On watching the two videos, “Navigating our global future” by Ian Goldin and “How ideas trump crises” by Alex Tabarrok, a similarity of both the conversations is that they revolve around Globalization and its trends. Ian Goldin talks about globalization as an avenue through which globalization can be utilized to lead to greater changes than those that are currently being observed. He explains that the use of globalization will result in a new renaissance. Alex Tabarrok shares the same ideas as he believes globalization would result in a global network of ideas that would benefit each of the countries successes. In essence, they both explain the need to spread education to better develop technology all around the world. By tapping into the potential of ideas that are currently lying dormant due to the lack of resources in various countries.
With continued interest in Globalization, many organizations are migrating to other countries that offer services at lower costs. The integration of markets has allowed for organizations to be able to access other international markets which account for lower production costs than current markets. However, the migration of these organizations to other markets in global industries slowly depletes the local economy of production opportunities that can result in the growth of the economy. Where organizations migrate their operations to other global industries, the labor market within the local industry is left bare without any job opportunities. Continuous migration of organizations would slowly deplete the local organizations of an opportunity to thrive in the global market as competition intensifies. Hence, for any organization that chooses to export its operations to other locations, there needs to be an aspect of loyalty to the local industry. Additionally, the continued migration of organizations deprives the local industry of investment opportunities from other international companies. These opportunities are important in ensuring the development of the local economy through an increase in foreign currencies being flooded into that market. Hence, in a conversation between two managers, where one supports international migration, and another does not support it, it would be prudent to lean on the side of not supporting international migration.
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There are, however, situations within a given country which foster the continual migration of firms from the local industry to other international markets. An example can be seen with Terex Corporation located in the United States of America (USA). The company is a global manufacturer of lifting and material processing products and services. The company has arranged for a merger between itself and Konecranes, a company that specializes in the provision of cranes and other lifting equipment to companies all over the world, which are specialized in shipping, automobiles, and energy. Terex Corporation will thus move its headquarters from Westport in the US to Hyvinkaa in Finland. However, the Merger was not agreed upon. Terex Corporation ended up giving up its Materials and Handling Port Solutions division to Konecranes (Bray, 2015).
The Merger was as a result of the continued increases in the taxes within the business environment of the United States, and also as a move to generate more returns. The combination of the two organizations would foster greater development of equipment. With the continued successes recorded for Terex in the production and manufacture of Cranes and other lifting technologies, Konecranes would be able to spread the market and consumer base of Torex through their networks (Bray, 2015). Currently, there is no record issued of the persons who would be losing out job opportunities in the United States. The move was focused on the need to improve the two organizations returns and thus did not focus on the person who would be losing their job positions in the United States. With the move from the United States, Torex would be able to market its products better to ensure its consumers can attain better product prices.
From the above example, it is important to identify the situations which would allow for the company to generate more income and profits. As a senior manager of a large corporation, where the decision to relocate the organization’s operations or services overseas presents itself, it would be important to consider the returns to the society and to the organization that would be yielded from such a move. Ensuring that the company remains a going concern and can “give back” to the local society is important. However, a company cannot attain this where it is not able to yield the results expected. Hence, a migration to save or increase profits would be welcome.
References
Bray, C. (2015, August 11). Terex Corporation and Konecranes of Finland Agree to Merge . The New York Times. Retrieved from https://www.nytimes.com/2015/08/12/business/dealbook/terex-Konecranes-merger.html
