Preface

Chapter 7 **Adaptations of CSR in the Context of Globalization the Case**

Chapter 8 **The Relationship between Environmental Reporting and**

Chapter 9 **Building Democracy: National and International Factors 175**

Chapter 10 **Higher Education Curriculum in a Global Village 195**

**Corporate Governance: Empirical Evidence from Pakistan 145**

**of the GCC 123**

**VI** Contents

Daniel Silander

Lawrence Meda

Dima Jamali and Walaa El Safadi

Mehwish Naseer and Kashif Rashid

**Section 4 Other Impacts of Globalization 173**

Globalization is a fascinating word as well as a popular topic for research. If one looks up this word on any internet search engine, he or she can find many different definitions of globalization. In general, it is fair to define globalization as a process of interaction and inte‐ gration among people, businesses, institutions, and governments of different countries in many aspects surrounding human lives. In its 2008 Globalization Issue Brief, the Interna‐ tional Monetary Fund (IMF) related globalization to international investment, spread of technology, strong institutions, sound macroeconomic policies, educated workforce, and ex‐ istence of market economy and global economy. Figure 1 shows the volumes of internation‐ al trade, including merchandise and services, during the period 1990–2017. If international trade can be seen as one of the indicators for globalization from the international economic perspective, this trend appears to be upward in the long run.

**Figure 1.** World International Trade by Exports (1990-2017) Data source: World Trade Organization (WTO), https://data.wto.org/

In fact, the impacts of globalization are not only on business or international trade, but also on other formal and informal institutions, such as politics, culture, and value. For instance, with a higher level of globalization, one may argue that people tend to increase international

migration. Figure 2 depicts an upward trend of immigration rate by regions for 2005, 2010, 2015, and 2017. Furthermore, Figure 3 exhibits an increasing trend for the top 10 countries with the most immigrant stock by regions for 2005, 2010, 2015, and 2017.

Although many studies support the idea that globalization facilitates international trade, global or regional integration, technological advance, and economic welfare, globalization does not come without any costs. Empirical studies sponsored by IMF indicate that income inequality as well as poverty in most regions and countries has failed to improve with this growing trend of globalization. It is therefore important to ensure the benefits from globali‐

Preface IX

This book addresses the issues and investigates the impacts of globalization. Of a variety of topics in globalization, four aspects particularly catch our attention and thus form the main sections of this book. These are: international economics and globalization, global business strategies, business ethics and corporate social responsibility (CSR) from a global perspec‐

Section 1 discusses the impacts of globalization on global economy and includes two chap‐ ters. Chapter 1 addresses the issues of technological evolution along the path of global eco‐ nomic development. The author stresses the necessity for revising some important perspectives in the existing technological system and suggests a new approach to reenergize economic growth and international cooperation. Chapter 2 discusses the role of labor in‐ come share in global value chains (GVCs). The author describes a declining change of labor income share from a dynamic setting, and concludes the importance of intersectoral produc‐ tion linkage between the service and non-service sectors in explaining the decline of labor

Section 2 centers on discussion of global business strategies. For example, in Chapter 3 the author explains a phenomenon in which multinational corporations (MNCs) in emerging economies tend to commit more foreign direct investment (FDI) in order to enhance their competitive advantages, as well as catching up with the trend of globalization. On the other hand, Chapter 4 emphasizes the needs to develop a corporate culture of innovation to pro‐

With an increasing level of globalization, there is also a call for re-examining business ethics and CSR, which is the main focus of Section 3. In this section, both Chapter 5 and 6 are cen‐ tered on business ethics while Chapter 7 and 8 are related to CSR as well as corporate gover‐ nance (CG). Chapter 5 explores the impacts of an MNC on a developing country. The authors present both positives and negatives with a case study of an MNC in Namibia and then discuss business ethics in such a setting. Chapter 6 extends the discussion on moral dilemmas of an MNC. Building on business ethics in the contemporary world, Chapter 7 conducts a qualitative inductive approach to CSR perceptions and practices in six countries of the Gulf Cooperation Council (GCC) and suggests how CSR can be conducted in the local context. In addition, Chapter 8 explores the relationship between environmental reporting and CG, based on a corporate database in Pakistan. The implication for policy-makers is that

As suggested earlier, globalization impacts not only on business and international trade, but also on other areas of human lives. Section 4 thus consists of two chapters. Chapter 9 dis‐ cusses how globalization, as well as other international factors, may influence and help to explain the structural regime of democracy. Finally, Chapter 10 examines how technology impacts higher education in the trend of globalization. The author concludes that technolo‐ gy helps to enrich academic contents and therefore enhances students' learning experiences.

zation can be more equally distributed across people in different countries.

tive, and impacts of globalization on human lives.

mote internal and external entrepreneurial behavior.

improved CG may encourage transparency of environmental reporting.

income share.

**Figure 2.** Immigration Rates by Regions for the Years 2005, 2010, 2015, and 2017 Data source: United Nations, http://data.un.org/

Data source: United Nations, http://data.un.org/

Although many studies support the idea that globalization facilitates international trade, global or regional integration, technological advance, and economic welfare, globalization does not come without any costs. Empirical studies sponsored by IMF indicate that income inequality as well as poverty in most regions and countries has failed to improve with this growing trend of globalization. It is therefore important to ensure the benefits from globali‐ zation can be more equally distributed across people in different countries.

migration. Figure 2 depicts an upward trend of immigration rate by regions for 2005, 2010, 2015, and 2017. Furthermore, Figure 3 exhibits an increasing trend for the top 10 countries

**Figure 3.** Immigration Rates by Top 10 Countries with Most Immigrant Stock for the Years 2005, 2010, 2015, and

with the most immigrant stock by regions for 2005, 2010, 2015, and 2017.

**Figure 2.** Immigration Rates by Regions for the Years 2005, 2010, 2015, and 2017

Data source: United Nations, http://data.un.org/

Data source: United Nations, http://data.un.org/

2017

VIII Preface

This book addresses the issues and investigates the impacts of globalization. Of a variety of topics in globalization, four aspects particularly catch our attention and thus form the main sections of this book. These are: international economics and globalization, global business strategies, business ethics and corporate social responsibility (CSR) from a global perspec‐ tive, and impacts of globalization on human lives.

Section 1 discusses the impacts of globalization on global economy and includes two chap‐ ters. Chapter 1 addresses the issues of technological evolution along the path of global eco‐ nomic development. The author stresses the necessity for revising some important perspectives in the existing technological system and suggests a new approach to reenergize economic growth and international cooperation. Chapter 2 discusses the role of labor in‐ come share in global value chains (GVCs). The author describes a declining change of labor income share from a dynamic setting, and concludes the importance of intersectoral produc‐ tion linkage between the service and non-service sectors in explaining the decline of labor income share.

Section 2 centers on discussion of global business strategies. For example, in Chapter 3 the author explains a phenomenon in which multinational corporations (MNCs) in emerging economies tend to commit more foreign direct investment (FDI) in order to enhance their competitive advantages, as well as catching up with the trend of globalization. On the other hand, Chapter 4 emphasizes the needs to develop a corporate culture of innovation to pro‐ mote internal and external entrepreneurial behavior.

With an increasing level of globalization, there is also a call for re-examining business ethics and CSR, which is the main focus of Section 3. In this section, both Chapter 5 and 6 are cen‐ tered on business ethics while Chapter 7 and 8 are related to CSR as well as corporate gover‐ nance (CG). Chapter 5 explores the impacts of an MNC on a developing country. The authors present both positives and negatives with a case study of an MNC in Namibia and then discuss business ethics in such a setting. Chapter 6 extends the discussion on moral dilemmas of an MNC. Building on business ethics in the contemporary world, Chapter 7 conducts a qualitative inductive approach to CSR perceptions and practices in six countries of the Gulf Cooperation Council (GCC) and suggests how CSR can be conducted in the local context. In addition, Chapter 8 explores the relationship between environmental reporting and CG, based on a corporate database in Pakistan. The implication for policy-makers is that improved CG may encourage transparency of environmental reporting.

As suggested earlier, globalization impacts not only on business and international trade, but also on other areas of human lives. Section 4 thus consists of two chapters. Chapter 9 dis‐ cusses how globalization, as well as other international factors, may influence and help to explain the structural regime of democracy. Finally, Chapter 10 examines how technology impacts higher education in the trend of globalization. The author concludes that technolo‐ gy helps to enrich academic contents and therefore enhances students' learning experiences.

On completion of this book, the editor would like to express the highest appreciation to all the authors for their contributions and the publisher's staff for their assistance. Thanks again!

> **George Yungchih Wang** Faculty of International Liberal Arts Soka University California, USA

**Section 1**

**International Economics and Globalization**

**International Economics and Globalization**

On completion of this book, the editor would like to express the highest appreciation to all the authors for their contributions and the publisher's staff for their assistance. Thanks

**George Yungchih Wang**

Soka University California, USA

Faculty of International Liberal Arts

again!

X Preface

**Chapter 1**

**Provisional chapter**

**Technological Reconstruction of the Global Economy**

The chapter addresses the technological evolution of global economy since the yearly post war years until the beginning of world crisis in 2008. The author explains spectacular growth, demonstrated in the world economy, by implication of technologies, invented during "the golden age of technologies", the dual-use peculiarity for the majority of them and their subsequent transfer from the leading countries to the less developed, enforced the extension in scale of production and markets. It should be recognized that the technological system, launched after the World War II represents the backbone of the contemporary global economy, despite the different role of its main drivers: manufacturing production, trade in goods and services or foreign direct investments. The theoretical model of the steady-state growth most appropriately describes how the increments in capital and investments enforce the economic growth, no matter of where there are originating from. The 2008 global crisis reveals the exhaustion of the "technological source" for continuing growth of the world economy, reflecting in many ways the emerging discrepancy between technological development and economic growth: deindustrialization of the leading economies, "bubble effect", eroding the foundation for economic sustainability, "Dutch disease" for the oil-dependent countries, the bias toward the energy resources in the world trade in general and, of course, worldwide growing militarization. The chapter highlights the necessity for the revision of that states of affairs in the world economy and proposes in where to start creating the new global technological system as the new backbone for restarting the economic growth and international civil cooperation.

**Keywords:** technological change, epochal innovations, steady-state growth model, economy of scale, economy of scope, dual-use technologies, regional comparative

advantage, creative destruction, localization of technological change

**Technological Reconstruction of the Global Economy**

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

DOI: 10.5772/intechopen.75096

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.75096

Irina Boiko

Irina Boiko

**Abstract**

#### **Technological Reconstruction of the Global Economy Technological Reconstruction of the Global Economy**

DOI: 10.5772/intechopen.75096

#### Irina Boiko Irina Boiko

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.75096

#### **Abstract**

The chapter addresses the technological evolution of global economy since the yearly post war years until the beginning of world crisis in 2008. The author explains spectacular growth, demonstrated in the world economy, by implication of technologies, invented during "the golden age of technologies", the dual-use peculiarity for the majority of them and their subsequent transfer from the leading countries to the less developed, enforced the extension in scale of production and markets. It should be recognized that the technological system, launched after the World War II represents the backbone of the contemporary global economy, despite the different role of its main drivers: manufacturing production, trade in goods and services or foreign direct investments. The theoretical model of the steady-state growth most appropriately describes how the increments in capital and investments enforce the economic growth, no matter of where there are originating from. The 2008 global crisis reveals the exhaustion of the "technological source" for continuing growth of the world economy, reflecting in many ways the emerging discrepancy between technological development and economic growth: deindustrialization of the leading economies, "bubble effect", eroding the foundation for economic sustainability, "Dutch disease" for the oil-dependent countries, the bias toward the energy resources in the world trade in general and, of course, worldwide growing militarization. The chapter highlights the necessity for the revision of that states of affairs in the world economy and proposes in where to start creating the new global technological system as the new backbone for restarting the economic growth and international civil cooperation.

**Keywords:** technological change, epochal innovations, steady-state growth model, economy of scale, economy of scope, dual-use technologies, regional comparative advantage, creative destruction, localization of technological change

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
