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Technology & Innovation

Secrets of Successful Globalization

For all our talk of living in a globalized world, there is far less international exchange of people, goods and information than we would expect. How can we encourage globalization? 

What’s the Latest Development?

Despite what we believe, globalization is not the de-facto state of our world, says business professor Pankaj Ghemawat: “First-generation immigrants represent only 3% of the world’s population and the percentage of the world’s population comprised of immigrants is the same as it was in 1910. … Some pre-crisis measures of cross-border capital flows/stocks are actually comparable to earlier peaks more than 100 years ago—and thanks to the crisis, are now lower. … Less than 20% of the bits transmitted on the Internet cross national borders.”

What’s the Big Idea?

Ghemawat gives seven idea for successful globalization. Among them are: Respect cultural differences, the way McDonalds sells lamb burgers in India; not all countries are equal in a globalized world—the further away your business goes from home, the more difficult it will be; regions remain important global players, take the E.U. for example, where trade barriers are erected; companies should exploit arbitrage strategies such as going public abroad to tap foreign capital wells; exploit downturns in foreign markets to expand your business. 


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