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Unit 4 Book4

2 3 4 4~5 6~8 9~11 Debate over the impact of globalization on current society and culture History of globalization and its recent trends and future prospects Globalization versus nationalism and the challenges it faces

2. Match the ideas

(Directions:) In the text, there are many names and ideas mentioned. Scan and match the idea presented in Column B with the person in Column A. There are more names listed.

Column A Column B 1. John Chambers A. There are still too many barriers to cross-border business in Europe, let 2. Marco Tronchetti Provera alone the world. B. Manila Woman are 3. Alex Mandl strongly patriotic. C. Cultural identity should 4. Patrick Sayer be local and national in nature. Key: 1D, 3E, 4A, 5C, 7B 5. Klaus Schwab D. U.S. and European companies are now facing high-quality, 3. Further Understanding 6. William Browder low-cost competition True or False from overseas. People call William Browder an American, because he was born in Princeton, New Jersey, grew up in Chicago, and studied at Stanford University in California. 7. Valerie Gooding E. I see myself (F)as (=William Browder was born in Princeton, New Jersey, grew up in Chicago, American without any and studied at Stanford University in California. But don't call him an hesitation. American.) Browder believes that national identity makes no difference for him. (T)

Alex Mandl is also a fervent believer in globalization. He never views himself as an American. (F)

(=He sees himself as American without hesitation.)

Davos man refer to the members of the international business élite who trek each year to the Swiss Alpine town for the annual meeting of the World Economic Forum. (T)

At the World Economic Forum, the issues discussed include everything from

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Unit 4 Book4

post-election Iraq and HIV in Africa to the global supply of oil and the implications of nanotechnology. (T)

Professor Samuel Huntington describes Davos Man as an emerging global superspecies and a threat. (T)

Questions and Answers

Did global trade exist in the past? What did people doing global trade think of it then? (=Yes, global trade has been around for centuries. In the past, the corporations and countries that benefited from global trade were largely content to treat vast parts of the world as places to mine natural resources or sell finished products.)

What is Goldman Sachs’ prediction about the world economy in the future?

(=It predicted that four economies — Russia, Brazil, India and China — will become a much larger force in the world economy than widely expected, based on projections of demographic and economic growth, with China potentially overtaking Germany this decade. By 2050, these four newcomers will likely have displaced all but the U.S. and Japan from the top six economies in the world. )

Who does Manila Woman refer to?

(=It refers to low-paid migrant workers from Asia and elsewhere who are increasingly providing key services around the world.)

What is the major difference between Davos Man and Manila Woman? (=Unlike Davos Man, Manila Woman is strongly patriotic.)

What does the author think Davos Man need to figure out?

(=Davos Man needs to figure out how to strike a balance on a global scale between being international and being national at the same time.)

Detailed Reading

Text A

Globalization is sweeping aside national borders and changing relations between nations. What impact does this have on national identities and loyalties? Are they strengthened or weakened? The author investigates.

In Search of Davos Man1

Peter Gumbel

1 William Browder was born in Princeton, New Jersey, grew up in Chicago, and studied at Stanford University in California. But don't call him an American. For the past 16 of his 40 years he has lived outside the U.S., first in London and then, from 1996, in Moscow, 1

This text is adapted from the January 31, 2005 issue of Time.

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where he runs his own investment firm. Browder now manages $1.6 billion in assets.2 In 1998 he gave up his American passport to become a British citizen, since his life is now centered in Europe. \identity makes no difference for me,\he says. \feel completely international. If you have four good friends and you like what you are doing, it doesn't matter where you are. That's globalization.\

2 Alex Mandl is also a fervent believer in globalization, but he views himself very differently. A former president of AT&T, Mandl, 61, was born in Austria and now runs a French technology company, which is doing more and more business in China. He reckons he spends about 90% of his time traveling on business. But despite all that globetrotting, Mandl who has been a U.S. citizen for 45 years still identifies himself as an American. \time in other places doesn't change that,\

3 Although Browder and Mandl define their nationality differently, both see their identity as a matter of personal choice, not an accident of birth3. And not incidentally, both are Davos Men, members of the international business élite who trek each year to the Swiss Alpine town for the annual meeting of the World Economic Forum, founded in 1971. This week, Browder and Mandl will join more than 2,200 executives, politicians, academics, journalists, writers and a handful of Hollywood stars for five days of networking, parties and endless earnest discussions about everything from post-election Iraq and HIV in Africa to the global supply of oil and the implications of nanotechnology. Yet this year, perhaps more than ever, a hot topic at Davos is Davos itself. Whatever their considerable differences, most Davos Men and Women share at least one belief: that globalization, the unimpeded flows of capital, labor and technology across national borders, is both welcome and unstoppable. They see the world increasingly as one vast, interconnected marketplace in which corporations search for the most advantageous locations to buy, produce and sell their goods and services.

4 As borders and national identities become less important, some find that threatening and even dangerous. In an essay entitled \Dead Souls: The Denationalization of the American Elite,\that first got widespread attention in the 1990s) as an emerging global superspecies and a threat. The members of this class, he writes, are people who \loyalty, view national boundaries as obstacles that thankfully are vanishing4, and see national governments as residues from the past whose only useful function is to facilitate the élite's global operations.\Huntington argues that Davos Man's global-citizen self-image is starkly at odds with the values of most Americans, who remain deeply committed to their nation. This disconnect, he says, creates \5. In a variety of ways, the American establishment, governmental and private, has become increasingly divorced from the American people.\ 2

Browder now manages $1.6 billion in assets.: Right now there are $1.6 billion worth of assets under Browder’s management at his investment firm. 3

both see their identity as a matter of personal choice, not an accident of birth: both believe it is themselves, not the place of their birth, that decides their identity 4

view national boundaries as obstacles that thankfully are vanishing: regard national boundaries as obstacles that are disappearing, which is a piece of good news for them 5

a major cultural fault line: an important line dividing a culture into two camps, which is likely to cause problems

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5 Naturally, many Davos Men don't accept Huntington's terms. Klaus Schwab, the founder and executive chairman of the World Economic Forum, argues that endorsing a global outlook does not mean erasing national identity. %us with cultural identity, which needs to be local and national in nature.\

6 Global trade has been around for centuries; the corporations and countries that benefited from it were largely content to treat vast parts of the world as places to mine natural resources or sell finished products. Even as the globalization of capital accelerated in the 1980s, most foreign investment was between relatively wealthy countries, not from wealthy countries into poorer ones. U.S. technology, companies and money were often at the forefront of this movement.

7 However the past two decades have witnessed the rise of other significant players. The developed world is beating a path to China's and India's door — and Chinese and Indian companies, in turn, have started to look overseas for some of their future growth. Beijing has even started what it calls a \to buy assets overseas. Asian nations are creating \remarkable environment of innovation,\graduating currently more than five times the number of engineers that we are here in the U.S.\That means that U.S. and European companies are now facing high-quality, low-cost competition from overseas. No wonder so many Western workers worry about losing their jobs. \thing6,\is divided, if you're in the Western world you could question that.7\

8 The biggest shift may just be starting. A landmark 2003 study by Goldman Sachs predicted that four economies — Russia, Brazil, India and China — will become a much larger force in the world economy than widely expected, based on projections of demographic and economic growth, with China potentially overtaking Germany this decade. By 2050, Goldman Sachs suggested, these four newcomers will likely have displaced all but the U.S. and Japan from the top six economies in the world.

9 It's also entirely possible that the near future may see the pendulum of capital swing away from Davos Man-style globalization. One counterpoint is Manila Woman — low-paid migrant workers from Asia and elsewhere who are increasingly providing key services around the world. Valerie Gooding, the chief executive of British health care company BUPA, says the British and U.S. health care system would break down without immigrant nurses from the Philippines, India, Nigeria and elsewhere. Unlike Davos Man, she says, they're not ambivalent about being strongly patriotic.

10 Not all Davos Men seek global markets, either. Patrick Sayer runs a private equity firm in France called Eurazeo, and complains there are still too many barriers to cross-border business in Europe, let alone the world. So he's focused Eurazeo on its domestic market. \French in France. It's easier for me to do deals,\Sayer says. \ 6

If the issue is the size of the total pie, globalization has proved a good thing: Globalization is good in that it helps make the pie bigger. 7

If the issue is how the pie is divided, if you're in the Western world you could question that.: When it comes to the question of how the pie is divided, Westerners could worry that non-Westerners might begin to take away a bigger share of the pie.

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