Article Response Rothfeder, Jeffrey. “The great unraveling of globalization.” The Washington Post. April 24. Web.

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Article Response

Rothfeder, Jeffrey. “The great unraveling of globalization.” The Washington Post. April 24. Web.

The author provides a discussion of the developments of the global markets and the presumed pace of globalization. The author notes that a majority of organizations that sought to venture into emerging markets to utilize cheap labor, were returning to their domestic markets due to uncertainty and high losses. This has become a common occurrence as multinational organizations from North America opt to return to the domestic markets to reduce costs of movement and enhancing efficiency within their supply chain functions. The author makes a critical note of the status of the global market, by noting that profits in the emerging markets were on a decline due to high levels of uncertainty of occurrence of numerous risks.

The high incidences of loss in international markets can be attributed to lack of adequate analyses and being overoptimistic in relation to the status of global markets. The author affirms statements made by analysts that the newness of multinational corporations in foreign markets is usually a liability due to unfamiliarity with foreign markets and the inherent risks in such markets. The central argument provided by the author in the discussion is the inaccurate depiction of globalization as an effective platform for organizations to explore profitability in emerging markets.

The article seems to caution multinational corporations from undertaking rapid expansion into foreign markets. This would be highly effective and appropriate to stem risks and incidences of failure given the high number of multinational corporations, which have experienced negative results from international expansion. Understanding the foreign markets through development of partnerships with local enterprises would be effective in enabling success rather undertaking large capital investments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Rothfeder, Jeffrey. “The great unraveling of globalization.” The Washington Post. April 24. Web. 12th October 2015. <http://www.washingtonpost.com/business/reconsidering-the-value-of globalization/2015/04/24/7b5425c2-e82e-11e4-aae1-d642717d8afa_story.html >

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