The Misconceptions About Globalization

The paper focuses on the globalization in the age of Trump an article written by a renowned economist Pankaj Ghemawat who published in it in August 2017. The article provides several guidelines and perceptions of globalization. It narrows down to the strategies and plans which can be applied globally in the effort to utilize global efficiencies. The leaders are provided with the required guidelines of the extent of the vital sense of global strategies.Thus globalization is still not lost.There has been an ideology that globalization is quickly decreasing over the recent times.This is due to the rising trading barriers which slow down the globalization processes and protectionism in trade whereby the government tends to restrain some business from happening on an attempt to protect the local businesses in the country (Ghemawat, 2018). The result of this is that firms and industries should focus more on the localization of their production processes and their entire operations.Pankaj Ghemawat clearly illustrates why it is not healthy to emphasize on the localization of operations in business entities.He argues that is better that globalization is focused. According to the recent surveys, people have an exaggerated view of the world as being too globalized that its actual state.Hence many people base their conclusions on the inappropriate information about the globalization of the world. Thus companies should focus on globalization strategies. Variousinstitutions don’t take serious the consideration of interregional operations in business and are usually narrowly focused. (Ghemawat,2017, p.115)

International operations are much less intense than domestic operations and activities.Hence international integrations are reduced by the level of distance between the regions.Ghemawat compares historical events on trade and comes up with a critically analyzed point that even in the great seen depressiontrade did not entirely dry up so there is the possibility of some variations that can happen.Due to this, the change that will occur in low extends as the trade activities dropped in 1930 was effectively massive the in the last ten years.In addition,the history shows clearly that the partners in the trade activities where the countries based their operations did major business before the crash became unchanged even in the years to come. (Ghemawat, 2017, p.118)

Ghemawat critically analyzes the hard truth that it is crucial to evaluate options carefully in order to globalize their operations of going abroad in other regions so as to utilize the global efficiencies in relation to the distance factor. It is effective for a firm to maximize the opportunities in regions where they are safe and stable with the respective places whereby there should be both economic, cultural and political satisfying requirements. (Ghemawat, 2017, p.120). Instances of lower profitability in the business activities of the global company will be evident due to the lower inter-country levels which are usually attributed to the higher distances between the two countries. The idea driven by Ghemawat is that barriers to trade are easily countered when the distances between the trading partners are smaller. Due to many companies looking down upon the distance factor,thus the author Ghemawat points out at addressing that. (Ghemawat and Vantrappen, 2015, p.73)

The Importance of Global Strategies

In the HarvardBusiness Review, Ghemawat provides useful guidelines to the managers. The author not only addresses a problem but also provides some remedies making the article substantial and significant. Another strong point of the HBR is that it consists of many guidelines useful for managers. Ghemawat addresses a problem, but also offers some solutions which make the article effective.Thus he suggests that it is vital to identify where to compete in markets.Thus the author illustrates the investigations of the optionsbefore making decisions.(Ghemawat, 2018) The key point is the manager should shun the view that global firms compete in all the markets

In the article, Pankaj attempts to convince readers that the overemphasis on the localization of companies would hinder its ability for value creationacross the borders using the globalization strategies and plans that are significant and will be in existence in the future. (Ghemawat, 2017, p.112)

Reading this article,one would end up with information which could be very biased on data which is not supported.This is due to the factthat the author Ghemawat developed his own study and analysis on their own data. The information which was gained from various respondents in the respective surveys also contributed in the affecting of the information accuracy as a survey sample could easily give out general knowledge-based information which is not precise thus not understood easily and unrealistic (Ghemawat and Jones, 2016, p.56). However the article focuses on the misperceptions about what is and what is not changing in globalization as per the introduction, Here the author Pankaj takes into consideration the past as an evidence into his future assumptions and views.This is considered a limitation as things change with time and many things might have occurred since 1930sThus multinational companies are more focused on the inter-border relations and engaging in the various countries due to the results which may be extreme. (Gora, 2013, p.155)

The distance between the different countries which are partners in trade seems to have been reduced due to the information leakage which is facilitated by the internet browsing. Thus this more countries, various supply chains and the impacts of the geographical distance on the trade are more expanded and large that their initial state last year(Taylor, 2017, p.244)

 The key vital concept understood from the Harvard Business Review is that all of us should be feeling lucky and happy that we have achieved such levels of globalization. The global economy is focused on theopen markets and the globalization levels. Countries such as the United States of America and Australia who were very effective traditional pillars for the open market are now wobbling. This is because they want to bring down their markets thus reducing integration levels which leads to reduced globalization.Thus globalization being at higher levels, we have to be happy as the two countries stopping open markets operations will trigger the falling of the economy thus outbreak of a major crisis.(Ghemawat and Altman, 2017)

The Guidelines for Managers

From the article managers should carefully identify with the truth that the perception of a borderless economy and the entire globe is quickly crashing and is quickly becoming an uncertainty. Inregard to this, the managers have a choice of decision making whereby they retreat,stay on the operational scale or change the global strategy. Managers should face the fact that the myth of a borderless economy and world is crashing.(Ghemawat and Altman, 2016, p.11) Before making the decisions, the managers should not consider the international trade andthe investments being too large for the process of change to occurand they should find out on the best way to be flexible in the globalization changes.The managers have to acknowledge the fact that they do not have the absolute power of influencing the situations when they have no otherwise in adapting to the changes brought about by the changing globalization.Hence this is essential in adopting factors of globalization.(Coffee, Sale, and Henderson, 2015

The article relates to the course in its international part. Globalization is usually based on an international scale and the managers and companies have to deal with it effectively. This is due to the selling of the goods and services to a particular customer in the mother country or a foreign country. The instance where an individual from the United States orders a commodity from Germany is proof enough of the fact that globalization is a key element in our daily endeavors. Globalizationgoes beyond border restrictions as it is not bounded by borders hence the reason for the article being related to the course is due to the globalization part (Debroux,  2017).

Conclusion

It is not possible for the crash to be effective and important after the great depression.Pankaj Ghemawat lists the guidelines and formalities in the article. The first idea is that the respectable leaders should shun the idea whereby global entities have to be competitive in each and every marketplace. Meanwhile, it turns vital to the decision making of the best alternative which involves choosing where to compete and localizing operations is also a choice to make. Hegave a guideline also that global strategies should be in the capacity to retain and uphold the main power in aggregation while damping the organizationsfocus on arbitraging and being more adaptive(Webster, 2015). Thus as put clearly by Pankaj Ghemawat, the misinformed ideology that inequality is the root cause of globalization rather than the policies of the government is a reverse concept.Pankaj suggests that transparency should be in line with the spotted domestic policies in the addressing of consequences that are attached to globalization. Thus, at last, global strategies and practice have been more developed amid several advancements beyond the prescriptions that the historic models would have an implication on whereby the leaders would be ill-served when they go backward. (Ghemawat, 2017, p.123)

The Challenges and Opportunities of Globalization

The HBR written by Ghemawat is a vivid illustration showing that globalization is not that weak. The strong ideas and points that the author addresses are the crucial sense of the distance law in various regions and he lists the guidelines to be followed by the managers on what ought to decide, the author bases his arguments on various evidence illustrated thus enabling the conclusion to be more precise and trustworthy(Munck, 2004).The weakness of the article by Ghemawat is that the information given could be biased as the author develops his own research and comes up with his own analysis. This means that the data cannot be assumed to be accurate (Ghemawat, 2017, p.87). The author uses the past as the main proof to his future assumptions on globalization which cannot be entrusted at all.Hence the key thing we thus have to be happy about is that globalization is at such levels as learned from such levels currently. Eventually, themanagers have to face the problems make critical decisions and retreat or decide to change the strategy.

References

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Ghemawat, P. and Altman, S.A., 2016. Emerging Economies: Differences and Distances 1. AIB Insights, 16(4), p.7.

Ghemawat, P. and Altman, S.A., 2017. DHL global connectedness index 2014: analyzing global flows and their power to increase prosperity. 2014.

Ghemawat, P. and Jones, G.G., 2016. Globalization in Historical Perspective. The Laws of Globalization and Business Applications, p.56.

Ghemawat, P. and Vantrappen, H., 2015. How global is your C-suite?. MIT Sloan Management Review, 56(4), p.73.

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Ghemawat, P., 2017. Market and management failures.

Ghemawat, P., 2018. The New Global Road Map: Enduring Strategies for Turbulent Times. Harvard Business Press.

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