2. Video: Emerging Powers: India
• What did you find informative
about this film?
• What is the basic argument that
the film presents about India and
about globalization?
• How does the film interpret such
things as India’s widespread
poverty and its periodic flare-ups
of ethnic and religious strife?
• Why are India and China so
important?
3. “Globalization in its current phase has
been described as an unprecedented
compression of time and space
reflected in the tremendous
intensification of social, political,
economic, and cultural
interconnections and
interdependencies on a global scale.”
Stegler, p. ix
• time-space compression
• deterritorialization and supraterritoriality
4. One way to
approach this: think
about the world
before globalization
• Distance mattered—space often measured in
time
• Territorial boundaries more or less kept
things in and out
• Society and culture had spatial referents
• Everything had its “place” (literally)
5. In a world of deterritorialization and
supraterritoriality:
•Distance becomes almost irrelevant (the end of
distance)
•Boundaries are increasingly permeable.
•Groups and cultures increasingly don’t have a
territorial basis
•A new kind of non-physical “place” is emerging
6. Bosworth and Gordon: A survey of
some key processes of globalization
• Technological advances
• Expansion of international commerce (exports
and imports)
• Rising importance of private capital flows
(stock markets and multinational corporations)
• Increasing travel and migration (international
tourism and domestic diversity)
• Increased communication and interaction
between peoples (through all sorts of media)
7. Bosworth and Gordon also point to some of the
key public controversies over globalization:
What are they?
“Can globalization be harnessed so that all citizens
and countries benefit and not just the lucky few?”
8. Frank Lechner: Empirical Debates
1. Process vs. Project
2. New Era vs. Nothing New (Globabaloney)
3. Hard vs. Soft
4. End vs. Revival of Nation State
5. Cultural Sameness vs. Difference
9. Amartya Sen: How to Judge
Globalization (Normatively)
1. 1. Is globalization
Westernization? Is it a threat
to non-western societies?
2. What is the right question to
ask about globalization and
the poor?
3. What are the “legitimate”
questions that “antiglobalization” protestors ask?
10. “Our global civilization is a world
heritage... The idea of an immaculate
Western conception is an imaginative
fantasy.”
“Globalization has much to offer, but even
as we defend it, we must also, without
any contradiction, see the legitimacy of
many questions that the antiglobalization
protestors ask.”
“The world powers bear an awesome
responsibility for helping in the
subversion of democracy in Africa and ofr
all the far-reaching negative
consequences of that subversion.”
11. “Over the past decade globalization has
been driven by technological
advances…..But globalization has also
been driven by policies and ideas…”
Bosworth & Gordon
Next time: globalization as a neoliberal
project
12. Performance of acquisitions
We used an event study methodology
► Sample - Indian companies had cross- border acquisitions
during 2002-2006.
►224 transactions: 127 different companies from 33 industries.
► We used BSE-500 (represents nearly 93% of the total market capitalization
on Bombay Stock Exchange Limited) as the market index for the
calculations.
Calculating CAR
►Used the following formula to calculate the abnormal returns ^ ^
ARit = Rit - α i - β i Rmt, (t = -7 to t= +7)
►The CAR was calculated using the following formula CAR = ∑ AR
t = +7
i
Copyright NUS Business School 2008
t = -7
it
13. Summary
Acquisitions a prominent part of OFDI from India
► Good distribution across industries and regions
► Achieving an increased prominence, strong growth
► Important component to OFDI and strategy of MNCS from India
Strategy and performance
► Performance strong on an absolute and a comparative basis
► Several market expansion motives related to good performance
► Market clearly rewarding international expansion strategy of
Indian firms
► Need comparative analysis to other modes
► Need deeper analysis of strategy and performance of acquisitions
Copyright NUS Business School 2008
Editor's Notes
The fact there are winners and losers, and societies vary in how much they compensate the losers
Continuing poverty: ¼ world’s population below $1 a day; around ½ below $2 a day (has declined since article, mainly because of China and SE Asia and to some degree India)
Gap between rich and poor countries has widened. And inequality within most countries has risen with globalization.
Environmental concerns and conflict over global governance
Open borders and their effects (money laundering, terrorism, disease, drugs, sex trafficking)
Discuss distinction between empirical and normative debates. Leaving out #3, because it is explicitly normative, which leaves five.
