The document discusses the shifting global business landscape and focuses on several topics: the benefits of globalization according to Adam Smith by enabling different parts of the world to help each other; the debates around globalization and its impact; transatlantic trade; the potential decline of Western nations and rise of others; Africa rising through the internationalization of African firms; and the role of educators and researchers in discussing rhetoric, realities, risks, public policy, and educating students around these issues.
Introduction to Prompt Engineering (Focusing on ChatGPT)
Academy of International Business US Midwest Keynote Address
1. THE SHIFTING GLOBAL BUSINESS
LANDSCAPE
THROUGH MY AFRICAN EYES
Keynote Address at 2017 AIB-Midwest
Conference I April 22 I Chicago
Dr‘Dapo Adeleye I iadeleye@utk.edu
2. THE WEALTH (?) OF NATIONS
“By uniting, in some measure, the most
distant parts of the world, by enabling
them to relieve one another's wants, to
increase one another's enjoyments, and
to encourage one another's industry,
theirgeneral tendency would seemto be
beneficial.”
AdamSmith
2
12. OUR ROLE AS EDUCATORS &
RESEARCHERS
RHETORIC, REALITIES & RISKS
‘VOICE OF THE PEOPLE’
PUBLIC POLICY DISCOURSE &
ANALYSIS
EDUCATING STUDENTS &
12
The global business landscape is shifting (not transforming yet), as political events in the UK (Brexit) and the US (Trump election) challenge the predominant western thinking on free trade, regional economic integration, and immigration. I provide some comments, based off of my experience living on three continents – Africa, Europe and North America; I especially provide an African perspective to the unfolding events.
Adam Smith’s statement, which predates even the emergence of Economics as a scholarly discipline, has been one of the pillars of international trade, as Western economists have largely embraced division of labor, comparative advantage, and cross-border trade.
Well, it appears that the so-called ‘invisible hands of the market’ (reliance on markets and prices to shape resource allocation decisions) are literally giving way to the visible hands and tweets of POTUS.
Globalization has its discontents. Many people and societies have faced or are facing serious challenges and problems arising from the increasing interconnectedness of the world economy. I argue, that while attention has focused on the loud noise from the US and the UK, we need to seriously turn our attention and be sensitive to those who are suffering more….and suffered more. The southern hemisphere. It would appear that perhaps the two biggest beneficiaries of globalization are just ‘whining’ about losing some market share. The USA remains the preeminent global economic powerhouse, with its firms playing a dominant role in many leading industries. The UK, which had a global ‘empire’ covering nearly a quarter of the world’s population, is celebrating its ‘independence’ following the BREXIT. Interesting!
Respect the laws of gravity, otherwise….
The US & UK NEED their neighbors and the big countries. While regional trade agreements can be renegotiated or improved to suit them, the discussion tends to focus only the negatives and does not look at the reality. NAFTA. While it has not delivered the magic supporters argued it would at inception in 1993, it is by no means a failure. US-Mexico trade has increased nearly eightfold, with a modest deficit less than 20% that of China. Canada is US’ largest exporter, and the deficit is a little over $10 Billion. $ 1.2 trillion with your neighbors and a deficit of ~$70B; $1.1 Trillion with EU, and deficit of ~$95B. The UK also has a special economic relationship with the EU.
Some would argue that the political rhetoric does not match the economic realities, and could be counterproductive. Well, time will help us make sense of all these.
When I hear (and google) transatlantic trade, what comes first is the slave trade. These days, transatlantic means US & EU. Africa was central and played a pivotal role in that centuries long trade deal (some estimates report over 12 million people were sold in slavery, about 10 percent dying before reaching destination), but has essentially been left behind (or so it appears). Of course Africa must take a lot of blame for the current situation, but we should not forget the other transatlantic trade (so quickly), and never underestimate its impact.
I think talk of the decline of the West and the rise of the rest has been somewhat exaggerated, and without a full appreciation of context.
Are we afraid of two thirds of the world population emerging from poverty, and seeing ‘the light’? What it looks like to me is that several countries are making the numbers matter. E.g. 5 BRICS countries have 3.6 Billion people, half of the world’s population (compared to US - ~5% and UK <1%. When my Western friends ‘whine’ about China Rising, BRICS Rising, Africa Rising, etc…and the West declining, I ask them if they’re ready to trade places. Lol.
This is not to say that Western countries should not act in their strategic interests. Of course they MUST act…STRATEGICALLY.
CHINA. Although I’m not convinced that China would overtake the US by 2030, the US trade deficit of $350 B on $670B trade + China Debt Holdings + Etc call for serious attention. It’s a lot more complex than some simplistic, populist rhetoric from some US politicians.
Let’s not forget also that many of America’s top companies are doing great in China, producing and selling to the Chinese. GM joined Toyota and Volkswagen in the 10m annual car sales club for the first time ever, selling nearly 4m in China. Boeing is looking to China to spend $1 Trillion over the next 20 years; the company estimates that its China sales support 150,000 jobs in the US.
As Prof Farok Contractor put it in: Disrupting US-China Relations Will Incur High Costs – both sides need each other as efficient production lines, millions of jobs and affordable consumer products of all types depend on stable US-Chinese relations.
To get An Estimate of Jobs and Money Involved in the Bilateral Economic Tie, read:
http://yaleglobal.yale.edu/content/disrupting-us-china-relations-will-incur-high-costs
More billionaires every year, with more wealth. Western (US) billionaires consistently dominate the Bloomberg Billionaires Index. While their wealth increases, poverty in the southern hemisphere continues…and INEQUALITY. Thanks Bill Gates, Warren Buffet and Mark Zuckeberg (and Aliko Dangote and other Bs) for your philanthropic efforts targeted at ‘the rest’.
US companies offshore their labor intensive production to low-wage countries, retaining high-end design and R & D…and most of the $$$$$.
If they are forced to return, don’t expect them to employ en masse. Foxconn, the Taiwanese supplier for Apple et al, employs 1 million in China. If they come to the US, it won’t be a labor intensive plant. Robots and automation will reign supreme, not people and jobs.
Africa clearly the most under-researched region. This is changing, as African multinationals/corporations are becoming global, important players, within the region and outside. Chinese and other BRIC players are also challenging the historical dominance of Western firms.
Moi has been involved in two edited books as Founding Series Editor of AIB Sub-Saharan Africa Series.
https://www.palgrave.com/in/series/14762
Two books published so far. In 2018, watch out for: Africa’s Competitiveness in the Global Economy (Adeleye & Esposito), and a special issue of Thunderbird International Business Review.
BTW, the latest issue of Global Strategy Journal is devoted to Africa, and all the papers are free to view at:
http://onlinelibrary.wiley.com/doi/10.1002/gsj.2017.7.issue-1/issuetoc
Well, maybe it’s better titled: ‘The New Scramble for Africa’. See https://www.amazon.com/New-Scramble-Africa-draig-Carmody/dp/0745647855
This time, we hope that African leaders act strategically, and that Africa and Africans win. Africa needs all the success it can get.
As educators, researchers and…., we must rethink our role in an environment where a toxic blend of (often narrow) economic nationalism and political populism prevail. We must seek to hear the voices of proponents of this view and their supporters to better understand their grievances and concerns. We must also not lose sight of the big picture, and provide balanced, nuanced analysis, which has been very much lacking. We must find time and platforms to engage in DIALOGUES with people outside our academic and political ‘bubbles’. We must lead.
