- we have entered a Globailzation 3.0 where the world has shrunk from size small to size tiny - in Globalization 2.0, we had technology but there were still barriers preventing complete flattening in the world setting - Globalization 1.0 = countries globalizing - Globalization 3.0 = individuals able to collaborate and compete globally - making it possible for not just western individuals to be involved - outsourcing has become efficient and wildly advanced - technology based on outsourcing, human contact based on Americans, considered to be our add value (accounting and radiology) - call centers located in india produce most calls - even the military is being flattened, as low ranking officers are completely filled in informationally - even outsourcing occurs in fast food restaurants -moving into more collaborative structures in all fascets of life Clash of Civilizations - a cultural entity: the new wave of globalization will focus on clashes between these nationalities and ethnic groups - why? Because what separates cultures is basic, in essence history language culture tradition and religion - these differences are not going away and have proven to cause violent conflicts - increasesd communication increase the awareness that people have of the differences between their civilizations - Us vs. them - Micro-Level: struggle excists between fault lines over control of terriroy and each other - macro-level: struggle exists for military and economic power and control of international institutions - racism increasing in many regions of the world, such as in Italy, France, and Germany due to the increased population growth in Arab countries causing them to migrate to Western Europe - new cold war between China and American - for example: Islam urging muslims to provide help to Bosnia, enducing Lebanese and two dozen other Islamic countries were helping Bosnia - Yugozlav conflict provoking intervention from countries that are muslim, orthodox and western christian - Universal civilization: Western idea being forced on other civilizations
- band waggoning, or balancing the west (developing economic and
military power and cooperating with other non western societies against the West) - universal civilization is unlikely Ghemawat: Technological advances increase the chances for globalization apocalypse: cost of one call to New York from London fell from 350 to 40 cents in 1999 - although internet opens up communication between states, it is an exaggeration to say this will be an apocalypse considering the wide variations between communication styles within countries - Coke: originally developed to be a one-size fits all company, disregarding the differences of other countries and very consolidated. Due to economic downfalls the Coke business was forced to reavaluate their business strategy and succumb to cultural differnces, moving to a largely decentralized and localization approach - this did not work either, forcing the company to move towards the reality of semi globalization - Cokes dominatio in Japan based on not carbonated drinks but other products suited to their demographics Chua: the myth of gift giving: China is moving into more westernized culture, guanxi is starting to move more into the Westernized way of building relationships - head and heart (trust) - Americans separate emotion from business whereas Chinese integrate it - cultural differences cause difficulty between bodning with Americans - westerners must start by developing the other persons trust in their capability the same way it is done in the US, providing knowledge Gazprom: was knocked out of the oil industry and forced to privatize in which they had to trade shares in a semi-legal market -involved in illegal activity, including the refusal and inability to pay tax debt - suffered a blow when the Prime Minister was fired, and tax prosecutors started seizing Gazprom assets - management was accused of skimming MORE off of the top than usual, and the company was accused of not properly recording their accounting - Browder became an activist shareholder of Gazprom despite knowing the corruption and lack of transparency in the Russian markets, knew the company had assetsand estimated its value to be trillions of dollars - did a financial analysis of the company and found it was not in such terrible financial state
- many positive reforms occurred for the company including a new
president and prime minister but the company still had trouble ahead including using funds to shut down news stations that were at odds with the r Nike: outsourced labor for a low cost, strikes began in 1989, - Ballinger began to attack Nike and focus his entire campaign on them, causing them to increase wages and force reform on their environments - became the face of child labor issues