Understanding Flamboyancy of Globalization through Higher Educational Economics : Limkokwing Integrated Model on Economics (LIME)

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Understanding Flamboyancy of Globalization through Higher Educational Economics : Limkokwing Integrated Model on Economics (LIME)
Assoc.Prof. Dr. Valliappan Raju, Dr Poh

Prelude to Globalization
The state of being globalized can be defined as the expansion of an increasingly integrated global economy by the means of free flow of capital, free trade, and obtaining cheaper labor from foreign markets.Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers.However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.After injection of globalization, majority of emerging countries has transformed and progressed their status in terms of growth and recognition.Malaysia is one among the manufacturing nation (Bank Negara Annual Report, 2017) among ASEAN countries.From agricultural economy, now it is more of production country where several multi national companies like Sony, Nissan, Coca Cola having their plants in Malaysia.It should not be misunderstood that agriculture economy is weak, but interpretation should be as such that manufacturing sector provides more employment and strengthens currency value.In this context, Malaysia being in the mode of paradigm shift towards their outlook, globalization was evident and ultimately the growth has been tremendous since 1980s.A country with similar growth rate of its neighbor such as Philippines, Vietnam, Indonesia in mid 1970s, is now one of the top emerging economy competing first world countries.This impact is due to involvement of globalization in Malaysia.Power of globalization is discussed by many economist right from Adam Smith until Joseph Stiglitz.Its merits are well known.
As of 2018 there are only five communist countries in the world and they are China (People's Republic of China), Cuba (Republic of Cuba), Laos (Lao People's Democratic Republic), North Korea (DPRK, Democratic People's Republic of Korea), Vietnam (Socialist Republic of Vietnam).
Researcher took measures to study the similarities of these five countries and it was understood that these country's government policies, per capita income, purchase behavior, education and spending has proportionate correspondence.Although except China, rest are developing nation however progress is limited when compared to capitalist countries.China has become developed economy because of its rich traditional practices, population and resources (Stiglitz, 2017).Thus only the remaining four countries has to be accounted in this list for comparison.These four countries has an average per capita income of USD $ 6445 in 2015.This is one third of other emerging nation's per capital income.
Learning is, capitalist economy has an edge over communism-practicing economy.According to general understanding, Capitalism is an economic system in which capital goods are owned by private individuals or businesses.The production of goods and services is based on supply and demand in the general market (market economy), rather than through central planning (planned economy or command economy).The purest form of capitalism is free market or laissez-faire capitalism, in which private individuals are completely unrestrained in determining where to invest, what to produce or sell and at which prices to exchange goods and services, operating without checks or controls.Most modern countries practice a mixed capitalist system of some sort that includes government regulation of business and industry., 2012).For a research paper that submits an economic model, five objectives shall suffice it role.Though these all come under one primary objective of re-defining globalization and its practices, attempts are made to study more about Marxism.To battle it effectively and intelligently, there needs to be a theory of similar period.Thus Theory of Liberalism was taken as base to justify this research.

Marxism -Prejudiced Practice
Today majority of countries are practicing capitalism i.e. globalized economy.Productivity and standard of living is far better than 18 th century where Marxism was highly practiced.Marxism is a social, political and economic philosophy that examines the effect of capitalism on labor, productivity and economic development.It meant that by eliminating the power from private houses, economy can grow.It was against of Globalization.
This becomes, the key area to research for this study.Karl Marx, a renowned scholar and economists flagged for anti-globalization in 18 th century and presently in 21 st century 80 percent of communist nations are under performing.This leads to a question whether Marxism theory is hypothetically wrong or practically impossible.It is obvious that economist like Karl Marx can never go wrong as it is beyond social science theory, it was practiced as 'way of living' during 1700s.But the interpretation of his theory was blindly followed by his successors under the influence of ceteris paribus i.e. all things remain same, which is never a state in any economic condition.Practices of 18 th century need not be same for 21 st century, nevertheless, philosophies can be same.This rationality became tough to accept by people of post 18 th century.In present condition, globalization is the key factor that can determine the growth and living standards of an economy.In a world where everyone encounters 21 brands on an average per day, how it would create ease to follow Marxism theory?Marxism is a pre-requisite for olden days to protect the respective country from colonization of invaders.People then have to particular to reject foreign goods.Today after having several peace processing and developing bodies such as United Nations (UN), European Union (EU), ASEAN (Association of South East Asian Nations), SAARC (South Asian Association of Regional Countries), SADC (Southern African Development Countries) etc., there need not be a fear on colonization.World has become a global village because of advancement in technology, innovation, production, automation etc.So distances are no longer a problem.Globalization has made the World to get connect better.

Statement of Problem
Communism was widely practiced by people during 18 th century with a hope to give importance and respect to domestic trade flows.However, presently in 21 st century the economies are filled with capitalistic practices where by globalization is flagged highly by all emerging economies.The gap between communism and capitalism has been studied by various economist but practicing under present situation has to be researched as it is evident that globalized economy have larger impact compared to communism practicing nations such as Cuba , Laos , Vietnam etc. Globalization is indispensible in any growing economy.This research paper shall enumerate its merits and destruct the illusive notion of communism through the theory of liberalism.Measures have been taken to make the study as inductive i.e. to ponder upon Karl Marx and practically arguing the same with present economic condition.Using LIME ( Limkokwing Integrated Model of Economics) model to bridge this gap has enabled the researcher to quantify the outcomes of data sets, where 52 respondents were surveyed

Theory of Liberalism
Before briefing about Theory of Liberalism, it is important to understand Liberalism.Liberalism is a mix of scholarly and philosophical thoughts.Earlier in 17 th and 18 th century the nations were separated by war.Leaders of countries kept attacking their counterparts to achieve wealth and pride.It is well know that Wars are naturally unpopular among fellow people as it costs life of innocent people.
Liberalist people felt to unite with all people for wealth and peace.This was a great leap in thoughts of people in those days.In a circumstance where war was confronted to win wealth, a similar thought was provoked to win wealth by international relations and uniting.This is the first step of Globalization.
Conflicts arose such as leaders felt war was the solution, whereby the scholars felt uniting as solution.Though this is philosophical, there is an amplified substance for economic-intelligence in this thought.To put it in more simple terms, it was between war and friendship.It was between separation and re-unity.Which won? Concept of War was winning obviously in older days, is it practical now with so abundance of knowledge of politics and economics?This was well argued in Theory of Liberalism.In fact Liberals argue that prosperity of a nation come through political democracy and Marxist claim that only through economic democracy a nation can attain development.Leaving this debate as it is, as shown in Figure 1.1 this research paper will emphasis on edge of liberalism over Marxism in economic point of view i.e. solely on importance of capitalism in present globalized economy.
Liberals have developed several other principles important to the construction of their philosophical structure, such as equality, pluralism and toleration.These are the variables that was used in this research to construct LIME model.

Limkokwing Integrated Model of Economics(LIME)
A distinct model is been submitted there with to analyze how globalization can impact on economy.For this purpose an higher education institution based in Malaysia is taken as an instrument.Limkokwing University of Creative Technology, profoundly called as Limkokwing University promoted by a visionary Lim Kok Wing is a globalized institution boasting students from 160 countries and having its establishment in 13 countries.There are very few institutions similar to Limkokwing University to practice unity in diversity.It can also be said as a miniature of United Nations(UN).This university integrates culture, tradition, custom, belief, religion, races, ethnicity irrespective of geography, colour and language.Without exhibiting its roots this institution is producing the leaves of globalization.It is an ardent economic model which needs to be studied and spread.Through this research the researcher attempts to device this as a model which can be implemented to achieve significant globalization.When the world is been pre occupied with foreign flows of investment and manpower there could be no need to probagand furthermore globalization, nevertheless, for an inductive research to be conducted researcher has to define the Marxism theory by adopting rightful element from present economic situation.This is were Limkokwing University's model viz.LIME model is been introduced here.It is illustrated in Figure 3. Variables such as Equality, Pluralism, Tolerance is derived from Theory of Liberalism and Growth is added to substantiate this model for economic component.All elements are integrated herewith through the platform of higher education which constitutes Globalization.
Following constructs are used to frame this model.These constructs were obtained from theory of liberalism within Marxism theory.

Illustration of Model:
As demonstrated in Figure 3, there are two layers in this model viz.inner circle that constitutes growth, equality, tolerance, pluralism and outer ring which describes to claim the variable i.e. a) growth, equality and tolerance speaks on behalf of communism practices; b) growth, pluralism and tolerance that flags capitalist process.Outer ring has another significant meaning by the representation of semi-circle at one side and semi-square at one side.Communism is all about sharing-economy for the flexibility of citizens, thus a semi-circle is laid here to mean that growth, equality and tolerance are kept flexible for benefit of people.Capitalism is all about rigid ownership for developing the economy, thus a semi-square is laid here to mean that growth, pluralism and tolerance are placed with strong edges to have sharp inclination in economy.Capitalism is not flexible, it is sheer instructive-growth.However, two variables are common in this model for both communism and capitalism i.e. growth & tolerance.These are determining factors that help this model to escalate the economy.

Intersection of Limkokwing University and Economy
United Nations (UN) is Worlds leading apex body to integrate nations.Though European Union (EU), ASEAN (Association of South East Asian Nations), SAARC (South Asian Association of Regional Countries), SADC (Southern African Development Countries) etc. are prevailing one can witness that UN is more stronger.It is because it proclaims to have peace as first priority, secondly, about their sustainable development growths (SDG).Researcher was undergoing a study that how UN stands apart from all these other bodies.And it is found that UN has given space for all 196 countries to become member, a soft of open invitation to unite.This was not the same with other international bodies.Similar to this vision, there can possibly be many organization with involvement of foreign forces as internal customers.Pertaining to this, a similar architecture is followed at Limkokwing University.There are almost all nation's students are bought under one institution and process of molding commences right from day one of student's enrollment.Truly globalized institution.A quick look on following table can explain about globalized companies in the world.
Having a mix of internal and external customers from more than 160 countries, this institution brings out equality, pluralism, tolerance and growth under one roof.Needless to admit, this is rare.World leading institutions like Harvard, Standard, MIT, Oxford, Cambridge (QS Rating, 2017) has similar integrity of nationalities in their institutions, however, their vision is neither not specifically on globalization nor to improve unity among nationalities.Limkokwing University, is unique in this stream by having a vision to unite all nationalities and at same time has a forceful aim to improve the economy through globalization.Having said this, presently the University is gearing to establish branches in all parts of World, as recorded as roadmap for upcoming years.This research paper is not just about commending this University, it is to spread the type of prototypical motive which abets both institution and economy.When the bottom-line of an organization can yield returns to respective organization and also to the nation, it is a socioconcerned entity.And if an organization can cascade to the nation and world development, it is an economic body.Limkokwing University is about it.It integrates equality among people, encourages pluralism among nationalities, practices tolerance for peace and exhibits growth for the economy through foreign currency inflows.This becomes a discrete model with no linear approach, all variables here are directly tested through with the outcome.

Instrument
Questionnaire is one the best instrument for Quantitative approach (Sanders, 2013) and interview observations is one among the best instrument for Qualitative approach (Kumar, 2014) .Likert Scale rating of 5 was applied in the questionnaire.Respondents were confined to answer within strongly agree, agree, neutral, disagree and strongly disagree.To give more exposure to the questionnaire, an open ended questions was also asked.Respondents was showing interest on respond these questions.
Similarly, interview questions were pre-formed and asked to respondents.Each interview went nearly up to 30 minutes.

Demographics of Respondents
Among 52 respondents 18 were academia from economics background, 10 economists, 4 from Malaysian Ministry of Home Affairs, 10 from banking sector, 7 from National Economic Planning Unit and 3 personnel from United Nations Malaysia.Majority of respondents were male with ratio as 83:17 i.e. male vs. female respectively.

10. 0
Data AnalysisFollowing are the analysis performed at SmartPLS 3.0 to analyze the data sets.The interpretation of these data are highlighted in Ordinance of LIME Model in upcoming sections.
Snow Ball Sampling was executed in this research.This technique emphasis that any one person from each strata can represent their community(Creswell, 2015).Out of several economists in MIER (Malaysian Institute of Economic Research) 10 of them were involved.Right people to comment about this model would be Ministry of Home Affairs thus 4 of them were made to involved.Rest of people were considered based on knowledge towards economy and Limkokwing University.This technique comes under Simple Random Sampling.Size of 52 was determined by Gfactor formula.