The Paradoxes of Market Globalization

Citation

Mesure, H. (2009), "The Paradoxes of Market Globalization", Society and Business Review, Vol. 4 No. 3, pp. 265-266. https://doi.org/10.1108/sbr.2009.4.3.265.1

This book is the fruit of collective work undertaken by the members of ATLAS (the Francophone Association of International Management). An English language version will soon be offered.

The globalization of the economy is a complex phenomenon driven by multiple interactive forces. The interweaving of these forces gives rise to paradoxes that touch, in varying degrees, the functional and developmental dimensions of companies. Focusing on this topic, this book offers the first in‐depth study of the logical contradictions that flow from economic integration on the supranational level.

In the introductory chapter, Yvon Pesqueux proposes a conceptual basis for internationalization by analyzing the paradox in which the economic substance of markets is considered as having a political nature.

After this conceptual framework, the first section of the book treats themes linked to the firm's general policy and strategy. In this section, Eric Milliot notes that the progressive elimination of countries' commercial frontiers allows companies to grasp more opportunities, but in parallel engenders a loss of their managerial autonomy. In looking at investment policy, Jean‐Paul Lemaire analyzes the conciliation of contradictory expectations and interests between the authorities of the host country and the firms who are considering implantation. After this, Jacques Jaussaud and Johannes Schaaper study the methods used by multinationals to combine global efficiency and local reactivity, which are sometimes contradictory. Finally, Philippe Very and Bertrand Monnet point out that, without realizing it, numerous multinationals strengthen and reinforce the mafia and other criminal organizations.

The second section of this book presents the paradoxes related to marketing and logistics. First, Nathalie Prime and Mitsuyo Delcourt‐Itonaga note that the relative standardization of commercial responses to international market conditions encourages consumers to turn toward products anchored in local culture. Svetla Marinova and Marin Marinov observe that multinational firms adopt sometimes less, ethical commercial policies in developing nations, despite the fact that the people of these countries are particularly vulnerable to marketing ploys. Working on the internationalization strategies developed by major distributors, Ulrike Mayrhofer shows that globalization, which acts as a unifying force, does not impose a unique model of international development. In his study of the medical tourism industry, Löick Menvielle finds that certain medical establishments in developing nations propose sophisticated yet low‐cost medical services for foreign tourists/patients, while the residents of these countries suffering from serious pathologies do not have easy access to healthcare. Finally, with respect to the integration of sustainable development principles on the logistical level, Corinne Blanquart and Valentina Carbone note that the higher concentration of trade flows paradoxically gives rise to negative externalities on the environment.

The last section of the book is centered on the financial and accounting aspects of the managerial environment. Nadine Tournois and Robert Teller remark that the financialization of the accounting model, the search for fair value and the need for transparent information, are closely linked to the legitimacy of the International Accounting Standards and, thus, to the political governance of accounting norms. Focusing on public accounting, Evelyne Lande, Harimino Rakoto and Sébastien Rocher observe that the International Public Sector Accounting Standards are directly applicable in certain developing nations, while these international accounting pronouncements are difficult to adopt without modification in developed countries. Sophie Nivoix and Dominique Pépin treat the question of capital flows, indicating that financial globalization gives rise to certain levels of risk (change, liquidity, etc.) that may paradoxically discourage certain international investors. Finally, Guy Tournois notes that after having obliged banks to diversify, globalization is brutally pushing these establishments to re‐center on their original business.

In the concluding chapter, Anne Marchais‐Roubelat and Fabrice Roubelat study the theme of strategic prospective and underline that, surprisingly, the modeling of temporal dynamics tends, in a decompartmentalized world, to disappear from analyses by specialists in the discipline.

As we can see, globalization is based on complex and constraining principles that companies must identify and manage. Even if it is impossible to take stock of all of the contradictions which characterize globalization, because they can split and adapt in multiple manners to a context, it is necessary to offer an extended view on the principal ambivalences related to this important phenomenon.