important, but not in the traditional sense. Globalization will be increasingly linked to innovation. Furthermore, many small and medium-sized multinational corporations will emerge, relying on alliances that draw on the experience and information available to partners in each market in which the alliances operate. The role of government will not diminish. This role will not necessarily be antagonistic but will provide overall strategic direction, infrastructure, monitoring of conditions for fair competition, and preservation of cultural heritage and environmental quality.

Thus, the availability of abundant raw materials and cheap labor are no longer key factors for success in the world market. New technologies restore vitality to certain sectors in industrialized countries, sectors that were hitherto viewed as almost certain candidates for relocation to the Third World. At the same time, developing countries now have available to them a whole set of new technologies that lend themselves to blending with traditional technologies and thereby make faster development possible across the board.

Those developing countries endowed with raw materials and energy may convert them into more valuable commodities, but unless they are able to master the technology needed to upgrade such commodities, they will derive little benefit from this primary transformation. Emphasis must therefore be placed on research and development and enhanced international cooperation, because it is not in the interest of advanced countries to keep the developing countries’ margins so low as to hamper their advancement and preclude their becoming healthy producers and active market forces. Whether this happens depends largely on the wealthier societies of North America, Western Europe, and Japan. Responsibility therefore lies with them.

REFERENCE

Ohmae, K. 1985. Triad Power: The Coming Shape of Global Competition. New York: Free Press.



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