Expatriate Foundation

Human Resource Certification Institute (HRCI)
Pre-Approved Recertification
Title: Globalization: An HR Business Perspective (Course #1)
Cost: $40 USD
Recertification Credit Hours Awarded: 4
Specified Credit Hours: Strategic, International
The Expatriate Foundation is pleased to announce approval from the Human Resource Certification Institute (HRCI) to facilitate a course entitled: Globalization: An HR Business Perspective (Course #1). The course has been launched and is posted below; it consists of five modules that you, the student, will review and learn from. A five question quiz is posted directly following the information. 
Email the five quiz answers to HRCI@expatriatefoundation.com so that we can make sure you maintained an 80% pass rate (4 out of 5 questions marked correctly). A certificate of completion stating the credit program ID number will be emailed to the student within 2 business days - to ensure they can log the recertification credits in a timely manner www.hrci.org.
Payment:
You can send your payment of $40 USD to Expatriate Foundation, 8730 N Himes(Suite # 316), Tampa, FL 33614. If your company AR department is sending payment, please ensure your name is documented on either the check or correspondance.
This program has been approved for 2 (Specified -Strategic, International ) recertification credit hours toward PHR, SPHR and GPHR recertification through the Human Resource Certification Institute (HRCI). Upon successful completion, please be sure to note the program ID number on your recertification application form. For more information about certification or recertification, please visit the HRCI homepage at www.hrci.org. The use of this seal is not an endorsement by HRCI of the quality of the program. It means that this program has met HRCI’s criteria to be pre-approved for recertification credit.

Module 1
Globalization (or globalisation) in its literal sense is the process of transformation of local or regional things or phenomena into global ones. It can also be used to describe a process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces.[1] Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.[2]
Tom G. Palmer of Cato Institute defines "globalization" as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result."[3] This is the general definition given by economists, often put more simply as global expansion of the division of labor.
Thomas L. Friedman "examines the impact of the 'flattening' of the globe", and argues that globalized trade, outsourcing, supply-chaining, and political forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business organization and practice.[4]
Noam Chomsky argues that the word globalization is also used, in a doctrinal sense, to describe the neoliberal form of economic globalization.[5]
Herman E. Daly argues that sometimes the terms internationalization and globalization are used interchangeably but there is a slight formal difference. The term "internationalization" refers to the importance of international trade, relations, treaties etc. International means between or among nations. "Globalization" means erasure of national boundaries for economic purposes; international trade (governed by comparative advantage) becomes inter-regional trade (governed by absolute advantage).[6]
History
The term "globalization" has been used by economists since the 1980s although it was used in social sciences in the 1960s; however, its concepts did not become popular until the latter half of the 1980s and 1990s. The earliest written theoretical concepts of globalization were penned by an American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897.[7]
Globalization is viewed as a centuries long process, tracking the expansion of human population and the growth of civilization, that has accelerated dramatically in the past 50 years. Early forms of globalization existed during the Roman Empire, the Parthian empire, and the Han Dynasty, when the Silk Road started in China, reached the boundaries of the Parthian empire, and continued onwards towards Rome. The Islamic Golden Age is also an example, when Muslim traders and explorers established an early global economy across the Old World resulting in a globalization of crops, trade, knowledge and technology; and later during the Mongol Empire, when there was greater integration along the Silk Road. Globalization in a wider context began shortly before the turn of the 16th century, with Spain and Portugal. Portugal's global explorations in the 16th century, especially, linked continents, economies and cultures to a massive extent. A wave of global trade, colonization, and enculturation reached all corners of the world. Global integration continued through the expansion of European trade in the 16th and 17th centuries, when the Portuguese and Spanish Empires expanded to the Americas, followed eventually by France and Britain. Globalization has had a tremendous impact on cultures, particularly indigenous cultures, around the world.
In the 17th century, globalization became a business phenomenon when the Dutch East India Company, which is often described as the first multinational corporation, was established. Because of the high risks involved with international trade, the Dutch East India Company became the first company in the world to share risk and enable joint ownership of companies through the issuance of shares of stock: an important driver for globalization.
Globalisation was also achieved by the British Empire (the largest empire in history) due to its sheer size and power. British ideals and culture were imposed on other nations during this period.
The 19th century is sometimes called "The First Era of Globalization." It was a period characterized by rapid growth in international trade and investment between the European imperial powers, their colonies, and, later, the United States. It was in this period that areas of sub-saharan Africa and the Island Pacific were incorporated into the world system. The "First Era of Globalization" began to break down at the beginning of the 20th century with the first World War, and later collapsed during the gold standard crisis in the late 1920s and early 1930s.
Globalization in the era since World War II is largely the result of planning by economists, business interests, and politicians who recognized the costs associated with protectionism and declining international economic integration. Their work led to the Bretton Woods conference and the founding of several international institutions intended to oversee the renewed processes of globalization, promoting growth and managing adverse consequences.
These institutions include the International Bank for Reconstruction and Development (the World Bank), and the International Monetary Fund. Globalization has been facilitated by advances in technology which have reduced the costs of trade, and trade negotiation rounds, originally under the auspices of the General Agreement on Tariffs and Trade (GATT), which led to a series of agreements to remove restrictions on free trade.
Since World War II, barriers to international trade have been considerably lowered through international agreements - GATT. Particular initiatives carried out as a result of GATT and the World Trade Organization (WTO), for which GATT is the foundation, have included:
The Uruguay Round (1984 to 1995) led to a treaty to create the WTO to mediate trade disputes and set up a uniform platform of trading. Other bilateral and multilateral trade agreements, including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade.
World exports rose from 8.5% of gross world product in 1970 to 16.1% of gross world product in 2001.[7]
The use of the term globalization (in the doctrinal sense), in the context of these developments has been analysed by many including Noam Chomsky who states [8]
| “ | ... That enhances what's called "globalization," a term of propaganda used conventionally to refer to a certain particular form of international integration that is (not surprisingly) beneficial to its designers: Multinational corporations and the powerful states to which they are closely linked. | ” |
Critics have observed that the term's contemporary usage comprises several meanings, for example Noam Chomsky states that: [9]
| “ | The term "globalization," like most terms of public discourse, has two meanings: its literal meaning, and a technical sense used for doctrinal purposes. In its literal sense, "globalization" means international integration. Its strongest proponents since its origins have been the workers movements and the left (which is why unions are called "internationals"), and the strongest proponents today are those who meet annually in the World Social Forum and its many regional offshoots. In the technical sense defined by the powerful, they are described as "anti-globalization," which means that they favor globalization directed to the needs and concerns of people, not investors, financial institutions and other sectors of power, with the interests of people incidental. That's "globalization" in the technical doctrinal sense. |
As globalization is not only an economic phenomenon, a multivariate approach to measuring globalization is the recent index calculated by the Swiss think tank KOF. The index measures the three main dimensions of globalization: economic, social, and political. In addition to three indices measuring these dimensions, an overall index of globalization and sub-indices referring to actual economic flows, economic restrictions, data on personal contact, data on information flows, and data on cultural proximity is calculated. Data is available on a yearly basis for 122 countries, as detailed in Dreher, Gaston and Martens (2008).[10] According to the index, the world's most globalized country is Belgium, followed by Austria, Sweden, the United Kingdom and the Netherlands. The least globalized countries according to the KOF-index are Haiti, Myanmar the Central African Republic and Burundi.[11] Other measures conceptualize Globalization as diffusion and develop interactive procedure to capture the degree of its impact Jahn 2006.
A.T. Kearney and Foreign Policy Magazine jointly publish another Globalization Index. According to the 2006 index, Singapore, Ireland, Switzerland, the U.S., the Netherlands, Canada and Denmark are the most globalized, while Egypt, Indonesia, India and Iran are the least globalized among countries listed.
Module 2

Generally, the ideas of free Trade, capitalism, and democracy are widely believed to facilitate globalization. Supporters of free trade claim that it increases economic prosperity as well as opportunity, especially among developing nations, enhances civil liberties and leads to a more efficient allocation of resources. Economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources, with all countries involved in the trade benefiting. In general, this leads to lower prices, more employment, higher output and a higher standard of living for those in developing countries.[14][15] One of the ironies of the recent success of India and China is the fear that... success in these two countries comes at the expense of the United States. These fears are fundamentally wrong and, even worse, dangerous. They are wrong because the world is not a zero-sum struggle... but rather is a positive-sum opportunity in which improving technologies and skills can raise living standards around the world. Libertarians and proponents of laissez-faire capitalism say that higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are ends in themselves and also produce higher levels of material wealth. They see globalization as the beneficial spread of liberty and capitalism. [14] Supporters of democratic globalization are sometimes called pro-globalists. They believe that the first phase of globalization, which was market-oriented, should be followed by a phase of building global political institutions representing the will of world citizens. The difference from other globalists is that they do not define in advance any ideology to orient this will, but would leave it to the free choice of those citizens via a democratic process[citation needed]. Some, such as Senator Douglas Roche, O.C., simply view globalization as inevitable and advocate creating institutions such as a directly-elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies. Supporters of globalization argue that the anti-globalization movement uses anecdotal evidence[citation needed] to support their protectionist view, whereas worldwide statistics strongly support globalization: 'SOURCE: World Bank, Poverty Estimates, 2002[15] Although critics of globalization complain of Westernization, a 2005 UNESCO report[25] showed that cultural exchange is becoming mutual. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's and the European Union's shares of cultural exports declined, while Asia's cultural exports grew to surpass North America. “Anti-globalization" may involve the process or actions taken by a state in order to demonstrate its sovereignty and practice democratic decision-making. Anti-globalization may occur in order to put brakes on the international transfer of people, goods and ideology, particularly those determined by the organizations such as the IMF or the WTO in imposing the radical deregulation program of free market fundamentalism on local governments and populations. Moreover, as Canadian journalist Naomi Klein argues in her book No Logo: Taking Aim at the Brand Bullies (also subtitled No Space, No Choice, No Jobs) anti-globalism can denote either a single social movement or an umbrella term that encompasses a number of separate social movements [26] such as nationalists and socialists. In either case, participants stand in opposition to the unregulated political power of large, multi-national corporations, as the corporations exercise power through leveraging trade agreements which damage in some instances the democratic rights of citizens, the environment particularly air quality index and rain forests, as well as national governments sovereignty to determine labor rights including the right to unionize for better pay, and better working conditions, or laws as they may otherwise infringe on cultural practices and traditions of developing countries. Most people who are labeled "anti-globalization" consider the term to be too vague and inaccurate [27][28] Podobnik states that "the vast majority of groups that participate in these protests draw on international networks of support, and they generally call for forms of globalization that enhance democratic representation, human rights, and egalitarianism." Joseph Stiglitz and Andrew Charlton write[29]: Members aligned with this viewpoint prefer instead to describe themselves as the Global Justice Movement, the Anti-Corporate-Globalization Movement, the Movement of Movements (a popular term in Italy), the "Alter-globalization" movement (popular in France), the "Counter-Globalization" movement, and a number of other terms. Critiques of the current wave of economic globalization typically look at both the damage to the planet, in terms of the perceived unsustainable harm done to the biosphere, as well as the perceived human costs, such as increased poverty, inequality, miscegenation, injustice and the erosion of traditional culture which, the critics contend, all occur as a result of the economic transformations related to globalization. They challenge directly the metrics, such as GDP, used to measure progress promulgated by institutions such as the World Bank, and look to other measures, such as the Happy Planet Index,[30] created by the New Economics Foundation[31]. They point to a "multitude of interconnected fatal consequences--social disintegration, a breakdown of democracy, more rapid and extensive deterioration of the environment, the spread of new diseases, increasing poverty and alienation"[32] which they claim are the unintended but very real consequences of globalization. The terms globalization and anti-globalization are used in various ways. Noam Chomsky states that[33][34] Critics argue that: In December 2007, World Bank economist Branko Milanovic has called much previous empirical research on global poverty and inequality into question because, according to him, improved estimates of purchasing power parity indicate that developing countries are worse off than previously believed. Milanovic remarks that "literally hundreds of scholarly papers on convergence or divergence of countries’ incomes have been published in the last decade based on what we know now were faulty numbers. With the new data, economists will revise calculations and possibly reach new conclusions" moreover noting that "implications for the estimates of global inequality and poverty are enormous. The new numbers show global inequality to be significantly greater than even the most pessimistic authors had thought. Until the last month, global inequality, or difference in real incomes between all individuals of the world, was estimated at around 65 Gini points – with 100 denoting complete inequality and 0 denoting total equality, with everybody’s income the same – a level of inequality somewhat higher than that of South Africa. But the new numbers show global inequality to be 70 Gini points – a level of inequality never recorded anywhere." [39] The critics of globalization typically emphasize that globalization is a process that is mediated according to corporate interests, and typically raise the possibility of alternative global institutions and policies, which they believe address the moral claims of poor and working classes throughout the globe, as well as environmental concerns in a more equitable way.[40] The movement is very broad, including church groups, national liberation factions, peasant unionists, intellectuals, artists, protectionists, anarchists, those in support of relocalization and others. Some are reformist, (arguing for a more humane form of capitalism) while others are more revolutionary (arguing for what they believe is a more humane system than capitalism) and others are reactionary, believing globalization destroys national industry and jobs. One of the key points made by critics of recent economic globalization is that income inequality, both between and within nations, is increasing as a result of these processes. One article from 2001 found that significantly, in 7 out of 8 metrics, income inequality has increased in the twenty years ending 2001. Also, "incomes in the lower deciles of world income distribution have probably fallen absolutely since the 1980s". Furthermore, the World Bank's figures on absolute poverty were challenged. The article was skeptical of the World Bank's claim that the number of people living on less than $1 a day has held steady at 1.2 billion from 1987 to 1998, because of biased methodology.[41] A chart that gave the inequality a very visible and comprehensible form, the so-called 'champagne glass' effect,[42] was contained in the 1992 United Nations Development Program Report, which showed the distribution of global income to be very uneven, with the richest 20% of the world's population controlling 82.7% of the world's income.[43] SOURCE: United Nations Development Program. 1992 Human Development Report[44] Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.e. the rich) at the expense of the poor.[45] Americanization related to a period of high political American clout and of significant growth of America's shops, markets and object being brought into other countries. So globalization, a much more diversified phenomenon, relates to a multilateral political world and to the increase of objects, markets and so on into each others countries. Some opponents of globalization see the phenomenon as the promotion of corporatist interests.[46] They also claim that the increasing autonomy and strength of corporate entities shapes the political policy of countries.[47] [48] See main articles: European Social Forum, the Asian Social Forum, World Social Forum (WSF). The first WSF in 2001 was an initiative of the administration of Porto Alegre in Brazil. The slogan of the World Social Forum was "Another World Is Possible". It was here that the WSF's Charter of Principles was adopted to provide a framework for the forums. The WSF became a periodic meeting: in 2002 and 2003 it was held again in Porto Alegre and became a rallying point for worldwide protest against the American invasion of Iraq. In 2004 it was moved to Mumbai (formerly known as Bombay, in India), to make it more accessible to the populations of Asia and Africa. This last appointment saw the participation of 75,000 delegates. In the meantime, regional forums took place following the example of the WSF, adopting its Charter of Principles. The first European Social Forum (ESF) was held in November 2002 in Florence. The slogan was "Against the war, against racism and against neo-liberalism". It saw the participation of 60,000 delegates and ended with a huge demonstration against the war (1,000,000 people according to the organizers). The other two ESFs took place in Paris and London, in 2003 and 2004 respectively. Recently there has been some discussion behind the movement about the role of the social forums. Some see them as a "popular university", an occasion to make many people aware of the problems of globalization. Others would prefer that delegates concentrate their efforts on the coordination and organization of the movement and on the planning of new campaigns. However it has often been argued that in the dominated countries (most of the world) the WSF is little more than an 'NGO fair' driven by Northern NGOs and donors most of which are hostile to popular movements of the poor.[49]
Area
Demographic
1981
1984
1987
1990
1993
1996
1999
2002
Percentage Change 1981-2002
East Asia and Pacific
Less than $1 a day
57.7%
38.9%
28.0%
29.6%
24.9%
16.6%
15.7%
11.1%
-80.76%
Less than $2 a day
84.8%
76.6%
67.7%
69.9%
64.8%
53.3%
50.3%
40.7%
-52.00%
Latin America
Less than $1 a day
9.7%
11.8%
10.9%
11.3%
11.3%
10.7%
10.5%
8.9%
-8.25%
Less than $2 a day
29.6%
30.4%
27.8%
28.4%
29.5%
24.1%
25.1%
23.4%
-29.94%
Sub-Saharan Africa
Less than $1 a day
41.6%
46.3%
46.8%
44.6%
44.0%
45.6%
45.7%
44.0%
+5.77%
Less than $2 a day
73.3%
76.1%
76.1%
75.0%
74.6%
75.1%
76.1%
74.9%
+2.18%
Anti-globalization (mundialism)
“
The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term 'anti-globalization' is in many ways a misnomer, since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through, for example, aid, assistance for refugees, and global environmental issues.
”
“
The term "globalization" has been appropriated by the powerful to refer to a specific form of international economic integration, one based on investor rights, with the interests of people incidental. That is why the business press, in its more honest moments, refers to the "free trade agreements" as "free investment agreements" (Wall St. Journal). Accordingly, advocates of other forms of globalization are described as "anti-globalization"; and some, unfortunately, even accept this term, though it is a term of propaganda that should be dismissed with ridicule. No sane person is opposed to globalization, that is, international integration. Surely not the left and the workers movements, which were founded on the principle of international solidarity - that is, globalization in a form that attends to the rights of people, not private power systems.
”
“
"The dominant propaganda systems have appropriated the term "globalization" to refer to the specific version of international economic integration that they favor, which privileges the rights of investors and lenders, those of people being incidental. In accord with this usage, those who favor a different form of international integration, which privileges the rights of human beings, become "anti-globalist." This is simply vulgar propaganda, like the term "anti-Soviet" used by the most disgusting commissars to refer to dissidents. It is not only vulgar, but idiotic. Take the World Social Forum, called "anti-globalization" in the propaganda system -- which happens to include the media, the educated classes, etc., with rare exceptions. The WSF is a paradigm example of globalization. It is a gathering of huge numbers of people from all over the world, from just about every corner of life one can think of, apart from the extremely narrow highly privileged elites who meet at the competing World Economic Forum, and are called "pro-globalization" by the propaganda system. An observer watching this farce from Mars would collapse in hysterical laughter at the antics of the educated classes."
”
+ Distribution of world GDP, 1989
Quintile of Population
Income
Richest 20%
82.7%
Second 20%
11.7%
Third 20%
2.3%
Fourth 20%
1.4%
Poorest 20%
1.2%
International Social Forums
Resources/References:
Module 3 Twelve Practices for Effective Globalization By Maureen Minehan In February, Dr. Stephen R. Rhinesmith, a founding partner of CDR International Inc., a global business leadership consulting firm, spoke to the Society for Human Resource Management’s Board of Directors about globalization and its implications for HR. Rhinesmith is the former president of Holland America Cruise Lines and a former Special Ambassador to the Soviet Union. Today, he serves as a consultant to Fortune 100 corporations on globalization and the development of global mindsets, competencies, and corporate cultures. Rhinesmith told the SHRM Board that almost every study of the global corporation has concluded that an integrated and forceful HR function is necessary to recruit and develop the leadership mindsets and skills for global competitiveness and success. “HR is becoming the most critical factor in pursuing, defending and taking advantage of operating in a global world,” he said. “Companies throughout the world -- in the United States, Asia, Europe, Latin America, the Middle East and Africa -- are turning to their HR departments to deliver business performance through managers and systems that can deliver the success factors needed for global and local competitive advantage.” Rhinesmith’s presentation described 12 practices that HR should consider to develop the skills and mindsets needed to compete in a global environment. “These are practices that you should consider if you want to help your organization think more globally and be more global,” he tells the SHRM Global Forum in a post-presentation interview. The dozen practices Rhinesmith advocates are: 1. Global sourcing. “If you’re going to be a company that is really competing today, you have to go anywhere in the world to get what you need. You can’t be confined to your home country to recruit,” Rhinesmith says. Global sourcing also means thinking about how best to meet a particular objective, whether through outsourcing (including offshore activities), insourcing or a mixture of both. "It’s a political hot potato now, but if you’re going to compete on a global basis, you need to deal with the realities of wage differentials. U.S. companies have been shifting jobs overseas for years – look at the textile mills in New England in the 1950s and 1960s," Rhinesmith says. "This is not a new concept." 2. Assessment and selection. The key to effective assessment and selection is to use criteria that look to future needs and skills, rather than those from the past, Rhinesmith says. "You need to recruit against future challenges. You don’t recruit CEOs to do the job that their predecessors did. You recruit them to move the company forward. Why shouldn’t you do that for all positions?" 3. Global orientation centers. Global orientation centers provide entry training that helps people learn the corporate culture. “Formal global orientation programs get everybody in the world on the same page. A good example is the Accenture training center in Illinois. Consultants from all over the world come for up to eight weeks of training. When they leave, regardless of where they are located, they understand how Accenture does business,” Rhinesmith says. 4. Global action learning programs. Companies that adopt global action learning programs help high potential employees develop personal and cultural acumen through business projects. “This has been used with great success in Europe and is starting to spread to the U.S.” Rhinesmith says. In a typical global action learning program, a group of 30-40 high potentials are put through a three-module program spanning several months. The group comes together for an initial three-day training period and is then broken into five- or six-person teams, each of which is given a strategic organization problem to solve. A few months later, a second three-day training is held followed by additional work on the problem and a final three-day training session a few months after that. “This is the best leadership training in the world. The participants apply their learning to a particular business issue that gets evaluated by the company’s executive committee,” Rhinesmith says. “However, because it’s time-intensive...it’s not the type of training you do for the masses.” 5. Global business training. Global business training involves educating people about their functional activities on a global basis. “This can be done through programs such as those offered by INSEAD or Harvard where an expert shares knowledge about the globalization of a particular function such a marketing or procurement,” Rhinesmith says. 6. Comparative management training. Comparative management training helps people understand how business is conducted in different countries. “There are country variations in how communication, leadership, decision-making and so on is handled. Comparative management training helps people understand the differences so they can be effective no matter which country they are in,” explains Rhinesmith. 7. Cultural and language training. “It’s important to acquire both language skills and knowledge about cultural differences. The goal is to be able to diagnose and understand a foreign culture so that living in it is easier,” Rhinesmith says. 8. Multicultural teambuilding. “Most global companies are filled with multicultural teams working on projects together. Bringing people in on a country, regional or global level and giving them a chance to do team-building helps them better understand their roles and responsibilities and identify any problems that may have arisen because of cross-cultural or other issues,” Rhinesmith says. 9. Staff exchanges and network development. Brief international assignments of up to six months give people experience in other parts of the world as well as contacts and knowledge they need to increase their leadership capabilities. Staff exchanges can be for as little as two weeks. “Some say that’s too short, but I think even brief stays can be beneficial,” Rhinesmith says. 10. Relocation mentoring and re-entry. According to Rhinesmith, relocation mentoring means “assigning a mentor in the home country who will help an expatriate stay up-to-date on what’s going on at home as well as ensure he or she has a meaningful job to return to.” 11. Global career pathing. This strategy makes all career paths accessible to everyone in the organization. 12. Consistent performance management: Finally, Rhinesmith says that to reinforce practices that support global competitiveness, “individuals that engage in effective global management must be recognized and rewarded for their contributions.” "Globalization is not where you do business, but how you do business," Rhinesmith concludes. "These practices give HR an framework for thinking about the best way to develop the mindsets and skills their organizations need." Module 4 By Kathy Gurchiek HR departments align their priorities strongly with their organizations’ overall goals of growth and customer satisfaction, but less so with other business priorities such as globalization and cost containment, according to recently released findings from a global survey of HR executives. Only 4 percent of those surveyed, for example, ranked cross-cultural awareness—training that provides understanding of the drivers among cultures of different countries—as a top HR priority, even though it’s considered a critical element of globalization. And only 20 percent ranked increased productivity as a top HR priority, pointed out Resources Global Professionals in its 33-page report Human Capital Survey: Insights on Global Transformation. “HR’s priorities already support the main corporate objective—growth—primarily through traditional recruitment and retention strategies but provide little support to other corporate priorities,” the report says. Its findings are based on 51 confidential, nearly hour-long interviews conducted offsite in the first half of 2007 with senior HR executives at global corporations based in the United States and 11 European and Asia-Pacific countries. Almost 80 percent have annual revenues of more than $1.5 billion. The war for talent is crucial and will have an impact on business within the next decade, said 82 percent of those surveyed. Restructuring the organization, including offering training and development enhancements to reduce the need to recruit new talent, and attracting offshore talent are among staffing solutions that HR executives cited. Viewing older workers as a valuable resource also was mentioned. However, while the difficulty of recruiting and retaining talent is widespread, even in Asia, most of those surveyed are focusing on short-term solutions, the report found. “While it is understandable that HR leaders seek immediate solutions to address current problems, our research indicates that few companies have a clear vision of future skill requirements,” said Chris Hagler, Atlanta-based managing director of Global Strategic Services at Resources. “Moreover, most employers take a narrow, local view when considering demographic trends,” he said in a press release. “Long-term measures such as strategic workforce planning are off the radar of HR leaders, who could benefit from workforce planning scenarios that consider a worldwide labor pool.” An effective strategy, the report notes, “will be the result of strong collaboration between HR, executives, line managers and employees.” All those surveyed “demonstrated a strong desire to improve collaboration and deepen existing partnerships,” and 91 percent were focused on improving those links, especially by being involved during planning and strategic development stages, the report found. Practices some respondents use to build partnerships at their organizations include viewing each function from a business—not just an HR—perspective; understanding the operational side of their business by learning functions of business units; having face time with business partners to foster better communication; and working toward implementing common objectives. Partnership Nearly all of those surveyed (98 percent) are a member of their senior management team, but 42 percent think they have less influence than other members of the team. A majority said strengthening HR’s partnership with senior management is a priority. HR leaders tend to partner with internal functions such as information technology and internal audit rather than external functions such as operations, sales and supply, the report found. HR can strengthen its partnership, it said, by getting involved in project implementation, not just acting as the team’s support, and by taking an early role in business initiatives and change management, especially in strategic planning and development, Resources Global says in its report. Among those with a strong influence on the management team, HR executives in Europe seemed to be better represented (40 percent) than those in North American (25 percent) and Asia-Pacific countries (35 percent). HR tends to assess its performance through such metrics as employee turnover, satisfaction, retention and engagement, the report noted. It suggests that HR do a better job of linking its goals and metrics to corporate strategy. The report pointed out that “only a small number of metrics measure HR’s contribution to business.” Also, most HR leaders surveyed see hiring, increasing retention and more proactive succession planning processes as strategies that support company priorities, but few consider comprehensive training and cross-functional exposure important for enhancing HR services, the report found. Other findings: • HR tends to partner more in North America on internal projects (72 percent) than in Europe (53 percent) or Asia-Pacific (45 percent) countries. • A project-oriented approach is more prevalent n North America, but there’s a greater tendency to use external resources than Europe. • HR leaders in North America demonstrated a higher than average level of collaboration with all aspects of business; those in Europe were better integrated with legal and sales. • European companies (88 percent) are more likely to provide project management training than employers in North American (66 percent) or Asia-Pacific (45 percent) countries. • HR leaders in North America think they have less influence within their executive teams than their European counterparts. • Organizational change was a higher HR priority in North America and Europe than in Asia-Pacific. Module 5 There are numerous advantages to a global economy including the possibility to increase benefits from economies of scale. The breaking down of global barriers allows companies to benefit from the largest and cheapest workforces, raw materials, and technology. For example, “many North American publishers actually write and produce much of their software in countries such as India.”[1] Other advantages that companies benefit from include: the opportunity for smaller companies to quickly expand globally, having more choices when recruiting a workforce and the opportunity to target a larger customer base (which translates to greater earning potential). It is obvious how global economy also helps in promoting international cooperation and peace for the nations involved in the international trade by increasing mutual-dependence. For instance, India and Pakistan are often in dispute over land territory such as Kashmir. It can be argued that it would be less likely that these two countries will enter into combat due to the severe negative effects on their economies. However it can alternatively be argued that countries that are shut out of global trade are more likely to resort to armed combat for the same reasons that are mentioned above, therefore the subject needs a proper study to draw any conclusions on globalization’s effect on world peace. The subjection of human rights and human wellbeing to the needs of global capital are some theories against a global economy. These companies may also gain power greater than that of any country, as many pharmaceutical companies have been accused of using their power to influence governments, so too could these super companies but to a much greater extent. More disadvantages to having a shared global economy is the transportation of resources and the impact it has on the environment. The more we rely on food and goods supplied internationally the harder it is on the earth, which is also a big part of global warming. Eating locally and purchasing locally is a good choice. Society of Human Resource Management (SHRM) Body of Knowledge
References
Global HR Library - International Assignment Management
Globalization, Productivity Not Among Top HR Priorities
The Global Economy The rising technology has allowed our environment to be characterized as a global one. “The global economy" gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business.”[1] Prior to Globalization, the United States dominated the global economy. In past decades, however, the U.S. share of the global economy has shrunk to approximately 20%. This trend is expected to continue as the economies of many newly industrialized countries continue to grow at a faster rate, this is called the balancing of the equilibrium.
Advantages
Disadvantages
References
www.shrm.org
www.hrci.org
www.wikipedia.org
www.websterdictionary.com

Quiz Module: To ensure successful completion of this course, email the answers to the following 5 questions to HRCI@expatriatefoundation.com.
Question # 1 According to a joint document by A.T. Kearney and Foreign Policy Magazine, the following were all indicated as the most globalized countries except: a) GATT
b) NAFTA
c) WTO Question # 3
a) U.S.
b) Ireland
c) Denmark
d) Singapore
e) Poland
Question # 2
Since World War II, barriers to international trade have been considerably lowered through international agreements such as:
d) All of the above
The subjection of human rights and human wellbeing to the needs of global capital are some theories against a global economy.
a) True
b) False
Question # 4
Feminism has made advances in areas such as Bangladesh through providing women with jobs and economic safety:
a) False
b) True
c) Neither a or b
Question # 5
Tom G. Palmer of Cato Institute defines "globalization" as:
a) "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result."
b) "the increase of tariffs and restraints of trade world wide."
c) neither a or b
Congratulations, you are done!! Make sure to send your answers (and any questions or comments) to HRCI@expatriatefoundation.com.
