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Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic
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Globalization Essay: The Role of State, The University of Cambridge, Mphil in Management, Milena Milicevic

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  • 1. MODULE NUMBER MM10 MODULE NAME GLOBALISATION AT THE CROSSROADS . COURSE LEADER Professor Peter Nolan AUTHOR: Milena Milićević HAND IN DATE 16 January, 2012 word count: …………4154…………. I confirm that this submission is my own unaided work, except as specified below; all sources are fully acknowledged and referenced; the submission does not contain material that has already been used to any substantial extent for a comparable purpose.
  • 2. 'If developing countries are to make effective use of the opportunities offered by global markets, they need a strong and effective state'. Discuss. Does you society have more memories than dreams or more dreams than memories? (T. Friedman The World is Flat) 1. Effective, strong and making a difference A strong and effective state is not what we imagine to be a bureaucratic government apparatus; it is the end-result of effective and sustainable performance of all its actors: national and multinational companies, small and middle sized enterprises, government and local agencies, political parties, institutions of education, healthcare, and civil society (NGOs), media, and last but not least… its people. For Stiglitz four pillars of successful development strategy are ‘‘markets, government, individuals and communities, [and in the last] people work together, often with help from government and nongovernmental organization.’’ (2006, p. 51-53) When we estimate the complex relationships of agents who constitute a strong and effective state; the factors which made developed countries rank superbly on the global markets; and the challenges that developing countries face when trying ‘‘to catch up’’, we realize that the global playing field is not as flat as Friedman says, but at least the globalization allowed more opportunities for the humankind than ever before. Thirty years after the global business revolution, which was marked with the ‘‘emergence of widespread industrial concentration across all high income countries, as well as extending deeply into large parts of the developing world’’(Nolan 2008, p. 42) and ten years after 9/11, which challenged the paradigms of international security, the question of how to increase achievement of states at national and multinational (intergovernmental) levels is still the burning one, especially for the developing countries. Why do developing countries usually have to work more extensively on improving their governance? Because there are virtually no examples of ineffective states who are in the category of highly industrialized and developed ones according to the extensive tangible criteria of international organizations and our experience. In other words, being ineffective and successful in business and/or public policy is contrary to realities of life. Still, the logical premise here is not that a developing country will gallop into the category of the developed ones only if its governance enhances, but that the efficient state is a prerequisite for increasing the country’s economic competitiveness and
  • 3. attractiveness to investments, which should improve the standard and welfare of citizens in the long run. Moreover, the other question this essay will address is to which extent the state apparatus should and can affect the national economic policy on the global markets since the state’s role evidently declines in the age of neo-liberal capitalism, but also since the environment for following the Washington Consensus changed. Trying to find the balance between neo-protectionist and minimalist state is one of the greatest challenges for developing countries nowadays. Finally, this essay will address why the policy makers in some developing countries seem not to work hard enough so as to create a strong and effective state and why such a state may not (choose to) participate in the global markets within its capabilities? At this point, let us outline certain parameters which define developing countries, but also show elusiveness of categorization. According to the United Nations, International Monetary Fund (IMF) and the World Bank, ‘‘the most important criterion to judge whether a country is developed or developing is its per capita income’’, whereas the UN Development Programme uses ‘‘a human development index (HDI) to measure quality of life in terms of income, schooling, life expectancy and other factors.’’ (Khor 2011, p.1) For instance, according to the parameter GDP based on purchasing-power-parity Japan is ranked 24th , the United States 7th , whereas China is 94th , India 133rd and the Slovak Republic is eleven places above Russia. (International Monetary Fund 2011) This result can imply that ‘‘people living in countries with a lower cost of living could enjoy a higher living standard than their country's GDP implies.’’ (Khor 2011, p.1) Moreover, the United Nations system uses the term developing countries for Africa, the Central and South America, Caribbean, Asia excluding Japan, and Oceania excluding Australia and New Zealand. (UNSTAD 2010) However, when thinking about the GDP of certain economies as the measurement for success we should recall Bhagwati’s observation, ‘‘growth has to be the principal, but not the only, strategy for raising the incomes and hence the consumption and living standards of the poor.’’ (2004, p.54) 2. Who protected protectionism first? Nolan recalls the historic setting at the beginning of the 20th century and that Britain and the US started to expand their economic influence after they relied on protectionism. ‘‘Having established powerful firms behind protectionist barriers, both Britain and the US became
  • 4. converts to free trade and ‘the global level playing field’, allowing their powerful businesses free access to the markets of less developed economies with weaker business structure.’’ (2001, p.8) Moreover, state intervention was the remedy in the turmoil of Great Depression when Roosevelt and the Democratic Party ‘‘reconstructed the economy and provided social security’’ and confronted the concept of social progress which was based on ‘‘unrestrained pursuit of wealth’’. (Nolan 2007, p. 36) Nevertheless, developing countries are often pursued to open up entirely to laissez-faire capitalism behind the curtain of promised prosperity and fair market conditions by those same super powers that in the age of imperialism and colonialism created wealth via ‘‘nation states as independent, powerfully efficient engines’’ (Ohmae 2004, p. 214) and only afterwards became fiery advocates of free trade. Taking these facts into account, we must make a distinction between free trade and fair trade when we compare and contrast the interests of diverse Goliaths and Davids on the global map. In other words, what the United States wants to obtain from the globalization process nowadays is either a far cry from, for example, China’s intentions or both countries have the same aims but have to reconcile their different strategies, which are in accordance with their national interests and economic policy. Still, developing countries often have more difficulty than high-income countries to respond to demands of global markets because developing countries are less competitive, depend more on additional financial resources and became part of globalization processes later. Thus, they must often deal with dilemmas why and how to compete at all. Friedman provides one interpretation of what globalization has for the developing countries as he recalls the observation of a government officer in a central bank on Chinese priorities and relationship with America, ‘‘First we were afraid of the wolf, then we wanted to dance with the wolf and now we want to be the wolf.’’ (2006, p. 394) Evidently in the case of China, Japan and other ‘‘four little Asian tigers’’ (Nolan 2001, p.11) the success story became reality, but what should do those countries who want their slice of the global cake, but still need to find out how to get as large share of it, if any pieces are left? Certainly, Asian dragons’ ability to ‘‘take advantage of globalization, without being taken advantage of by globalization, [which] accounts for much of their success,’’ should be acknowledged and adopted as a starting point. (Stiglitz 2006, p. 31)
  • 5. 3. Challenges accepted Since nowadays ‘‘emerging managerial technocracy’’ (Stopford 1998, p. 22) has more influence on global markets than national sovereignty, the ability of states to provide welfare and to affect international businesses evolves. In order to evaluate the adopted level of interventionism, a classification of strong states (Japan, France) and weak ones (the United States and the United Kingdom) emerges. A strong state can ‘‘resist pressures from particular interest groups better’’ as it governs autonomously, whereas a weak one ‘‘has fewer policy instruments and its market operations predominately regulate its restructuring’’ (Ruigrok and Tulder 1995, p. 101). Gilpin reminds us that in the trade-off among ‘‘fixed exchange rates, national autonomy in monetary policy and international capital movements, the government can achieve maximum two goals of efficient economic policy’’. For instance, European Monetary Union uses common currency to strive for the fixed exchange rates, China especially controls its capital mobility, whereas the United States maintains the independent monetary policy and freedom of capital movements. (2005, pp. 354-5) Bearing the interdependency of these economic goals in mind, the main challenges for governments in developing countries will be: gradual liberalization after the legislative reforms have been established; enforcing effective ‘‘macroeconomic and trade policies; selecting assets’ ownership type and designing policies for specific industries.’’ (Stopford 1998, pp. 102-127) In terms of monetary policy, inflation, exchange rates and debts must be managed as the funds are accumulated sustainably by increasing savings, avoiding external loans and ‘‘preventing the tendency of capital flows to become volatile.’’ (Nolan 2007, p. 138) Concerning trade policies, developing countries should balance the level of anti- dumping measures and increased export, along with positioning themselves better in WTO and in region-specific organizations. Moreover, they should choose in which cases to ‘‘retain state ownership and when to provide privatization incentives for foreign companies’’. (Stopford 1998, p. 120) Finally, the requirements of specific sectors should be taken into account since low and middle income countries promote their comparative advantages when they compete mutually and since their governments ‘‘should enforce internal competition among local and global manufacturers and producers of service’’ (Stopford 1998, p. 219) Susan Strange makes a brilliant observation how these questions are tackled on daily political agendas in both developing countries and majority of high-income countries. She states that
  • 6. ‘‘politicians everywhere talk as though they have the answers to economic and social problems, as if they really are in charge of their country’s destiny.’’ (2004, p. 219) However, people who vote for them feel disillusionment because of real economic hardships and because policy makers often tackle challenges of global economy in public with unsubstantial claims and at slow pace. ‘‘Too often the need to resolve fiscal or productivity problem is presented to the electorate as the consequence of global competitive pressures.’’ (Rodrik 2004: 229) Domestic reform must not suffer because the institutions try to catch up in the global competitiveness game. Domestic reform also means encouraging investments in technology and education and deciding which priority industries to develop after negotiations and consultations with private sector. Those working in hierarchical policy institutions should bear in mind the path-dependency of today’s decisions which will affect their country in the future although the far-reaching effect may not be obvious at this point. Therefore, although issues like regulating public expenditure or exchange rates should be government’s priority, the investments in education and R&D should not be neglected and perceived as expense. 3. 1. Time frame for liberalization Developing countries should use the authority of state, their geopolitical position and the shrewd assessment of timing to liberalize their economy gradually, while being fully aware of intertwined interests in multilateral diplomacy, importance of political stability and capital flow in the global markets. Comparison of policies in disintegrated Soviet Union and countries like Poland and Slovenia after the fall of Berlin Wall reinforces the argument that adopting Western capitalism with detrimental speed and complete relying on Washington Consensus affected former communist economies negatively. Stiglitz reminds us that the shock therapy of rapid privatization and price liberalization brought only turmoil to the former Soviet Union as the state institutions failed to fight off the consequent hyperinflation with high interest rates with little credit and lowered fiscal deficits. The wounded economy could not recover from the recession and ‘‘prices in Ukraine at one point increased at the rate of 3,300 percent a year.’’ (Stiglitz 2006, p. 37) On the other hand, Slovenia and Poland avoided hasty privatizing and strengthened the legal institutions in shaky times in order ‘‘to reassure investors’’ and to become the EU members. (Stiglitz 2006, p. 39)
  • 7. Asian states epitomize another example of perfect timing for state intervention. In post-war years they managed to increase their competitiveness due to state support and ‘‘American economic and military aid that was combined with their high domestic savings and low patterns of consumption.’’ (Strange 2004, p. 221) If it had not been for such government that tried to ‘‘avoid monopoly and encourage oligopolistic rivalry’’ (Nolan 2001, p. 9) and central bank intervention that ‘‘kept the external value of their currency actually lower than the rate’’ (Martin and Schumann 1997, p.144), Japanese economic miracle would not have happened. 3.2. Macroeconomic policy In order to stimulate growth, developing countries need non-restrictive fiscal and monetary policy, which is contrary to IMF’s standard request for high taxes and decreased budget deficit, as well as high interest rates and lower inflation. In the long run high interest rates that unrealistically lower inflation benefit creditors more, encourage excessive import due to price fluctuations and decrease employment opportunities, welfare and consumption standards of people. The state can also undervalue its currency in order to make imports costly and exports cheaper for foreigners. To prevent exchange rate shocks, capital flow control can be introduced. Because of all these mechanisms more consumption and income can be created for companies, along with greater accumulation and investment in research and production, which should enable greater employment and more equally shared benefits of growth. Stopford advocates that ‘‘a degree of inflation will less likely put off multinationals than the signs of economic stagnation’’. (1998, p. 218) Moreover, high savings rather than requirements of Bretton Woods institutions can increase the investments. In order to encourage savings pattern as in Japan, ‘‘governments should provide conditions for setting up branches in rural areas if needed.’’ (Stiglitz 2006, p. 33) The interventions should happen in other economic branches of national interest and Nolan emphasizes that ‘‘global competition may force local banks to improve their operating mechanism.’’ (2007, p. 64) Governments should pay attention to excessive public expenditures so as to ‘‘avoid borrowing and increased interest rates or higher taxes, which decrease firms’ profits and entrepreneurial activities.’’ (Garrett 2005, p. 385)
  • 8. Developing countries must also lobby for change in voting rights with non-governmental agencies and other actors so as to have greater control of their policy by increasing their voice in institutions of the one-dollar-one-vote system such as IMF or World Bank. Better representation of Africa and Latin America is indispensable for fairer decision-making and market conditions that will be contrary to current situation where ‘‘rich countries have control of 60% of the voting and the US can veto decisions in the 18 most important areas.’’ (Chang 2007, p. 44) 3.3. Trading in the multipolar world Developing countries should prudently regulate their tariffs, subsidies, anti-dumping measures and increased export so as to reform trade policies and remain competitive globally. Since states have the difficulty to ‘‘control production which is aimed at the world market and not within their national borders’’, they are left with ‘‘the opportunity to bargain, not direct, to their own or corporations’ advantage.’’ (Stopford 1998, p. 14) High tariffs, government and bank loans, special subsidies and tax incentives can be introduced to widen state’s maneuvering space and encourage development of country’s chief industries. Anti-dumping may be one of the ways to confront and punish unfair competition that engaged itself in dumping activities on the guest market. Hill states that WTO registered 70 percent of all anti-dumping actions in basic metal industries, chemicals, plastics, machinery and electrical equipment. (2007, p. 223) Tariffs on imported goods bring more money into government budget, protect local economy and jobs against competition, but also affect prices negatively because customers are charged more for particular imports and because competing globally becomes more difficult with increased cost of production. (Hill 2007, p. 203) However, it must not be forgotten that only import substitution will not do the trick in the long run since the countries should work on export development, as well. Concerning export, Bhagwati (2004, p. 55) reminds us how significant it is to diversify the commodities the companies offer to the market in order to avoid ‘‘depressing the export prices by selling more as major suppliers’’, which eventually leads to attentive listening to the market needs and avoiding market saturation. Finally, subsidies are especially significant for agriculture ‘‘in order to reduce international trade’’ (Hill 2007, p. 204) and prevent entire dependency on imports from foreign countries. However, the debate on competitiveness in agriculture remains open because it is suggested
  • 9. that ‘‘removing all subsidies on agricultural production alone in OECD countries could return to the developing countries three times more than all the foreign aid they currently receive from the OECD nations.’’ (Hill 2007, p. 224) 3.4. Who owns international economy? When discussing privatisation, it should be remembered that strategically important sectors usually remain state-owned such as ‘‘airports, ports, electricity and gas […] forestry and bus transport.’’ (Palcic D. and Reeves E. 2011) The industries which state decides to privatize during favorable stock-market conditions must be regulated so as to ensure competition and prevent companies from monopoly and obtaining speculative quick profits. Chandler reminds us of the distinction between large and small enterprises in the American economy and that large scale firms rarely bloomed in ‘‘industries of apparel, printing, tourism; whereas transport, mining industry, electrical equipment always attracted large enterprises.’’ (McCraw in Chandler 1997, p.527) China’s economic success since 1980s epitomizes beneficial effects of government interventions in ownership issues. Governments should demand for certain investment obligations so that privatization does not cause social and market devastation. The local suppliers and previous employees on the home field should be retained in privatized enterprises since they provide insight into local culture and use established operational infrastructure. China’s example also shows how to encourage competitiveness as it first ‘‘built large indigenous firms [with the effort] to rebuild national pride and privatized at least half of the small and medium sized enterprises (depending on the province) that had exponential growth. (Nolan 2001 pp, 16-19) Three main categories of FDI indicate how foreign capital can be present in national economy: ‘‘equity capital (the value of the MNC's investment in shares of an enterprise in a foreign country), reinvested earnings and other capital (which means short or long-term borrowing and lending of funds between the MNC and the affiliate).’’ (WTO 1996, ch.4) Fewer developing countries are beneficiaries of the FDI in comparison to the developed countries since they are more dependent on external investments and have to compete among themselves. Majority of resources goes to the more privileged ones and in that sense ‘‘Brazil, Mexico and China together obtained 30 per cent of FDI inflows into developing countries in
  • 10. 1987-92 and 51 per cent in 1998.’’ (Nolan 2001, p. 98) Interestingly enough, the similar surplus of foreign capital left diverse traces on those countries. Apparently the authority of state and egalitarian work culture were more important factors for China’s success than Mexico and Brazil’s better geopolitical position and closeness to the US trade. FDI became more preferable means for developed economies to penetrate foreign market with high export tariffs and transport costs. 3.5. The inner and outer riches of the developing ones The developing states must be aware of their competitive advantages as they provide mechanisms for better cooperation between their institutions and the global corporations. Porter’s Diamond theory reminds us that advanced factors: communication infrastructure, sophisticated and skilled labour, research facilities and technological know-how are more significant for releasing country’s competitive advantages in the age of knowledge economies than basic factors such as natural resources, location and demographics. (Hill 2007, p. 188) Developing countries should take into account the success paradigms of the countries that managed to catch up. Since the 1960s the governments of Taiwan, Korea, and Malaysia invested in the high-tech sector and became not only ‘‘major producers of electronics, computers, and computer chips, but also of products like steel and plastics’’, as they knew that ‘‘technological advances in one area could help stimulate growth in another.’’ (Stiglitz, 2006 32) The fact that developing countries have only 19 representatives on Morgan Stanley Dean Witter’s evaluation of ‘‘the 250 most competitive companies in the world’’ (Nolan 2001, p. 153) means that it is very difficult for them to penetrate the saturated global market with established supply and production chains. Because multinational corporations oversee their partner networks horizontally and treat markets hardly as ‘‘individual UN state entities’’, but as regions where different ‘‘operations from procurement to innovation happen’’ (Ohmae 1995, pp. 111-112), governments should standardize their interventions towards investing companies and know that companies seek ‘‘market expansion, resources or efficiency’’. (Stopford 1998, p.70) Avoiding excessive red tape attracts investors to bring their capital since even ‘‘minute details’’ matter, such as an average number of days needed to start a business. (Friedman 2006, p. 421) Moreover, Morgan Stanley estimates that ‘‘steel, chemical and transport equipment industries offer best possibilities for developing businesses to catch up especially in terms of commoditized goods with low profit margins.’’ (Nolan 2001, p. 153)
  • 11. Contrary to India where ‘‘you can innovate without having to emigrate’’ (Friedman 2006, p. 217) and where ‘‘[multinational corporations] can hire three Indians for the price of one Swiss’, (Haans, P., Schumann, H. 1997, p. 99) many developing countries must decrease brain drain by creating legislative environment where young experts will be given opportunity to implement and transmit their international know-how and start entrepreneurial projects. Outsourcing also increases employment rates and technology transfers but it requires constant competitiveness and innovation so that foreign capital does not leave in search for better partner countries. Still, education opportunities and creating jobs will not be enough for country’s sustainable growth if country’s products are not sufficiently accepted on the global market due to wobbly infrastructure and low productivity. 4. Participating or standing on the sidewalk It must be acknowledged that some developing countries would not engage themselves in the global markets since their political establishment fosters particracy, economic monopoly for diverse lobbying groups, cartels, corruption actions or even war turmoil. Even though some states have potential to liberate their abundant competitive advantages (from natural resources to skillful workforce), they can become victims of the vicious circle called ineffective governance and missed economic opportunities when they lack what Friedman calls intangible things. Some societies [are] ‘‘willing to sacrifice for the sake of economic development and the presence of leaders with a vision for state’s development and [are] willing to use power to push for change rather than to enrich themselves and preserve the status quo.’’ (2006, p. 417) In enforcing democratic governance the UN agencies and international organizations such as IMF, World Bank, and WTO can provide structural and expert help. However, certain governments may resist such attempts for aid as they prefer taking advantage of status quo in times of turmoil or they are distrustful because ‘‘the interests of those organizations are closely linked with the commercial and financial interests of those in the advanced industrial countries.’’ (Stiglitz 2003, p. 20) It is of paramount importance that international institutions enable improvements for labour standards and human rights in emerging economies not by imposing sanctions, but by leading by example.
  • 12. 5. Suggestions for the future To conclude, effective and strong governments are a prerequisite for developing countries to take opportunities of globalization. However, because both markets and governments are imperfect, mutual work must be done and governments should be perceived as key to solution, not a part of the problem. The statement of a foreign banker in Walt Street Journal adequately embodies the trade-off between market and government interventions, ‘‘We favour global market when we want to earn the money and we believe in state when we are almost to lose money.’’(Chang 2011) To sustain people’s welfare, governments should strive for regulated policies, legitimated actions and integrity in communication with domestic and foreign stakeholders. Stopford emphasizes that the bargaining process in government policy is intricate because both ‘‘over- generosity and rigidness in negotiation with one partner affect the government’s credibility with all others.’’ (1998, p.136) Moreover, national economy becomes prosperous due to its strong pillars: the effective macroeconomic and trade policy, timely-tuned reforms for liberalization and privatization, strategic development of industries, adequate infrastructure, educated workforce, geopolitical stability and lowered corruption. However, since reforms require long-term orientation and in-depth focus on multitude of factors, if states fail ‘‘to manage the national economy, to maintain employment or sustain economic growth, to avoid imbalances of payment with other states, to control the rate of interest and the exchange rate, it is not the matter of technical incompetence, nor moral turpitude nor political maladroitness.’’(Strange 2004, 224.) The most important is to keep trying and be prepared for the market reactions because trade liberalization, outsourcing, latest information technology, privatization and other drivers of global business revolution made core businesses, and not governments, in the centre of the globalized world, whereas core businesses created global interconnectedness of ‘‘a large number of heavily related businesses, whose survival depends on them.’’ (Nolan 2001, p. 151) Finally, in the global game of states and markets, the diverse stakeholders negotiating at the same table should bear in mind Orwell’s observation, ‘‘All animals are equal but some are more equal than others.’’
  • 13. Bibliography Bhangwati, J. (2004) In defense of globalization. New York: Oxford University Press. Chang, Ha-Joon. (2007) Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism. New York: Bloomsbury Press. Chang, Ha-Joon. (2011) Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism. New York: Bloomsbury Press. Available in Serbian at: http://starisajt.nspm.rs/ekonomskapolitika/2008_hajuoon1.htm (Accessed: December 20, 2011) Friedman, T. (2006) The world is flat. 2nd edn. London: Penguin books. Garrett, G. (2005) ‘Global markets and national politics’. In: Held D. and McGrew A. (eds.) The global transformation reader: An introduction to the globalization debate. 2nd ed. Cambridge: Polity press and Blackwell Publishing Ltd, pp. 385, 391. Gilpin, R. (2005) ‘The nation state in the global economy’. In: Held D. and McGrew A. (eds.) The global transformation reader: An introduction to the globalization debate. 2nd ed. Cambridge: Polity press and Blackwell Publishing Ltd, pp. 354-355. Hill, C. (2007) International Business: Competing in the global marketplace. New York: The McGraw Hill Companies Inc. International Monetary Fund. (2011) World Economic Outlook Database-September 2011. Available at: World Economic Outlook Database-September 2011 (Accessed: December 07, 2011) Khor, M. (2011) ‘China still a developing nation.’ Xinhua, 25 November, p.1. Available at: http://news.xinhuanet.com/english2010/indepth/2011-11/25/c_131269386.htm (Accessed: December 07, 2011) Martin, H. P. and Shumann, H. (1997) The global trap. Sidney: Pluto Press Australia. McCraw, T. (1997) ‘Government, big business and the wealth of nations’. In Chandler, A., Jr., Amatori, F. and Hikino, T. (eds.) Big business and the wealth of nations. Cambridge: Cambridge University Press, p.527. Nolan, P. (2001) China and the global economy. New York: Basingstoke: Palgrave Macmillan. Nolan, P. (2007) Capitalism and Freedom. London: Anthem Press. Nolan P., Zhang J. and Liu C. (2008) ‘The global business revolution, the cascade effect, and the challenge for firms from developing countries’ Cambridge Journal of Economics, 32:29- 47; doi:10.1093/cje/bem016, p. 42. Available at: http://cje.oxfordjournals.org/content/32/1/29.full.pdf+html (Accessed: December 09, 2011)
  • 14. Ohmae, K. (1995) The end of the nation state. New York: McKinsey&Company Inc. Ohmae, K. (2004) ‘The end of the nation state’. In: Lechner F.J. and Boli J. (eds.) The globalization reader. 2nd ed. Oxford: Blackwell Publishing Ltd, pp. 214-215. Palcic D. and Reeves E. (2011) ‘‘State must retain some control over key strategic industries’’ Irish Times, 17 Juni 2011, p.1. Available at: http://www.irishtimes.com/newspaper/finance/2011/0617/1224299067839.html (Accessed: December 27, 2011) Rodrik, D. (2004) ‘Has globalization gone too far’. In: Lechner F.J. and Boli J. (eds.) The globalization reader. 2nd ed. Oxford: Blackwell Publishing Ltd, pp. 227-229. Ruigrok, W. and Tulder, R. van (1995) The logic of international restructuring. London: Routledge. Stiglitz, J. (2006) Making globalization work. New York: W W. Norton & Company, Inc. Stiglitz, J. (2003) Globalization and its discontents. New York: W W. Norton & Company, Inc. Stopford, J. (1998) et. al. Rival states, rival firms: competition for world market shares. 5th ed. Cambridge: Cambridge University Press. Strange, S. (2004) ‘The declining authority of states’. In: Lechner F.J. and Boli J. (eds.) The globalization reader. 2nd ed. Oxford: Blackwell Publishing Ltd, pp. 219, 221, 224. United Nations Statistics Division. (2010) Composition of macro geographical (continental) regions, geographical sub-regions, and selected economic and other groupings. Available at: http://unstats.un.org/unsd/methods/m49/m49regin.htm#ftnc (Accessed: December 07, 2011) World Trade Organization. (1996) ‘Trade and foreign direct investment-New Report by the WTO’. WTO Press release, 9 October 1996 Available at: http://www.wto.org/english/news_e/pres96_e/pr057_e.htm (Accessed: December 18, 2011) World Trade Organization, ‘International Trade Statistics’, 2004, and United Nations. (2004) ‘World Investment Report, 2004’. In: Hill C. International business: Competing in the global marketplace. New York: The McGraw Hill Companies Inc. p.239.

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