges such as migration, expatriation or traveling. These human
exchanges have contributed to the development of cultural exchanges. This means that different
customs and habits shared among local communities have been shared among communities that
(used to) have different procedures and even different beliefs.
1.3. Delineate the impact of culture on international business.
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