【Column】"Globalization is happening (No.2)"


Followed by the previous post, this post discuss components and factors of globalization.

Concretely in the flatting world, how is each component and factor of globalization positionized? As components of globalization, goods and services, people, money, and information are main components, and political, economics, money, and information are positionaized as environmental factors. Globalization itself means extensive flow of these components across borders under the influence of external environmental factors. I divide these factors into hard factors like political and economics have influence on a unit of nation, and soft factors like culture and society have influence on more individual than nation.

In hard factors in macro environments, political and economic factors can be constraints as premises. Under the influence of world-classed organizations such as WTO, NAFTA, world treaties and formal agreements are very influential to the flow of goods and services, and money in a global scope. Political factors such as international disputes, war, and political ideologies are as same as constraints. As economic factors, not only trade agreement but also world-class event is influential too. For example, the last world Olympics in Beijing, China, accounts for an average of only 0.3% of China's total GDP each year, which is less than what originally it is expected.

As newly emerging factors, eco environmental factors are being spotlighted. According to agreement on emission control under Kyoto protocol, environmental factors are moving into a part of management issue. From vehicle manufactures and industrial system manufacture, this environmental factor generates emissions trading market as new business opportunity.

As soft sided constrains, there are social, cultural, and technological factors. They can be difference on the average age of a nation at developed country and emergent country, difference on social custom of religious, beliefs, and races. Demographics largely affect future growth of a nation. For example, on the one hand in the emergent countries such as BRICs, about 30-40% of total population consists of younger people than 20 years old, on the other hand, the ratio of younger than 20 years old in Japan is about less than 20% according to Population Census in 2008 by the Statistics Bureau. Because of the aging society and decrease in population in Japan, this aging trend will surely continue further in the future. The average age of people in a nation implies the future potential growth on a nation. A nation where there are younger people than others, means to have potential growth to great extent. On the other way around, a nation where there are full of older people have difficulty to foresee bright future without creating something new way of work, industry, technology, and innovation. This is a situation out which Japan face.

In components of globalization, the core part of these components is people, namly talents. There are two sides of people components; one is individuals and organizations to consume services and goods, and other is individuals and organizations to produce and provide services and goods. People such as individuals and organizations play a key role of exchanging goods and services in a global scale. As recent change on globalization, people very often switch a role of buyer with that of seller, or do reverse because of complexity channel and advanced Internet technology. They receive overseas information, goods and services, and send own information and services at the same time for overseas through media and Internet. Blog especially supports this global flow of information.

Given these quick analyses on components and factors of globalization, happening globalization is driven by information component rather than by people component. A wide variety of Internet technology and provider like Google promote this globalization trend by increase in information exchange in the world. In the first place, on globalization, people component is to be positionized in the center, and others components like goods and services, money and information are peripheral. As the boundary of nation get less distinct, corporations must need even more to hire, sustain, and nurture global talents.