Globalization refers to the multiplicity of linkages and interconnections .... 10
Chang, Ha-Joon, 23 Things They Don't tell You About Capitalism, Bloomsbury.
Reconsidering Globalization Dunning who is famous researcher for the multi-national company activity quoted the definition of globalization1. Globalization refers to the multiplicity of linkages and interconnections between the states and societies which make up the present world system. It describes the process by which events, decisions, and activities in one part of the world come to have significant consequences for individual and communities in quite distant parts of the globe. Globalization has two distinct phenomena : scope (or stretching) and intensity (or deepening). On the one hand, it defines a set of process which embrace most of the globe or which operate worldwide : the concept therefore has a spatial connotation. On the other hand it also implies an intensification on the level of interaction, interconnectedness or interdependence between the states and societies which constitute the world community. Accordingly, alongside the stretching goes a deepening of global process2. Dunning concluded the two feature of globalization, that is, Globalization involves with the structural transformation of firms and nations. It leads to the borderless world result with the process of internationalization and dependencies. He summarized the performance of it as a following that3. We faced the dramatic change of the mid-1970s to the late 1990s which had impacted on the nature and composition of global economic activity, on its ownership and location, and on its organizational modes. There are four situations. That are 1. The increasing importance of all forms of intellectual capital in both the asset-creating and asset-exploiting activities of firms. 2. The growth of cooperative ventures and alliances between, and within, the main wealth-creating institutions. 3. The liberalization of both internal and cross-border markets. 4. The emergence of several new major economic players in the world economy.
We admit a lot of definition of globalization was effected by the literature of business or an international organization4. The background of affecting the concept of business or the international organization in the definition of globalization was the multi-national Dunning, H, John ed., Regions, Globalization, and the Knowledge-Based Economy, Oxford University Press, NY, 2000, p.13 2 McGrew, A.G.(1982).’Conceptualizing Global Politics’, in A.G.McGrew and P.G. Lewis(eds), Global Politics: Globalization and the Nation State ,Cambridge, The Polity Press. 3 Dunning, H, John ed.,ibid, p.8. 4 R.Boyer and P. Souyri, Mondialisaton er Regulations :Eurpe et Jalan face à la Singularité Américcaine, La Decouverte & Syros, 2001. Translated into Japanese,p.3andp.34. 1
or trans-national companies activities which had impacted on the nature and composition of global economic activity, on its ownership and location, and on its organizational modes the mid-1970s to the late 1990s. American companies, especially , finance firms spread theirs activities area into the world and then Universities researches of management named the American multi-national companies activities as impressive terms which had been adapted by the analyst who applied the multi-national companies behavior as being global standard implying the same management style, commerce rule, decision and policy all over the world. We will refer to the boom and bust of terms characterized management styles as the globalization in order to verify the using the multi-national companies activities as the global trend. The Swedish model appeared the early1970s and was taken part of the Rhine type capitalism the late of 1970s5. the Rhine type capitalism was taken part of the Japanese management type the 1980s6. The Japanese management type was taken part of the New Economy7. And now, the ecosystem style management is boom8. The phenomenon of multi-national company activities on the global economy was the increase of export, direct investment and introducing their management style into the host countries. The effects of those activities on the host countries and world economy is complicated which from optimistic opinion to pessimistic one 9 . Some of them was misunderstanding one. Ha-Joon Chang points out the some of the failure10. I introduce some of the true of capitalism which I think the relation with globalization as following. There is no such thing as a free market. Greater macroeconomic stability has not made the world economy more stable. Capital has a nationality. We does not live in a post-industrial age. We are not smart enough to leave things to the market. Financial markets need to become less, not more, efficient. Boyer described another misunderstanding of multi-national companies activities effect on the globalization is the equating the national economy with the companies activities as well as same management style prevailing the world11. That is the international economy has combined with diversification of the reign system and management style. When we think calmly the meaning of diversification we notice that the uniformity of the economic structure and manufacturing system which some of the authors had notified implies the countries and companies compete fiercely with the dominance and don’t have to arrange the rule. On the other hand, the diversification is possibility of the complete relationship between the countries with trade. The dangerous of the uniformity is appeared if one of the system based on the Albert, M. capitalisme contre capitalism,1991. Ouchi,G,William, Theory Z,1981, Avon,N.Y. 7 Kelly, K. New Rules for the New Economy, 1998, Penguin Books. 8 Ander, R. The Wide Lens,2012,Penguin. 9 Batra, Davi, The Myth of Free Trade, 1993, Macmillan. 10 Chang, Ha-Joon, 23 Things They Don’t tell You About Capitalism, Bloomsbury Press,,2010. N.Y. 11 R.Boyer and P. Souyri,ibid,p.10. 5 6
uniformity fail down, then the effect of part of dysfunction influence on the whole. Taking account of the risk that the part of defeat magnify the total collapse, we recognize the diversification is importance for the world economy. We choice or create the definition of globalization because the definition of globalization is so many variation. When we verdict which definition we watch the interaction of the nation and the multi-national companies analyzing the phenomena, referring to the date and the statistics, abstracting the essence and inferring the consequence.
