Difference between globalization and Internationalization
Internalization is the increasing importance of international networking through aspects such as trade and education. International trade relations and treaties are significant determinants of the trade internationalization among nations. Therefore, the basic for Internationalization is a nation. The countries relate more effectively in terms of various aspects such as trade for a mutual gain (Luthans & Doh, 2018, 52). The nations are practicing internationalization end up enjoying the benefits of global networking. Internationalization provides no room for free migrations among the nations involved. Thus, the countries use the same channel to achieve the goals of their national interest.
Globalization, on the other hand, is the global economic integration of the national economies. The networking between them results to free mobility, free trade, capital mobility, and migrations that are not controlled. In globalization, countries interact just as in one business and one country. Tedious travels to and from one country are significantly low between the nations (Luthans & Doh, 2018, 68). Thus, globalization makes countries to practice common strategies towards achieving a common goal. Generalization globalization makes various countries of the world as one vast nation.
Connection of research of Jeffrey Saclus and Andrew Warner
Jeffery Saclus is widely known for research in the relationship between international trade and economic growth. His research focuses on the economic reformation in the international and financial markets. Aspects of global and climate change are also apparent in Jeffrey’s research. He is also known to offer support in university growth through the introduction of a PhD in sustainable development at Columbia. He further focuses research in and advises heads of state in hunger and disease promotion (Luthans & Doh, 2018). Apart from economics, the professor researches methods of improving the living standards of people around the globe. He restrains his research around the economy, diseases, and improving people’s living standards. In this researches, the professor has offered advice in Europe, Africa, Asia, and the Middle East.
Andrew Warner is known to use the research from 2002 statistics to explore the differences in regional variation. The study was centered on encouraging regional balance in terms of development in all regions. In his research, Warner came up with findings that countries with enough resources tend to grow slowly. Thus, it is evident that the two researchers have common research traits for improving underdeveloped regions.
Research methods of the two economists have a central reason for improving the lives of people in all parts of the world. Jeffrey conducts research and, in return, provides advice to all people living in underdeveloped areas of Africa and Asia. Similarly, Warner researches seeking to find the differences in regional development regardless of the resources (Luthans & Doh, 2018). The researches from Warner are useful to improve the living standards of people in all spheres of the world. The integration of the two economists’ investigations signifies that they both have a vast goal in enhancing balance in regional development.
Importance of 2017 to Professor Khanna
In August 2017, professor Khanna who is an economist, had to leverage his interests in inheriting socio-political issues. In this year, professor Khanna was seeking to investigate policy issues that were relevant to his attention (Luthans & Doh, 2018). During this year, the professor made investigations on various sectors, such as immigration, infrastructure, and public works. The economically-centered professor was then able to develop the transition of networks in the development of India. Don't use plagiarised sources.Get your custom essay just from $11/page
The affirmative actions of professor Khanna in 2017 are essential tools for understanding infrastructure and rural unemployment. The gathering of socio-political information from a spectrum of spheres is the central reason for the booming of IT in India. In the efforts of the professor to champion global development, the professor had a primary requirement of understanding the demonetization consequences (Luthans & Doh, 2018). The year 2017 was vital towards the gathering of information from the aspects of voters and social developments. The amalgamation of ideas by professor Khanna led to the large-scale expansion in both the education sector and labor markets. Generally, the year 2017 was crucial to make Khanna understand socio-political issues to enable global development.
The connection of Oxfam and WTO in the context of cotton
Research by Oxfam came up with findings that the complete removal of US cotton subsidies would increase the price of cotton by 614%. The resultant income would then be enough to feed an additional of one million children per year. The amount would also pay school fees for two million children residing in the West African cotton rearing (Luthans & Doh, 2018). The findings from Oxfam imply that the withdrawal of cotton by the United States will help developing nations. Oxfam holds the belief that trade protection or restrictions on Cotton to the US will significantly help young countries. The study justifies that 3million people from cotton-producing developing nations will directly benefit if the US withdraws.
The findings of Oxfam are similar to those of WTO, which argues that developing countries should regulate food security. In this case, trade protectionism from the already developed countries is crucial. WTO argues that if the developing countries receive protection in trade, then they would be able to feed their rural population. The arguments of WTO are similar to those of Oxfam regarding third world countries (Luthans & Doh, 2018). The similarity is that if a developed country like the US does not produce cotton, then developed countries will feed the poor. Just like Oxfam, WTO argues that the large scale production in the US is unfair and hurts farmers in developing countries. Generally, both organizations believe that the creation of cotton in vast quantities by the US is not just to developing countries.
How Heckscher-Olin, New Trade theory minister, and Michael Porter expand comparative advantage theory
Heckscher-Olin argues that the differences in comparative advantage come from the in-factor abundance. He gives a prediction that countries will produce more goods that use relatively abundant factors. Using the equilibrium model, Olin asserts that factors of production of land, labor, and capital are crucial for the country to produce more (Luthans & Doh, 2018). According to his arguments, a state may have enough money and technology but without land. The lack of land makes the nation unable to produce regardless of the willingness to contribute. Similarly, a country with land and labor but without capital makes it unable to provide. Generally, Olin focuses on the equilibrium of the three factors of production for the success in the synthesis of products.
The New Trade minister adds to David Ricardo’s theory that critical factors are essential to the economies of trade. The effects of the network which occur in critical industries have discernable differences in opportunity cost. The specialization by one country makes it gain economies of scale than the other. According to this minister, the specialty is crucial for a country to enjoy the economies of scale. Generally, the new trade minister focuses on specialization and its importance to countries’ economies of scale.
Michael porter stresses on the issue of competitive advantage to guide countries in higher productions. He asserts that comparative advantage lies in the production of commodities at a lower opportunity cost than others. For instance, if a country has a comparative advantage in the market production of cloth, then it uses a lower opportunity cost than competitors (Luthans & Doh, 2018). The combination of various attributes by one organization makes it outperform the competitors in terms of market production. Thus, Porter argues on critical strengths of lowering the opportunity cost, developing a comparative advantage, and gaining a competitive advantage.
How the concept of double movement applies to double the flow of Karl Polanyi and the idea of economics
The theory of comparative advantage originates from the British economist David Ricardo in attributing to international trade. The economist exposes various views on the causes and benefits relative to opportunity cost. In his assertions, countries produce goods for a lower opportunity cost than others. The nation makes trade-offs makes it outshine other countries. Karl Polanyi is widely known for inspiration as a critic of free-market capitalism. He exposes the second movement as a way and the counter-movements as the limits struggled to influence the population. The concept of economics is a colonizing project purports that people use their economic powers to rule the rest (Luthans & Doh, 2018). The idea relates to comparative advantage in the manner that countries with a comparative advantage will “colonize” others. Thus, the comparative advantage theory is apparent in the relations with the concept of exploiting other lower economies.
Comparative theory and double movement concept
Polanyi argues that self-regulating markets constitute an order of controlling the economy. Regulations and directions of the market emerge in the order of production and the distribution of goods. During this time, the economy was embedded in the social institutions that entrusted the self-regulatory mechanisms. In this case, the livelihood of people was shaped by various socioeconomic tools. The principles of reciprocity and redistribution dictate the behavior of humans (Luthans & Doh, 2018). He further argues that society gets its shape from an institutional setting and not policy interventions. According to him, the commodities of land, labor, and capital are just fictions. All these commodities do not get produced for sale, but rather, deals emerge from the excess goods.
The arguments of Polanyi echo the theory of comparative advantage. The theory purports that a country synthesizes goods at a lower opportunity cost than others. The availability of little opportunity cost makes the country to make excess produce of the community. The benefits of buying the products by the state, which has higher opportunity cost supersede those of producing. For instance, a country realizes that the cost of producing its sugar is high than that of imports. The lower opportunity cost, therefore, makes the state buy the excess from another. In this case, a country with a higher opportunity cost becomes less competitive in the market. The Karl Polanyi second movement arguments; therefore, low opportunity cost creates a comparative advantage.
Ricardo’s theory further focuses on how the country boosts its economic growth by focusing on industry. For instance, England can produce cheap cloth. The ability to use affordable resources makes one country to trade its products with the other. In this case, England has the most suitable climate for making cloth than other countries. Consequently, a different country will endure an array of expenses due to a lack of proper environment. In this case, factors of land, capital, and labor are significant to make the cloth. Just like the assertions of Karl Polanyi, the three elements have no monetary value. However, the presence of sufficient conditions for production makes them gain benefit.
Polanyi argues that the difference in the market does not result from the gap in the market but the role in the livelihoods of people. Market coexistence serves as an institution of social order that enhances the welfare of people. Production of goods in excess helps the society’s members to exchange what they have for what they don’t (Luthans & Doh, 2018). Such an exchange of goods and services serves as a great social value to people. This argument is evident in Ricardo’s theory of comparative advantage, where one country has a right to produce what it can. For instance, Portugal is widely known for presenting at a low cost. The climatic states of the country alongside the human resource plays a central role in liquor production in excess. Such production makes the country capable of exchanging wine with other products it does not have. In this case, Portugal gains vast profits by increasing the value of people. Similarly, the countries trading products to Portugal enjoy similar advantages. Generally, Karl’s arguments depict growing the number of people, just like the comparative theory.
During the mutual exchange of products, trade protectionism issues arise. The political leaders develop desires to protect their local institutions. The close protection of the governments distorts the prevailing environment in factors of land, labor, and capital. This process makes the local organization less competitive and thus loses the competitive advantage. These arguments are apparent in Polanyi’s cases, who champions that the deliberate policy interventions by the government are necessary. These policy regulations emerge from the political group in a manner that avoids disembedding the laws. The rules by administrative personnel are vital to protect the manufacturers from exploitation. However, overprotection results in making the country less competitive in the market. Generally, Karl Polanyi’s arguments are a perfect reflection of the comparative theory.
The concept of economics as a colonizing project
Colonization is taking control over the situation over a less powerful territory. Economically, the most potent economic state settles and economically outsmarts others. A financially stable country can produce goods in large quantities and therefore enjoy the economies of scale. For instance, the production of cotton by the United States helps it to enjoy significant economies of scale. The large productions harm countries with a feeble economic base. Such productions make a country that has a stable economy more accessible and able to rule the other economically. For instance, the United States regulations over the developing countries that produce cotton in small quantities. This makes the United States dictate the market price of cotton in the market and an economic colonizer.
The arguments are evident in the comparative theory since a more comparative country uses low opportunity costs. The low cost of production makes the economically stable country to produce more goods in the market. The little opportunity cost is further crucial to enabling the state to sell its products at low prices. This country is, therefore, able to dictate the market prices of its commodities and those countries producing similar goods. In this economy, the country serves to be an economic colonizer through dictating market prices. Generally, the comparative theory asserts that an economically stable state helps to colonize other nations producing similar products.
The colonizing nature in economics dramatically relies on the comparative theory to enhance successful colonialism. The idea of gaining a comparative advantage depends on the prevailing climatic conditions and factors of production. The availability of cheap factors of production, such as land, labor, and capital, induce low opportunity cost (Luthans & Doh, 2018). This reduction translates the price of products in the market, which in return attracts more buyers. Thus, a state in which more enhanced factors of production, such as land, capital, and labor, will produce goods at lower prices. Such productions will enable the organization to dictate market sales and increase its customer base.
How the theory of comparative applies to Michael Porter’s Diamond
Michael Porter’s strategic analysis of the organization does not support the view of the organization’s strategic perspective and the frameworks of the institution. The national diamonds tool for analyzing the environment’s task force writes that strategic choices should not be the structure of the company. These choices should include constraints that explain the industrial framework. The firms that operate in a new environment operate within the new frameworks. In the National Diamond, the frameworks originate from the study of comparative advantage patterns. This study, therefore, integrates the previous work of Porter’s five forces theory.
The value chain in Porter’s framework explores the competitive advantage that has its source as the national context. The value chain is essential to assess the ability of an organization to compete in the market (Luthans & Doh, 2018). Market competition evident in Porter’s writings is both competitive and comparative market gain. The competitive market advantage is apparent through creating value beyond competitors. For instance, an organization can gain a competitive advantage through the production of quality goods. In Michael Porter’s value chain, in this case, it is significant to help in measuring the competitive advantage. The measurement of this advantage of an organization is crucially through customer satisfaction.
The market value is also evident in comparative advantage. For one company to be more relative than the other, the low cost of production is the key. An organization that uses a small amount of capital to make certain commodities becomes more comparative than the other. For example, if the US uses little money to produce clothing, then the US will be comparatively advantaged than Canada. These assertions of Michael Porter are also evident in the comparative theory. Just like Porter, the theory argues that comparative advantage depends on the ability to use low opportunity cost. Generally, Michael supports the arguments of the method based on small opportunity costs.
Porter’s arguments add value to the theory by exposing how the value chain can measure opportunity cost. In his cases, the ability to function in both local and international markets implies success. For example, if a company’s products thrive in both national and international markets, then the comparative advantage exists. The comparative advantage thus applies to Michael porter as the step raw data to understand market fluctuations (Luthans & Doh, 2018). The key concepts in Porter’s arguments depend on the theory in seeking to determine whether competitive advantage exists. The idea of value theory thus serves as the product of comparative and competitive analysis.
Michael makes recognitions of the pillars of research as factor conditions, demand conditions, and supporting industries. When seeking to understand the viability of a state, it is vital to assess the factors of rivalry, strategy, and firm structure. The ability to compete in a given market depends on the analysis from the value evaluation tool. The factor conditions dictate the comparative advantage in the market as they assess the viability. For instance, the strategy works to determine techniques of exploiting the available market opportunities and evade weaknesses.
The comparative advantage theory has an essential application in Michael Porter’s Diamond of competitive advantage. The two microeconomic environmental factors determine the present and long factors for production. Further, the pillar focuses on the factors that support relationships in industries. All these factors apply the theory of assessing the market through the opportunity cost (Luthans & Doh, 2018). Porter explores the factors that dictate the viability of the product in the market. Such factors apparent from the theory, such as low opportunity cost, determine the level of sustainability of a given product in the market. A product that has a high opportunity cost is less likely to be viable in the market. Generally, the comparative theory uses the arguments of Michael Porter in the exploration of market viability.
References
Luthans, F. & Doh. P. J. (2018). International Management Culture, Strategy, and Behavior 10th
978 -1259705076. McGraw – Hill Education, 2 Penn Plaza, New York, NY 10121.