Mexico became an emerging economy in the last decade mainly due to NAFTA and proximity to US.
NAFTA fuelled the globalization of Mexican businesses by USA investments in Mexico and by creating new market opportunities in USA.
Mexican firms are investing and expanding in USA, Europe and Latin America this offers a learning opportunity to firms in other emerging countries.With the global economy now far more integrated than it has ever been, chains of economic cause and effect reach across the world with speed, exposing individuals, firms and governments to a new kind of interdependence risk, to the possibility that events quite far away can undermine the activities on wich their security and prosperity depend.
Business, for example, also shows power-laworganization, distribution of wealth also conforms to a power law and proves empirically similar across many nations, despite different political orientations and economic foundations. The distribution of cities by population within any country also follows a power law, with the number of cities having N inhabitants.
Power laws suggest that today organizations, in following modern science beyond amisplaced fixation on predictability, face three closely related tasks:
➢ To follow the financial and insurance industries in taking the fat tails of power law systems seriously. Expect change to arrive not gradually, in a way that will allow the organization to adjust in real time, but in sudden discontinuities of great consequence that reshape the business environment, bringing both dangersand opportunities.
➢ To recognize that globalization and decentralization bring risks as well as rewards, and that more is sometimes different that increased interdependence can create the conditions for emergent threats that are traceable to no specific element within the system.
➢ To take note of the human element in efforts to become adaptable, in part by organizing practices todecrease entrainment of thinking.
Studies presents an empirical snapshot of management challenges among different types of service industries (Service factory, service shop, mass service, and professional service).Based on data collected that it shows how management challenges change with customer contact-customization and labour intensity.
As the post industrial economy evolves, the servicesector continues to increase in importance, both in terms of its contribution to the gross domestic product of all advance economies and in terms of the percentage of work force employed in services.
Accordingly, the last decade has witnessed an increased emphasis on teaching and research on service management issues by business schools and professional organizations.
When talking aboutglobalization, I am referring to increasing free trade, the outsourcing of jobs overseas, the opening of new markets, fewer trade barriers, global economic integration — the whole enchilada.
In a fragmented world, globalization creates bonds. In a world where too many people yearn for freedom, globalization offers hope. In a world where totalitarianism is all too present, globalization fostersdemocracy. And in a world where small businesses face increasing competition, globalization creates markets and opportunities.
Free trade and globalization often get a bad rap because there is a belief that they allow huge multinational corporations to act without concern for human rights or democratic values. But the fact is, free trade helps small business far more than anyone else.
Here's anexample: I work with a company that makes a product that it sells to companies across the country. The product is manufactured in China and imported to the U.S. because it is far less expensive to have it made there. Yet by doing so, by riding the globalization wave, my colleagues have been able to create a business that employs many people in the USA and creates wealth for its owners. If they...