In Terrance Power’s book, he raises awareness on the realities of the Canadian business in the present as well as the need for increased emphasis on the significance of observing the triple bottom line (TBL) values. I do not agree with this because increasing the TBL takes into account the environmental, economic and social performance. This will cause problems on the Canadian economy because achieving sustainable responsible company is not easy. This will drive the Canadians to establish the corporate social responsibility model as a strategy to monitor and ensure that sustainability is achieved. However, the coordination activities will still have an impact on the environment because of globalization.
In addition, Power (2008) highlights the hastening of globalization in the Canadian economy. Thus, he provides a fascinating overview on the situation emerging global issues is a result of globalization. However, I argue that market globalization has not yet created an alliance between the countries because there are still convergent effects. Market globalization will allow the Canadian government to concentrate on the economy and this will in turn necessitate government concentrations. Nevertheless, through the divergent effect, countries will break up. The globalization era has diverse issues thus it is eroding the Canadian sovereignty thus pushing the countries involved in international business into the convergence effect.
The author explores the international business environment of individual nations including the political, financial and other legal issues in the business economy. Responding to the issues, Power (2008) calls for action regarding the issues of social and political climate. The corporate mandate is to ensure that human rights are exercised thus creating favorable international business environment. However, the author does not clearly examine the ways this can be achieved but he just simply provides a presumption of achieving success in a business environment. Additionally, the author provides economic theories vital in advocating international business. These theories are essential, but the arguments behind these theories are persuasive since the international business analysis ignores the political activities of the corporate. Thus, the mainstream in management studies does not take into consideration that many multinational corporations have taken the roles provided by the government.
The author raises a concerning issue on the international strategic management as well evaluates the mode of entry into the global market. It is argued that an industry’s choice of entry mode into the global market depends on the strategic relationship it envisages. The global strategy can be incorporated when making a critical decision on the entry mode choice. The critical aspect behind these entry modes is that when making a decision on the entry mode, there are certain variables that exist. However, the problem is that the author does not seem to realize that these variables can eventually collapse. Thus, in order to formulate a flourishing global strategy, there is the need to understand the nature of international industries, as well as, dynamics of competition in the global market.
The material is relevant to the course of management because, analyzes ways through which international trade can be carried out successfully especially under proper management. The role of corporate management is to ensure that business is well managed in order to achieve successful globalization in an economy. Although, there is an exaggeration that globalization pose serious risks to the business, introducing economic theories in the international business environment is vital. This is because some theories if properly utilized can enable organizations to achieve or carry out successful business across the globe. Thus, the information is significant to the course because it enables students to be equipped with fundamental knowledge on the way to perform and manage international business in the future. Moreover, the information is crucial because it raises awareness on business management realities thus a need for critical thinking on the way to manage the emerging international business issues.
The information that corresponds to the article is the global ethics and corporate social responsibility (CSR). Power (2008) calls for the use of CSR model as a policy for monitoring and ensuring that successful international business is carried out correctly while taking into account sustainability. This is because globalization has diverse aspects on political, social, economic and environmental aspects. Thus, in Banerjee’s article, he similarly advocates the use of CSR in order to create a better global partnership, which is conducive for successful business performance than seen in other articles. They both recommend that social responsibilities and corporate ethics are some of the fundamental principles necessary in the institutions as well as in the political economy. This is crucial because it will allow the organizations participating in the international business across the world to enjoy better services thus high performance rate in business.
Nevertheless, Banerjee’s article and Power’s book correspond to each other especially in the global ethics. Both authors emphasize on global ethics as one way of creating an environment whereby successful business can be carried out. However, they both state that there is the lack of social obligation by global corporations as well as governments seeking to obtain revenue in an economy. This has led to the impact of social structure in an economy, which continues to be politically inert and culturally neutral (Banerjee, 2010). In addition, both authors emphasize on political issues in the global business environment. They both demand that the political economic policy needs to be maintained through setting regulations in every nation. However, the authors agree with global governance but do not take into consideration the effect of institutional forms of power, which may determine legitimacy principle.
Banerjee, S. B. (January 01, 2010). Governing the Global Corporation: A Critical Perspective.
Business Ethics Quarterly, 20, 2, 265-274.
Power, T. P. (2008). International business: A Canadian perspective. Toronto: Thomson