Making the most of globalization Even though you may sell product to local retailers, you are impacted in many ways by globalization. Higher gas prices are considered to be one of the major factors putting the pinch on consumer budgets, causing some people to spend less on shopping. Higher interest rates and the cooling housing market have also impacted consumer spending. Rising demand for oil in developing countries like China and India along with instability in the Middle East continue to keep energy costs high, which translates into rising costs for U.S. businesses and consumers. Globalization, reports USA Today, has been reshaping the U.S. economy ever since the North American Free Trade Agreement took effect in 1994. With China and India now an integral part of the global economy, the impact on American workers continues to increase. At a recent policy forum of the Hamilton Project (www.brookings.edu/es/hamilton/hamilton_hp.htm), former Treasury Secretary Robert Rubin said that globalization's effects are likely to be much greater than today, reports USA Today. Rubin, who is now director and chairman of the executive committee at Citigroup, said it is imperative that the United States develop policies that encourage long-term backing for global economic integration. Succeeding with globalization This year's 21st Seeley Conference at Cornell University undertook the task of determining whether floriculture would prosper under globalization. Although it is unlikely that developing countries like China and India will have an immediate impact on the availability of finished floral products, their evolving economies will influence the way we do business on a personal and professional level. One of the conference speakers pointed out that globalization has flattened national barriers, which has resulted in a greater need for global cooperation in regards to health, the environment, economics and national and international security. The speaker said this is not a time for arrogance because no country can go it alone anymore. Globalization has made doing business more difficult, but it also offers companies many opportunities. Small companies can survive by acting big and using tools like the Internet to appear larger. Large companies can learn to act small by giving their customers the power and making it easy for them to exercise it. Starbucks is one company that has allowed self-directed consumers to design their own products. It was pointed out that the best companies are the best collaborators. Strong, decisive leaders know they don't have all the answers. The best companies know they have to step back and evaluate what they are doing. Companies need to determine what makes them unique. The best companies outsource to improve, not to simply cut costs. Outsourcing should enable a company to grow and gain market share. Outsourcing does not make a company a Benedict Arnold. A company may have to decide whether it is going to downsize or outsource. As the speaker explained, the decision to outsource is one that is made with the head, but it also involves the heart because laying off friends and co-workers is not an easy task. Send this article to a friend Enter your e-mail address: Enter your friend's e-mail address: Click the image below to send: © 2006 Branch-Smith Publishing