1. Broadening the Debate: The Pros and Cons of Globalization
Joyce Osland
Journal of Management Inquiry

2. Introduction to Globalization
15th century
New trade routes
WWII
International Monetary Fund
World Trade Organization
Reduce trade barriers
Stimulate Globalization

3. Recent Trends
Technological growth
Recent protests

4. Opposing Views Proponents Opponents
Opportunity for economic growth and prosperity
Opponents
Threat to prosperity, political sovereignty, cultural integrity, and the environment

5. Definition of Globalization
Disagreement over definition
Can be framed in a variety of ways
Definition for this purpose
“A process leading to greater economic interdependence and networks and the economic, political, social, cultural, and environmental results of that process.”

6. Purpose of the Article
Impact of globalization on other areas in the broader system…a systems view
Objective analysis of benefits and liabilities
Common stakeholder perspectives
Impact of globalization on:
Equality, labor conditions, governments, culture and community, and the environment

7. Positive Effect of Globalization on Equality
Income increased globally
Increased wages for well educated
Increased wages for technologically skilled
Improved economic conditions for those who compete successfully in the global economy
Increased access to more goods
Reduced prices duet to competition

8. Negative Effect of Globalization on Equality
Greater gap between the haves and the have-nots
Some downward pressure on wages for the poorly educated and technologically unskilled
Worsened economic conditions in countries marginalized from the global economy.

9. Positive Effect of Globalization on Labor Conditions
Increased job opportunities
Upgraded education system and more training
Increased labor standards
Increased labor productivity
CNN effect pressures firms to correct labor abuses

10. Negative Effect of Globalization on Labor Conditions
Certain industries were forced out of business
Decreased labor conditions, forced over time, etc
Decreased power of unions, benefits, and pensions

11. Globalization and Culture
Greater cross-cultured understanding
Double edged sword
Monoculture
Other views of decentralization
Regional centers
Ethical identity

12. Environmental Sustainability
Meeting needs without compromising the ability of future generations
Positive side
Negative side

13. Globalization and Governments
Historically, governments played a major role in the promotion of economic development
Currently, governments have less to do with the economic development within their borders

14. Technology, Governments, and Globalization
Technology has allowed businesses to move and change so fast that governments can’t keep up
Technology has also helped break down the market boundaries, making it a losing battle for governments to try to control them

15. Positive and Negative Impacts on Governments because of Globalization
Positives
Infrastructure
Jobs
Economic Development
Improved management techniques
Less wars?
Negatives
Lower labor standards
Private vs. public goods
Less government programs
Smaller tax base

16. Lessons Learned Expanded boundaries shows good and bad
Impact is “mixed”
Must consider tradeoffs
Understand different assumptions for more objective discussions
Take a systems approach
The need to “tame” globalization

17. United Nations’ Global Compact
Response to globalization
Aims to “create a more stable, equitable, and inclusive global market by making its nine principles an integral part of business activities everywhere.”
Nine points
Human rights, labor standards, and environmental practices

18. Global Compact Now 3,200 business participants in 94 countries
Added a tenth point on anti-corruption
Participation and implementation lag is some markets including the U.S.
New challenges:
Motivate companies
Deepen engagement by companies
Increased penetration in emerging economies