What Is Globalization in Business

Globalization - the 'big idea' of the late twentieth century - lacks precise definition. More than this, it is in danger of becoming, if it has not already become, the cliché of our times.

Nonetheless, the term globalization captures elements of a widespread perception that there is a broadening, deepening and speeding up of world-wide interconnectedness in all aspects of life, from the cultural to the criminal, the financial to the environmental. At issue appears to be 'a global shift'; that is, a world being moulded, by economic and technological forces, into a shared economic and political arena.

Behind the rhetoric of globalization - rhetoric found in public as well as academic debate - lie three broad accounts of the nature and meaning of globalization today, referred to here as the hyperglobalist, the sceptical, and the transformationalist views.

- Hyperglobalists argue that we live in an increasingly global world in which states are being subject to massive economic and political processes of change. These are eroding and fragmenting nation-states and diminishing the power of politicians. In these circumstances, states are increasingly the 'decision- takers' and not the 'decision-makers'.

- The sceptics strongly resist this view and believe that contemporary global circumstances are not unprecedented. In their account, while there has been an intensification of international and social activity in recent times, this has reinforced and enhanced state powers in many domains.

- The transformationalists argue that globalization is creating new economic, political and social circumstances which, however unevenly, are serving to transform state powers and the context in which states operate. They do not predict the outcome - indeed, they believe it is uncertain - but argue that politics is no longer, and can no longer simply be, based on nation-states.

What is to be made of these different positions? Are we, or are we not, on the edge...