Issue link: https://www.e-digitaleditions.com/i/61383
T cators must seek ways their organizations can not only survive, but thrive, in today's tumultuous business environ- ment. To do that, however, they must first understand the complex forces at work around the world—and they must ask themselves some tough questions about how they are responding to these forces and the challenges they bring. tors are facing a bewildering barrage of chal- lenges for which they are far from ready. As those who prepare present and future corporate leaders, these educators are being scrutinized as never before, in terms of what they teach, how they teach it, when they teach it, and whether or not measura- ble learning outcomes have been achieved. Both executives and edu- global corporation will disappear, what country's economic system will collapse, what terrorist activity will take place, what health scare will develop, and how far markets will tumble. While none of the complex economic, social, polit- ical, and educational issues confronting us is truly new, the pace of change makes each one even more urgent. Like business executives, management educa- he dramatically changing global corporate envi- ronment presents a relentless series of chal- lenges for which many executives are woefully unprepared. Many people begin each day won- dering what CEO will be fired next, which author and journalist Thomas Friedman puts it this way: "Globalization is the inexorable integration of markets, nation-states and technologies to a degree never seen before—in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before. This process of glob- alization is also producing a powerful backlash from those brutalized or left behind by this new system." Today's chaotic worldwide business environment has forced both executives and educators to poverty has increased by almost 100 million. ■ Adoption of market-based policies— such as open capital markets, free trade, and privatization—is actually making some developing economies less, not more, stable. For instance, crises in Asia and Latin America have threatened the economies and stability of developing That backlash against globalization has three key causes: ■ Globalization has not succeeded in reducing poverty. In fact, in recent years, the actual number of people living in re-evaluate basic concepts of management. But as rapid change continues to boil through the global landscape, is either group really equipped to meet it? by John Seybolt illustrations by Dave Cutler The Trouble with Globalization The primary issues that executives and management educa- tors are facing today all revolve around various aspects of globalization. In fact, much of what globalization has to offer is a boon to business, as Joseph E. Stiglitz, 2001 Nobel Laureate in Economics, has stated. He defined globalization as "the closer integration of the countries and peoples of the world…brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, [and] knowledge...across borders." Even so, globalization also has been viewed as the source of many of the world's problems. Pulitzer Prize–winning make it imperative that we manage it with great skill and sensitivity to make sure its benefits offset its drawbacks. As Stiglitz says: "We are a global community, and like all com- munities have to follow some rules so that we can live together. These rules must be—and must be seen to be— fair and just, must pay due attention to the poor as well as the powerful, must reflect a basic sense of decency and social BizEd MARCH/APRIL 2004 industrial policy that enriched much of Asia. Around the world, many people live longer and enjoy higher standards of living. Globalization has reduced the sense of isolation felt in much of the developing world as access to knowledge has grown exponentially. And financial aid, an important aspect of globalization, has brought benefits to millions. The two seemingly contradictory sides of globalization tered a "globalization divide" between the haves and have-nots, it also has provided overwhelming ben- efits. International trade has helped eco- nomic development in many countries. For instance, export growth was the centerpiece of the viewed by critics as hypocrit- ical, holding onto their own trade barriers while demand- ing that developing nations lower theirs. While globalization has fos- countries around the world. ■ Western countries are 39