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Globalization over the past and the future years remains to be a word that is most used and abused, political spectacular, and nebulous. This subject has garnered passionate reactions, suspicions and fears that have invoked cause to many transformations and events and contemporary world events. As many have attested, globalization is a disease that the century has suffered from. Levelling of countries' characteristics from religious, economic or cultural point of view is the worst sin that globalization has been accused of (Tiffany et al, 2011). With this regards, the perception on this phenomenon have encouraged homogenization, uniformity, and westernization of cultures. Nonetheless, conflicting point of view relating to this process have risen that support more or less viable arguments.
Despite the fact that recent economic dependencies and interdependencies remains an old paradigm, globalization has taken spectacular ways that have turned into a leitmotiv for the specialists and the public at large (Tiffany et al, 2011). To some experts, globalization is a purely economic phenomenon that involves a growing economic interaction among nations or as an integration of national economic systems that increases capital follows, trade activities, and investments. Globalization has totally altered the business world over the last three decades.
Technological Trend: Innovation as Globalization Force
Primarily technological innovations in communication and transportation formulate the second foundation of globalization. Globalization first juncture can be traced back to the invention of the steam engine in 1765- the second stage of Industrial Revolution. Three periods of technological innovation differentiate the process of globalization (Tiffany eta al, 2011). The steam engine application on land and sea transport and the electric telegraph innovation characterized the first phase. The use of steam locomotives and steamboats amplified the transport volume and reduced transportation time. The introduction of the steamship was in 1807 whereas the first successful steam locomotive test was in 1825 (Tiffany et al, 2011). The pace of transportation was accelerated by the construction of railways that interconnected cities, nations, and continents. In addition, this increased the scope of industrialization concerning the geographical coverage, the quantity of goods, and the number people transported. This also accelerated and eased the distribution of information.
The speed of transportation and communication was separated for the first time by invention and improvement of electric telegraph by Gausss, Weber, and Morse in 1830 (Tiffany et al, 2011). This era signifies the historical turning point of the progress of globalization where the invention considerably lowered distances in space and time. Because of this, nations were able to quickly react and learn from the events that happened in the country's national territory entailing the less developed areas. The international communication was supported by the 1865 transatlantic telegraph cable (Tiffany et al, 2011). The invention of automobile and the telephone amplified the process which nations controlled their territories. The homogenization between the various regions in a nation's territories was brought about by this technological empowerment. The national newspapers and the introduction of standardised clock times are examples that promoted the homogenization.
Even though this phase is more profound to influence the state of the nation, it also promoted international contracts and trade. The homogenization process of technological advancements opened up trade to larger geographical units than in the past (Tiffany et al, 2011). Moreover, the introduction of Greenwich Mean Time as an international standard improved communication and timetabling for international activities.
The V2-projcet rocket propulsion by the German engineers during the Second World War marks the beginning of the second phase. The USSR and US fierce technological competition catalyzed satellite and rocket development pace (Tiffany et al, 2011). The technological capability of launching rockets into space opened ways to install satellites circling around the Earth. For the first time in history, satellite circling around Earth facilitated global and reliable system of communication. In spite of the possibility of international communication via telephone, the connections were of low quality and therefore the widespread use of telephone was mostly limited to the national boundaries. However, the introduction of satellite communication greatly improved the quality of international communication.
The invention of the computer is the last phase of technology globalization trend. Despite the invention of the computer as early as 1942, its capacities hardly surpassed the ordinary calculator abilities (Tiffany et al, 2011). Nevertheless, Intel invention of the microchip in 1971 increased the processing speeds, volume, and computer efficiency. Similarly, the invention of the microchip and introduction of the electric telegraph are perceived as globalization major turning point. The invention of the microchip is considered as the core of contemporary communication and information technologies. Communication and information technologies have led to a similar revolution, shrinking distances in space and time just as the electric telegraph did more than fifty years ago. Further microchip's applications and innovations have lead to the surfacing and global use of the internet and supporting communication systems (Tiffany et al, 2011). The invention of the microchip and computer technology led to the construction of global network of data that acts as the channel to the global financial capital markets. The current globalization phase is characterized by the widespread application of the invention of computer and associated technologies.
Other technological developments such as transport innovation technology such as the passenger aircraft and container transport should not be ignored. From the end of World War II, the movement of people and goods around the world have dramatically increased (Tiffany et al, 2011). Although over a longer time of time, international passenger and cargo flight have recorded a tremendous growth; its growth concentration is discerned in the 1970s. Coincidently, this is the same period when the microchip was invented. Even though this paper has provided a convincing analysis of the role technology has played in the process of globalization, arguments relating to future are rather technologically deterministic.
Capitalism as Globalization Starting Point
Fierce controversies exist concerning the current debates of globalization in regard the historical dating of the phenomenon. Some sceptics of globalization have urged that Industrial Revolution was the globalization breeding grounds. Others point out that globalization started with the European Colonialism when Columbus discovered America (Tiffany et al, 2011). On the contrary, the different views on globalization historic dating from sceptical analysis recognize globalization as a driven by economic incentives. Today's globalization is distinguishable from the previous periods since 'new' globalization is based on capitalism rather than international trading.
Capitalism leans more on the accumulation of capital through the production system where labour surplus adds value to the product. During the production process, the only thing that adds a monetary value is labour, whereas other economic systems do not differentiate between non-productive labour and productive (Tiffany et al, 2011). Since labour adds value to the employed capital, it is therefore possible to accrue capital by employing productive labour. Another feature that distinguishes capitalism from other economic systems relates to non-productive accumulation through capital reinvestment.
In the past, capital investment and insurance on a large scale were not present. In such a system, surplus money is normally saved or spent on works of arts on prestigious buildings such as churches and paints rather than investment (Tiffany et al, 2011). If people could closely look at the difference between today's capitalism and the past economic systems, it therefore improbable that globalization can take back before capitalism emerged. For instance, the establishment and expansion of the Dutch and English first global trade networks could not exist without a system of commercial insurance, capital reinvestment, and private ownership. When this line of argumentation is followed, two key historical landmarks are recognized eluding the predevelopment of globalization. The discovery of America symbolizes the first phase that signifies the inception of colonialism. The emergence of first multinational is identified as an early establishment of capitalism- the world's dominant economic system. The future capitalism and globalization will take similar trends influencing the world's economy than ever before.
Strategy Formulation And Implementation In Capitalism And Technology
Globalization provides clear strategic benefits such as new suppliers, new customer markets, and new partners. When strategically formulated and implemented, technology and capitalism can accelerate the creation of secondary immediate benefits (Martin et al, 2012). Establishment of customer base in the new markets for instance can offer familiarity and relationships that can support additional investments. Globalization also brings challenges that require strategically formulated and implemented solutions. Companies are finding it increasingly difficult to be locally adaptable and flexible when broadening their global footprint. Strategy formulation and implementation came in handy to help in the allocation of resources to cope with the diversity of markets and customers, and channels (Martin et al, 2012). As manager executive from global markets attest that they easily understood the needs of customers and operating environment than the local competitors. There are several ways technological advancement and capitalism influence strategy formulation and implementation:
People As An Asset And A Challenge. Globalization trends strongly influences the vast reserves of knowledge, skills, and experience which seen as an invaluable asset. Making the most of this asset may prove difficult and therefore calls for strategic management (Martin et al, 2012). Globalization has also affected the ways of finding and developing talents in the emerging markets. This forces the executive to tailor effective strategies for retaining, training, and development processes relating to the various geographies.
Scale And Scope Benefits, Complexity Costs. When a company goes global, it enjoys the economic leverage of investing in the collective infrastructure that ranges from R&D centres to the functions of procurement (Martin et al, 2012). The economies of scale relating to the technologically shared services are also significant though they are not uniquely available to all companies. Cloud-based computing is a technological phenomenon that is dominant in many global companies. With the emergency of such technologies, companies have to back to the drawing board to formulate and implement strategies that are compatible with these technologies. The emerging markets are complicating business operations and if these operations are not strategically managed can chafe costs.
Part 2: Ethics
Foreign Corrupt Practices Act (FCPA)
In the world corruption is seen as the greatest impediment to social and economic development. Over the past decade there are emergent global consensuses on the importance of fighting corruption on an international level (Mclean, 2012). In the U.S. for instance, authorities have spearheaded the drastic increase of actions that have been enforced under the Foreign Corrupt Practice Act (FCPA).
Features To FCPA Legislation.
There are several mechanisms through which the relationships between United States and the FCPA operate. FCPA contains two central ideas. The first idea state that no person or entity can pay or offer gifts to officials of foreign government or any international organizations which can lead to the misuse of power or influence by the official with the interest of benefiting the person or entity (Mclean, 2012). This is also called the anti-bribery provision. The second idea state that if a payment must be made officially with or without proper intent, the payment must be reported in the payer's financial statements. These are generally accepted principles of accounting under the provisions of recordkeeping and internal control.
From suppliers to distributors, companies are required to make and maintain books of accounts that in detail are reasonably accurate and present a fair reflection of the transaction and dispositions of the company's assets (Mclean, 2012). The provisions of recordkeeping intend to prevent three types of improprieties: failure to record transactions which is illegal, concealing illegal transaction through record falsification, and finally the record creation to quantify accuracy which may fail to specify qualitative aspects of the transaction.
Criminal Liability. In case of an attachment to a criminal liability, a publicly traded company must present knowledge that the firm or an affiliate have circumvented or intends to violate the accounting mechanisms (Mclean, 2012). The knowledge requirement is satisfied by conscious disregard and deliberate ignorance. This knowledge may reside with one person or collectively on various employees which is determined by the scope of employment. Under the anti-bribery provisions, charges are supported relating to the accounting provisions. It is difficult to collect evidence in a foreign setting that would lead to prosecution under the anti-bribery provisions.
Civil Liability. Civil enforcement actions, unlike the anti-bribery provisions do not call for knowledge under the accounting provision. A company will be vicariously liable for the actions taken by its director, employee, and officers (Mclean, 2012). The company will also be reliable to its subsidiary actions in the foreign country.
FCPA Penalties. Both civil and criminal penalties form the FCPA violations. If the ant-bribery provisions are violated, a company may be fined up to $2 million dollars per offense and can also be subjected to $100,000 per violations on civil penalties (Mclean, 2012). Individuals on the other hand may attract fines of up to $100,000 per every violation and more than five years imprisonment for wilful violation. On civil penalties individuals may be subjected to $10,000 per violation.
Netherlands Versus Saudi Arabia: The Cultural Practices
The Saudis are ethnically Arabs and the other part of the population integrates mixed ethic origin. Islam was born in Saudi Arabia and spread to the other parts of the world. Muslims are obliged to make a pilgrimage to Mecca at least one in their life if they are able to do so. Saudi Arabia is the most conservative country on Earth making the country's cultural environment highly conservative- adhering to code of Islamic religious law (the Shariah). Everyone must conform to these ethics seen as narrowly defined standards (Social Overview, 2003). Comparative to Netherlands and Amsterdam in particular where 'girls' are allowed to interact with married men, in Saudi Arabia men and women are not allowed to attend public events together and a segregation exist in the work place. Women are not allowed to drive cars and cannot travel without a written approval from a male member of the family. As such a conservative country, modestly clothing is appropriate for both men and women- tight and revealing clothing are not acceptable (Social Overview, 2003). Women hemlines must be below the knee. While the males and females are not allowed to interact publicly, Sharia presents this strict separation of genders. Women are not allowed to walk in public without male relative and men and women who are not related are not allowed to mingle. Men are not expected to introduce their wives to their male guests or in social occasions. Women are not allowed to seat in the front sit of their husband's vehicle (Social Overview, 2003). Needless to say Sharia has made it clear that if suspected of any prostitution, illicit sexual activity or extra marital affair men or women can attract severe consequences. For men they can face imprisonment or in some instances may result to death penalty. Women in many cases are judged and punished publicly.
Amsterdam: The City Of Red Lights
Since the 13th century, Amsterdam has been characterized by narrow and even narrower alleyways that are lined up with tall houses that were built in the city's Golden Age (Melanie, 2009). Meagrely clad girls vie to attract the attention of men inside the windows of the elegant houses. Some gyrate to the booming music from their stereos while others just preen and pose. When tourists attempt to take photographs, the girls hurl abuse at them. The Dutch population perceive prostitution as an acceptable job and legalized it in 2000 (Melanie, 2009). The Dutch take pride on their society's permissiveness and openness. Nonetheless, prostitution is restricted to certain areas of Amsterdam to keep it hidden from the public eyes. In the 15th and 16th century, prostitution was concentrated in two main streets- the Halsteeg and Pijlsteeg which are still present in the current district plans (Melanie, 2009). Prostitution adds significant economic value particularly to Amsterdam and Netherlands in general. According to official estimates; prostitution yields more than $100 million annually. Amsterdam remains to be a big draw for tourists and since 17th there are journals that give men tips on where to go (Melanie, 2009). The popular guidebook, 'Amsterdamsch Hoerdam or in English 'Amsterdam's Whoredam' details everything that men need to know about the women specialities. Perhaps Dutch historical tolerance of prostitution reflects the country's vision of an independent society, which in a country such as Saudi Arabia is perceived as punishable. Global businesses should advocate for intercultural relations through ad hoc training to make sure that the visiting employees understand the cultural ethics of the two countries.