As Indra Nooyi puts it ,'Globality takes you inside the hearts , minds and operations of the developing -country companies that you will soon be engaging with - as competitors, partners, or your new owners', this is a fast growing phenomenon that is transforming the outlook of all the nations.
Long ago, when the mercantilists believed in international business being a zero -sum game, trade with other nations had a colonial implication & resulting miseries. However, today with the New trade theories like those of Paul Krugman & Michael Porter , the trade now becomes a win-win situation for all the engaging nations due to concepts of intra-industry trade & developing super specializations for consumer surplus. The new strategy believes in a optimal fit between the resources & demand at a global scale. It talks about diffused supply chains with partners all around the globe actively promoted & supported by the State.
India's engagement as value creation partners with the leading transnational corporations in the I.T., automobile, banking and many such industries is a successful implementation of the strategy to evolve symbiotically with other nations. The national competitive advantage now becomes a value creation activity for the global industry .
It is necessary to participate in an ever increasing inter-dependent world with the intention to co-operate but not collude or engage in hyper competition .
3 comments:
Global trade is the need of the day and no single country can remain isolated. However, the trade imbalance is a major concern. Unless this imbalance is removed, it will be beneficial to some limited countries only who were already powerhouses and will remain ever so.
Trade imbalances can be corrected in the long run by encouraging productivity & specialization for industries engaged or likely to engage in trade. It is a principle of mutual reciprocity wherein you do get chances in the global scenario provided you have a competitive advantage.
Though global trade has several benefits, it also opens a company and country to several risks. Under uncertain economic or political conditions, a company or country that can manage these risks better fares better in its business.
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