Is Globalization a Myth or a Reality?
As businesses increasingly become "global players", the strategic quandary is to what extent does the business operate integrate to generate synergies and match its global customers, or is a bias toward local or regional practices more effective.
Pankaj Ghemawat, the Anselmo Rubiralta Professor of Global Strategy at IESE Business School and the Jaime and Josefina Chua Tiampo Professor of Business Administration (on leave) at the Harvard Business School, argues in his recent columns on Harvard Business Online that the actual levels of globalization fall close to 10%. This reality is less of the issue than surveys indicating an average management belief that globalization is near 30%.
Such a gap would be less of a concern if trend lines indicating that the "flattened world" is nearing quickly. Ghemawat challenges all of these beliefs as "globaloney", and raise concerns these myths may be leading companies and economists to make incorrect strategic decisions.
What are your experiences with the challenges of global integration?