Kenichi Ohmae

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Kenichi Ohmae ­ The Borderless World
Ohmae is primarily concerned with the significance of globalisation with large co-operations but his analysis
also comprises of the distribution of power and the role of nation states.
Political borders have become increasingly insignificant in a globalized world, especially in the most
developed economic regions.
Ohmae sees the US, Japan and Europe as forming on giant interlinked economy (ILE)
He claims `is becoming so powerful that it has swallowed most consumed and cooperation's, made
traditional national borders almost disappear, and pushed bureaucrats, politicians, and the military
towards the status of declining industries'.
He sees such developments as a result of opening up of the world economy so that trade between
people in different nation-states becomes very easy.
Due to recent developments such as satellite TV, easier and frequent flights to international regions
and the internet it has become easier for people to see what others consume in different countries
and also to buy the products they want.
People `can see for themselves what the tastes and preferences are in other countries, the styles of
clothing now in fashion, the sports, the lifestyles.'
In the past Governments were able to control what information could come to their citizens but this is
no longer possible ­ if people want a product cheaper they may look abroad for something better
i.e. with improvements not available in the UK.
The lack of control the government have over information is paralleled to the lack of control they
have over the economy.
He states that it is difficult for governments to protect their domestic industries from forgiven
o Difficult to impose tariff barriers (designed to prevent imports) but tariffs are only effective
in low income countries.
Wealth is no longer produced by manufacturing, and most jobs are created when economies are
open to investment from any companies, be they domestic, foreign or multinational.
Individuals have become global citizens. They `want to buy the best products, no matter where in the
world they are produced'.
Regional economy links are more important than national economies
Distant parts of the world are connected through business and other ties ­ domestic businesses may
look to regional business so as to gain a cheaper price
If national governments try to limit or stifle these links, they undermine economic growth and incur
the displeasure of their citizens.
Nor can governments use economic policies to control their economies in the way they used to. It will
not help in growing both local and global economies.
o As it is now easier to move money around the globe i.e. they could transfer millions of
pounds to another countries at the click of a button ­ this was impossible in the past

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Cooperation should not state they are based in a particular country. To be successful they must make
the best products in the world
o i.e. when cars became open to trade in other countries English cars were not as good as
French cars and so people from both France and England bought them
Ohmae states that governments have lost their power to regulate and control both their national
economies and information within their boundaries.…read more


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