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Customer ReviewsThe Next Global Stage: Challenges and Opportunities in Our Borderless World

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6 of 7 people found the following review helpful

A critical view of Mr. Ohmae opinions....but it is fun to read it.,June 24, 2005

This review is from: The Next Global Stage: Challenges and Opportunities in Our Borderless World(Hardcover)

Mr. Kenichi Ohmae is an international consultant to multinational corporations, this isimportant to have in mind when reading his books. This book discusses and presents ideasin a way to market globalization and justify it. It is like reading a book by Jack Trout onmarketing, easy to read and enjoyable, but we must be careful, there are inconsistenciesand some ideas are placed out of context to justify concepts that may be questionable.Mr. Ohmae's firmly believes that the Global Economy is a new fact, and what is happeningis different then the Internet Bubble. As I see it, it remains to be seen if the "GlobalEconomy" is similar or not to the internet bubble.

Some economic facts, like the current American Economic volatility, will raise importantquestions regarding the ideas in this book. The USA has played a keynesian role in theGlobal Economy, but that may be coming to an end. It's currency is loosing value. Thesedays, this loss of value may start rolling without control. Without the American economicbehavior(being a big spender) would it be possible to have the "Global Economy"? It isinteresting that Mr. Ohmae criticizes this type of situation, but on the other way, how couldChina, Japan and Europe have huge trade surpluses???

The book criticizes economic theories in a very superficial way.

Some facts are thrown as truth, but hardly you can use that to base any conclusion, like forexample,see page 51:

"In fact, in recent years, when the number of jobs has increased, the stock market hastended to go down. Investors know that increased employment is a sign of poorproductivity gains and, as a result, a potential cut in the bottom line."

We have to respect Mr. Ohmae for he is an strategist, so what he says may hide his realideas or objectives. For example, in page 32, you have the tip of the Iceberg:

"Most German and Japanese producers have survived severe currency appreciation byproducing better products and selling them at higher prices while continuing endlessly toimprove productivity. In a borderless world, if these measures are not enough, companiescan migrate to lower-cost countries for production or other overhead work while keeping

By Jose Ernesto Passos (So Paulo, SP Brazil) - See all my reviews

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The most helpful favorable review The most helpful critical review


An Asian Strategist's View ofFuture GlobalizationWhenever I meet top corporate strategists forthe first time, Kenichi Ohmae's books alwayscome up. Someone will ask, "Which one doyou like best?" With The Next Global Stage,my answer has changed to this book. For

those who want a more conceptual version ofThe World Is Flat that applies to futurecompany and government decisions, The NextGlobal Stage is a good...Read the full review

Published on May 30, 2005 by Donald Mitchell

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Read The Economist instead

I've read 130 pgs of this book and I'm goingto put it away. I'm not hooked by it. I'm anAmerican living in Taiwan and read theEconomist regularly. So perhaps I'm not theaudience the author is addressing. Basicallyfrom reading the Economist and keeping up

on China in the media I feel most of hisinformation is dated. Ohmae's style has a lotof filler and not much...Read the full review

Published on February 19, 2006 by meyers66

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The Next Global Stage:Challenges andOpportunities in OurBorderless World(paperback) by KenichiOhmae (Paperback -March 27, 2005)

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2/8

the most critical functions at home."

This last word, "home", demonstrates clearly that the national interests are alive and well.So for the policymakers of the world, be careful when opening the borders of youreconomy, you may end exporting value adding jobs and functions. It is important tounderstand the final impact of the ideas presented.

I would recommend, to balance the hype in this book, that one reads Mr. Chandler'sInventing the Electronic Century, to have an idea of the results of a coordinated strategicattack, like what the Japanese Eletronics industry has done.

While reading this book, I started thinking of it as a good advertisement for ideas that mayhelp some major economic groups to develop their own agenda, not necessarily ideas thatwill be good for fostering democracy, true economic competition, individual freedom andthe well being of mankind on the long term. My way of seeing it, globalization is notsomething recent, it has been the major changing force during the XXth century, the recenttechnologies explosion have brought a major additional change in the economic and socialenvinronment.


A View of the Future from a Japanese Predictor, November 23, 2005


After a half century of cold war between two competing economic systems, the bad guys

fell apart. This has left the world a much friendlier place, especially from a businessstandpoint. It has not left the world totally without problems such terrorism, and a fewrogue states such as North Korea, Iran and a few others.

This is an excellent book on one person's thinking about the business aspects of the newglobal view of the world. He predicts that globalization will lead to sweeping changes in theway the world does business. The collapsing of trade barriers, the tremendous growth incommunications capability made doing things easier than before.

One area of discussion he brings up is the projected collapse of the nation-state.

There are indications he's right -- the current American President has placed strongrestrictions on stem cell research. Does he really think that restricting the drug companiesfrom doing such research in the US to keep the right wing of his political party happy isgoing to stop such research? The global drug companies will conduct the research inSwitzerland, or Japan, or Seoul or wherever they need to to get around the local rules.There are indications that he's wrong. Countries are proud of their heritage, their culture.The question is what happens to the power of central governments. The centralgovernments of Japan, England, the US, France, etc. are not going to go away. But theirpower will change, as in the stem cell situation mentioned earlier.

So will the power of governments to control their own currency. The concept of Keynesiancontrol of the interest rate/money supply changes in a global world -- witness the Euro.This is just part of his discussion on the changes that will have to come about in the generalarea of economics. In fact the chapter on economics is enough to justify purchasing thebook.

Anyone interested in predicting the future needs to read this book. The one thing I wouldask him to mention in the next edition is some comments on oil. How are the nation statesgoing to handle the transition to greatly increasing gasoline prices and the other impacts. Iwouldn't expect him to know what will happen, but I'd like to hear his opinions.


Book report by HBS Working Knowledge, October 22, 2005


Kenichi Ohmae is an Asia-based strategist of long standing, and The Next Global Stageoffers a sweeping and thoughtful review of the latest trends in globalization. Readers willfind plenty of food for thought concerning individual companies in India, China, and Japan,as well as more far-reaching discussions of global economic forces, regional strength, thechanging role of government, and technological progress. Think of it as a one-stop shop forall things globalization. Though the book is Asia-heavy, Ohmae also takes a spin throughother regions he considers hot spots for the future. Some may surprise you: Tallinn,Vancouver, Ho Chi Minh City, So Paulo.

Of all the trends he reviews, the one he identifies as most important for the future is theemergence of "region-states," which include some of the cities named above. A region-statehas all the practical building blocks for economic growth, such as a sizable population and

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an efficient transportation infrastructure. But more importantly, region-states are "units"that create a virtuous circle: They are open to outside ideas, welcome people with variousbackgrounds and skills, and become magnets for investment. "The concept of native versusforeigner must be erased, so rules limiting investment or foreign ownership of land orcapital must be abolished."

Ohmae, whose previous books include The Mind of the Strategist and The Borderless World,is optimistic about the march of globalization. This book forms a good starting point forviewing a clear road ahead


Interesting views, but too much special pleading, May 11, 2005


Because this book is looking at the future through Japanese eyes, I have to admit there issome of it that seemed downright strange to me. When the author describes certain eventsor issues in the world they just seem odd, but then I realize that I am seeing things as anAmerican. So, the book has real value in helping Westerners see what is getting attention inthe Japanese business world. Also, the English or the English translation used in the book isstrange at times.

The most serious problem I have in the book is that several times the author violates thatold investment rule: take your money and run when you hear the words, "but this time it'scompletely different"! Mr. Ohmae talks about the end of economics and urges agrarian

economies to become high-tech communications economies. Where have we heard thatsong before?

However, the author is most interesting when he talks about solving certain problems inJapan. For example, he mentions that Japanese rice farmers passionately resist importingrice. Also, the government subsidizes the farmers extensively. Adding to the problem is thegrowing population and the sky high price of land. The author suggests that thegovernment subsidize the farmers, but with the requirement that they buy land outsideJapan where rice can be grown in huge quantities and quite inexpensively. He notes thatfood security can be addressed by having these farms on multiple continents. Of course,this is innovative thinking, but hardly new economics.

The author does get a good view on the current changes in the world economy that flatteneconomic opportunity and make national borders functionally more like the bordersbetween states in America. However, I think his special pleading about economics andcommunications weakens his larger argument. The book is best for those wanting to get ofview of the current world through the eyes of Japan.


operate on a global stage, July 19, 2005


Ohmae offers the reader a literal worldview. He argues that you should expand your horizonbeyond the confines of national boundaries. Whether you are an individual investing yourown money, or, say, a mutual fund manager looking for an asset class to deploy into. Or,and perhaps especially this, if you are a corporation trying to find new clients or partners orsuppliers.

The book attacks the recent offshoring debate in the United States as ultimately misguided.As a wry aside, Ohmae points out that 15 years ago, there were fears about Japanovertaking the US. Something you just don't hear about anymore.

His take on offshoring is that it is inevitable. The technology that enables it is becoming

ever cheaper, after all. He suggests that you try to take advantage of it, by changing yourstrategies to operate on a global stage.

There is one remark in the book that I must take issue with. He states that in 2000-4, theAustralian economy expanded strongly, for unknown reasons. Not so at all. For one thing,the strong demand from China for minerals and food certainly helped the Australian balanceof trade. But Australia is more than just mining and agriculture. The interest rates stayedlow, triggering a boom in real estate investment that was instrumental in growing theeconomy. This may of course come to a bad end later. But the economy's expansion wasvery much due to known reasons.




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4/8


Better editing would have helped!, November 11, 2007


Interesting points throughout concerning globalization and how the world can benefit froman integrated economy without barriers like tariffs and quotas. Anything else I can say thatis good about this book has already been said. Good substance, but bad delivery.

As I read through this book, I was astounded by the number of incomplete thoughts andmissing points. More often than not, i needed to reread certain sections just to be sure Ididn't miss a point, only to discover, he didn't intend to make one. He also repeats himself,over and over and over again.

Again, sound subject matter, but bad delivery. For a better understanding of issuesdiscussed, read this book in conjunction with:The End of PovertyThe World is FlatBottom BillionWhite Man's Burden


Visionary Views of the Evolving Region-State Consistent with Friedman's

Flattened World, June 2, 2006


Although globalization is a rich topic worthy of several volumes, it's a bit of a shame thatcorporate strategist Kenichi Ohmae's book duplicates much of the same thesis of New YorkTimes foreign affairs columnist Thomas Friedman's huge best seller, "The World Is Flat: ABrief History of the Twenty-First Century", a book I admired last year. Both authors dealwith the phenomenon of a flattened world, a macro-level regrouping of economic forceswhich occur periodically on a global basis. Friedman explains that the burgeoning globalfiber-optic network has transcended national borders and corporate entities to the point ofstarting a new structure for the economy, specifically the outsourcing of the U.S. economy'sservice and information-technology work to India and other developing nations. Based inAsia, Ohmae is obviously not as keen on outsourcing but more on the factors that havemade outsourcing so attractive to the U.S., i.e., why has such hubs of cost-effectiveproductivity sprouted in Asia. This is how his orientation differs from Friedman's.

The author's personal observations come from his work with individual companies in India,China, and Japan. From this perspective, he believes strongly that one of the most

important developments for the future is the emergence of "region-states". The antiquatedconcept of "nation-states", along with the accompanying protectionism related to suchpolitical sovereignty, is being rendered obsolete in the global economic marketplace. Asborderless centers of economic activity, "region-states" have all the practical building blocksfor growth, such as a sizable population and an efficient transportation infrastructure.Ohmae points out that such entities can be seen forming in the Shuto-ken (Greater Tokyo)metropolitan area of Japan and Guangzhou (Canton) in China. They exhibit viable socio-economical units that create what Ohmae calls a "virtuous circle", i.e., an openness tooutside ideas and people with various backgrounds and skills. This is the culturalcharacteristic the author considers vital in order for companies to thrive.

On a broader plain, there are a number of defining features to "region-states", chief amongthem the expeditious flow of communications and capital, which obviously attractscorporations and consumers. What Ohmae does well is paint a picture of the globaleconomy not only driven by new technologies but also where knowledge has become thenew currency. He is particularly insightful into how the future may look if the transferenceto the "region-state" fully occurs. Corporate leaders will need to be visionaries rather thanjust bottom-line-oriented consensus-builders, and strategy has to be mapped out to makegreater sense of the chaotic new world. The author rather idealistically states that what willhave greater value for leaders is sharpening their predictive skills in ascertaining upcoming

trends, innovating quickly without all the data normally expected, and creating anenvironment where the norm is changing circumstances and extracting relevant informationout of the clutter. I think Ohmae would have somewhat more credence if he could havegiven more practical advice on how to do this other than encouraging them to walk into thelight. Nonetheless, his book makes for stimulating reading on the dynamic transformation inprogress.


The Next Stage Is Here Now, April 30, 2006

By Rory M. Christian "Sudeten" (NY) - See all my reviews




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By Ed Uyeshima (San Francisco, CA USA) - See all my reviews




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5/8

This review is from: The Next Global Stage:Challenges and Opportunities in Our BorderlessWorld (Hardcover)

Yes, this is a borderless world in many respects and these boundaries will continue to thin.Author Keniche Ohmae has

been around, writing "The Borderless World" in 1990, among

other books. He's studied and researched economic global interdependence and itsramifications for many years, having written his first piece of work in the early 1970s. Someof

his point from his book "The Next Global Stage" are:

Concept of the Region State:

This trend had been in the making for a long time. Author

Ohmae has devoted a sizeable portion of "The Next Global Stage" to this topic. Economicinterests of a region have been, are now, and will continue to supersede governmentalnation-state interests. Mr. Ohmae listed several regions (cities and geographical areas) thatare currently experience and will continue to see tremendous growth and prosperity. Thisgrowth is happening literally right in front of us. Everyday I see

the changes. I live in one of these cities noted by Ohmae and see the physical, attitudinal,and economic changes, first-hand. It's an education to observe and experience this

rapidity of transformation.

Although I do believe in a rising tide lifting all the boats, this rapidly expanding pie isn't all-inclusive, as it can't realistically be in the real world. I personally see major outsourcing,100% Foreign and Joint Venture investing, Capital Flight, and FDI to build infrastructure

and provide training

for local employees and feed a local tax base. I do believe this is a win-win situation formost. Not every case is however, win-win. Currently in Vietnam for example, certain foreigncompanies negotiated with the government to build factories and pay local workers belowminimum wage. Two governments were competing for these companies, and the

cheapest labor costs attracted them to come. The result: strikes because of bare-subsistence wages and long working

hours to the point of exhaustion. This book, like most,

focuses on only certain portions of the pie.

The Post National Era:

The diminishing significance of national governments and the lessening role of the nation-state has become abundantly clear as of 2006. This phenomenon is still evolving from itsincipient stages. As global economic interdependence and international economics and tradebecome the primary issues

and concerns in the relationship between two or more countries (nation-states), onequestion to consider is: what will be the role of the political governments?

It's not a simple question, but the answers are practical. Governments will facilitate traderelations, protect the

general interests of the nation-state with issues such as currency valuations, protect itspopulation (workers) and *certain* industries. This is the role of a Fiduciary. Governmentswill increasingly utilize economic policy and

trade more and more as leverage, when necessary. And much moreso than in the past.

We should ask, as the world flattens, "Whose interests are

being served?" Industries and corporations? Or individuals? The answers should be both,and the symbiotic ratio should be scrutinized. Is the individual a participant, or a voyeur?

Are these two mutually exclusive? No.

There are many positives to the next global stage we are entering. One benefit, is mobility.Fortunate in some circumstances are the industries that are much more mobile

and have the ability to relocate and operate, produce, and manage, elsewhere. An examplenoted by Ohmae was the current U.S. administration's stance on stem cell research. Stemcell research is highly restricted to placate the far-right-wing Christian conservative base.However, the U.S. is not the

only option for these companies, and some have relocated

outside of the U.S. to do R & D. These domestic as well as

other foreign companies are making gains in their research. Pacifying a domestic politicalbase had not only local and domestic consequences, but also allowed for a global

By K. Johnson (US/Asia) - See all my reviews




6/8

alternative and consequences. Decades ago, it wouldn't

have been so easy. There is choice, with more transparent borders. Ohmae discusses whatwe are latently aware of, and

the beauty of this book is that he gets deeper into the mechanics, and more importantly towhere we are headed in the near and long-term future. Ending agricultural subsidies

seems prudent. Many still resist in this. In the future,

they may or may not. A good point the author reminded us of

was the the fear of Japan by the U.S., not so long ago. "Look out. The Japanese are buyingeverything." Not so, today.

The world has changed, and nations and industries that adapt will survive and prosper.Those that don't constantly adapt, will die out. Now, after years of dismal circumstances,Japan is on the rebound, according to most. What is the number one reason: Japanchanged. They had to. We all have to. The

Post National Era = Less Influence of Keynesian Economic Policy. As the world has evolvedthis makes sense. "The

Next Global Stage" is a highly recommended, informative,

great read.


Think globally, act globally, February 4, 2006


This is an excellent overview of the challenges and opportunities of BPO or Business ProcessOutsourcing. Long a subject of controversy in the US, BPO is apparently here to stay and isan institution in countries like India, which have the advantage of native English speakerswho can work for a fraction of salaries in the US. (My favorite story about this is calling acall center for a bank. I heard the unmistakeable Indian accent of the person helping meand I asked where I was calling. "Bangalore....I mean...BALTIMORE!" Hmm, it could easilyhave been either city.

The other interesting part of the book is about China and the regions of Asia poised to bethe next boom growth areas, like Vietnam. The part of the chapter on China I particularlyfound helpful was a listing of various regions and their specialities, with maps. China is ahuge country. If you are looking for a book to learn about global business, this is one that's

readable and a great desk reference as well. A must-read for anyone working in businesswhere outsourcing and international marketing and distribution are important.


How to understand and profit from the global economy, December 9, 2005


Kenichi Ohmae, an expert in the emergence of the international economy, also holdsanother distinction, he coined the phrase globalization. In this book, he further expounds onthe powerful and irreversible process of economic activity moving largely unhindered to theplaces where it can exist most inexpensively. We all hear of the jobs moving to the PeoplesRepublic of China, it is an almost daily feature of the daily newscasts.

He spends a great deal of time debunking the use of agricultural subsidies and the erectingof legal walls against the importation of cheap food. A great deal of ink is spent in talkingabout how this leads to the Japanese people spending inflated prices for rice. As you readthose pages, you realize how silly it is. And yet, it is also a significant lesson in the internalpolitics of a country. Nostalgia can be a powerful force, and the populace of every countryhas a tendency to try to maintain the "good old days", even when they really weren't sogood. Small groups, who are vocal, maintain the support of powerful politicians and have atleast the acquiescence of the majority of the population can drive a nation to continuewasteful policies that should have ended long ago.

Another main thesis is his arguments for the development of the "region state", where theborders of political entities start to be defined by the economic activity of the region ratherthan political, ethnic or cultural borders. He cites the economic zones of the People'sRepublic of China as examples. Those zones do not end at the political boundaries, but are




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By Charles Ashbacher (Marion, Iowa United States) - See all my reviews




7/8

defined by the presence of factories and what the people do for a living.

Ohmae also argues strenuously against relying on the legacy of economic thinkers such asJohn Maynard Keynes and Milton Friedman. While he concedes that Keynes was correctwhen he first presented his theories, he points out that conditions now are so different thatthinking like Keynes will prevent you from understanding the new global economy. Capitalnow flows easily across borders and that fact is not going to change. Therefore, if it ispossible for a manufacturing opportunity to move to a place of lower labor costs, the capitalto create the infrastructure will naturally be available and will flow to that region. Given thereality of global trade and the obvious advantages to everyone, it makes you uncomfortablewhen you see people trying to maintain the old provincial protectionist ways. Capitalism isby design a means of creative destruction, and we must live with the consequences, evenwhen they are not to our liking.

In my opinion, the most significant section of the book starts on page 196, where Ohmaediscusses how governments traditionally shore up the weakest sectors of the domesticeconomy. He also discusses the flow of capital into the People's Republic of China and howgovernments distribute wealth rather than create it. The chart on page 197 shows the levelof Foreign Direct Investment (FDI) into the countries in Asia. It is incredible to see how theamount flowing into the P.R.C. is equivalent to that in all other Asian countries combined. Ifound the data in figure 8.2 on page 198 astounding. In the last years of the Clintonpresidency, ('98, '99 and '00) the FDI into the United States was approximately 175 billion,260 billion and 314 billion respectively. However, in '01, the first year of the Bushpresidency, the figure dropped to 144 billion and by '02, it was down to 30 billion. That wasthe first year in which FDI was higher for the P.R.C. than it was for the United States.Ohmae states bluntly, "It is clear from this that President Bush's policies, such as tax cutsand lower interest rates, have not been well received by the global FDI community."

This is one of those books that should be required reading of all executives of companiesthat either have a global presence or wish to acquire one. Ohmae is one of the leadingauthorities on how the global economy continues to metastasize into every corner of the

globe. Any attempt to turn back the clock is pointless, ineffective and inefficient. There aretwo paths to success, either become a viable part of the globalization reality or lobby yourgovernment for protection. The second may work for a short time, but begging has neverbeen the basis for long-term employment.




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