Page 17 - DMGT548_GLOBAL_HRM

Global HRM

Notes
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Caselet

he spread of IT and its applications has been extraordinarily rapid. Just 20 years
ago, for example, the use of desktop personal computers was still limited to a fairly
Tsmall number of technologically advanced people. The overwhelming majority of
people still produced documents with typewriters, which permit no manipulation of text
and offer no storage. Ten years ago, large and bulky mobile telephones were carried only
by a small number of users in just a few Indian cities. Today, half of all Indians use a
mobile phone, and in some developing countries, mobile phones are used by more people
than the fixed line telephone network.
Source: www.globalenvision.org/library/7/970

1.2.4 Government Drivers

Globalisation took a big step backwards during the First World War, the Great Depression, and
the Second World War. Integration of rich countries didn’t recover to previous levels before the
1980s.
After the Second World War, work by politicians and various governments led to the Bretton
Woods conference, an agreement by major governments to lay down the framework for
international monetary policy, commerce and finance, and the founding of several international
institutions intended to facilitate economic growth multiple rounds of trade opening simplified
and lowered trade barriers. Initially, the General Agreement on Tariffs and Trade (GATT), led to
a series of agreements to remove trade restrictions. GATT’s successor was the World Trade
Organisation (WTO), which created an institution to manage the trading system. Exports nearly
doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001. The approach of using
global agreements to advance trade stumbled with the failure of the Doha round of trade-
negotiation. Many countries then shifted to bilateral or smaller multilateral agreements, such as
the 2011 South Korea–United States Free Trade Agreement.
Since the 1970s, aviation has become increasingly affordable to middle classes in developed
countries. Open skies policies and low-cost carriers have helped to bring competition to the
market.
In the 1990s, the growth of low cost communication networks, induced by several governments,
cut the cost of communicating between different countries. More work could be performed
using a computer without regard to location. Policy reforms eased out work in the field of
accounting, software development, and engineering design.
The forces:
 Reduction of tariff barriers

 Reduction of non-tariff barriers
 Creation of blocs
 Decline in role of governments as producers and consumers
 Privatisation in previously state-dominated economies

 Shift to open market economies from closed communist systems in eastern Europe

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