Globalization and the Empowerment of Talent

Marin, Dalia and Verdier, Thierry (October 2003): Globalization and the Empowerment of Talent. Discussion Papers in Economics 2003-24

Abstract

Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of talent as the new stakeholder in the firm. This paper examines the role of trade integration for the changing nature of the corporation. International trade leads to a 'war for talent' which makes it more likely that an organizational equilibrium emerges in the integrated world economy in which control is delegated to lower levels of the firms' hierarchy empowering human capital. Furthermore, trade integration is shown to lead to waves of outsourcing and to convergence in corporate cultures across countries.

• Item Type: Paper
• Keywords: international trade with endogenous organizations ; the rise of human capital ; theory of the firm ; Rybczynski Theorem of firm organization
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Munich Discussion Papers in Economics > Industrial Organization; Economics > Munich Discussion Papers in Economics > International Trade; Economics > Chairs > Chair of International Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: F12, F14, L22, D23
• Language: English