New Rules of Gl Essay
Coca-Cola lines a shelf at a supermarket in
Shanghai in May 2009.
The New Rules of
PHOTOGRAPHY: AP IMAGES
As more countries rethink their priorities, multinationals must proceed with caution. by Ian Bremmer
n the past few years, Pfizer has encountered globalization’s new phase. As part of the Indian government’s efforts to make medicine accessible to as many people as possible, in February 2013 India’s
Patent Office revoked Pfizer’s patent for the cancer drug Sutent and granted a domestic manufacturer, Cipla, the right to produce a cheaper generic version. India’s Intellectual Property Appellate Board has since set aside the decision and has directed the Patent Office …show more content…
The objective of state capitalism is to control the wealth that markets generate by allowing the government to play a
104 Harvard Business Review January–February 2014
has shifted the tectonic plates, as I will describe. Globalization now comes with new costs and risks.
In globalization’s heyday, strategic sectors—those in which governments take an active interest—and nonstrategic ones were easy to identify. Multinational companies could enter some industries, such as soft drinks, all over the world; other sectors, such as aircraft manufacturing, were off-limits. That’s why Coca-Cola sells its products in more than 200 countries today, while Lockheed Martin generates
80% of its revenues from sales to the U.S. government and employs 95% of its workforce in the United States. In the new era of guarded globalization, however, any sector could prove to be strategic, depending on a government’s attitudes and policies.