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Globalization

1. What is globalization?
2. What does Mexico have to gain and lose from Acme Autos operating in Mexico (include issues of international sovereignty, employment, and GDP)?
3. What does the U.S have to gain and lose from Acme operating in Mexico (include issues of international sovereignty, employment, and GDP)?
4. How does the macroeconomic stability of the host country affect a multinational corporation?
5. Is it economically efficient for the U.S. to move low-skilled jobs to Mexico? Explain your answer.
6. What role do cross-cultural communication, cooperative decision-making, and collaborative problem-solving play in multinational corporation management?

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Please see response attached (alos below), as well as supporting information. I hope this helps and take care.

RESPONSE:

Let's take a look:

1. What is globalization?

It depends on whom you talk to, as there is no consensus as to the definition of globalization. As well, some opponents argue that globalization is a good thing; while others argue the exact opposite, and in fact, the ladder argues that it is just a glorified name for colonization. It is the powerful taking advantage of the less powerful. It is about victimization in the guise of deceiving language, such as free trade, expansion, economic development, etc. However, others argue that globalization is indeed a good thing and imperative to continued world growth and the world economy. It helps individual companies like in automobile industry, as well, and as noted in your example below, which is uploaded for easier referencing. You will have to choose a position, or possible, argue that it has both "good and bad qualities."
In general, Globalization is usually understood as a process in which barriers (physical, political, economic, cultural) separating different regions of the world are reduced or removed, thereby stimulating exchanges in knowledge and goods. Globalization allows freedom of movement (liberalization), and to most people this seems positive. Globalization also promotes mutual reliance. As the number of exchanges of goods and of information increase, the result is a growing interdependence between countries as they come to rely on various imported products, services, and cultural input. However, there is another side to globalization that is less savory. In the absence of barriers, globalization invites the strong to invade the territory of the weak, opening the door to wholesale exploitation. In economic terms, what this amounts to is that the rich get richer and the poor get poorer; in environmental terms, it means the accelerated destruction of the planet's biosphere (http://www.geocities.com/ericsquire/globintr.htm).

Example: Excerpt from attached article, a conference on globalization and the automobile industry:

For example, in moving toward a definition of globalization, Boyer argued that globalization deserves attention because of its potential to alter existing national regulatory frameworks and to unravel existing social compromises. Because these are the likely battle sites, researchers can best observe the effects of globalization by focusing on changes in domestic institutions and regulations. A parallel process of transformation, he suggested, was played out in the introduction of mass production, which was not introduced as fait accompli, but evolved in every into four general types: market-led but with some government intervention, as in the US, UK, Canada, Australia, and New Zealand; corporate-led but aided by informal sources of innovation, as in Japan; repeated and on-going social negotiation, as in Sweden and the Netherlands; and state-led, as in France. With its characteristic floating exchange rates and mobile financial capital, globalization seems to favor the market-led approach to economic governance, as it is the most flexible, especially with regard to labor and financial markets.
Regardless of the nature of the social compromise, Boyer noted, globalization means that national actors can escape domestic regulation by going abroad. As a result, we observe multinational corporations and international financial institutions attempting to remake the rules that govern both ...

Solution Summary

Referring to globalization and United States company e.g. Acme Autos in Mexico, this solution addressed the six questions on various aspects of globalization e.g. gains of both countries, macroeconomic stability of the host country affect a multinational corporation, economically efficient for the U.S. to move low-skilled jobs to Mexico, role do cross-cultural communication, cooperative decision-making, and collaborative problem-solving play in multinational corporation management.

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