Going global (2.15.1994)

Peter Lorenzi, Dean, University of Central Arkansas

According to the World Bank, the United States still dominates the world’s economies, although the relative power and ranking of other countries is shifting. Using 1993 data, adjusted for purchasing-power parity (which allows comparisons between countries with significantly different wages and costs of living), America had a Gross Domestic Product (GDP) of almost $6.4 trillion. The next three largest economies combined -- Japan, China and Germany -- just about equal America’s GDP. The next seven largest -- India, France, Italy, Britain, Brazil, Russia and Mexico -- also add up to America’s GDP. Growth in the Asian Pacific countries -- China, Indonesia, South Korea, Thailand, the Philippines, Malaysia, Hong Kong and Singapore -- has been strong for the past five years, with continued rapid growth expected in most of these countries. Megatrendauthor John Naisbitt joins a chorus of experts in predicting that China, not Japan, will have the world’s largest economy by the turn of the century. The Chinese population living inside and outside mainland China is likely to be the heart of the world economic order in the first part of the twenty-first century.

Are you ready to go global? Even if you have no plans to leave Conway or Arkansas, even if your firm is not exporting products to foreign countries, international business has come to Conway and it is growing. Five years ago Tokusen came to Conway. Today, there are about four hundred foreign students at UCA, representing one third of the countries in the world, who make up 5% of the total student body, 15% of undergraduate business students and 30% of the MBA students. A new Executive MBA program may be coming to UCA, for twenty-five experienced Taiwanese managers. Education has become a major American export and Conway began playing a bigger role in this business five years ago. International students studying at Conway colleges make a significant impact on the local economy, as students pay tuition, rent apartments, buy cars, eat at restaurants, open bank accounts and participate fully in economic life.

How might this affect the student or businessperson thinking about the global future? Language skills are important for global business but it is more important to master English first. English has become the lingua franca of world business and, fortunately for us, most likely you will find business people around the world to have a good command of English. If you had the time to begin study of a foreign language, choosing a language to study might be difficult. Some languages you are never likely to speak without extensive study and preparation. Encourage your children to study a second language -- any language -- while they’re in high school. Spanish is the best, given Arkansas’s location, NAFTA, and the fact that next to Chinese and English, Spanish is the most widely spoken first language in the world.

If you’re traveling to a foreign country or receiving foreign guests, a good travel guide can offer a cursory introduction to the history, culture and geography of a country. Foreign hosts and guests appreciate even an American’s familiarity with even a few aspects of cultures outside the United States. Listening to the BBC World Service (FM 91.3) can provide you with a more global view of the news and of people. Foreigners are often dismayed at the lack of knowledge and appreciation Americans have of other cultures. They say, "We know much more about America than Americans know about our country.” This is bound to be true in that any country wanting to be a major player in world politics or business will gear much of their international education towards learning about the United States. With about 5% of the world’s population, the United States consumes about 20% of the world’s energy and produces about 25% of the world’s goods and services. Foreigners make a conscious, focused, economic choice to learn about America and to learn English. Also, American media dominate the world of messages and ideas, especially for movies and television. Western culture, especially American,

Where do you begin? Begin with the realization that the economic world is shrinking. A more global, computerized, networked world economy actually increases the importance of knowledge and of smaller, flexible firms. As the world grows smaller, so does the minimum amount of resources needed for success. Making best use of what you know, and being willing to learn more all of the time, are the best personal strategies for global success. Have a nice trip.