Summary
The article states that the age of globalization is creating numerous threats as well as opportunities for new champions and developed multinationals. The current economic turbulence being witnesses in many economies is due to an increase in consumer awareness and enterprises’ competitiveness. Managerial experience, therefore, becomes f utter importance in handling the diverging markets and the rapidly changing consumer needs, tastes and preferences. Companies are embracing capitalism creating more opportunities for themselves at the expense of other companies as well as the organizational culture. This has had adverse effects on global business performance, employment and economic adversities particularly in upcoming economies.
However, as companies strive to dominate emerging markets, consumers benefit by obtaining the best products at relatively competitive prices. New capital markets are opening up, and investments are on the increase. Economies need to be diversified so as to take the full advantage of the current state. Due to the capitalism philosophy, multinationals are adapting new strategies that will give them a competitive advantage over emerging syndicates. The competition to dominate world markets is becoming so intense for many companies to withstand.
Despite the need to dominate global markets, firm must portray a good organizational culture by upholding ethics. Competition is healthy but can be disastrous in scrawny economies if not well monitored. I, however, feel that the first thing that a company should undertake once it arrives in a country is investing in infrastructural development. This will give them a good podium for conducting business as well as create a positive image of the business in the extraneous economies.
Countries must learn to embrace competition and importantly open up their economies. The fear that the current competition might lead to a reduction in job opportunities is unsubstantiated. The economy is not yet at its full capacity and competition will lead to increase in savings, employment and tax revenues. The protectionist sentiment has been increasing, and this has seen enthusiastic universal capitalists turn into protectionists. Such economic policies are detrimental and meant to fulfill the selfish interests of a few individuals. I fully concur with the authors claim that oligarchic and state-led capitalism that are currently prevalent in most emerging economies must be fought at all costs. Forces of demand and supply should be left to interact freely, and determine major economic concepts.
However, it is absurd that states are utilizing investments of sovereign-wealth funds and corporate acquisitions to increase its dominance in the economy. Excessive government intervention might only spell doom for emerging economies. Economists must stand firm to sojourn such detrimental trends. I, however, feel that government intervention should not be fully withdrawn since it will help in the risk of bad capitalism. Companies have no choice but to cuddle the multidirectional phase of globalization that is now affecting major economic activities in both emerging and developed economies.
Large scale entities in the global market need to be restructured and monitored so that they do not take gratuitous advantage of small entities. The IMF and World Bank need to monitored currency flow in the global markets since excessive capital availability will impact negatively on economic growth. The article is of great importance in understanding basic macroeconomic concepts. Through it, I have appreciated the role that government policies play in economic development. Additionally, the article interestingly elucidates major economic mismanagements that if not curbed, will engrave the economy. The worth of humanity is closely determined by the goods and services at their disposal. Hence, multinationals must keep customer needs at their heart as well as embrace globalization.
Work cited
"QQMail File Hub." A special report on globalization. The economist September 20th 2008. Retried on 5th February 2014 from http://en.mail.qq.com/cgi-bin/ftnExs_download?t=exs_ftn_download&k=6966333370922d9fe72413001e34574e5e5100060d065551155e07510919515200511e520955524c0a03070b0c5656550b050b06382865245b095d136f460c15510854136a51160e4d14505615194b0557054b3305&code=8f3384ea
