A Cautionary Tale For Globalization

Published on
July 9th, 2018
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.


  • 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
  • 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!!).