Mortgage Industry Trends

It’s strange how history repeats itself.  Recently in a Financial Times article Kamal Nath, India’s commerce and industry minister, was quoted as saying: “’There cannot be any discrimination against outward investment from India.’ In an era of globalization, ‘trade and investment [is] a two-way street.’”

This is true regardless of whether this is India, China, or even Russia.  We may not like it, but the global economies are now linked and growing in their influence in domestic affairs and the iconic symbols representing “Corporate America.”  No walls, protectionism, or political hopefuls will change this any time soon.

Yet, we are just entering the name calling and red herrings that will surround globalization racism and fears – from both sides.  The Indian minister’s comments were in regards to Tata acquiring a stake in a major “luxury hotel brand.”  For Europeans and especially Americans, this type of business relationship will become more and more common not just from India, but the rest of Asia, the Middle East, and even South America.  Driven by vast amounts of new found energy wealth and highly-educated labor pools, these once developing nations have arrived on the G7’s doorsteps with a plan – and cash.

For local economies that once drove the world’s agenda, it’s a hard pill to swallow.  Yes there will be global racist – it’s a given and we must work to move beyond this if we are to prosper in the new economic realities already underway. Look on the news networks and business columns if you have any doubts as it plays to the fears and security of individuals.

However, this is a “two-way street” as pointed out by the minister.  For these new investors and business powerhouses, they also must practice what they preach.  For the last 40 years, offshore firms have acted as order-takers simply moving processes and jobs to foreign locations.  This all or nothing proposition will have to change and with economic muscle comes new responsibilities and realities.

Why change?  With investments in local firms and iconic luxury brands, the failure to support the economies which these brands depend is analogous to putting cash into a fireplace to keep warm.  There is and has been a growing arrogance of these new business individuals and their organizations to ignore diversity in their own workforces.  Statements made to the media everyday reflect their lack of acceptance to these “acquired” organizations and their nationalities.  You see what they are railing against is often times what they are practicing.  There is no easy answer, but both sides must adopt and practice global workforce diversity at all levels.

Globalization racism is a two-way street.  For both sides, they need to determine if two lanes will be enough to keep racism from evolving into protectionisms.