After reading Institutional macro-structures of the global economy p.54 I believe the challenges that global companies face is the ever evolving treaties and regulations that are made between Countries, These treaties are somewhat liquid in where commerce can flow from one nation to another while being blocked from entering a third nation.
The global economy on a macro scale as measured with the GDP of a country could be indicators of challenges one could face, other indicators are Unemployment, income, and inflation as it relates to the country, and on the macro scale as compared to the globe. While globalization has allowed us to transfer goods/services around the world the challenges have increased due to all the pacts and treaties signed between Countries and organizations.
In this article, we get a glimpse of the attempts by local companies to keep jobs in the United States and prevent outsourcing. The formation of a new regional business group, the San Diego-based Industry Council for Competitiveness and Globalization or ICCG is a group supported by Washington claiming that America’s manufacturing is still losing jobs at an alarming rate. In the past 7 years we have lost 2.4 million jobs to China. This article also discusses the amount of jobs lost to China since 2007 from individual states that belong to the U.S. steel industry and its unions. These teams of researchers are trying to reach out the U.S. policy makers that control the trade subsidies and policies that take place with China. Services have also increasingly been outsourced to nations with lower labor costs. However, these U.S. companies rely on cheap, technical labor in order to remain competitive. The author also talks about the lack of qualified employees that are available in the U.S. despite the high unemployment rate.
Article link: http://www.xconomy.com/san-diego/2010/03/24/facing-job-exodus-san-diego-it-execs-launch-council-on-globalization-and-competitiveness/2/
I found an article earlier this week titled Globalization, collaboration driving the future of energy tech. by Molly Ryan The article had some interesting points in particular a quote from David Eyton head of research and technology at BP Plc companies strive to create safe, efficient technologies that can eventually lead to more and better energy sources- the field is not so secretive and contained anymore. That statement encourages me, I personally work in the petrochem industry and our company recently acquired a BP refinery, the statement i believe shows how technology and communication has improved safety in our industry and while safety improves methods of extracting black gold improves. Global companies now interact more as a result of emerging technologies and this has increased the collaboration between industries and companies.
Article link http://www.bizjournals.com/houston/blog/nuts-and-bolts/2013/03/globalization-collaboration-to-be-the.html?page=all
In 2010, the global financial system remained fragile, but economies around the world began moving toward recovery. Some — especially those in emerging markets — hardly broke stride, continuing their rapid growth.
Our report, Tracking global trends, looks at six broad, long-term developments that are shaping our world:
- Emerging markets increase their global power
- Cleantech becomes a competitive advantage
- Global banking seeks recovery through transformation
- Governments enhance ties with the private sector
- Rapid technology innovation creates a smart, mobile world
- Demographic shifts transform the global workforce
Global economies are so tightly interconnected that companies, governments and industries will soon be forced to cooperate in ways we could not have imagined just a few years ago.
In fact, Ernst & Young believes the six trends are themselves connected by three underlying drivers that have helped establish each trend and perpetuate it.
- Demographic shifts. Population growth, increased urbanization, a widening divide between countries with youthful and quickly aging populations and a rapidly growing middle class are reshaping not only the business world, but also society as a whole.
- Reshaped global power structure. As the world recovers from the worst recession in decades, the rise of relationships between the public and private sectors has shifted the balance of global power faster than most could have imagined just a few years ago.
- Disruptive innovation. Innovations in technology continue to have massive effects on business and society. We’re now seeing emerging markets become hotbeds of innovation, especially in efforts to reach the growing middle class and low-income consumers around the globe.
Six global trends, interconnected by three key drivers of change
Source & To read more