Book Report CEOs and Foreign Policy

The advent of globalization has brought with it numerous changes in the society. One of the most notable developments is the emergence of non-state actors in the international arena. Previously, states are the only primary actor that are recognized in the international community but due to globalization non-state actors like multinational companies are also playing an influential and pivotal role in the society. CEOs of large companies have the power to talk and influence the decisions of high-ranking government officials, which is essential in the smooth operations of their business transactions. Nevertheless, CEOs of companies as well as other members of the management still have to play a bolder role in influencing the foreign policy of their respective countries because in a world that is greatly interrelated, foreign policy also has an impact in their business relations with other countries. This kind of adage is exemplified in the article of Clyde Prestowitz, entitled CEOs and Foreign Policy.

As the title of the article suggests, CEOs and Foreign Policy, it talks about the impact of foreign policy to the business operations of large companies and it also advocate the greater participation of CEOs in influencing the foreign policy of their respective country. According to Prestowitz, due to globalization many CEOs have transformed into something that is similar to heads of state. The sales of these corporations are even larger than the national budgets of many nations. In relation to this, CEOs have a greater opportunity in arranging meetings with head of states as compared with the officials of other countries. Moreover, CEOs also have their own version of a presidential cabinet, which have its respective members that are responsible in the different important areas in business such as finance, central intelligence, labor, culture, and defense. However, most companies still do not have its own secretary of state. The vice president for public affairs is more focused on issues involving tax, trade, and regulations. Only few companies have representatives that give importance to the foreign and national security policy of their country. The changes in the society have shown that companies should give due attention to foreign policy because globalization also have its adverse effects. Since globalization happens in cultural, political, and social environment, it cannot be prevented that different sets of values clash with each other. Due to this, the tensions and potential conflicts that are brought about by globalization have decisive importance in the situation of business. In the case of the United States, the governments decision to invade Iraq and its not so friendly reception with the help of NATO in 911 crisis as well as its failure to take part in important international treaties have tainted the image of the country, especially with the European Union. Being the case, the European Union is threatening to impose sanction to the United States if it fails to abide by the rules of the World Trade Organization and these European countries also have hardening attitudes when it comes to the genetically modified foods and software competition policy of the United States (Prestowitz, 2003).

The topics that are discussed in the article are also tackled in the textbook. The concept of globalization is also substantially explained in chapter 1 page 4 of the book. The important actors in the international community, especially those that affects the situation of a country like United States, such as the United Nations Security Council, NATO, and the European Union are seen in chapter 4 pages 100 and 123-127. The Free Trade Agreement that is also important to the World Trade Organization is explained in chapter 4 page 100 of the textbook. Furthermore, the concept of global democratization, which is mentioned in the article as an end result of the greater liberalization of market forces, is also included in the book.

The article also pointed out that CEOs should not be merely contented in having lawyers but rather they should also employ global affairs executive that knowledgeable with different cultures and interacting with people of different nationalities. Corporate executives should give due attention and importance in discussing important issues regarding the foreign policy of a country with grand strategy players in their country as well as in abroad. In doing so, CEOs will be able to once again capitalize on the benefits of globalization and at the same time, address its adverse consequences .

0 comments:

Post a Comment