After reading Case 2 on globalization in the age of Trump, what are your thoughts? Share at least two main ideas/topics you took out of the textbook and/or case 2 that you believe to be important when accessing global trade and its challenges. Please, justify your response, and feel free to cite outside sources (read the rubric in the syllabus)
Case 2(S)
The article International business globalization in the age of Trump addresses some of the changes that multinational companies may experience following the establishment of protectionism policies in Trump’s era. The author mainly utilizes historical data and prior surveys to defend his perspective that despite globalization suffering a reversal following the ongoing protectionism policies, the world will remain globalized in trade and foreign direct investment (FDI) (Ghemawat, 2017). After analyzing the article’s information and reflecting on the current state of international trade, I agree with Ghemawat on the stable condition of globalization amidst protectionism. I also believe that the law of semi-globalization and distance is vital in assessing global trade and its challenges.
After reading case 2 on globalization in the age of Trump, I think that it is valid for the author to argue that the world will remain globalized in trade and FDI despite globalization suffering a reversal in the phase of protectionism. This view is evident from the US-China trade war that recently passed its peak after signing an agreement to end the war in mid-January 2020 (Scheipl, Bobek & Horvat, 2020). One of the critical lessons from this trade war is that despite the Trump administration’s barriers and China’s retaliation, globalization has remained solid within the two nations through trade and FDI. For example, the two nations’ protectionist policies did not deter Apple from maintaining a significant fraction of its essential supply chain in China. Rapoza (2020) also notes that the considerable shift in supply chain fundamentals to other countries is mainly a result of costs rather than trade wars. Therefore, despite Trump’s preference for international intervention and domestic regulation, countries such as China and the United States will remain globalized through FDI by multinational companies and trade between domestic and foreign firms.
Moreover, I perceive that the law of semi-globalization is vital in assessing global trade and its challenges. As the literature suggests, semi-globalization law states that despite being significant, international business activity is much less intense than domestic activity (Ghemawat, 2017). An interpretation of this law suggests that national borders are still significant despite many viewing the world as flat due to globalization. Therefore, when assessing trade, firms should evaluate the domestically available opportunities and weigh them against globalization’s costs and benefits. This evaluation may help the entities understand whether the domestic activity would yield many advantages than operating in a foreign country or exporting goods and services internationally.
Furthermore, I believe that the law of distance is critical in assessing global trade and its challenges. According to scholars, this law suggests that international interactions are dampened by distance along cultural, administrative, geographic, and economic dimensions (Ghemawat, 2017). This law has a significant implication on global trade in that firms that wish to establish successful business abroad must cover the various distance dimensions that are likely to constrain international trade. Therefore, adequate knowledge in the law of distance may help entities evaluate global trade challenges from the four critical dimensions.
In summary, Ghemawat’s claim about globalization’s stability amidst protectionist policies is valid, as evidenced by the ongoing global trade in countries such as the United States and China that experience trade wars. Moreover, businesses need to have adequate knowledge of distance and semi-globalization law when assessing global trade and its challenges. These laws may help the entities evaluate domestic activities’ opportunities and the cost and benefits of internationalization. The law of distance would also allow firms to assess global trade and its challenges through the four core lenses- cultural, administrative, geographic, and economical.
References
Ghemawat, P. (2017, July-August). International business: Globalization in the age of Trump. Harvard Business Review. Retrieved from https://hbr.org/2017/07/globalization-in-the-age-of-trump
Rapoza, K. (2020, August 14). Is Apple slowly moving out of China? Its supplier is. Forbes. Retrieved from https://www.forbes.com/sites/kenrapoza/2020/08/14/is-apple-slowly-moving-out-of-china-its-supplier-is/?sh=3d1dfd01ff96
Scheipl, T., Bobek, V., & Horvat, T. (2020). Trade war between the USA and China: Impact on an Austrian company in the steel sector. Sciendo, 66(1), 39-51. doi: 10.2478/ngoe-2020-0004
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
