A Cautionary Tale For Globalization

Published on
July 9th, 2018
Duration
25 minutes


A Cautionary Tale For Globalization

The Expert View ·
Featuring Robert Salomon

Published on: July 9th, 2018 • Duration: 25 minutes

While companies continue to pursue global dominance, Robert Salomon, NYU Stern professor and author of "Global Vision: How Companies Can Overcome the Pitfalls of Globalization," is waving a flag of caution. Salomon says there are several crucial factors that managers are not considering when expanding operations overseas, which include the varying political, cultural and economic views in different nations. Filmed April 24, 2018 in New York.

Comments

  • MS
    Matt S.
    18 July 2018 @ 04:04
    Xenophobia? No brother - it's called protecting one's own culture and traditions. Infinitely more important than making some money in the stock markets.
  • jm
    judith m.
    18 July 2018 @ 01:24
    Don't agree but his delivery was clear, thorough and interesting.
  • SH
    Steve H.
    9 July 2018 @ 16:58
    I wonder how many of those making negative comments have ever had the opportunity to establish a JV or other form of operation in a culturally very different market. I had that opportunity nearly 40 years ago in Korea and then several more times after that. I don't see anything wrong with this presentation. The bit at the end about redistribution doubtless offends the one percent and their useful idiots, who - presumably - see an optimal solution lying in the ongoing polarisation of our societies, with all the socio-political and economic disruption which will almost certainly be the ultimate end-game.
    • VC
      Vince C.
      10 July 2018 @ 04:56
      Hi Steve, I was a negative commenter. I've had the opportunity to experience start up, to establishment, to closing of businesses in 4 countries (directly & indirectly, personally &/or through family). Admittedly, interviewee made one good comment w.r.t emphasis on economic - political - cultural - ?? - risks when setting up shop in other countries but, how conventional... same as saying to consider wearing a jacket before going outside during winter. The veiled comments on taxes and contradictory views on globalisation however, sunk the video. Also wouldn't be so quick to assume those commenting negatively on taxes are all in the "1%", whatever that's supposed to mean...
    • TB
      Tim B.
      10 July 2018 @ 13:46
      Hi Steve, Appreciated your comment...very well stated.
    • DK
      Daniel K.
      15 July 2018 @ 08:07
      Thanks for pointing this out Steve. People are commenting on here like it's Twitter. It's really unprofessional and disrespectful to the guest.
  • SS
    Sam S.
    9 July 2018 @ 17:16
    This piece is mostly non-sense. Great Depression can not be blamed on a single reason like tariffs and trade. Much more complex. Trump is a DEAL maker. Not sure how many deals Mr. Salomon has made with his own money on the line, but Trump's made hundreds of really big deals. Deal makers start off asking for the world, everyone comes running and screaming how terrible it all is, then compromise on a much more FAIR deal. Past administrations have given away the farm and raided the US Treasury. Trump is the symptom, not the cause. USA needs to make better deals and more win - win deals for us and not all for them. Anyone pay attention to how many leaders, both political and corporate, showed up at Trump Tower right after Trump got elected but wasn't sworn in yet???? They were there making deals. Clinton pay for play foundation was a fraud and has crumbled. More taxes---really----tax less, regulate less and people will spend more, play more and the economy will thrive! I'm just saying.
    • BM
      Beth M.
      9 July 2018 @ 17:42
      I hold many of the same views Sam...great observation. What is occurring is so threatening to the "deep state" and so called "authorities" who weaponize government for their own advantage. The little guy on the street is finding this out the hard way. I also believe that the work that Kyle Bass has done on China shows just how communisum is not compatible with the free market economy of the world. Kyle tirelessly points out their currency manipulation as well as the 600 billion dollars they steal in intellectual property every year. The struggle is the massive global debt, and the debt Obama screwed us with, left us in a precarious place. It will be very difficult to grow our economy enough to overcome that. I voted for Trump but there has not been real fiscal responsibility. As much of an optimist that I am...I am truly concerned (as many of the guests have stated on Real Vision) that the next recession/depression will be devasting...and we will be searching for answers.
    • CM
      C M.
      11 July 2018 @ 02:43
      Trump has not cut one deal that I am aware of with another country. Saw the Republican Senator from Iowa this Sunday on Meet the Press asking Trump to please start cutting deals, the sooner the better. His bullying style of negotiating works with small businessmen that he can say "sue me", but not so much with countries. As a private businessman, the only two deals I can think he negotiated well was developing Trump Tower in NYC and with his bankers in the early 1990s to save himself from declaring personal bankruptcy by selling them on building a licensing business. Could not negotiate himself out of all the bankrupt companies he started, i.e. casinos, Trump University. So the jury is still out on whether Trump can negotiate a deal on the world stage since he has not done one as President. Look at how badly he did in giving concessions to North Korea without getting anything in return. That was some tough negotiating as you saw the Koreans response to the recent Secretary of State visit. It looks like most of the thumbs down on this video are based on political beliefs.
    • CM
      C M.
      11 July 2018 @ 02:59
      In response to Beth, please go look at the last 35 years of federal deficits. https://www.thebalance.com/us-deficit-by-year-3306306 They accelerated under Reagan as trickle down economics never saw Federal receipts recover after the Reagan tax cut (Reagan was first president to drive deficits over $100 billion). They declined under Clinton (into a surplus) and the first few years of Bush. Reaccelerated after the Bush tax cuts, and with the collapsing economy (greatest since 1929) into the early years of Obama. After the huge government fiscal increase to keep the country from shutting down due to the economy passed forward by George W, deficits decline under Obama and start re-accelerating under Trump (although the economy is performing at maximum capacity). Trump's first two budgets exceeded the budget deficits for Obama's last three years. Trump may be the first president to have a deficit exceed a trillion dollars. As a Republican, can't believe I am defending Democratic presidents, but the numbers are what they are. Hate to see people revise history to paint a different story.
    • BM
      Beth M.
      14 July 2018 @ 05:00
      Obama DOUBLED U.S. Debt = Fact...and we the people got nothing for it except a enormous headache!
  • WB
    William B.
    13 July 2018 @ 05:00
    Excellent! Wish it had been published much sooner.
  • RM
    Ritwik M.
    13 July 2018 @ 04:02
    e
  • TG
    TEDDY G.
    12 July 2018 @ 07:26
    Stop at 2minutes mark when this idiot (sorry no other word considering the statement) mentioned how UBER "lost 2 billions in cash". Uber owns 20% of DIDI thanks to selling their China operation to them, how much do you think this is worth ?
  • DP
    David P.
    12 July 2018 @ 02:37
    Great video. Brngs
    • DP
      David P.
      12 July 2018 @ 02:40
      Brings to mind that trade is not the only game in town. FDI's, currencies (and exorbitant privilege) all impact each others.
  • RR
    Roman R.
    9 July 2018 @ 16:45
    I’m puzzled by the 1%/99% conversation here in the context of unfairness. What does he mean and what’s the proposal? The fact that due to the globalization hundreds of millions of people get out of property is shadowed in his view by the fact that the corporations got richer?
    • CM
      C M.
      11 July 2018 @ 03:29
      Guessing his argument is that the 1% benefited from globalization via stock ownership in companies as stocks have risen (in that the 1% owns 40% of stocks and the bottom 60% owns 2%). On the other side, US workers have not seen salaries increase as real wages have only grown from $332 per week in 1979 to $351 per week today. So stock market is up an inflation adjusted 740% in that time period while salaries are up 5.7%. So his point appears to be that workers are not benefitting from globalization at the same rate as equity owners.
  • HO
    H2 O.
    9 July 2018 @ 17:36
    The statistics cited are not necessarily untrue, but this analysis doesn't look at the most important known unknown at all, and that is the impact of corporate internal transfer pricing regimes on the global distribution of profits. Have run JVs in China and other EMs and always did so at a small loss by design so profits could be attributed offshore to lower tax jurisdictions that would not take my FX hostage in the form of capital controls. Without unpacking supply chains and transfer pricing regimes any analysis of corporate profitability in geographic terms is close to worthless. Large companies do not address this in their reporting, intentionally.
    • CM
      C M.
      11 July 2018 @ 02:30
      Good point. Thanks for sharing.
  • WG
    Wade G.
    11 July 2018 @ 01:00
    I loved being a student back in the day, but I can't imagine being excited about this material. Wondering if this is not great (I don't want to be over-the-top rude about it) or if I've moved on that much...
  • ZY
    ZHENG Y.
    11 July 2018 @ 00:07
    Actually i like the video that spark most debate in the comment part, meaning there is a space for discussion. (Almost 50% thumb up and down) Great conversation starter.
  • JG
    Jory G.
    10 July 2018 @ 18:34
    I worked in and was general manager of a packaging manufacturing company for 50 years. During that time saw dozens of companies leave our area for other countries. Thousands of jobs that paid good wages and had good benefit packages were lost. Most of those who lost jobs either took multiple jobs to maintain their standard of living or lowered their standard of living, or left the area to try to find better opportunity. For many is was a dramatic change in lifestyle. While not a protectionist, I do not think higher taxes on the rich or more education is the solution. Academia as far as I can tell has had little to do with economic prosperity. I tend to agree with famous Oklahoman Will Rogers who was quoted as saying "An economist's guess is likely to be as good as anybody's."
  • PU
    Peter U.
    10 July 2018 @ 13:13
    Remove this video, not worthy of RV, imo
  • HH
    Heath H.
    10 July 2018 @ 12:05
    Audio failed
    • PU
      Peter U.
      10 July 2018 @ 12:13
      consider yourself lucky
  • AD
    Anthony D.
    9 July 2018 @ 18:41
    mate you should see how uber has impacted in emerging markets was in Kenya last summer and uber are with you within a minutes. but they actually plugged a hole in the market where taxis before ripped people off. The changes/disruptions will get more pushback in developed markets. one thing I agree with is parachuting expertise with under of local context increases probability of failure.
  • JH
    John H.
    9 July 2018 @ 12:24
    Wealthiest companies and individuals enjoy higher taxes because increased reliance on their products & services leads to them dictating policy. Just look at Virgin, they'd love more money to the NHS because that will lead to them "winning" more work when it is "outsourced." World needs to move away from dependencies on monopolies by increasing competition, lowering taxes and awarding contracts to smaller firms
    • SH
      Steve H.
      9 July 2018 @ 16:38
      Better still, stop the outsourcing. I'm old enough to remember when the NHS functioned properly - without overpaid trust managements, overrewarded management consultants, corrupt PFI 'investments', and without outsourcing.
  • JL
    Joe L.
    9 July 2018 @ 15:32
    The stuff about US companies investing internationally was interesting. His comments on globalization are foolish. Fix the corrupt globalization to the benefit of the 1% by raising taxes? Riiiiiiight.
  • VC
    Vince C.
    9 July 2018 @ 15:31
    Higher taxes! Because the government surely knows how to redistribute money fairly. Great way to de-incentivise and reduce productivity. And, last I checked "globalisation" has benefited more than just 10% of the population. Globalisation itself what a buzzword... the world has been globalising since the beginning of mankind, limited only by a time period's infrastructure and networks.
  • PU
    Peter U.
    9 July 2018 @ 13:50
    didn't / couldn't even finish it
  • SZ
    Scott Z.
    9 July 2018 @ 12:38
    The audio file download for this episode seems to be corrupted
  • SM
    Stephane M.
    9 July 2018 @ 10:55
    We see his true color at the end of the clip... I'm not surprise by his conclusion (the government needs more money to pay for his pension!!).

Mark Yusko

Morgan Creek Capital Management, Co- Founder, CEO, & CIO

Mark Yuskois the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment Model of investing to UNC, which contributed to significant performance gains for the Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Anthony Scaramucci

SkyBridge Capital, Founder & Co-Managing Partner

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co. In 2016, Scaramucci was ranked #85 in Worth Magazine’sPower 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year –New York” Award in the Financial Services category. Anthony is amember of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012. In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he wasnamed the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017. Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Michael Saylor

MicroStrategy, Co-Founder

Mr. Saylor is a technologist, entrepreneur, business executive, philanthropist, and best-selling author. He currently serves as Chairman of the Board of Directors and Chief Executive Office of MicroStrategy, Inc. (MSTR). Since co-founding the company at the age of 24, Mr. Saylor has built MicroStrategy into a global leader in business intelligence, mobile software, and cloud-based services. In 2012, he authoredThe Mobile Wave: How Mobile Intelligence Will Change Everything, which earned a spot onThe NewYork TimesBest Sellers list. Mr. Saylor attended the Massachusetts Institute of Technology, receiving an S.B. in Aeronautics and Astronautics and an S.B. in Science, Technology, and Society.

Alex Saunders

Nugget's News, Founder & CEO

Alex Saunders is the founder and CEO of Nugget’s News, a digital media company focused on all things crypto. Alex has been captivated by cryptocurrency since 2012 and in 2017 he began educating globally on the benefits of cryptocurrency and how to safely acquireit. Nugget’s News has been listed as a top-20 podcast by Business Insider, ShapeShift and Lifehacker and has over 120k YouTube subscribers with 9 million total views.Alex is also heavily focused on his cryptocurrency education platform Collective Shift which currently serves over 4,500 members. provides his unique perspectives by utilising his expertise in fundamental analysis, technical analysis and market sentiment. He is working towards his mission of making it easier for everyone to understand the financial world.

James Putra

TradeStation Crypto, Inc., Sr. Director of Product Strategy

James helped launch TradeStation Crypto’s offeringwhichutilizesa true online brokerage model that self-directed investors and traders have come to expect for equities, futures,and foreign currency markets. He is a reputed crypto asset specialist and blockchain thought leader focused on helping people find innovativeways to participate in this space. He is active in the blockchain community with speaking engagements, TV appearances and mentoring.James has over 15 years of experience in the Fintech industry.

Raoul Pal

Real Vision, Co-Founder & CEO

Raoul Pal is the Co-Founder and CEO of Real Vision, the world’s pre-eminent financial media platform, which helps members understand the complex world of finance, business, and the global economy. Real Vision members also have access to Real Vision Crypto, a cryptocurrency and digital assets video channelwatched by over 80,000 people.In addition, Raoul has been publishing Global Macro Investor since January 2005 to provide original, high quality, quantifiable and easily readable research for the global macro investment community hedge funds, family offices, pension funds and sovereign wealth funds. It draws on his considerable 31 years of experience in advising hedge funds and managing a global macro hedge fund. Global Macro Investor has one of the very best, proven track records of any newsletter in the industry, producing extremely positive returns in eight out of the last twelve years. He retired from managing client money at the age of 36 in 2004 and now lives in the tiny Caribbean island of Little Cayman in the Cayman Islands. Previously he co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul moved to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. In this role, Raoul established strong relationships with many of the world’s pre-eminent hedge funds, learning from their styles and experiences. Other stop-off points on the way were NatWest Markets and HSBC, although hebegan his career by training traders in technical analysis.

Peter McCormack

What Bitcoin Did, Journalist

Peter McCormack is a full timejournalist/podcaster covering topics such as Freedom, Human Rights, Censorship and Bitcoin. Peter created and hosts the What Bitcoin Did Podcast, a twice-weekly Bitcoin podcast where he interviews experts in the world of Bitcoin development, privacy, investment and adoption. Launched in November of 2017, the podcast has grown to over 100 episodes with a guest list that is a testament to the diversity of knowledge and opinions that represent the broader Bitcoin community. Expanding his growing list of humaninterest recordings, documentaries and films Peter has recently launched theDefiancepodcast andDefianceTV.

Caitlin Long

Avanti Financial Group, Founder & CEO

22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012. In 2018-20 she led the charge to make her native state of Wyoming an oasis for blockchain companies in the US, where she helped Wyoming enact 20 blockchain-enabling laws. From 2016-18 she jointly spearheaded a blockchain project for delivering market index data to Vanguard as chairman and president of Symbiont, an enterprise blockchain start-up. Caitlin ran Morgan Stanley’s pension solutions business (2007-2016), heldsenior roles at Credit Suisse (1997-2007) and began her career at Salomon Brothers (1994-1997). She is a graduate of Harvard Law School (JD, 1994), the Kennedy School of Government (MPP, 1994) and the University of Wyoming (BA, 1990).

Hunter Horsley

Bitwise Asset Management, CEO

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Luke Gromen

Forest For The Trees, Founder & President

Luke Gromen has 25 years of experience in equity research, equity research sales, and as a macro/thematic analyst.He is the founder and president of macro/thematic research firm FFTT, LLC, which he founded in early 2014 to address and leverage the opportunity he saw created by applying what clientsand former colleagues consistently described as a “unique ability to connect the dots” during a time when he saw an increasing “silo-ing” of perspectives occurring on Wall Street and in corporate America.FFTT caters to institutions and sophisticated individuals by aggregating a wide variety of macroeconomic, thematic and sector trends in an unconventional manner to identify investable developing economic bottlenecks for his clients.Prior to founding FFTT, Luke was a founding partner of Cleveland Research Company, where he worked from 2006-14.At CRC, Luke worked in sales and edited CRC’s flagship weekly thematic research summary piece (“Straight from the Source”)for the firm’s clients.Prior to that,Luke was a partner at Midwest Research, where he worked in equity research and sales from 1996-2006.While in sales, Luke was a founding editor of Midwest’s widely-read weekly thematic summary (“Heard in the Midwest”) for the firm’s clients, in whichhe aggregated and combined proprietary research from Midwest with inputs from other sources.Luke Gromen holds a BBA in Finance and Accounting from the University of Cincinnati and received his MBA from Case Western Reserve University.He earned the CFA designation in 2003.

Meltem Demirors

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Meltem Demirors is Chief Strategy Officer of CoinShares, an investment firm that manages billions in assets on behalf of a global investor base, and is a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem. Meltemoversees the firm’s managed strategies group and its New York office and leads corporate development. Previously, she was part of the founding team of Digital Currency Group. As a veteran investor in the digital currency space, she has invested in over 250 companies in the ecosystem. Meltem is passionate about education and advocacy, and teaches the Oxford Blockchain Strategy Programme and co-chairs the WEF Cryptocurrency Council.