The Global Schoolhouse

Part 3 of 3: The Global Schoolhouse

[M]any critics of globalization make America the wicked villain in the tale. They portray the U.S. forcing Nike, McDonald’s and Baywatch down the throats of the unwilling world, shredding ancient cultures for the sake of empire and cash. But […] Multinational corporations are just that, multinational; they don’t represent American interests or American culture. Just as much as they changed the tastes and economies of other countries, they have tried to change the tastes and economy of the United States.

—Franklin Foer, How Soccer Explains the World

To begin Part 3, let’s review: The world is a schoolhouse; the global economy is its schoolyard; the game being played is economics/commerce; the schoolchildren who compete in this game are individual countries; their social cliques are based largely on history and finances; and multinational corporations? Well, they’re schoolchildren, too (but in a whole new way).

Multinational corporations are the younger siblings of our schoolhouse nations. They are smaller, have learned from the mistakes of their older siblings, and are more skilled at the schoolyard game of economics. Corporations share geographic, cultural, and historic parents with their older siblings (like Amazon with the United States), but that’s where the similarities end.

Just like younger students, multinationals have fewer obligations than their older counterparts—fewer classes to take, fewer school dances to attend, fewer extracurriculars. They have fewer distractions, in general. Instead, corporations mostly spend their time playing out on the schoolyard, focused on one thing—their game, how to efficiently make a profit.

This focus is what allows for a new paradigm, one of inclusion rather than exclusion. As we discussed in Part 2, nations have a tendency to favor their “in-group” clique. This leads to discrimination on the grounds of historical allegiances, rivalries, or economics.  Corporations, on the other hand, have different goals. They require outsiders (emerging markets), in order to continue growing. They want as many participants playing on the schoolyard as possible.

In the book The Better Angels of Our Nature: Why Violence Has Declined, Steven Pinker cites “commerce” as one of five reasons why we cooperate with one another instead of act aggressively. Multinationals understand this; it’s why they exist, why they are multi-national. It is in our economic best interest to cooperate globally. But commerce does more than give developing countries a chance to participate.

In November, The Wall Street Journal ran an article titled, “Netflix, Amazon Take Divergent Paths to Reach Indian Audience.” It was a quick read but highlighted this shift from traditional exclusion to emerging inclusion. The brief piece described Netflix’s cost-effective strategy to keep content production “in-house” at their California studio. The idea being that if the shows they make have multinational appeal, then Indian audiences, as well as other countries, will watch (in turn, saving the studio money). Conversely, Amazon has set up shop in Mumbai creating content in India with Indian actors and an Indian audience in mind.

The story of Amazon’s strategy in India is a hopeful one. It’s hopeful because in an attempt to grow, they are seeking a competitive advantage—to truly learn and understand their audience’s perspective. As we discussed in Part 1, all people want respect, and for the first time, those countries previously shut out of the established economies clique are starting to receive some.

If respecting the diversity and richness of the world’s cultures creates a competitive advantage for businesses, then there is hope for the billions of people within the developing world. Binge watching television may be a waste of time, but the Netflix-Amazon example shows a broader trend. Regardless of the business, the point is this: Emerging markets are finally being included in the game (if only as consumers to start).

Before we get carried away with the salvation of commerce, it’s prudent to acknowledge the elephant in the room—unbridled capitalism. The subject is a heavily debated one. Even the Pope has weighed in.  But rather than taking a Marxist view of inherent failure or Wall Street’s belief that “The Market is always right,” let’s assume for a moment that capitalism, like most things, has an equilibrium point.

Commerce cannot answer the world’s woes alone. While the inclusive strategy of multinational corporations may lead the charge, countries still need to decide for themselves that cooperation trumps aggression. It may feel ironic that a game that creates overpaid mega-CEOs could equalize the global divide, but perhaps it could.  Perhaps commerce can help create more global balance. There is an equilibrium point between corporations and nations that could help both to be successful—to learn, mature, and graduate from the global schoolhouse.

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