Individual assignmentnew rules of globalization Essay

Individual assignmentnew rules of globalization - Essay Example n reasons for guarded globalisation is the fact that policy makers in various markets create policies as well as international laws that put the local businesses at an advantage while creating more hurdles for international companies. Cases where the government regulates the wealth of the markets as well as the economic development of the country through some form of State capitalism in the emerging markets and recently in the developed markets have brought changes to the free markets and consequently changed globalization. Business that originate in the western world and operate in the emerging market progressively need to compete with the local business that have financial and political support while at the same time having to prove their strategic value in the host market. Regardless of this bleak picture, foreign corporations still have a chance of succeeding in local markets (Freinkman, 2002, p. 79). For instance, in the new phase of globalization, the industries that were initially out-of-bounds may be the best source of strategically important opportunities. In the process of this new phase of globalisation, the foreign businesses can stay at home and increase their strategies at home, get and increase the support of the host as well as the home government, foster alliances with the host countrys businesses and develop more diversity. International economic rules symbolise the standards of behaviours associated with governments, organizations as well as citizens, and they represent a type of self-commitment in such a system (Peil and Staveren, 2009, p. 186). Thus in relation to any system of rules, a negative index can be detected in the form of a sequence of limitations on the behaviour of countrywide governments. These constraints are aimed at a safeguarding international division of labour against conflicting interests from various national governments and the self-commitment of the states also acts as a shelter against the power of protectionist groups