Until 2008, turning into a globalized economy seemed logical in almost all the world companies. European markets were very competitive, population expansion slowed, and incomes flatted. In the developing nations, there were boosted population growth, increasing wages, and a favorable environment for foreign investments. In the past years, Pfizer has encountered the new phase of globalization. For instance, In February 2013, the India’s Patent Office revoked the Pfizer’s patent for cancer drug Sutent as part of its effort to make medicine available to as many people as possible. The government then granted Cipla, another domestic manufacture the charter to produce a cheaper generic version. China, on the other hand, has slashed drug prices to lower the cost of healthcare in the country (Alon 275). All these have taken place to wave the way for globalization.
After the recent worldwide recession, the world has entered a new phase referred to as the “guarded globalization” the developing nations are allowing multinational companies to invest in their economies. At the same time, they are protecting their local interests by choosing the countries that they would require to collaborate with and do business and select sectors of investments and the local companies they want to promote. This is a various factors of globalization as it moves slowly, very selective, and is prone to both nationalism.
A number of factors contribute to this trend. One, governments in the developing economies fear foreign competition as domestic firms and customers will attempt to block external entrants. Two, these countries have created foreign exchanges and boosted exports. They are not interested in attracting significant foreign investments. Three, national security is broadly defined in these countries. Financial instability, food prices hiking are threats to the economic decline. Four, China, establishes without following international business rules and norms. Therefore, socialization with such an economy casts a long shadow risking globalization.
Capitalism varies from one country to another. For instance, in China, the state-run corporations account for over half of the nation’s GDP and employments. Out of the seventy-three Chinese firms listed in Fortune Global, sixty-five are government-owned. Also, the Russia’s government-owned corporations account for more than half Moscow Exchange value. Over 50 percent of Russians rely on the government for their social benefits and salaries – almost double the percentage in the U.S. In the United Arab Emirates, the economy is dominated by the national oil company and the sovereign wealth funds. In Brazil, state-owned companies account for 38 percent of the value of BM&FBOVESPA. In South Africa, state-run telecommunication firms, electric utilities, airline, and the railway system face competition from the private sector.
Lastly, although globalization is the expansion of states’ corporations by the developed countries to the developing ones. The move is not as smooth as they once thought. Governments of the developing nations are resisting it as it amounts to potential threats to the local economies.
Work cited
Alon, Ilan. China Rules: Globalization and Political Transformation. Basingstoke: Palgrave Macmillan, 2009. Internet resource.
