Emerging markets: Two scenarios of the global economy in 2050 can be used to hel

Question

Emerging markets: Two scenarios of the global economy in 2050 can be used to help students evaluate the role of globalization in the future. the first scenario is an optimistic view of the future in which blobaliztion continues to spread. The second scenario can be labeled de-globalization. Poor or negtive economic growth and civil unrest result. In both scenarios, an increase in global competition is predicted.

1. On Ethics: From an insttution-based view, what should firms do to better prepare for the two scenarios? (HINT: if they believe in "continued globalization,"they maybe more interested in lobbying for reduced barriers. But if they believe in "de-globization, " they may lobby for higher trade barriers.)

Explanation / Answer

Ethics is a standard which guides an individual as well to the organization to involve such practice in which some morally accepted behaviour has more inclination. A firm might choose to continue with any of the perspectives but the overall consequences will be different. Now, we shall discuss both the scenario in the following headings,

Optimistic view of globalization: In this, an organization will believe that it will achieve more growth and development in terms of increased market potential, demand, more diverse demand from varied customers. For example: MNCs (Multinational companies) will develop those underdeveloped countries with better infrastructure, better market, systematic competition, education and awareness level to some extent. Even, people sell best quality goods to a new or foreign market. One may think that globalization will help in global economic growth, reduced risks in business, promote innovation and technology, sustainable practices will be globalized. One best practice might be reached to one another end or corner of the world with the help of this economic concept.

De-globalization / A view against the globalization:

Many industrialists, politicians and thinkers believe that due to global competition people take that unethical decision which exploits the market regulations as well as customer get inferior quality goods and services. In this, people oppose the market entry for global firms as they believe that these MNCs will only exploits the resources and never thinks for sustainable business development. Even, it was believe that due to globalization local trade practices, culture, and human values are getting degradation. Many people argue that, it gives birth to a new mindset in the people as they thinking more on regional or local level issue and even they go for some violence related crime to oppose the entry of global firms in particular locality or tribal areas. They believe that globalization is responsible for unbalanced growth as only few firms will have more access to developed or rich resources of the globe.

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