Globalization in the Age of Trump BY PANKAJ GHEMAWAT (The Trajectory of…
Globalization in the Age of Trump
BY PANKAJ GHEMAWAT
All quotes and comments were based on the article published by Harvard Business Review. Plagiary is not intended by any means.
The mind map is presented only as a summary of the article, and some ideas are stated in a quoted way
The Trajectory of Globalization
Leaders of the world have a feeling of uncertainty about globalization
The world is getting less globalized, that doesn't mean that it is ending
Make adjustments in your global strategy in order to create value
Business people often have a misconception of the globalization
Leaders overestimate the consequences and underestimate the gains of globalization
People underestimates the range/amplitude of globalization. In words of P. Ghemawat the 'The Globalonley'
International business are less common than domestic
Economic, cultural and distance are factors that affect globalization
Organizing for success indicates that a re-structuration must be made
Companies need to take advantage of similarities between countries
The companies must diversify its platform and have teams near the customer and teams in a centralized office
Where to compete
Countries that depend on exports
Globalization should be made possible by Trade, capital, and knowledge flows
Companies historically have reported less income in foreign operations than in local ones.
Companies must seek an opportunity based on the intercultural options
Countries with an emerging economy represent a big Market, this means a local market
Doesn't represent the main core of globalization
How to compete
Use globalization Strategies
The way a company adapt in words of the author:
vary products, policies, market positioning, and so on to suit local markets.
Cost and complexity Increase
Investing in intangible technology
Cost of man power / Labor
Safety and work regulations
Engaging with society
Companies need to deal with the political, social and economical situation that the society of an specific country is going through
Business have low reputation in society, or at least their leaders
To improve its reputation big efforts must be made, and deal with the citizens and the government
There is a misconception on how Globalization affects some strati of people and benefit others
In words of the author: technological progress and (in the United States) the decline of unions have been bigger contributors to inequality than globalization
Work against the misconceptions, bring people together, use the three strategies to globalization, and care of the well being of people in order to make your company go global.