Managerial thoughts

Managerial  thoughts

Take advantage of the globalization to develop the business of your company

The thoughts that the pros and the cons globalization develop and the events that they organize across the world are sometimes so convincing that it is often too difficult for everyone to understand the ins and outs.


The pros see the globalization as an opportunity for the developing countries to integrate their economy into the global economy in order to benefit from the dividends that would result. The cons see it as an obstacle to the growth of the economies of developing countries. It increases inequalities and undermines social progress in these countries.


As paradoxical as it may seem, each of those theories has been proven whether in the poor countries or in the developing countries. Some countries, such as those from South East Asia have, dice the 70s, integrated their economy into the global economy and have seen their GDP increasing in a rapid and significant way.


Others, like most African countries have preferred to lock themselves and to reject the idea to integrate their domestic economy to the international economy. Those countries saw no change in their income, worse than that; the globalization has worsened their situation and made their population even poorer than it was. These countries did not have the appropriate means to change their situation, otherwise to turn to the westward to seek for help.


The emergence of developing countries


More recently, countries like Vietnam, Brazil, India and China have transformed their economy, to make it a market economy and gave it a place in their development strategies, regardless of their political and ideological orientation. I purposely excluded Russia and South Africa and replace it by Vietnam, considered as one of the poor countries in the world in the 1970th.


I would even say that these countries are the countries which have the most taken advantage of the globalization. The majority of the population of these countries has started to feel the benefits of these international exchanges and starts out of the misery to which it seemed to be confined forever.


Vietnam has seen, because of its attractive economic program, a large and continuous flow of foreign investors. Investments have reached at the end of 2007, over than 20 billion U.S. dollars or 30% of GDP[1]. The opening of its economy to international trade has also enabled it to record over the period 2003 – 2008 an average annual rate of growth exceeding 8% of Gross Domestic Product (GDP). This growth has significantly reduced the rate of poverty in this country. In 2008, only 20% of the population lives under the poverty line against 58% in 1993.


In India, the economy reform undertaken by the Indian government in the 1990s has allowed an average annual growth of 8.5% of the GDP during the period 2003 – 2008.


In China, the average annual growth of the GDP was better than any other country in the world during the period 2003 – 2008.


Some of you will be certainly surprised by my analysis, because I limited it to the period 2003 – 2008. Yes I purposely did, because I think that the crisis that we have experienced in 2008 and we continue to experience is a financial crisis that has unfortunately turned into an economic crisis due to certain institutions and a disastrous economic and foreign policy of USA during the period 2000-2008.


This was a major crisis that most of the population in the world have suffered and are still suffering, but I'm convinced that in two or three years as max, the global economy will return to its normal course. 


The results of some emerging countries, especially India and China, are already beginning to raise strong opposition of the population of the industrialized countries, particularly in the United States of America and the European Union.


Relocation of western companies and anxiety of the western populations


The relocation of some western companies to the developing countries begins to raise the passions of population in developed countries.


The views and concerns of the western population, as such as the economic issues at medium and long term, are the parameters that most often guide the choice of the leaders of powerful countries like the United States of America in re-shaping the political and economic landscape of the most countries in the world.


Some professionals and experts suggest that the Western countries close their borders to the developing country products justifying that by the standardization problems, quality, environmental or simply unfair competition.


Personally, I do not think that this is the solution. It is known that despite of the progress of Asia and South East Asia countries, there is still to date only 20% of the population of the planet (located almost in the Western countries) that consume 80% of global outputs (produced almost in the Western countries).


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[1] Source : Diplomatic French, December 21st, 2007- .


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