REACTION PAPER #5

Reaction Paper #5

Reaction Paper #5

Introduction

Globalization is a term that has, in many instances, come to replace the older and no less complex notion of “development.” In fact, globalization, has replaced the term development as the new action word of contemporary international governance discourse. Not simply a term that describes an inevitable process that is shaping the modern world, globalization, when conflated with development, is a metapolicy guiding the way to social and economic well-being in the global community (Darwin, 2008).

Discussion

While economics cannot provide answers about the effects of globalization, it can provide insight by putting issues into perspective. To begin with, globalization is a part of process of specialization and expanding trade -a process that has been ongoing since the 16th century. The gold standard provided an international monetary standard that made trade among various countries financially feasible. Then the development of corporations and the protection of insurance allowed global trade to proceed, and are as important to the globalization of the world as the internet. In short, trade, led by technology, drives the establishment and development of a globalized economy. Macroeconomic theory supposes that both rich and poor economies can accrue significant benefits by fully integrating and participating in the global economy. By opening their economies to cross-border capital inflows, countries can improve financing opportunities through a more diversified and competitive financial and credit system, diversify risk, deepen their financial sector, and gain greater market access (Darwin, 2008).

Organizational Challenges in 21st Century

A number of organizational researchers & authors look at the 21st century in conditions of clashes between groups with rivalry interests. For example, some end to the growing breach between well off & deprived sets as a basis of constant turbulence & probable challenge for organizations. While differences in assets have always been there, scientific and technological changes have made dissimilarities more noticeable than ever, perhaps fueling fresh heights of turmoil's .

Leadership requires new challenges as per the Globalization

Should adopt new technologies and highly advanced management processes to gain the benefits offered:

Developing new arenas about the business visions and their objectives adding professionalism in goal setting (Darwin, 2008).

Developing new horizons in the field of business & its function in society. For e.g. when we see Corporate Social Responsibility, it's an add-on. The effort to make the world a better place to live (Darwin, 2008).

Making products according to different cultures to enhance market capability and

Work efficiently with associates of variety of cultures as colleague employees, supplier of outsourced services, or as a business enterprise partners.

Direct modification is the ultimate test of a leader in this world of globalization, as per the statement of Friedman it suggests that few institutions will endure over the extended term without it. Thus, effective leaders in the 21st century need to be conscious of alternative approaches to leadership & to apply what is needed at what time. The sense which is flourishing worldwide is rapidly moving towards the integrated world where there is economic, social, cultural, technological, business ...