ARTICLE: "The World's Biggest Myth," by Pankaj Ghemawat, Foreign Policy, December 2007, p. 52.
Sort of makes up for that truly bad Roberts piece, but not totally.
Still, it makes it far more likely I'll open up the next issue.
Author basically tackles the line that says globalization leads to market domination by a few players.
Not much of an article. Really just a great graph and some explanation.
Oooooow! Put down that brick, map boy!
Key point:
… during a long period of rapid globalization, several important sectors of the global business environment become more competitive, not less.
As we look at the 1980s heading into the 1990s, industries more dominated by the top five players included soft drinks, light bulbs, cement, autos, oil, steel, defense, and aluminum. Those experiencing less consolidation over time included iron ore, copper, passenger airlines, cargo airlines, computer hardware, long-distance telephony and computer software.
You look at the list and you see industries that are more connective than others. On balance, the more connective ones get more competitive as globalization spreads rapidly.
Great point. Not exactly the world's biggest myth.
That would be Bill Bellicheat's brain size.
Ooow! May regret that comment come late January!
ITAKEITBACK!
Get that on film, Bill?
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Comments (1)
It's a little more complicated than that, but the results are the same. Adam Smith did not experience the first mover advantages of industrial mass production capitalism. So his market first approach had a time out. Then the computer became a player that returned some customization to the front. Airline manufacturing seemed like a classic first mover industrial item. Then the using nations insisted on becoming player participants using the new computer network manufacturing methods. So the Boeing/Airbus competition became a world outsourcing competition. Boeing took the lead and Airbus reluctantly followed. Auto, electronics and other industrial aspects have all become involved. Most of the cost/profit involves components, not where the final product is assembled. Complicated, but the result is world outsourcing.
Posted by Louis Heberlein | December 15, 2007 8:30 PM