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Chapter 10

INTERNACIONALIZATION AND GLOBALIZATION

 

by josavere

Philosophical sight, Miguel A. Giusti and Amalia Boyer professors of the theme, they focus the globalization like the increase of the relations that the various groups of the world maintain; of the reduction of cultural barriers upon interchanging products, ideas or services. The global term hints at the interrelation among different aspects that they can not observe themselves like themes isolated due to technological advances like the Internet and for political ideologies like the neoliberalism that he promotes the commercial interchange.

In an article published in the magazine Harvard Business Revieu the professor Donald N. Sully of London Business School and Martín Escobari consultant of a signature of Brazil, rumor has it that the companies of Latin America encounter one thing or the other options: Spreading out or being acquired. I want to comment it adding my personal concepts and complementing with another consulted sources.

 

1. For the better the risk management to do business in the stormy markets of the region, avoiding the concentration.

2. For lack of liquidity that he removes a lot of capability of maneuver and he hinders the administration.

3. The tall capital costs that make difficult the capability to generate value.

4. The exhaustion of the opportunities of growth of local markets.

5. Survival: He is better than the company act globally that to work for a foreign boss.

They refer to a series of obstacles that they call "THE LATIN COST", namely:

1. Tall tax burden.

2. Scarcity and raising capital cost; They estimate it equivalent to twice the amount of similar companies in another parts of the world.

3. Corruption.

4. The size of the market that he does not permit investing in research and development neither generating a cash flow enough to finance an international expansion, aggravated for the technological disadvantage in some cases.

Besides they allege that Latin American companies have been slower to answer to defiances and opportunities of the globalization than the European Japanese and North American; exchange rates are very volatile; the governmental policies are incoherent ;  values them of inflation and unpredictable interests and the foreign competition is increasing.

However, the far-sighted companies have answered aggressively to these changes. For example EMBRAER of Brazil, the manufacturer of airplanes works with French associates; Part makes of production at China; Perceive capital in London and New York; Hire originating better companies's executives of the world and they establish offices close to clients but big anywhere in the planet using software of last generation without caring from where he comes . Also they mention CEMEX, BUNGE, CVRD, ARCOR, TELMEX and TELECAST like companies that have become global leaders at his respective industries to weigh of obstacles.

 

 

1. CRITICAL STEPS

According to them, the companies that have been globalizado have taken common steps, that is to say:

1.They were committed with a global mentality.

2. The executives undertook daring actions to make their commitment irreversible.

3. They realigned the totality of the organization to compete globally.

With respect to the step one, the world from the point of view of the company can not see oneself. The local perspective avoids the fact that he represent in the portfolio of global investors, clients, suppliers and executives whose resource needs in order to fend off big corporations. The treaties help the local intention change. Just the same the exploratory journeys, studies out-of-doors, quoting stock in Stock Exchange global markets, the good corporate government, them macro - you roll of business, among others.

An excellent practice consists in identifying the best company of the world in category and to evaluate the breach utilizing the bechmanking, in order to analyze the variables that they dial differences. The reality must have the intellectual honesty to watch the head-on facts and humility subject to acceptance itself.

With respect to the second step they recommend:

1. Focalizing: He must concentrate on an only business and no committing the imprudence to penetrate into many fields.

2. Making a bet on the check mark with investments in marketing strong.

3. Looking for an alliance even selling company communication.

4. If it is ringing, changing home womb and official idiom.

5. Establishing a loud relation with a customer keeping to the height of his requirements. The leader must be a company and besides, tall risk is  run.

6. Becoming stronger in technology to achieve productivity investing in critical processes.

7. Making the logistic process perfect.

As to the third step a decade to become effective requires a vision and a long-term commitment that sometimes takes over itself. The strategic marks must become established that they direct the expansion; Knowing when and where doing acquisitions or alliances; doing obvious processes for aspects but critics of transformation; generating solid relations at international capital markets; With suppliers and with clients keys and above all, globalizar the executive team and corporate moral values.

 

 

2. BASIC QUESTIONS TO RESPOND

a. ¿Does we have a local base? If he has it, should be as strong as an ox for that he generate funds enough that they permit standing the operating losses that generally present itself when it is  tried to penetrate international markets.

b. ¿Are they attacking it?: is very difficult to defence and y atacak at the same time.

c. ¿It too much afternoon?: if right now the other ones are positioned it is preferable to go into another type of alternatives.

d. ¿it his local business by nature?: Certain types of services and products that are not exportable exist.

e. ¿Does he prefer to be rich or king?: "poor persons king" or "rich without reign". The globalization demands a good corporate orientated government to protect the little shareholders and offering foreign investors confidence.

f. ¿Does he have stomach to do it?: the defeats hurt very much and who the globalizarse makes a decision is willing to it.

g. ¿Is he determined to invest in the long run?: these processes take long and in some cases to 10 years according to authors.

When all human team talk  myself of globalization he must understand that he is seriously. He implies breaking with the past and to impede that he go back to incur in the initial situation. Credibility must be instilled, speaking plainly and acting with courage (breaking off habitual the way to do business).

Who talk about these themes has to look at the China. The World presented important reflections : the absolute poverty of 250 reduced 2003 of 1978 to 30 million his population and under 80 %'s illiteracy in 1949 to 6,72 % (number of the latter poll). After having been the nation but advanced in the century XV (the compass, the printing house, the paper and the maritime fleet but modern of the planet) decided turning off his frontiers in 1433. At a later time, in 1978 he has placed the process of inaugural reform initiated by Deng Xiaoping on a modern country with gigantic companies again that they get the most out of the economies of scale. His economy grew 9,1 % during this year; His gross national product (PIB) apiece climbs to 1092 dollars in 2003 and his international reserves they estimate around to the closing of this year 470,600 million of dollars, them but big worldly after Japan. His foreign trade comes from 851,250 million of dollars, of whom exports are 438,400 and imports 412,800 million of dollars, they turn that into the competitor but threatening for United States and the main character of the century XXI that turned upside down the worldwide equilibrium and country it must try to strengthen his relations with.

At 2,003 Forum cheap to run worldwide (Davos, Switzerland) the assistants concluded that the present-day worldly situation is fragile, complex and dangerous, and that the increasing interconnection among distinct spheres has created a great impact.

The economic development is narrowly related to social progress, the free trade, the good government practices at countries and companies potentiating, with united work, productive chains in search of common objectives of valuable generation.

The trusty crisis became dominant level factor of governments, institutions and companies. A arduous government job, businessmen and academy to recover the ethics, the moral values and honesty are  required. It is fundamental to be able to come through to recover the confidence and advancing toward prosperity.

The poverty (4,000 million in the world) and hunger get constituted in the seed of fanaticism, the intolerance, the violence and chaos.

The gobernabilidad is based on the political legitimacy that is  needed urgently. This does not turn out well if they do not distribute the benefits of progress of a balanced form and is not happy just to be powerful to have the final say. The worldly poor (if they get busy) become an enormous potential for companies with idle plant capacity.

The globalization has to become inclusive. The rich countries must give a free entrance to the products of poor countries and require these improving the gobernabilidad, the social aspect and productivity.

The companies must respect all of the interest groups and therefore the good corporate government1 becomes imperative; Just the same they must assume crucial themes and getting engaged with communities; Equally being  made sure not to go back to harm the countries where they act, preserving the ambient midway and respecting the cultural moral values.

An almost indispensable complement, I, in terms of globalization would say certification is BASC like element of competitiveness because he reduces the supervisory costs, he speeds up the step and the trazabilidad makes  easy.

The Coalition Empresarial anti-smuggling (BASC) turns the variable certainty into a strategic element to develop the external markets because it is  devoted oneself to promoting actions for provisional remedy to avoid the smuggling and drug trafficking making easy the international trade.

In order to complete, Let's remember the practical importance of international certification in quality, human development and preservation of the ambient midway, which at all quarrel, and on the contrary, they complement with certification BASC. It is another universal idiom with which steps in international business because it breaks of the base of respect to worldly modern requirements are  shortened and very specially to the end consumer accepting his right to satisfaction like customer.

 

 

 

1. THIS WAY IS THE ‘ GOOD GOVERNMENT COPRPORATIVO ’
INFORMATION

It provides information in English to his investors.

He communicates of opportune, transparent and effective form his information.

It has channels of communication with his investment telephone route or web page.

The sheet of life of his principal members can be consulted in any moment.

It uses the section of excellent information of the Financial Supervision.

MANAGEMENT

It has independent members in his directorates.

It facilitates the access to the managers.

He adopts financial countable international norms.

It has committees to protect the good government of the company.

STOCK EXCHANGE

It enters to the market, which forces her to open his books so that they could be consulted by the investors.

It has only one typology of actions.

He adopts high standards of good government that are translated in a major interest in the action.

 

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