Business Commons^™

What Is The Role Of Basel Iii In Creating Sufficient Risk Management In Banking Sector?, Dimitrios V. Siskos

Dimitrios V. Siskos

This paper attempts to investigate the reasons that lead bankers into establishing Basel III agreement and, second, to examine whether it would be able to bring about prudent risk behavior among banks. Basel III was the third set of regulations, following Basel I and Basel II, and was developed in response to the financial crisis. The measures developed by the Basel Committee on Banking Supervision aimed to reinforce banks liquidity, to protect the banking sector from systemic risks, as well as to solidify the regulation. Although most of the fundamental problems, that were responsible for the global financial crisis, had …

The Stewardship Of Trust In The Global Value Chain, Kishanthi Parella

Kish Parella

Global governance has not yet caught up with the globalization of business. As a result, our headlines provide daily accounts of the extent and consequences of these "governance gaps." The ability of corporations to evade state control also contributes to an unusual, even frightening, phenomenon: corporations are governing like states. Some governance functions traditionally delivered by state actors are now increasingly undertaken by transnational corporations. One area that is experiencing this substitution is dispute resolution of human rights. Corporations and other business enterprises, individually or collectively, are creating a variety of grievance mechanisms to address human rights and other conflicts …

Millennials' National And Global Identities As Drivers Of Materialism And Consumer Ethnocentrism, Mario V. González Fuentes

Mario Gonzalez Fuentes

A major effect of globalization is one that occurs on the self-concept. This is especially the case for young consumers, and particularly for millennials. Despite this cohort’s idiosyncrasies, little attention has been paid to the study of their consumer identities, an important aspect of self-concept. The current research addresses this gap by examining the way millennial consumers’ global and national identities help explain two attitudinal outcomes associated with globalization: materialism and consumer ethnocentrism. Data were collected from millennials in two distinct socio-cultural contexts. A key finding suggests that distinct contexts (i.e., collectivist and ethnically homogeneous vs. individualistic and ethnically diverse) …

Conceptual Issues Of Global Counterfeiting On Products And Services, D. Bosworth, Deli Yang

Deli Yang

Counterfeiting is a global problem of enormous magnitude. Despite its obvious importance, relatively little attention has been paid to the management of counterfeiting. This paper considers the difficulties of measuring counterfeiting and provides evidence of the magnitude of the problem worldwide. The focus is on counterfeiting of privately produced goods and services, rather than the issue of the counterfeiting of currency per se, which is a somewhat different though related issue. A conceptual framework of the private and social costs and benefits of anti-counterfeiting measures is also provided. The framework highlights a number of key driving forces of counterfeiting, including …

Effects Of International Study Tours On Attitude Toward Doing Business Globally: Assurance Of Learning In Executive Mba Programs, Uday S. Tate, Kamal Fatehi, Basanna Patagundi

Uday S. Tate

The past two decades have experienced and realized the wave of globalization as pervasive and impactful imperative in the world of academia, and not just in the corporate world. This realization is reflected in the 2011-13 Report by AACSB Task Force on Globalization of Management Education (The Association to Advance Collegiate Schools of Business - International, June 2011-13). The AACSB report highlights broad globalization trends in management education that have drawn the attention of institutions, corporations and business schools alike, that are striving to prepare their key stakeholders (managers and students) to face today’s complex global challenges. Today’s increasingly integrated …

Management Whipsawing: The Staging Of Labor Competition Under Globalization, Ian Greer, Marco Hauptmeier

Ian Greer

The authors examine management whipsawing practices in the European auto industry based on more than 200 interviews and a comparison of three automakers. They identify four distinct ways in which managers stage competition between plants to extract labor concessions: informal, hegemonic, coercive, and rule-based whipsawing. Practices at the three auto firms differed from one another and changed over time because of two factors: structural whipsawing capacity and management labor relations strategy. In the context of economic globalization, whipsawing is an effective means for managers to extract concessions, to loosen national institutional constraints, and to diffuse employment practices internationally.

Order Of Entry Into Foreign Countries By Us Multinationals Since 1965: Role Of Psychic Distance Over Time And Across Sectors, Suresh Singh

Suresh Singh

Observations of internationalizing manufacturing firms, in the late seventies, revealed that the order in which firms enter foreign countries is influenced by psychic distance (perceived closeness based on factors such as culture, language and development level). Since then, the world has undergone rapid globalization and services have replaced manufacturing as the dominant sector of the world economy. To ascertain whether (a) psychic distance is still relevant and (b) industry sector impacts the relationship between psychic distance and order of entry, this paper analyzed the order of entry into foreign countries by US multinationals in manufacturing and services sectors since 1965. …

The New Solidarity? Trade Union Coalition-Building In Five Countries, Carola Frege, Edmund Heery, Lowell Turner

Lowell Turner

[Excerpt] The purpose of this chapter is to present a framework for the analysis of union coalition-building and demonstrate its utility using comparative empirical material mainly from the United States, Germany, and the United Kingdom though we also comment on union action in Italy and Spain. In what follows, we seek to define union-coalitions and specify their functions, identify a variety of types of coalition and the variety of factors that encourage unions to forge coalitions. We then set out and seek to explain the variable patterns of coalition use across our five countries. The chapter concludes in speculative vein, …

Why Revitalize? Labour’S Urgent Mission In A Contested Global Economy, Lowell Turner

Lowell Turner

What looked like carte blanche for corporate-led globalization just a few years ago is now increasingly contested. The brave new vision of market fundamentalism has been challenged on several fronts, from massive demonstrations in Seattle and Genoa to contested trade and environmental summits at Johannesburg and Cancun. The critical insights of highly placed insiders have undermined the dominant neo-liberal ideology and given credence to mounting protests and opposition viewpoints (e.g. Soros 2002; Stiglitz 2002). Economic stagnation, inequality, desperate poverty and violence— whether in Japan, East Asia, Russia, Germany, or the United States and Latin America—have belied optimistic predictions of the …

Understanding The Impact Of The Global Economic Crisis On U.S. Smes' Trade Exports To Bric, Jayati Ghosh, Denise Lucy, Françoise Lepage

Denise Lucy

The global economy offers vast trade opportunities for U.S. businesses. United States’ SMEs are grossly under-represented in the global market. It is essential that U.S. SMEs adopt a global approach by expanding trade focus to include the emerging BRIC markets. Demographics and increasing purchasing power in the emerging countries of Brazil, Russia, India and China (BRIC) offer significant trade potential for U.S. SMEs export expansion. However, there are external and internal barriers to expanding beyond the NAFTA region. Free trade agreements reduce trade barriers, while creating opportunities for U.S. exports. Although US SMEs face their own set of challenges to …

From The Firm To The Network: Global Value Chains And Employment Relations Theory, Tashlin Lakhani, Sarosh Kuruvilla, Ariel Avgar

Sarosh Kuruvilla

We posit that traditional employment relations theories that focus on individual firms embedded in distinct national institutional contexts are no longer adequate for the analysis of employment relations in a globalized era where production and services are increasingly coordinated across countries and firms. Building on Global Value Chain theory, we introduce a configurational framework that explicitly addresses the employment relations implications of the interconnections within and between firms in the global economy. We argue that different value chain configurations will evidence different employment relations patterns and we validate our framework by applying it to the study of three contemporary global …

Regional Integration And Transnational Politics: Popular Sector Strategies In The Nafta Era, Maria Lorena Cook

Maria Lorena Cook

[Excerpt] This chapter argues that although economic integration between the United States and Mexico had been taking place for some time, it was the formal recognition of this process as represented by the discussions surrounding the North American Free Trade Agreement that facilitated transnational political action by non-state actors. Whereas the globalization of the economy and the prevalence of neoliberal economic policies may be considered by some to undermine popular sector organization and actions, formal recognition of regional economic integration in North America has produced a ‘transnational political’ arena that has expanded the resources available to non-governmental groups, increased their …

Working Through The Past: Labor And Authoritorian Legacies In Comparative Perspective, Teri L. Caraway (Ed.), Maria Lorena Cook (Ed.), Stephen Crowley (Ed.)

Maria Lorena Cook

[Excerpt] Democratization in the developing and post-communist world has yielded limited gains for labor. Explanations for this phenomenon have focused on the effect of economic crisis and globalization on the capacities of unions to become influential political actors and to secure policies that benefit their members. In contrast, the contributors to Working through the Past highlight the critical role that authoritarian legacies play in shaping labor politics in new democracies, providing the first cross-regional analysis of the impact of authoritarianism on labor, focusing on East and Southeast Asia, Eastern Europe, and Latin America. Legacies from the predemocratic era shape labor’s …

The Impact Of Culture On Creativity: How Cultural Tightness And Cultural Distance Affect Global Innovation Crowdsourcing Work, Roy Y. J. Chua, Yannig Roth, Jean-François Lemoine

Roy CHUA

This paper advances a new theoretical model to understand the effect of culture on creativity in a global context. We theorize that creativity engagement and success depend on the cultural tightness—the extent to which a country is characterized by strong social norms and low tolerance for deviant behaviors—of both an innovator’s country and the audience’s country, as well as the cultural distance between these two countries. Using field data from a global online crowdsourcing platform that organizes creative contests for consumer-product brands, supplemented by interviews with marketing experts, we found that individuals from tight cultures are less likely than counterparts …

The Globalization Of Service Work: Comparative Institutional Perspectives On Call Centers (Introduction To A Special Issue Of The Industrial & Labor Relations Review), Rosemary Batt, David Holman, Ursula Holtgrewe

Rosemary Batt

This introduction to the special issue on the globalization of service work provides an overview of the call center sector and its development in coordinated, liberal market, and emerging market economies. The introduction's authors situate this research in literature on the comparative political economy and industrial relations. Drawing on qualitative research and a unique survey of 2,500 establishments in 17 countries conducted in 2003-2006, they discuss the extent of convergence and divergence in management practices and employment relations. They also describe the research methodology for the overall research project, highlight its major findings, and summarize the contributions of the thematic …

How Institutions And Business Strategies Affect Wages: A Cross-National Study Of Call Centers, Rosemary Batt, Hiroatsu Nohara

Rosemary Batt

This paper, drawing on a 2003-2006 establishment-level survey of 1,819 call centers in 15 countries, examines effects of industrial relations institutions and employer strategies on wage variation across coordinated, liberal, and emerging market economies. The authors find several contradictory patterns, which confirm theoretical predictions for some countries and contradict them for others, suggesting diverse institutional reactions to the emergence of a new economic activity. Consistent with prior research, Denmark, France, and Sweden exhibit patterns of low wage dispersion and no union wage premium, and the United States, Canada, and emerging market economies exhibit quite high levels of dispersion. Contrary to …

Innovation In Isolation: Labor-Management Partnerships In The United States, Kirsten S. Wever, Rosemary Batt, Saul Rubinstein

Rosemary Batt

In the United States, as in other advanced industrial countries, worker participation in management has taken on increasing importance, placing pressures on employers and unions to change how they deal with employees/members, and with each other. This paper examines two of the most impressive cases in the U.S.: the partnerships between General Motors (G.M.) and the United Autoworkers union (U.A W.) at Saturn and between BellSouth and the Communication Workers union (C.W.A.). We outline the evolution and the basic features of these innovations, as well as highlighting certain ongoing problems. These problems, we argue, confront the parties to employment relations …

Labor Relations In A Globalizing World, Harry C. Katz, Thomas A. Kochan, Alexander Colvin

Alexander Colvin

[Excerpt] This book traces how labor, management, and governments acting as individuals or as groups have shaped and continue to shape the employment relationship. Employment is analyzed through the perspective of industrial relations, the interdisciplinary field of study that concentrates on individual workers and groups of workers, unions and other forms of collective representation, employers and their organizations, and the environment in which these parties interact.

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Susan N. Houseman

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

Measuring Manufacturing: How The Computer And Semiconductor Industries Affect The Numbers And Perceptions, Susan N. Houseman, Timothy J. Bartik, Timothy J. Sturgeon

Timothy J. Bartik

Growth in U.S. manufacturing’s real value-added has exceeded that of aggregate GDP, except during recessions, leading many to conclude that the sector is healthy and that the 30 percent decline in manufacturing employment since 2000 is largely the consequence of automation. The robust growth in real manufacturing GDP, however, is driven by one industry segment: computers and electronic products. In most of manufacturing, real GDP growth has been weak or negative and productivity growth modest. The extraordinary real GDP growth in computer-related industries reflects prices for computers and semiconductors that, when adjusted for product quality improvements, are falling rapidly. Productivity …

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …

Deification Of Market; Homogenization Of Cultures: 'Free Trade' And Other Euphemisms For Global Capitalism, Gwendolyn Yvonne Alexis

Gwendolyn Yvonne Alexis

In this book chapter, I argue that states and MNCs enter into extraterritorial pacts with global institutions like the WTO, UN, and IMF to derive economic benefit from international trade. Given that both entities are drawn to international trade by the quest for financial gain, there is no justification for attributing to either corporations or their countries of national origin malevolent intent such as colonization of the world under the banner of a particular culture. Economic actors direct their deliberate and intentional activities towards achieving economic goals; and this is done to such an extent that they are often willing …

Joint Sector Review Assessment, Ghana, Advancing Mutual Accountability Through Comprehensive, Inclusive, And Technically Robust Review And Dialogue, Samuel Asuming-Brempong, Stephen Frimpong

Stephen Frimpong

In any sector, policy dialogue is a critical component to efficient and harmonious policymaking and implementation. A joint sector review (JSR) is an annual review of the sector to identify where challenges are preventing coherent dialogue. In Ghana, the first agriculture JSR was instituted in 2008 with the goal of reaching a common point- of- view among key sector stakeholders on important achievements in the preceding year. Stakeholders include the Ministry of Food and Agriculture (MoFA); development partners (DPs); other ministries, departments, and agencies (MDAs), the private sector, and civil society. In addition, the JSR seeks to review key remaining …

Can Brazilian Firms Survive The Chinese Challenge: Effects Of Globalization On Markets, Strategies, And Performance, Syed H. Akhter, Paulo Fernando Pinto Barcellos

Syed H. Akhter

Purpose – The purpose of this paper is to apply the structure-conduct-performance theory and the strategic fit concept to examine the effects of globalization on markets, strategies, and performance of business-to-consumer firms in Brazil. Design/methodology/approach – The paper takes a qualitative approach to answer the research questions. Top decision makers such as president, chief executive officer, chairman of the board, vice president, and director of the companies were interviewed. The elite approach to in-depth interviewing was followed to obtain reliable information from the decision makers. Findings – Findings indicate that globalization and especially the entry of Chinese firms significantly changed …

An Empirical Note On Regionalization And Globalization, Syed H. Akhter, Colleen Beno

Syed H. Akhter

Purpose – Is it regionalization or globalization that more accurately depicts the state of the global economy? Exports and foreign direct investments (FDI) data are analyzed with the aim of answering the question and determining how intra- and inter-regional integration has changed over time.

Design/methodology/approach – To address the research questions, this paper covers the following. First, it takes a longitudinal perspective in examining the changes taking place in exports and FDI at the regional level. Second, it draws strategic business and marketing implications of this development.

Findings – The results show a trend toward regionalization in the Quad (North …

Globalization, Expectations Model Of Economic Nationalism, And Consumer Behavior, Syed Akhter

Syed H. Akhter

Purpose – The goals of the paper are to propose, measure, and empirically test the expectations model of economic nationalism. The model posits that economic nationalism is reflected in people’s expectations of their government, domestic firms, and the general public, in terms of restricting the activities of foreign firms.

Design/methodology/approach – A confirmatory factor analysis is conducted to test the model, using the LISREL procedure.

Findings – Results show acceptable fit for the proposed model. Reliability of each of the three dimensions of economic nationalism is in the acceptable range. A nomological validity test showed that economic nationalism is related …

Introduction, Noel Gaston, Ahmed M. Khalid

Ahmed Khalid

Extract: Globalization is very much part of the modern vernacular. Arguably, it was first used by McLuhan and Fiore (1968) when they introduced the concept of the ‘global village’. Globalization is characterized by the growth of the international trade of goods and services, the growth in foreign direct investment (FDI) as well as the political and social linkages that accompany growing economic integration. Outwardly, the driving forces seem to be the decline in administrative barriers to trade, sharp falls in the costs of transportation and communication, fragmentation of production processes and the development in information and communication technologies (ICT). Arguably, …

Globalisation And Corporate Real Estate Strategies, Linda Too, Michael Harvey, Eric Too

Linda Too

Purpose - The purpose of this paper is to examine the impact of globalisation on corporate real estate strategies. Specifically, it seeks to identify corporate real estate capabilities that are important in a hypercompetitive business climate. Design/methodology/approach - This paper utilises a qualitative approach to analyse secondary data in order to identify the corporate real estate capabilities for a hypercompetitive business environment. Findings - Globalisation today is an undeniable phenomenon that is fundamentally changing the way business is conducted. In the light of global hypercompetition, corporate real estate needs to develop new capabilities to support global business strategies. These include …

Opportunities For Non-Degree Executive Education In Taiwan, Robert D. Winsor, Annie Liu, Xiaoyan Yu, Kim Huynh-Willis

Robert D. Winsor

Few organizations today have remained untouched by globalization. Whether they are in direct competition with multinational businesses or simply experiencing the pressure of operating within a large competitive universe, virtually all firms now operate in a global economy. As a result of this global competition, U.S. and foreign executives alike have been confronted with the need to broaden their conceptualization and understanding of the impacts of these trends. In response to these needs, both universities and independent training organizations have developed innovative programs for executive training and education. Observers predict that demand for this type of education will grow substantially …

Borderless Bits: Electronic Globalization And Its Social Consequences, Nikhilesh Dholakia

Nikhilesh Dholakia

Globalization of services with the aid of electronic technologies - popularly called outsourcing or offshoring - has been accelerating. In this paper, the factors that drive electronic globalization - as distinct from factors that drive the general process of globalization - are discussed briefly. A simple model of a 2-firm USA-India dyad engaged in outsourcing relationships is presented to outline the economic basis for electronic globalization. By introducing wider political and cultural forces, progressively more complex views of the electronic globalization phenomenon are presented. Finally, the interplays of the economic, political, and cultural forces are explored to arrive at a …