Henning Behrens

GlobalizationVibrates The 21st Century

How Global Enterprises Revolutionize International Business, Digital Societies,World Economy, Global Governance Leadership and Globalliving of Mankind

Outline

Preface 19

Introduction 23

Global Living-Together in a "physical-communicative-mental"more closely integrating World of Global Players 23

Chapter 1: From the Beginnings to the "Global Reach": Economies in theProcess of Globalization .• 37

1.1 Milestones of cross-border Economic Activities 371.2 International Business: Definitions, Expansion and worldwide

Integration 61

1.3 Operations and Environments: Areas of Knowledge, GlobalSpheres of Life and Action Levels 69

Chapter 2: Changing Political and Economic Globalization in the 21st Century 87

2.1 Global Enterprise: Global Players on international Market Placesand Forums 88

2.2 Global Living-Together from societal, political, economic andcultural Perspectives: World Society - World Ecology -World Peace - World Culture 121

2.3 World Economy: Cross-Border Transactions, Business Cycles andthe Profile of Globalization 218

2.4 International and Global Business-Strategies of MultinationalEnterprises 235

Chapter 3: Economics - Politics - Technology - Culture: Concepts for theExplanation of Globalization 251

3.1 Comparative Advantage: Trade - Enterprises in Competition -System of Globalization 254

3.2 Business- and Globalization-Dynamics: Global TechnologyEffects/Life Sciences -Global Problems: Development Priorities -Triad-OECD-Area: Europe, America, Asia - International Trade andFinancial Management 305

3.3 Global Business Environments in Comparison: Politics & L a w -Economics- Importance of Culture 331

Chapter 4: National, Supranational, Global, Digital Frameworks and their Performance:Government - Integration - E-Business - Project & Logistics /Management 345

4.1 Governments and International Business: Conflicts and Partnership 345

4.2 Open Regional Economic Integration Areas: EU-NAFTA -ASEAN/APEC - GCC - ECOWAS - MERCOSUR : 362

4.3 Global Management: Electronic Business on Electronic Market Places 4004.4 International Project Management 411

Outline

4.5 International Business Logistics 418

Chapter 5: Multinational Enterprises: Management Operations in theGlobal Environment 4275.1 Lean Production and Services-Global Sourcing-Strategic Analysis 4275.2 International Marketing in the Environments of Global and

Digital Markets 4415.3 The Global Financial Structure and International Financial

Management 4535.4 International Staff/Human Resource Management 471

Chapter 6: Innovations: Economic, Societal, Political and LifestyleDevelopment Pushes v 4856.1 Towards the Service, Information and Knowledge Society 489

6.2 Knowledge as Global Resource: Knowledge Management of theIntellectual Capital 491

6.3 Business Engineering: Labor-Responsibility and Leadership-Organization- and Staff-Development, New Public Management.. 498

6.4 Quality is still free: TOM/EFOM - Quality in the Service Sector 506

6.5 Worlds of Global Experience of Lifestyle, Entertainment andRecreation in the 21st Century: Shopping Malls - Mega-Cities -Theme Parks - Long Distance Tourism 510

Chapter 7: Global Ethics: Dilemmas of the Economic Globalization and thePolitical Agenda of the Globalization Reform 521

7.1 Business and Ethics: no "Contradictio in adjecto" 522

7.2 Ethics and Global Business: Moral Values on the Test 5237.3 International Business in the Intersections of Power, Scarcity,

Market and Law: Control-Deficits and Ethical Challenges 5257.4 Morals and Business: Dilemmas in the Behavior of Multinational

Enterprises 528

7.5 Ethics as Reflection of Behavior: Roots and Sources for Orientation 532

7.6 Behaving Correctly: "Etiquette-Manual" of the InterculturalManagement 536

7.7 Globalization Reform: Minimum Consensus - Ethical Organizationand Codes of Conduct-Elements and Chances of a justerGlobalization Structure 540

Bibliography 567

Name Index .' 583

Subject Index 585

Content

Preface 19Introduction 23

Global Living-Together in a "physical-communicative-mental"more closely integrating World of Global Players 23

Chapter iFrom the Beginnings to the "Global Reach": Economies in the Processof Globalization ,. 37

1.1 Milestones of cross-border Economic Activities 37

1.2 International Business: Definitions, Expansion and worldwideIntegration 61

1.3 Operations and Environments: Areas of Knowledge, GlobalSpheres of Life and Action Levels 69

Chapter 2Changing Political and Economic Globalization in the 21st Century 87

2.1 Global Enterprise: Global Players on international Market Placesand Forums 88

2.1. 1 In the World Wide Web: Compute r - Mobile Telephony -Electronic Services 88

2.1. 2 Finance Centers and Financial Transactions: Stock Exchanges,Goods and Foreign Exchange Markets and the MarketCapitalization 92

2.1. 3 Supranational Economic Integration: Major Regional TradingBlocs 98

2.1. 4 Non-Governmental Organizations: NGOs as Forums for amore global oriented Civil Society 100

2.1. 5 International Organizations: The System of the

United Nations 103

2.1. 6 Nation-States: Modern Government in the 21 s t Century 112

2.1. 7 Regional "Clusters": "Sil iconia"- and Life Science-TechnologyCenters * , 115

2.2 Global Living-Together from societal, political, economic andcultural Perspectives: World Society - World Ecology -World Peace - World Culture 121

2.2. i World Society 1232.2. 1/1 Global Living-Together and International Mobil i ty 1252.2.1/2 Liberal Democracy and Economic Liberalism 127

Contents

2.2.1/3 World Population: Demographic Scenarios 1302.2.1/4 Prosperity and Poverty:

(a) Domestic Stratification - Gini-Coefficient 135(b) World Bank Groupings: Country Comparisons 138

2.2. 1/5 Qualityof Life: Well Being-Life Expectancy-Health-Education 154

2.2. 1/6 Human Rights for Children, Women and Men 1602.2. 1/7 Saturated and Hungry Markets: Trade Structures -

Terms of Trade 1632.2.1/8 Migration mixing up the World-Society: Push-and

Pull-Factors 1652.2. 1/9 Developments within the Networks of the Information,

Knowledge and Civil Society of the 21srCentury 1662.2. 2 World Ecology 169

2.2.2/1 Global Concern and Ambivalence of the Ecological Topic 1692.2. 2/2 Ecological Degeneration: Struggling for Sustainable

Development and Balances between Ecology and Economy 1722.2.2/3 Networking of Mankind and Nature 1732.2.2/4 Biosphere: Water-Land-Atmosphere 1742.2.2/5 Water Resources-Water Conflicts-Water Management 1752.2. 2/6 The "Oil Intermezzo": Fossil and Non-fossil Energy 1782.2. 2/7 Ecological Politics: "Green" within the NGO- and the

Political Party-Spectrum 1812.2. 2/8 World Markets: Environmental Protection 183

2.2. 3 World Peace 1852.2.3/1 The Military Card: "Si vis Pacem para Bellum" 1852.2. 3/2 Peace: negative and positive 1882.2. 3/3 Strategy Change: from Cold Wartothe System of

Globalization 1892.2. 3/4 Armaments Sector: Peace Dividend in the 90's of the

20th Century 1912.2.3/5 Armaments Trade-Weaponry Export/Import-Arsenals 1912.2. 3/6 Armament Industrial Groups: Turnovers and Products .. 1952.2. 3/7 Conversion Project: Instead of Cruise Missiles and F-16s,

Ryanair and Antonows on the Airport Hahn 1972.2.3/8 Terrorism: The Globalization of a Scourge of Mankind .. 199

2.2. 4 World Culture and Globalization: familiar, multipolar,multicultural and global Dimensions 2012.2. 4/1 Culture and Familiar Institutions: Cultural Coining 2012.2. 4/2 Power Structures, Cultural Dominance and Global

Pluralism 2032.2. 4/3 Renaissance of the World Religions: Thesis of the "Clash"'

and the Convergence of Cultures 2072.2. 4/4 Globalization Potentials: Technological Competences-

Intelligent Products - Reduction of the Digital Divide... 212

Contents

2.2. 4/5 Information-and Media-Industry: Technology-Innovation,Culture and Commerce 216

2.3 World Economy: Cross-Border Transactions, Business Cycles andthe Profile of Globalization 218

2.3. 1 World Economy: Recorded and non-recorded Developmentsand Structures 219

2.3. 2 Economic Cross-Border Activities: Trade Interfaces, Investments

and Trade Shares 220

2.3. 3 The long Waves of the Business Cycles 225

2.3.4 Business Cycles and Stock Exchange 2272.3. 5 "Locomotives" in the World Business Cycles and in the Political

Economy of Globalization: Transatlantic and TranspacificDriving Forces 230

2.3. 6 Globalization Profile of the World Economy and Growth Pushesby the New and Old Economy 233

2.4 International and Global Business-Strategies of Mult inat ionalEnterprises 235

2.4. 1 Number and Global Distribution of Mult inational Enterprises . . . 236

2.4. 2 Preparations for Foreign Engagements into Cultural ParticularlyDifferent Markets 238

2.4. 3 Strategy Approaches, Strategy Dimensions and StrategySuccesses 239

2.4. 4 Strategies for making use of the Global Comparative Advantage:Market Processing-Distinction and A d a p t a t i o n - T i m i n g -Coordination 243

2.4. 5 The Network Management of Mult inational Enterprises 245

2.4.6 Virtual Company Structures and Strategies 248

2.4. 7 Management Challenges: Virtual Companies-Discont inu i t ies-Digital Elite 249

Chapter 3Economics - Politics - Technology - Culture: Concepts for the Explanationof Globalization 251

3.1 Comparative Advantage:Trade- Enterprises in Competit ion -System of Globalization . . . ! 254

3.1.1 Why Theories? Comparative Advantage: Trade-Enterpr ises-System of Globalization 254

3.1. 2 Trade Theories 2583.1. 2/1 Foreign Trade Concepts: descriptive-normative and

monetary-real-economic Aspects 2583.1. 2/2 Mercantilism 261

Contents

3.1. 2/3 Absolute Advantage 2623.1.2/4 Comparative Advantage 2633.1. 2/5 Factor-Proportions according to Heckscher-Ohlin and the

Leontief-Paradox 2643.1. 2/6 Country Size and Country Similarity 2653.1. 2/7 Trade Regimes, Strategic Trade Theory and Industrial Policy

and the Political Economy of Globalization 2673.1. 3 Theoriesof International-Global Enterprise Activities and

Decision-Making 2683.1. 3/1 Theoretical Assumptions, Concept Choices and Global

Aspects 2683.1. 3/2 Leadership Decision-Making: Rationality and Open-Context

Decision-Models 2703.1. 3/3 Diamond-Approach of Porter: Enterprise Strength and

National Environment 2743.1. 3/4 How to Go International: First Steps- Direct Investments

(Dl) - Dl vs. Trade/Portfolio 2753.1 3/5 The Product Life Cycle of Vernon 2783.1. 3/6 Global Competition: Oligopolistic Strategies and

Hypercom petition 2783.1. 3/7 Global Network Management - Born Globals 2813.1. 3/8 Integration of Theoretical Explanation Approaches:

Situation-Strategy-Environment 2823.1. 3/9 Post-modern Theory: Leadership and Environmental

Conditions 2853.1.4 System of Globalization: Conceptual Developments on the

Nation-State, International, Supranational and Global Levels 2863.1. 4/1 Macro-Political and Macro-Economic Environment-Concepts 2863.1. 4/2 Nation-State Formation: Development Aid Policy 2873.1. 4/3 Supranational Regionalization: Integration Theory 2883.1. 4/4 The International System: Theories of International Relations

(Virtual States) 2883.1.4/5 The Cultural Approach in International Relations 2943.1. 4/6 Globalization/Geopolitics: Renaissance of Realpolitik and

Balance of Power 2943.1. 4/7 The System Change towards the 21st Century: Comparative

Systems and "The Flat World" 2953.1.4/8 Degreesof Globalization: the Globalization Index 2973.1. 4/9 Changing System of Globalization: Global Players in the

First Global Civilization 2993.2 Business- and Globalization-Dynamics: Global Technology

Effects/Life Sciences -Global Problems: Development Priorities -Triad-OECD-Area: Europe, America, Asia - International Trade andFinancial Management 305

10

Contents

3.2. 1 Global Technology Effects/Life Sciences: Economic, Political andEthical Dimensions 3053.2.1/1 Technology and the Long Cycles in the World Economy . 3053.2. 1/2 Globalization Driver Information Technology (IT) and the

"Spill-offs" 3083.2. 1/3 New Technologies and the Growth Market Life Sciences -

Pharmacy 311

3.2. 2 Global/World Problems: Agenda and Priorities for Shaping theGlobalization 316

3.2. 3 Triad-OECD-"Engine" towards Globalization: Europe, America,Japan (ASEAN) - and beyond 319

3.2. 4 Grand Politics: International Trade Management and FinancialManagement 3223.2.4/1 From GATTto the World Trade Organization 3223.2. 4/2 International Financial Management: Gold S tandard -

Fixed and Flexible Exchange Rates - Past-Bretton-Woods 328

3.3 Global Business Environments in Comparison: Politics & Law -Economics - Importance of Culture 331

3.3. 1 Comparative Law 331

3.3. 2 Comparative Economics 334

3.3. 3 Comparative Politics 336

3.3. 4 Comparative Culture 338

Chapter 4National, Supranational, Global, Digital Frameworks and their Performance:Government - Integration - E-Business - Project & Logistics Management 345

4.1 Governments and International Business: Conflicts and Partnership 345

4.1. 1 Nation-State Frameworks: Constitution and Economic Orderof the Economic System 347

4.1. 2 Transnational Revolution: The Power Balance betweenNation-States and other Global Players 348

4.1. 3 Government Interventions as Nation-State Interest Policies:Motives and Forms 352

4.1. 4 Incentives and Nation-State Restrictions for Mult inat ional

Enterprises 358

4.1. 5 The Nation-State as a Partner for International Business 360

4.1. 6 Global Governance: Transparency and Anti-Corruption as aPublic Good 361

4.2 Open Regional Economic Integration Areas: EU - NAFTA -ASEAN/APEC - GCC - ECOWAS - MERCOSUR : 362

4.2. 1 European Union: EU 362

11

Contents

4.2. 1/1 A Europe of the Four Liberties 3624.2. 1/2 Euro: One of the particularly courageous Monetary

Decisions in Europe 3654.2. 1/3 Adjustment Necessities for Value Addition in the EU:

Regional Economic Integration -Trading Partners -Information and Knowledge Society-Globalization 367

4.2.1/4 The Euro: Delimitation and Definition 3684.2.1/5 Economic Advantages of the Euro-Introduction 3694.2. 1/6 Enterprises: Chances and important Euro Adjustment

Performances 3714.2. 1/7 In the Alternations between Distrust and Confidence:

Weak and Strong Euro-"(T)Euro" but with growing GlobalAttraction 373

4.2. 1/8 Europe as an open Integration Project: East Enlargement -Consolidation - Globalization 375

4.2.2 The North American Free Trade Agreement: NAFTA 3774.2. 2/1 Contracting - Goals 3774.2. 2/2 Mexico's Priority-Setting and Interim Assessment 383

4.2.3 ASEAN/AFTA and APEC 3884.2. 4 Gulf Cooperation Council: GCC 3904.2. 5 The Economic Community of the West African States: ECOWAS . 393

4.2. 5/1 The Formation of ECOWAS 3944.2. 5/2 Central Projects-ECOWAS and International Trade

Integration 395

4.2 6 MERCOSUR 397

4.3 Global Management: Electronic Business on Electronic Market Places 400

4.3. 1 E-Business Processes contain the complete Spectrum of HumanActivities 400

4.3. 2 IT in the Enterprise: Levels and Advantages of the E-Commerce.. 4024.3.3 G-(overnment), T-(elevision), M-(obile Telephone) Business:

Public Sector - Interaction - Mobility 4044.3. 4 Digitized Business Categories: Online Auctions-E-Retail-

E-Banking - E-Learning - E-Gaming/Sport 4054.3. 5 Digital Elite: Success Factors of a Modern Corporate

Management-Recovery after the Hype 409

4.4 International Project Management 411

4.4. 1 Project Definition and the Phases of Project Management '. 4114.4. 2 Product- and Service Projects in the International Environment:

Organization-Analysis and Goal Formulation-Innovation 413

4.4. 3 Project Competences and international-global Success Factors .. 417

4.5 International Business Logistics 418

4.5. 1 Definitions and Task-Formulations 418

12

Contents

4.5. 2 Growing Importance and Complexity of the InternationalBusiness Logistics ; 420

4.5. 3 Dominant Players - Logistics Components - Dangers andTrends 422

4.5. 4 Logistics Enterprises: Global Player Deutsche Post World Net 424

Chapter 5Multinational Enterprises: Management Operations in theGlobal Environment 4275.1 Lean Production and Services - Global Sourcing - Strategic Analysis 427

5.1.1 Lean Production . . . . . . . ' 4285.1.2 Product, Production and Value Addit ion in the Service,

Information and Innovation Society 4305.1. 3 Procurement: Global Sourcing 4325.1. 4 Networking: Global Cooperation between and w i th in Enterprises 4355.1. 5 Strategic Alliances: "Caveats" and Golden Rules 4365.1. 6 Classic Product Life Cycles and World Market Leadership:

Simultaneous Engineering 4405.2 International Marketing in the Environments of Global and

Digital Markets 441

5.2. 1 Marketing Activities and Market Appearance: Corporate Ident i ty /Brand-Business Planning-Global izat ion 442

5.2. 2 International Market ing: Market Segmentation - Risk Analysis -Marketing Mix 448

5.2. 3 Internet - Marketing 451

5.3 The Global Financial Structure and International FinancialManagement 453

5.3.1 Currency History, Financial Management and the GlobalMonetary System 455

5.3. 2 International Financial Markets: Money Markets - CapitalMarkets-Euro Markets 459

5.3.3 Multinational Enterprises: Financial Instruments 4605.3.4 The Digitalization of the Global Money 4635.3. 5 International Financial Crises 465

5.4 International Staff/Human Resource Management 471

5.4.1 Human Resource Management: National and InternationalRequirements 472

5.4. 2 Human Resource Management as an International Challenge . . . 4775.4. 3 International Management Qualifications 4795.4. 4 Management Recruitment and Development 480

Contents

5.4. 5 Management Transfer: Resistance, Incentives andCompensations 483

Chapter 6Innovations: Economic, Societal, Political and Lifestyle DevelopmentPushes 4856.1 Towards the Service, Information and Knowledge Society 489

6.1. 1 Services between "Service Desert" and State-of-the-Art 4896.1. 2 Cooperation and Knowledge as Organization Principles of the

Service, Information and Innovation Society 490

6.2 Knowledge as Global Resource: Knowledge Management of theIntellectual Capital 491

6.2. 1 From Information Overload to Knowledge Management 4916.2. 2 Components of the Intellectual Capital in modern Global

oriented Enterprises 492

6.3 Business Engineering: Labor - Responsibility and Leadership -Organization- and Staff-Development, New Public Management 498

6.3. 1 Main Drivers in Business Reenginering 4986.3. 2 Applications of modern Information Technology 5016.3. 3 New Public Management (NPM), New Public Administration

(NPA) Application of Modern Information Technology 503

6.4 Quality is still free: TOM/EFOM - Quality in the Service Sector . . . 506

6.4. 1 Quality Concepts 5066.4. 2 Quality System forthe Fulfilment of the Quality Standards:

Total Quality Management 5076.4. 3 Quality in the System of Globalization: ISO-EFOM-Model of

the European Foundation for Quality Management 5076.4. 4 Automotive Quality, Dealership Development and the "Degree

of Quality Maturity" 509

6.5 Worlds of Global Experience of Lifestyle, Entertainment andRecreation in the 21st Century: Shopping Malls - Mega-Cities -Theme Parks - Long Distance Tourism 510

6.5. 1 Cities as Agglomerations of a Condensed Lifestyle 5116.5.2 Markets, Symbols, and Mobility in the Ensemble of modern

City Architecture 5136.5. 3 Near and Long Distance Tourism: Between Theme Parks and

Global Paradises 516

Contents

Chapter 7Global Ethics: Dilemmas of the Economic Globalization and the PoliticalAgenda of the Globalization Reform 521

7.1 Business and Ethics: no "Contradictio in adjecto" 522

7.2 Ethics and Global Business: Moral Values on the Test 523

7.3 International Business in the Intersections of Power, Scarcity,Market and Law: Control-Deficits and Ethical Challenges 525

7.4 Morals and Business: Dilemmas in the Behavior of MultinationalEnterprises 528

7.5 Ethics as Reflection of Behavior: Roots and Sources for Orientation 532

7.6 Behaving Correctly: "Etiquette-Manual" of the InterculturalManagement 536

7.7 Globalization Reform: Min imum Consensus - Ethical Organizationand Codes of Conduct - Elements and Chances of a justerGlobalization Structure 540

7.7.1 M in imum Consensus 5407.7. 2 Trust and Responsibility in t h e 21 s t Century: Ethical Organizat ion

and Codes of Conduct for Mu l t ina t iona l Enterprises 5427.7. 3 Elements of a juster Global izat ion Structure: Approaches and

Priorities 548

Bibliography 567

Name Index 583

Subject Index 585