Globalization
Global Managerial Economics
Acme Automotive wishes to begin a dialogue that will ultimately lead to an official company vision on globalization. For our purposes, we will agree with MSN Encarta’s definition of globalization as a comprehensive term for the emergence of a global society in which the economic, political, environmental, and cultural events in one part of the world quickly come to have significance for people in other parts of the world. Globalization is the result of advances in communication, transportation, and information technologies. (MSN Encarta, 2008)
Both Mexico and the U.S. have much to gain from this agreement with Acme Automotive. While we strive for a win-win situation in all cases, we are keenly aware that in the issues of international sovereignty, employment and GDP, both sides will rarely share the same benefits. It will also depend on a certain social group’s unique point of view as to whether or not the changes are positive or negative.
Acme Automotive will remain sensitive to the fact that globalization and free trade agreements can be deeply controversial. According to The Levin Institute (2008), proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefitted multinational corporations in the Western world at the expenses of local enterprises, local cultures, and common people. (globalization101.org. 2008) Acme Automotive is clearly a proponent of free trade agreements, albeit a sensitive one to local cultures. ...