Cultural Effects, Harmonization, and Global Standardization

The effects of globalization on culture can impact the individual more than the society. As is the case with French farmer José Bové, many would cite the McDonaldization of other countries in an effort to promote anti-globalist sentiment. Undoubtedly, the American-owned franchise has made a dent in the demand for more traditional, “French cuisine”, directly affecting the worth of a farmer’s crop or livestock. Moreover, the increased implantation of McDonald’s franchises across the globe, a business which seems to be a symbol for Americanization, has lead it to cater more to the indigenous population it serves.  For example, in Thailand, McDonalds serves the Samurai Pork Burger.  While the branding of McDonald’s may influence the culture itself, the argument can be made that their culture is just as susceptible to marketing practices as any other.  The United States is not immune to foreign entrepreneurship; Chinese or Japanese take-out restaurants are present in almost every shopping mall, providing an option to the consumer which parallels what McDonald’s franchises do abroad. That being said, there are different theories as to the effect globalization has on culture.

In Culture and Globalization: Polarization, Homogenization, Hybridization, the aforementioned theories are discussed. The stance taken by supporters of the polarization theory would be that of anti-globalism. The polarization theory suggests that countries, which are disinterested in being overcome by a western-style economy, will eventually clash with the West.  Such countries attempt “modernization without westernization” and may well be going against the grain, although there are always the implications of terrorist regimes (Jihad vs. McWorld).  This theory is worth considering, but “western” countries have a political, albeit governing, stake in the grounds of anti-“western” countries through “arms flows and military technologies trading” (pg 1).  Military alliance could be a driving force for the theory of homogenization, which presents the notion of increased uniformity between cultures. A relevant critique of this theory focuses not only on the presence of the multinational firm but also its nature.  This critique brings to light the adaptive nature of multinational firms where, in fact, these firms become localized, making the hybridization theory one of popular opinion. That is, hybridization focuses on the “intercultural exchange and the incorporation of cultural elements from a variety of sources within particular cultural practices” (page 3).

While culture is affected through globalism, the multinational firm is promoted in the form of efficacy, perhaps respondent to market demand, where resources are to be used for growth and expansion. In international trade, the margin for error increases dramatically in the absence of standards.  Standards are used in the in the promotion, production, and pre-fabricating processes of everything you see before you; it transcends industry, borders, and the environment in an attempt to make optimal use of resources. In “Harmonization, Trade and the Environment”, Candice Stevens poses questions on the logistics of harmonization.  Inherent in harmonization, which seems to be an environmentally friendly term for standardization, the assumption is that a “best” option must be chosen for everyone involved.  In harmonizing environmental issues, for example, the participating countries must enforce a “ceiling or a floor”.  As harmonization seems to promote optimization, the very need for standards across countries suggests that the potential for negative effects are not quantifiable.  Hence, standards (i.e. harmony) must sometimes develop in the absence of concrete information, and in the presence of speculation, while overlooking health, safety or environmental protection. For example, the idea of equivalency assumes that one action may affect two parties in an equivalent manner despite quantitatively different regulations (page 2). Stevens writes that harmonization bends more in the interest of reducing trade conflicts than to achieve an environmental end as is the case with all business; tomorrow’s environment will always take a backseat to today’s business. Hence, trade harmonization leads to the “convergence of ambient and process standards, economics instruments, and life-cycle management” (page 3). Life-cycle management comes in the form of eco-labeling. The introduction of the biodegradable bag of chips by SunChips, which was subsequently taken off of the shelf because the bag was “too loud”, is an example of where marketing efforts meet the environmentally friendly side of business.  In harmonizing environmental issues, the “lowest common denominator” effect is present which maximizes the potential for environmental degradation for countries with previously unpolluted and unimpeded terrain.  The increased standardization for process standards (i.e. production methods) is discussed in greater detail in William Ward’s “Standardization and Triumph of Market over Hierarchy”.

In production, standardization would seem to require quality assurance or quality control. As is the case with just-in-time inventory management, firms must rely on one another for uniform inputs.  Without industry standards, this business model would not work.  While the standardization of products and services introduces economies of scale, it can reduce the variety we see across products, especially when they cross borders.   Standardization, while originally a tool for vertically-owned companies, is now used in a more a deconcentrated, cooperative manner.  Ward makes the distinction between internal and external standardization, where internal standardization is exercised by the discovering firm in order to protect their proprietary establishments.  It seems important to note that the increased interdependence of products would seem to require a higher degree of cooperation, or external standardization.  As is the case with computer technology, a processor is useless without a motherboard, and a motherboard requires either firmware or software running from virtual or physical memory to load the user-friendly interfaces we call operating systems.  There are two leading manufacturers for processors, AMD and Intel, both of which work with a variety of motherboard manufacturers and whose quality control is theoretically perfect [I have repaired hundreds of computers and never replaced a processor for any reason other than lightning or power surge].  Nevertheless, a motherboard is either designed for an Intel or an AMD processor. No individual company controls the market for anything, at least this is the assumption made based on the regulations of the Federal Trade Commission.  This heterogeneity in a growingly homogeneous marketplace can make standardization a difficult task to undertake.

In “Product Standards and International Trade: Harmonization through Private Coalitions?”, Alessandra Casella suggests that harmonization occurs more naturally through private, transborder firms because governing bodies outsource to voluntary firms. Casella states that a “standard is the concept of joint consumption by a group”, citing two very important functions of standards as providing compatibility and information (page 4). Such standards can promote anonymity amongst firms leading to a “simple formalization of the trade-off between economies of scale and variety”.  The points being made here by Casella are valid because they display the costs of harmonization as did Stevens where “the cost of standardization is the decline in variety”, hence “it is [not obviously] the case that the optimal number of standards is one” (page 3).