The Globalization Backlash Is Reverberating Through Boardrooms

Harvard Business

Evidence of de-globalization — think Brexit and other attacks on international interdependence — is everywhere. Boards of directors of global corporations will increasingly face strategic choices and capital allocation decisions framed by mounting geo-political risks. As a practical matter, for example, these changes in the global policy regime are forcing multinational corporations to scale back and sell parts of their international operations.

7 Charts Show How Political Affiliation Shapes U.S. Boards

Harvard Business

Are corporate boards as polarized politically as the general population? Female directors are much more evenly split between the two main political parties. We found that directors of all political stripes care a lot about the economy and cybersecurity, and that Republican and Democrat directors are aligned in their concerns about political instability and healthcare costs, even though they may have conflicting views on how these costs should be contained.


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Peak Globalization

Harvard Business Review

In an uncanny fashion, the beginning of this century mirrors that of the last — the speed, scale, and disruption of globalization is generating a strong nationalist backlash. We, in fact, are living in an era of Peak Globalization as the costs and benefits of globalization begin to diverge according to country, class, and constituency. The centrifugal forces drawing nations toward globalization are giving way to centripetal forces pulling them away from it.

Public Pension Funds Perform Better When They Keep Politics at Bay

Harvard Business

The enormity of the challenges confronting pension funds — including substantial deficits, a tumultuous global economy, and a low-return environment — means that they need to be able to focus on maximizing investment returns without distraction. For those in the public sector, this includes being shielded from governmental politics. Another way to keep politics at bay is to ensure there is a counterweight to check elected officials.

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The Future of Cities Depends on Innovative Financing

Harvard Business Review

But few governments appear to have the money or the political will to foot the up-front costs to prevent or fight fragmentation. These range from uncertain revenues to disagreements over guarantees to concerns about political risk. In traditional financing models, it’s just not possible for investors to see their way to a financial return based on some abstract added value of the integrated whole. Today’s mega-cities have a footprint problem.

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How Multinationals Can Adapt to a Political Mood That Doesn’t Care for Them at All

Harvard Business

The fall of the Berlin Wall, in 1989, ushered in a new era of globalization. Political sentiment has turned against globalization and the political and economic policies that promoted it. Brexit, the election of Donald Trump, and the rise of nationalist parties across Europe are signs of this new political mood. Domestic champions receive favorable regulatory treatment that makes competing with them difficult for global corporations.

Why Europe Tops 2015’s List of Global Risks

Harvard Business Review

In 2014, global political volatility reached an intensity not seen since the end of the Cold War. What are the biggest political and economic risks heading into the year ahead? Taken together, what do they mean for global businesses? You notice it’s the politics of Europe, not the economics of Europe. So the economics are better, but the politics are worse – and they’re worse on every front. led globalization-slash-Americanization.

The G-20 is 2011's Biggest Political Risk

Harvard Business Review

Among the acute political risks facing the world this year, the nuclear threats from Iran and North Korea are serious, no doubt, but the behavior of the 20 major economic powers scare us more: these countries can no longer agree on how the global economy should function. "Oh, The major economic powers are pushing their own agendas and using the key institutions that should be providing global governance as arenas for confrontation instead of collaboration.

2020 Top CHRO List – The People Leaders To Watch

N2Growth Blog

We find ourselves amidst the challenges of living and working in a triple-threat world of a global pandemic, economic instability, and political unrest. Leading a global workforce of more than 840,000 people is not for the faint of heart.

The Ex-Im Bank Fight and the Future of Global Competitiveness

Harvard Business Review

But, this old Congressional debate, sparked by critics who want a return to smaller government, obscures the profound global economic issues which the U.S. The Ex-Im Bank was formed in the 1930s to help finance U.S. Today, it provides financing support to exporters or to their customers overseas, when, per its charter, private credit is not readily available (locomotives to Kazakhstan, medical supplies to Viet Nam). Competition Global business Government

The Dangers of Digital Protectionism

Harvard Business

Although cross-border data flows grew 45x between 2005 and 2014, according to a McKinsey analysis , events since 2014 have pushed the pendulum to swing away from unconstrained data globalization. Still others hope to create market barriers for global companies — a form of digital protectionism. The draft bill has generated much debate, including some concern from global technology giants as well as Nasscom, India’s IT industry body.


Another Year Has Passed, but the List of Massive Global Problems Has Stayed the Same

Harvard Business Review

“All this is fine if you don’t have a very severe economic slowdown…the problem we will see is that the financing they are getting is then sold together with these collateralized debt deals. the political debate describes a fantasy world. In the fall of 2007 and winter of 2008, two Harvard Business School colleagues and I held four forums with groups of about fifteen business leaders each in Europe, Asia, Latin America, and the U.S.

Dominique Strauss-Kahn: The Collateral Damage

Harvard Business Review

To judge from events so far, DSK seems to be keen to avoid a sovereign default and given the delicate politics of the situation having him out of the picture arguably makes that a more likely event. Finance Global business PoliticsHere in France the chatterati are feverishly analyzing the shock arrest Friday of (undeclared) presidential front-runner Dominique Strauss-Kahn , known to folks on this side of the pond as DSK.

The “Smart Society” of the Future Doesn’t Look Like Science Fiction

Harvard Business

Economy Components: the four components in this category are: global connectedness, economic robustness, entrepreneurial ecosystem, innovation capacity. Collectively, the D5 nations serve two important purposes for our project: They give us a way to construct a global benchmark that can be used to assess D5 nations and other countries, and they each offer a case study and model for what smart can look like. Global strategy Technology Economy Digital Article

Navigating the Complexities of Doing Business in Russia

Harvard Business

Furthermore, economic decision-making has become increasingly politicized as the government has prioritized political goals (i.e. Despite the tumultuous the political and economic climate, Russia still remains very attractive compared to other emerging markets, like Brazil or Nigeria, over the long term, because of its large population, public and private spending capacity, and strong resource base. Global strategy Emerging markets Government Europe Digital Article

Does Your Team Have a #1 Priority?

Great Leadership By Dan

The finance person’s priority is budgets and profit/loss statements. Patrick Lencioni refers to this top priority as a “Thematic Goal” in his books Silos, Politics and Turf Wars and The Advantage, and in practice, often refers to it as a “rallying cry” for a team or organization.

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How the CFO and General Counsel Can Partner More Effectively

Harvard Business

What receives far less attention is that, more and more in our increasingly complex, volatile, and fully-globalized business world, the effectiveness of such action depends on a powerful partnership between the Chief Financial Officer (CFO) and the General Counsel (GC). In more and more global companies, the CEO, directors and other key stakeholders see the GC as having importance and stature comparable to the Chief Financial Officer.

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The Importance of Domain Name Selection for Non-Profits

Lead Change Blog

The Innovative Finance Foundation (IFF) uses for its network dedicated to funding sustainable development and ending extreme poverty. With a domain name that is short, simple and straight to the point, the IFF has been able to undertake research, advisory activities, design, and campaigns to create innovative finance products to fund health, education, nutrition, sanitation and the environment.

Dinosaurs, Big Consulting Firms and Disruptive Innovation

N2Growth Blog

Consider the now dominant positions of mini mill makers Steel Dynamics and Nucor versus US Steel, which once owned the global steel market. The same trend of disruptive innovation is now happening in global banking with the “invention” of complex derivatives, CDCs and other profit-generating products being aggressively pitched to customers. GLOBAL CONSULTING & DISRUPTIVE INNOVATION. By John R. Childress.

The Coalitions That Could Hold the EU Together

Harvard Business

The resurrection of the EU’s traditional leadership constellation is politically feasible given the election of the Emmanuel Macron as French president in 2017 and the return of the Grand Coalition of German political parties in 2018. This coalition would include Germany and the eight northern European member states whose finance ministers began to meet in early 2018 to discuss reforming the Eurozone. altmodern/Getty Images.

The New New International Economic Order

Harvard Business Review

Earlier this week, on April 16, the US nominee Jim Yong Kim was selected over Nigerian Finance Minister Ngozi Okonjo-Iweala and former Colombian Finance Minister Jose Antonio Ocampo. This was just one round in a developing fight over the rules and norms that govern the international political economy. In short, the age of Post-Western globalization is upon us. Economy Global business Politics UNCTAD NIEO

What to Know About Doing Business in Iran

Harvard Business

However, despite a weakened economy, political tensions, market uncertainty, and the lingering effects of sanctions, Iran remains an important opportunity for multinationals in emerging markets. Compared to most oil-rich countries in the Middle East, Iran has a diversified economy, its tourism sector is on the verge of a major windfall, and threats to its political stability are in decline. sanctions are delaying these projects being financed.

The Last Days of the Dollar Era

Harvard Business Review

Two years ago, Minnesota Republican Michele Bachmann made one of her first impressions on the national consciousness by railing against what she said was an Obama administration plan to replace the dollar with a global currency. In some ways we'd actually be better off if the dollar weren't at the center of the global economy. Without some major course corrections, the country is eventually headed for a real — not politically induced — debt crisis.

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What Investors Need to Know About Zimbabwe After Mugabe

Harvard Business

Even before announcing his new cabinet, Mnangagwa installed a key reformist, Patrick Chinamasa, as acting finance minister, tasked with tackling corruption and re-engaging with international institutions to unlock funds to ease liquidity shortages. Recently, Bitcoin has become popular in the country with the digital currency trading at $13,000 USD in October (at the time about 50% higher than Bitcoin’s global price). ALEXANDER JOE/Getty Images.

The Euro Crisis: Italy's Turn

Harvard Business Review

So far the crisis has claimed a lot of political scalps in the severely indebted countries, most notably and recently that of Silvio Berlusconi. It's a sign of some of the (potentially dangerous) strain that the crisis is having on the political systems in these countries. Inevitably, this will involve a reduction of political and economic sovereignty for all concerned. German politicians are also worried for their own political futures.

Spain Is Now Making Ireland's Mistakes

Harvard Business Review

Just like Ireland, Spain had a credit boom financed mostly with external debt, which meant that the balance sheets of their banks are now stuffed with bad debts as asset values collapse. Such levels of unemployment will accelerate defaults in the mortgage market; depress growth; and may lead to large-scale social unrest and political turmoil. With youth unemployment at such extreme levels, an IMF program is likely to be both economically wrenching and politically impossible.

China's Coming FDI Offensive

Harvard Business Review

In other words, this time sheer size and the political structure of China present a different set of concerns than those confronted a quarter of a century ago when a whiff of hysteria playing on fears of a Yellow Peril of Japanese economic imperialism swept the U.S. Will not Chinese firms be profoundly changed by the experience of being legal stakeholders and residents of the global world? China Global business Politics FDI

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Our Emotional Attachment to Local Currencies

Harvard Business Review

Why is “tribal money” on the rise at the same time that barriers to trade and globalization are falling? After the establishment of the peseta, bank notes, coins, and stamps were created having all the symbols of the Spanish nation: kings, queens and other political and cultural icons. Compensation Finance Global business The Brixton Pound was first issued as paper money in September 2009. Two years later, the electronic B£ pay-by-text platform was announced.

Would Christine Lagarde's Talents Be Wasted on the IMF?

Harvard Business Review

She has had done an admirable job as France's Finance minister, showing composure and resolve during a crisis that would wither weaker dispositions. For Europeans, retaining control of the IMF is clearly attractive, because under DSK the IMF has supported the rescue of the struggling peripheral eurozone members, and the political establishment seems set on keeping eurozone members out of default. Finance Global business Government

How Europe's New Gold Standard Undermines Democracy

Harvard Business Review

Financial elites across Europe and America could therefore run a global financial system based upon gold where the external price of a country's exports dictated internal prices and wages. During the tumultuous years of the interwar period, Eichengreen pointed out, significant political changes had made a successful return to the gold standard impossible. Political and economic elites could no longer ignore the demands of their significantly bigger electorates.

Our Emotional Attachment to Local Currencies

Harvard Business Review

Why is “tribal money” on the rise at the same time that barriers to trade and globalization are falling? After the establishment of the peseta, bank notes, coins, and stamps were created having all the symbols of the Spanish nation: kings, queens and other political and cultural icons. Compensation Finance Global business The Brixton Pound was first issued as paper money in September 2009. Two years later, the electronic B£ pay-by-text platform was announced.

What Executives Really Need to Know About the “Emerging Markets Crisis”

Harvard Business Review

Yes, there are real reasons for MNCs to be concerned about political instability in Turkey and Ukraine, and economic policies in Argentina and China – all of which have occupied front pages recently. Meanwhile, in the Middle East the political crisis surrounding Prime Minister Erdogan made Turkey a target for currency traders. Economy Finance Global business

60 Countries’ Digital Competitiveness, Indexed

Harvard Business

We introduced the Digital Evolution Index in HBR in 2015 to trace the emergence of a “digital planet,” how physical interactions — in communications, social and political exchange, commerce, media and entertainment — are being displaced by digitally mediated ones. Politics, regulations, and levels of economic development play a major role in shaping the digital industry and its market attractiveness. Global strategy Internet Economy Digital Article

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Grassroots Leadership through Social Power

Coaching Tip

Social might is now moving toward your community, state, nation as well as global corporations. But overall these changes suggest a bright future for business and society globally. The Moroun family certainly has an influential voice in the State of Michigan, given it contributed $565,000 to state candidates for the 2010 election, according to campaign finance records. It's got to be the money-in-politics issue in Michigan this year." .

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Saving Face: How to Preserve Dignity and Build Trust

Skip Prichard

Maya Hu-Chan is a management consultant, executive coach, author, and speaker, and founder of Global Leadership Associates. They must move in many circles, think in many styles, and run their businesses as global citizens. Develop Your Ability to Influence.

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France's Existential Euro Crisis

Harvard Business Review

Given that, I wonder whether there isn't a third option being secretly dusted off inside France's Finance Ministry. Politically, resurrecting the Franc could perhaps be sold on chauvinistic grounds. Economy Finance Global businessBy now it's pretty clear that the various euro zone rescue packages are all being designed with the German electorate in mind.

Why CEOs have Liberal Arts Degrees

Mills Scofield

Some of today's top CEOs were history, political science, sociology, chinese and music majors in college. They are leading global airline, chemical, healthcare, pharmaceutical, and financial companies, among others. A career advisor once told me that those who pursue liberal arts majors and enter finance, consulting or technology are not the exceptions.

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Why Is Ukraine’s Economy Such a Mess?

Harvard Business Review

Instead, Ukraine was deeply in debt and looking for bailouts from West and East when an uprising ousted president Viktor Yanukovych in February, then a Russian invasion of the Crimean peninsula made the country the focus of global political attention. She went onto a journalism career at the Financial Times, Globe and Mail, and Reuters, and wrote books on Russia’s transition to capitalism and the rise of the global plutocracy. Economy Global business Politics

The Best Leadership Books of 2016

Leading Blog

In this uncertain environment, including the mounting global economic concerns, a humble mindset will be the only thing that will unlock the most promising business, social and economic innovations. To understand Greenspan's story is to see the economic and political landscape of the last 30 years—and the presidency from Reagan to George W. The story of Greenspan is also the story of the making of modern finance, for good and for ill.

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Scotland’s Vote Didn’t Clarify the Path Forward

Harvard Business Review

And the political dynamics surrounding the vote have troubling historical resonance, which UK and European leaders should heed. This raises a fundamental problem for future British politics. The political and economic arguments that drove towards the vote will not simply disappear. Many Scots also don’t like the global role of the UK (and the defense costs that go with that role). Economy Government Politics


N2Growth Blog A virtual platform offering a network of services and proposes to bring contractors, property owners, finance, insurance, real estate and other pertinent services together. E rnst & Young – Global Home One of the world’s leading professional services organizations, helps companies across the globe to… Deloitte & Touche Businesses face a common imperative: to create lasting value for their stakeholders.

Preview Thursday: Untangling the USA: The Cost of Complexity and What Can Be Done About It

Lead Change Blog

today, where complexity is piled upon complexity in a number of critical sectors, such as health care, energy, finance, and government. Finance. Deffarges looks at five major causes for the intrusion of complexity in our society, spanning over 70 years: Our recent history and politics. The increased role of finance in our economy. The combination of globalization forces and outsized CEO pay packages.

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Corporations Need a Better Approach to Public Policy

Harvard Business Review

Too few businesses have sought to make a systemic approach to public policy an important dimension of their global posture. Myriad potential public policy-related risks and opportunities for companies arise across a broad spectrum of political and economic systems — from the state capitalism of former Communist states to the “ mixed economies ” in traditional “liberal” democracies, from developed to developing markets.