The Globalisation Debate: A Case of Barking Up The Wrong Tree PDF

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CIB 3003 International Business Management Semester 2 Book Review The Globalisation Debate: A Case of Barking Up The Wrong Tree Name: Lim Zi Hong Matric Number: CEB 150076 Tutorial Class: Thursday (11am to 12am) Lecturer: Professor Dr. Mohd Nazari Bin Ismail Date of Submission: 11 2018 The preface m...

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CIB 3003 International Business Management Semester 2 2017/2018

Book Review The Globalisation Debate: A Case of Barking Up The Wrong Tree Name: Lim Zi Hong Matric Number: CEB 150076 Tutorial Class: Thursday (11am to 12am)

Lecturer: Professor Dr. Mohd Nazari Bin Ismail Date of Submission: 11 /5 / 2018

The preface mentioned about an incident on TV that the author seen before. The author started to analysis the reason behind this incident. The thing that the author trying to say is that we can’t judge the globalization nowadays without looking at what is happening behind. The motivation behind this book is that we must know the real root of the problem before blaming any party. In the first chapter of this book, the author discussed about the birth of globalisation controversy. There are different terms used to explain globalisation. It depends on whether it is being defined in small scope or big scope. If globalization is defined in economic scale, then it agrees that globalization existed since thousands of years before and definitely not a new thing. However, the globalization controversy only being discussed intensely in recent years. The controversy is existing more intensely in Western than Asia, Latin American and African. The second chapter is debating about the bad and good of globalization. Everyone has different motives and positions in the community, hence, there will be different evaluation and assessment on whether globalization is good or bad. Sometimes, judgements can be contradictory. Most of the time, people who stand out to argue on globalization don’t even manage to get clear on what globalization can bring to then is benefit or loss as there could be benefit and loss at the same time. This book mentioned that we can treat globalization as free trade that related to efficiency, poverty, job losses, economic crises, changes in cultures and work practices, and erosion of sovereignty of Nation States. One interesting fact is that the more advance globalization is, the greater the gap between poverty and rich. Unless, we choose to slow down on globalization. The third chapter discuss about the causes of problems bought by globalization. It was a debate on whether the advanced technology was the cause of rise of economic crises. The activities of big company were also being interpreted. There were also arguments on the main cause of financial crises was due to the actions of United States’ government. The free flow of capital also being questioned as reason of financial crises. The failures of IMF and World Bank in operation were being mentioned as well. In short, the author concluded that finding the causes of globalization is just making the issue become even more confusing. The forth chapter is about the problem of hyper-competition. In this chapter, the author gave his own perspective and analysis on the main reason of the problem bought by globalization.

The need of slowing down the globalization was being explained. Stories on F1 car racing was mentioned. Then the bankruptcy of several airline company was mentioned. Followed by the airline industry, the car industry, electronic industry and agriculture and property industry was mentioned. All those industries was facing hyper-competition resulting the need to cut cost and carrying debt eventually making them bankrupt. The author mentioned that in order to strive in hyper-competition, not only a company needs to cut down cost, produce in big volume, but also need to ensure there is markets out there to purchase the products. A short conclusion is that finance is the key to stand still in a hyper-competition environment. The fifth chapter is about the finance industry. The author explained the history of finance industry. The transformation of gold to money was mentioned. After that, people started to use promises like credit purchase when they deal a business. At first, they really did do as promises. After times, implementation of interest loan was introduced. Some merchant even began to think that giving out loans were more profitable than operating business. However, there were some weaknesses like the lack of regulations. The sixth chapter is about the debts. The innovation in financial industry bought circumstances like debts. Many countries were in debts such as Argentina, Brazil, Mexico, Korea, and others. In short, the whole globe in this era is in debt. In fact, to solve this problem, IMF launched a program before, it was a campaign to drop the debts. Lastly, the author mentioned about the outcomes of this world-in-debt situation. The seventh chapter is about the environment problems caused by the overuse of resources. Many companies drive for mass production to reduce cost to strive in hyper-competition, but this will result in excess inventories and excess purchase. The lending industries also make the situation become worst. It is because the consumers will not have problem in purchasing. They purchase many different dresses, shoes, and clothes, even though they can’t wear all of them. The main driver of this over-purchase is the marketing strategies. Human seems not really want to solve the environmental problem. They already knew their actions are bring harms to the world, but they are still doing it. Even though they make something to recover the issues, yet, if they do not solve the root of the problem, the recover steps would not have much effects. The eight chapter is about the alternative. The author mentioned of investments’ owners of capital. This alternative will bring slower growth of economic. This is because comparing lenders and investors, lenders are more willingly to lend money to a business as they don’t

have to share the risks of losses, whereas the latter need to share the risks of losses. The author also argues about the key to happiness. Apparently, based on what we can see around us in the world, the key to happiness is not about economic and material. The author believes that only when the financial system is built on the basic of religious, will bring us a betterhumanity world as there must be a better-valued objective to chase than merely material goals. In conclusion, this is a delightful book to give understanding on globalization history and issues. It gives me new perspectives on how I should look at when it comes to globalization. The most impactful thing for me, which mentioned in this book is that it is hard to change everyone’s mind to make them understand what they are doing now is not good for them and the world. The only thing we can hope is, people can eventually realized the facts on their own, because if one do not realize the root of problem from the deep of his mind, what the others said or convinced to him would seem just powerless.

Word count: 1070 words....