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Soundview Executive Book SummariesA radically new world is taking shape from the ashes of yesterday's nation-based economic world. To succeed, you must act on the global stage, leveraging radically new drivers of economic power and growth. In The Next Global Stage, legendary business strategist Kenichi Ohmae synthesizes today's emerging trends into the first coherent view of tomorrow's global economy - and its implications for politics, business and personal success.
Ohmae shows why yesterday's economic theories are collapsing, and explores the dynamics of the new region-state: tomorrow's most potent economic institution. He also shows how China is rapidly becoming the exemplar of this new economic paradigm.
The Next Global Stage offers a practical blueprint for businesses, governments and individuals who seek ways to thrive in this new environment. It concludes with a detailed look at strategy in an era when it is tougher than ever to define competitors, customers and even companies themselves.
What Is the Global Economy?
For many, Ireland summons up visions of green, mist-covered fields and valleys. But outside the tourism industry, pleasant scenery does not produce wealth.
When Ireland became independent as a nation in 1922, it was overwhelmingly rural. From the 1960s onward, attempts were made to attract manufacturing industry from abroad. The Industrial Development Authority, a government agency, constructed industrial infrastructure and facilities, while the government offered generous tax breaks for foreign direct investments. These moves were only partly successful.
In the 1970s and early 1980s, physical geography still played a big role in the international economy, and Ireland's location on the far western periphery of Europe meant that it was just too far away from potential markets.
In the late 1980s, emigration from Ireland increased, but those highly educated emigrants often returned after gaining experience and contacts outside the country. A new self-confidence began to take hold. The fact that the country had missed out on industrialization was increasingly seen as a blessing. It meant that the country's economy could take advantage of new trends beyond its borders in the global economy. Ireland could begin from scratch. In the late 1980s, developments in cybertechnology made it clear that jobs and prosperity could come at the end of a telephone line.
In 1992, the vision of Ireland as the "e-hub of Europe" emerged. Ireland is lucky: It is a nation-state that is the same size as a region-state. It is therefore capable of tapping into the dynamism of such a region-state. One of the keys to the success of a region-state is being able to brand itself successfully (such as an "e-hub") and to offer something different that sets it apart from the competition.
Innate Characteristics of the Global Economy
The global economy has four innate characteristics:
- Borderless. National borders are far less constrictive than they once were. In terms of the four key factors of business life - communications, capital, corporations and consumers - the world has attained the position of being effectively without borders.
- Invisible. The potency and prevalence of the global economy is not totally visible to the naked eye. The actions that it performs often take place not on the streets or in the debating chambers of national parliaments, but on computer terminals. Plus, cash transfers occur with a credit card.
- Cyber-Connected. The global economy would not be possible without cybertechnology allowing large amounts of data to be transferred incredibly quickly. The Internet is only the most public part of this. Everything and everyone connects.
- Measured in Multiples. Money is no longer seen only as a unit of value in the short term. Multiples are signs given to management by shareholders to shoot at the business opportunities on the horizon. Multiples are fictitious, in that they often do not reflect corporate value, but they express an expectation.