![]() ![]() Profits of the top 700 MNCs in the developed world have fallen by 25% over the past 5 years whereas profits of domestic firms increased by 2% in comparison. The US has retreated as an exemplar of democracy while China’s influence grows. Since November 2008 the G-20 countries have implemented more than 6,600 protectionist measures as the structure of rules underpinning global business has splintered. ![]() Not surprisingly, nationalistic parochialism and opposition to globalization have surged, trust in institutions has collapsed, and the spread of democracy has stalled. With “its four-tiered smog warnings and lethal dumps of toxic waste, China has become Exhibit A for the environmental costs of economic development” (Bach, 2019). Yet, despite acquiring well-paying jobs, China, among others, has paid a price. These gains and losses were spread across countries the middle class in developing economies saw incomes grow as much as 65%, while in developed countries, this sector witnessed virtually no growth (Milanovic, 2016). In the US, the bottom 50% of society grew significantly poorer and the top 1% richer, illustrating globalization’s losers and winners (Piketty, Saez, & Zucman, 2018). The global financial crisis in 2008 and ensuing recession shifted the focus of the world’s economies from the benefits of globalization to its negative domestic impacts: job loss, inequality, and climate degradation. Plunging transportation costs and improved communications sparked a “global value supply chain revolution,” combining developed-country know-how with developing-country labor (Baldwin, 2016). From 1980–2000 the number of democracies doubled, providing fresh locations for customers, capital, production and management (Bach, 2019). This growth of globalization was largely fueled by market liberalization and new multilateral trade agreements. A 2007 McKinsey study reveals the fruits of such efforts MNCs located in the United States accounted for 19% of private sector jobs, 25% of private wages, 25% of profits, 48% of exports and remarkably, 74% of research and development (Economist, 2017). In recent decades, multinational corporations (MNCs) went global in a quest “to become bigger and brainier.” From the 1980s until 2008, the growth of global trade more than doubled the growth of global GDP. Phases of Globalization The Growth of Globalization We address what implications this new phase may have for IB education, how to tackle its challenges, harness its opportunities, and prepare our students for this new world. In this article we discuss pre-2008 globalization and how International Business (IB) educators shaped their curricula to meet it. Companies and governments must prepare for the coming disruption” (Lund & Tyson, 2018: 131).Įducators must prepare for the new phase of globalization as well. The benefits will be tangible and significant, but the challenges will be considerable. After certain sectors fade away, certain jobs will disappear, and new winners will emerge. This new era will bring economic and societal benefits, boosting innovation and productivity, offering people unprecedented (and often free) access to information, and linking consumers and suppliers around the world. “…globalization has not given way to deglobalization it has simply entered a new phase. ![]()
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