I am introducing different term Global Business Management (GBM) rather than globalization because globalization came recently and companies are using GBM model for many centuries around the world. In any market or business, there are three kinds of exchanges that take place, products, labour and capital. I say that GBM has evolved over the years and now it has become globalization.
Thousands of years back, Global Business Management was done through the trade of some products through land between Asia and Europe. In those days all the production facilities were situated in different countries and owned by local business people. GBM was only transferring products in exchange of capital or other goods. For example, trade between India and Europe was for the gold, diamond (Europe used to export) and spices (Europe used to import).
Then came the colonization period when the management was planning global expansion plans in the headquarters and some of the managers were sent around the world to manage the businesses. In this period, Global Business Management means to have most of the production in one country and send the products for sale in the destination countries. There was little movement of the labour in this era.
After this came the period when companies started having operation in different countries and sell their product in those countries and only transfer the profits to the headquarters. There was limited movement of the labour in this management style.
Now, we are seeing a phase where GBM is about the management of the labour and production around the world. This is most dynamic phase in which all the three components of the market (products, labour, capital) move around the world. Production is done in the country where labour is cheap. When labour is required, labour is transferred (to countries like Saudi Arabia, Kuwait, and Abu Dhabi). Capital is sourced from Japan. So I think there is nothing new in globalization, only a few more factors are added to the dynamics of the Global Business Management.
Thousands of years back, Global Business Management was done through the trade of some products through land between Asia and Europe. In those days all the production facilities were situated in different countries and owned by local business people. GBM was only transferring products in exchange of capital or other goods. For example, trade between India and Europe was for the gold, diamond (Europe used to export) and spices (Europe used to import).
Then came the colonization period when the management was planning global expansion plans in the headquarters and some of the managers were sent around the world to manage the businesses. In this period, Global Business Management means to have most of the production in one country and send the products for sale in the destination countries. There was little movement of the labour in this era.
After this came the period when companies started having operation in different countries and sell their product in those countries and only transfer the profits to the headquarters. There was limited movement of the labour in this management style.
Now, we are seeing a phase where GBM is about the management of the labour and production around the world. This is most dynamic phase in which all the three components of the market (products, labour, capital) move around the world. Production is done in the country where labour is cheap. When labour is required, labour is transferred (to countries like Saudi Arabia, Kuwait, and Abu Dhabi). Capital is sourced from Japan. So I think there is nothing new in globalization, only a few more factors are added to the dynamics of the Global Business Management.
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