Global Communication04- The theories I: The Neoliberalism

The neoliberalism

• A governance system based on rational individualism.

• The neoliberal state should favour

• strong individual private property rights,

• the rule of law,

• and the institutions of freely functioning markets and free trade.

• The legal framework is that of freely negotiated contractual obligations between juridical individuals in the marketplace.

• The freedom of businesses and corporations (legally regarded as individuals) to operate within this institutional framework of free markets and free trade is regarded as a fundamental good.

• Competition––between individuals, between firms, between territorial entities (cities, regions, nations, regional groupings)––is held to be a primary virtue.

• The free mobility of capital between sectors, regions, and coun- tries is regarded as crucial.

• Neoliberals are particularly assiduous in seeking the privatization of assets.

• Private enterprise and entrepreneurial initiative are seen as the keys to innovation and wealth creation.

• Intellectual property rights are protected (for example through patents) so as to encourage technological changes.

• Continuous increases in productivity should then deliver higher living standards to everyone.

What should state do• State sovereignty over commodity and capital movements is willingly

surrendered to the global market.

• International competition is seen as healthy since it improves efficiency and productivity, lowers prices, and thereby controls inflationary tendencies.

• States should therefore collectively seek and negotiate the reduction of barriers to movement of capital across borders and the opening of markets (for both commodities and capital) to global exchange.

• Engage in global commodity chain (GCC)

• Comparative advantage thesis.

Liberal imperialism (liberal interventionism)

• A state with the capacity to force liberal political institutions and social aspirations upon non-liberal states and societies is justified in so doing (Ryan, 2012: 107-8).

• The capitalist’s intention.

The role of media for national development

• One of the engines of economic growth / modernization (Wilbur L. Schramm, 1964)

• Development is viewed as evolution beyond or out of traditional structures and ways that supposedly cannot accommodate rapid social change or produce sufficient economic growth. The new attitudes, values, and social relationships that support social change and industrialization are frequently conveyed through mass media as well as educational systems.

• Growth is drove by info and comm technologies (ICTs) that compress space and time for business.

Source: McPhail, T. L. (2014). Global Communication: Theories, Stakeholders, and Trends (4th ed.). West Sussex, UK.: Wiley Blackwell., p. 36.

Diffusion of innovation

• Diffusion of innovations is a communication process (Everett Rogers, 1962/2003)

• the innovation is made known through communication channels; if individuals are unable to find out about an innovation, diffusion simply cannot occur. Mass media and mass communication are involved in the process in that they contribute to awareness about the new idea or product.

GDP growth and media

• The developed consumerism, media and national wealth.

• The affluent society (J. K. Galbraith, 1958)

• Relative constancy of household/advertising spending (M. E. McCombs, 1992).

Electronic Colonialism Theory

• Just as mercantile colonialism focused on empires seeking the toil and soil of others, frequently as colonies, so now electronic colonialism theory (ECT) looks at how to capture the minds and, to some extent, the consumer habits of others. ECT focuses on how global media, including advertising, influence how people look, think, and act. The aim of ECT is to account for how the mass media influence the mind. (T. L. McPhail, 1987)

Development journalism

• Development journalism is the concept that attempts to deal with the needs, strengths, and aspirations of journalistic endeavors in the emerging developing nation-states. It is a media theory that encourages an engineered press – a press committed to government-set priorities and objectives. It assumes that everyone, including the local media, needs to work in unison to support national goals.

The understandings over global comm by TNMCs

• Firm-level management

• TNMCs need to balance localization and standardization of their products to be successful.

• Market Entry Strategies

• TNMCs choose high forms of ownership as preferred entry mode.

• Corporate-Level Strategies

• High international diversification rates of TNMCs are posi- tively related to their performance.

• Internationalization Process

• The internationalization process of TNMCs tends to follow an incremental pattern: Companies gradually increase their commitment in international markets over time.

• Leadership and Organization

• Integrative measures positively affect the performance of TNMCs.

• Functional Management

• TNMCs have to apply adapted strategies in supporting business operations for market success in foreign countries.

• Management of Cross-Border Co-Operations

• The alignment of complementary resources and an equally balanced partnership are key success factors of TNMCs’ cross-border co-operations.