Advanced Search
MyIDEAS: Login to save this paper or follow this series

Free Trade, Business Strategy and Globalization

Contents:

Author Info

  • Gavin C Reid

Abstract

This paper links the economist's analysis of free trade with the business strategist's analysis of the forces behind the globalization of competition. It argues that, although the drive to globalization may seem different from the seeking of superior outcomes in competitive markets, this may be only because the modern reference point for competition is inappropriate. However, reference to classical ideas of competition shows that both the advantages of globalization, and its disadvantages, had been anticipated by classical writers of the eighteenth century, most notably by Adam Smith. That argument is supported with two main lines of reasoning. The first identifies globalization as the most recent stage in a process of stadial development. The second links global business strategy to the analysis of competition as a dynamic process in classical economics. These two ideas are combined, to provide the basis for a 'cumulative causation' argument. In this approach, expansion of production, innovation, and increasing returns, are mutually reinforcing, causing a progressive spiral of growth. However, it is pointed out that the same process can cause 'vicious circles' as well as 'virtuous circles'. If demand starts to stagnate, this tendency can be self-reinforcing, with firms who are not industry leaders going to the wall, and a tendency to monopolisation asserting itself. Thus the process of globalization needs to be guided; the 'virtuous circle' is not a necessary outcome.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.st-andrews.ac.uk/crieff/papers/dp0009.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.st-andrews.ac.uk/crieff/papers/dp0009.pdf [301 Moved Permanently]--> http://crieff.wordpress.com/papers/dp0009.pdf). If this is indeed the case, please notify (Bram Boskamp)
Download Restriction: no

Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0009.

as in new window
Length:
Date of creation: Feb 2000
Date of revision:
Handle: RePEc:san:crieff:0009

Contact details of provider:
Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC

Related research

Keywords: Globalization; stadial analysis; process competition; cumulative causation;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gavin C. Reid, 1987. "Disequilibrium and Increasing Returns in Adam Smith's Analysis of Growth and Accumulation," History of Political Economy, Duke University Press, vol. 19(1), pages 87-106, Spring.
  2. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, American Economic Association, vol. 84(3), pages 359-68, June.
  3. Hahn, F H, 1989. "Kaldor on Growth," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 13(1), pages 47-57, March.
  4. Reid, Gavin C, 1985. "Keynes versus the Classics: Fluctuations and Growth," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(3), pages 315-27, November.
  5. Reid, Gavin C, 1989. "Adam Smith's Stadial Analysis as a Sequence of Societal Growth Trajectories," Scottish Journal of Political Economy, Scottish Economic Society, vol. 36(1), pages 59-70, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:san:crieff:0009. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.