What “Borderless

World” means?
A “borderless world”...
refers to an open world which
can bring influences upon
people. It may bring about
changes in their culture, beliefs,
traditions and others.
Patricia Evangelista
Study of borders...
-undergone a renaissance during the past decade.
-renaissance – partly due to the emergence of a counter
narrative to the borderless and deterritorialized
world discourse which has accompanied much with
globalization theory
-has moved beyond the limited confines of the political
geography discourse, crossing its own disciplinary
boundaries
-until now-not successful-in creating a common
language or glossary of terms
Study of borders...
-contemporary study of borders are notions such as
“borders are institutions”
-border terminologies focus on the binary distinction
between “us” and “them” , the “included” and
“excluded”
-should be studied not only from a top-down perspective
but also from the bottom up
-with a focus on the individual border narratives and
experiences, reflecting the ways in which borders
impact upon the daily life practices of people living in
and around the borderland and transboundary
transition zones.
Buisness in a Borderless World
Kenichi Ohmae argues...
-borders and nation states
are becoming irrelevant
and explains that
“fundamental paradigm
shift has occured that is
changing the way
business is being
done...and is operating
under the old rules.
Buisness in a Borderless World
Globalization...
is redefining
the way
companies do
business.
Managing in a Borderless World
-identifies the purpose for the companies to
go abroad and trying to invest in foreign
countries regardless of the way to enter
it, like joint ventures, wholly owned
businesses, licensing …but effective global
operations require a genuine equidistance of
perspectives. But even with the best will in
the world, managers find that kind of vision
hard to develop and harder to maintain.
Managing effectively in this new borderless
environment does not mean building
pyramids of cash flow by focusing on the
discovery of new places to invest, nor does it
mean tracking our competitors to their lair
and preemptively undercutting them in
their own home market.
Most managers in all big companies are
trying to increase their sales and market
share, but the only way nowadays is to
search for new market where there are new
opportunities (especially in the far east) in
order to expand their businesses.
The major purpose to go internationally is
due to the intensive and huge competition
the companies are facing in their local
markets, domestic and foreign
competition.
The other factors that lead managers to
manage in a borderless world are the
cost factor that all companies care
about because it will identify the
marginal profit.
Threats that Management Should
Take Into Considerations
1. Economic situation of the country
2. The currency rate
3. Interests rates
4. Inflation rate
5. Unemployment rate
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
1. Dispersion –
even original
equipment
manufacturers
with captive
technology are
not immune from
dispersion.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
2. Partnerships
Nothing stays
propriety for
long and no
player can
master
everything
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
3. Reduce fixed costs
To compete the
global
markets, companies
have to incur and
show find a way to
defray – immense
fixed costs.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
4. Brand
You must spend
enough money on
brand promotion
to realize
benefits.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
5. The Government’s
Role
Governments have
become the major
obstacle for people to
have the best and the
cheapest from
anywhere in the world.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
6. Equidistance
Companies that are
globally successful in white
goods focus on close
interactions with
individual users; where as
those that prosper with
equipment installation
focus on interactions with
designer, engineer, and
trade unions.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
7. Customer Oriented
Strategies
Sometimes getting
back to strategy
means getting back
to a deep
understanding of
what product is
about.
 Kenichi Ohmae view on the speed, the
benefits and methods of dealing with
ILE/Globalization
8. Demand
Maintaining the
customer
relationship
through good
service is the key to
success.
 The concept of the interlinked economy is
obviously now more apparent than it was in the
1990s. At the height of globalization, developed
countries in the west were able to export their
products thereby increasing their consumer base
and business influences.
 Today, countries are confronted with the
borderless nature of business transactions. Instead
of fighting this reality, those that embrace the shift
are more likely to benefit in global
competitiveness.
Business in a Borderless World
In today's dynamic business
battlefield, strategy creates the macro
picture; our assets are positioned, we know
what the competition is doing and we
deliver. Tactics help us to maneuver our way
around unexpected roadblocks, without
losing sight of our strategic objectives.
On Why Size Matter
In certain industries, size is very important. It gives
an advantage in costs, reach and technology. In
other businesses, size matters less. In the natural
world, ants account for 10 per cent of all biomass.
These small creatures have found ways to be
incredibly successful, and can take on even the
mighty elephant. The question is, does one want to
be an incredibly dynamic and flexible but small
ant, or an all-powerful elephant?
On Managing Diversity
Whether conglomerates are optimal
organisation strategists is a hotly debated
question today. Research shows that
premium conglomerates can create
incredible value. One of the best performing
companies in the last 20 years has been
GE, which is extremely diverse. And there is
also a lot of research to suggest that diverse
businesses are particularly appropriate to
dynamic, emerging markets.
On Managing Diversity
 We have a way of managing diversity that is
centred around a strong belief in
decentralisation. The companies run
themselves; they are not dependent on the
centre.

 The key to success is taking quick and good

decisions, as well as their managements seizing
the initiative and taking responsibility.
On the challenges of the future
 Hard work, preparation, research, thinking, getting
the value proposition right and serving the customer
better, can take care of the economic challenges. We
have more high quality people available at a lower cost
than most of our competitors in the international
market place.
 But these advantages will erode as the competition
replicates them. Besides, the cost base will also
increase in the future. What the group would then
need to do is to move its competitive advantage over
time.
On looking ahead
One thing that will not change is the values of the
group and its desire to serve customers well in the
marketplace. So whether the corporate centre
looks different, whether it is in one place or
distributed, doesn't really matter. What matters is
that our soul, embodied in the group's values, will
still be the same. And, what is more, we will have
successful world-class and larger scale companies.
Tax in a borderless world

 Achieving tax compliance is a

challenge facing governments the
world over. Action can be taken.

Jeffrey Owens
OECD Centre for Tax Policy and Administration
Tax in a borderless world

 Globalization brings costs and

benefits, even for the tax professional. The
move towards a borderless world has opened
up new opportunities for taxpayers to
minimize their overall tax liabilities. Much
of this tax planning is legitimate.
Tax in a borderless world

 Good tax planning is driven by the

reality of businesses having to operate
with increasingly complex laws,
particularly affecting international
activities, while at the same time
wanting to legally minimise their costs,
including tax costs.
Tax in a borderless world
 This same complexity has opened the way to
rule bending with “creative” accounting.
Worse, a significant number of these tax
schemes examined by tax administrations
have been found to be in breach of the law.
 These practices include deliberately
concealing earnings, misreporting
transactions between different parts of the
same firm, and so on.
Tax in a borderless world
 In addition, increasing numbers of individuals and
businesses have taken advantage of the greater
freedom of movement across international boundaries
presented by globalisation, political integration and
advances in technology to reduce illegally their tax
liabilities.
 This form of non-compliance has been assisted by the
policies and practices of certain offshore financial
centres that facilitate the concealment of undeclared
income and assets.
Tax in a borderless world
 Few people are enthusiastic about paying taxes.
However, most people understand that taxes provide
the funds required for the delivery of essential
community services and the infrastructure that
households and firms rely on, in
research, healthcare, education, security and more.
 Non-compliance with tax laws reduces the funds
available to government for such services. Also, it is
blatantly unfair to the majority of law-abiding
taxpayers who must, as a result, bear more than their
fair share of the tax bill.
Tax in a borderless world
Non-compliance cuts across all taxpayer segments and
takes many different forms. Individuals can conceal taxable
assets or income through the use of offshore
accounts, trusts or by creating so-called shell companies
and locating them in tax havens or other countries that do
not provide information for tax purposes. Also, small or
closely-held businesses may use these shell companies to
shift profits abroad, often using fictitious invoices or over
(or under) charging for intra-firm transactions. Another
all-too-common practice is for some large corporations to
manipulate transfer prices between subsidiaries to
artificially shift income into low tax jurisdictions and
expenses into high tax jurisdictions.
 Managing Across Borders: New
Strategic Requirements
 INTERNATIONAL BUSINESSES FACED NEW
STRATEGIC challenges in the 1980s. Corporations
that had once succeeded with relatively one-
dimensional strategies—
efficiency, responsiveness, or ability to exploit
learning—were forced to broaden their outlook.
Successful “transnational” corporations integrated
all three of those characteristics. They did so by
building on the strengths— but accepting the
limitations—of their administrative heritages.