...Globalization Effects on Culture, Business Ethics, and Leadership: A Managerial View Introduction The world’s economy has developed and changed dramatically throughout the years and continues to do so. We are quickly moving away from a world where each country’s economy is isolated and more towards a world with an interdependent global economic system. This interdependent global economic system is commonly referred to as globalization (Saee 2005). The book written by John Saee, Managing Organizations in a Global Economy: An Intercultural Perspective, suggests that the growth of global trade, cross-border investments, mass migration, large-scale tourism, and much more has turned the world into more of a “global village” (Saee 2005). While globalization has effected nearly every aspect of human civilization, it has created some very serious concerns for managers whose organizations and firms already are or are planning to be involved in business transactions that take place outside of their domestic environment. If companies and corporations want to be successful in today’s economy, then it is important for managers to have a thorough knowledge and understanding of different types of cultures, business ethics, and ways of leadership, and the implications that these differences will have on their businesses. In this paper, we will discuss the effects that globalization has had on managers with respect to culture, business ethics, and leadership. Culture Globalization has caused...
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...PREFACE 3 Int. Studies of Mgt. & Org., vol. 36, no. 4, Winter 2006–7, pp. 3–8. © 2007 M.E. Sharpe, Inc. All rights reserved. ISSN 0020–8825 / 2007 $9.50 + 0.00. DOI 10.2753/IMO0020-8825360400 Preface Globalization and Its Effects on International Strategy and Cross-Cultural Management Globalization is one of today’s most controversial buzzwords, though the spread of this term worldwide since the early 1990s may be testimony to its own significance. Skeptics argue that the entire discussion about globalization is unjustified, as all its essential facets—foreign trade, cultural exchange, technological progress and cross-national cooperation—are not new but are phenomena that can be traced back to our earliest civilizations. So, is globalization just a myth or a euphemism for the deregulation mantra under the supremacy of Anglo-American capitalism and for an economization of areas previously unrelated to the pressure of competitiveness, the market principle, and the price mechanism? Are the current trade patterns truly global, when 80 percent of trade is conducted within the “triad” of western Europe, North America, and the Pacific Rim, which together make up only 20 percent of the world’s population? Contrary to these arguments, we believe that globalization is as new a phenomenon as the term itself and that it does merit the attention it now receives in scholarly, political, and managerial debates. It is less a question of some new occurrences but is more so one that transgresses...
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...PREFACE 3 Int. Studies of Mgt. & Org., vol. 36, no. 4, Winter 2006–7, pp. 3–8. © 2007 M.E. Sharpe, Inc. All rights reserved. ISSN 0020–8825 / 2007 $9.50 + 0.00. DOI 10.2753/IMO0020-8825360400 Preface Globalization and Its Effects on International Strategy and Cross-Cultural Management Globalization is one of today’s most controversial buzzwords, though the spread of this term worldwide since the early 1990s may be testimony to its own significance. Skeptics argue that the entire discussion about globalization is unjustified, as all its essential facets—foreign trade, cultural exchange, technological progress and cross-national cooperation—are not new but are phenomena that can be traced back to our earliest civilizations. So, is globalization just a myth or a euphemism for the deregulation mantra under the supremacy of Anglo-American capitalism and for an economization of areas previously unrelated to the pressure of competitiveness, the market principle, and the price mechanism? Are the current trade patterns truly global, when 80 percent of trade is conducted within the “triad” of western Europe, North America, and the Pacific Rim, which together make up only 20 percent of the world’s population? Contrary to these arguments, we believe that globalization is as new a phenomenon as the term itself and that it does merit the attention it now receives in scholarly, political, and managerial debates. It is less a question of some new occurrences but is more so one that transgresses...
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...activity also involves foreign trade and international, which includes transactions such as exports, imports, investments, or financing that are performed worldwide. Among the success factors that can be mentioned in the international business operations are competitiveness, financial support between the parties and logistics. This aspect is very important because when the actors involved are from different countries or regions, the business success is more complicated. In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e. which addresses the problems international economic purposes (Maddox, 1993). The importance of international relations in trading, politics or culture has reached a global level, a deeper meaning that one cannot speak only about goods but also exchange programs of integration. The international economy requires to study the problems of international economic transactions. Therefore, when we talk about international economy is talking about the international trade factors. International business is the exchange of economic goods that takes place between the two or more nations in a way that rises the outflows...
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...Final Paper – International Management (2012-08-MAN-372-OL011) Management Strategies and Building a more Successful Global Business Introduction Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance...
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...International Management Culture, Strategy, and Behavior Ninth Edition Fred Luthans University of Nebraska-Lincoln •Jonathan P. Doh Villanova University Mc Graw Hill Education Table of Contents Part One Environmental Foundation 1 2 The World of International Management: An Interconnected World Introduction Globalization and Internationalization Globalization, Antiglobalization, and Global Pressures Global and Regional Integration The Shifting Balance of Economic Power in the Global Economy 2 4 6 6 9 12 Global Economic Systems Market Economy Command Economy Mixed Economy 19 19 19 20 Economic Performance and Issues of Major Regions Established Economies Emerging Economies Developing Economies on the Verge 20 20 22 26 The World of International Management—Revisited 30 Summary of Key Points 32 Key Terms 32 Review and Discussion Questions 32 Answers to the In-Chapter Quiz 33 Internet Exercise: Global Competition in Fast Food 33 In the International Spotlight: India 2 Globalization and International Linkages 34 The Political, Legal, and Technological Environment 36 The World of International Management: Social Media and the Pace of Change 36 Political Environment Ideologies Political Systems 38 39 41 Legal and Regulatory Environment Basic Principles of International Law Examples of Legal and Regulatory Issues Privatization Regulation...
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...Borders and Cultures, Text and Cases, Seventh Edition SEVENTH EDITION FEATURES • Streamlined text in eleven chapters, with particular focus on global strategic positioning, entry strategies and alliances, effective cross-cultural understanding and management, and develop- ing and retaining an effective global management cadre. The seventh edition has been revised to reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a section on “Using E-Business for Global Expansion” ...
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...Cross Cultural Communications between Canada and Japan Management 340 December 2, 2010 Executive Summary Japan witch is located off the eastern edge of Asia has a current population of 127 million people. Japan witch operates as a free market has the 3rd largest economy in the world and has a labour force of over 65 million people. In Japanese culture is expected that employees have lifetime commitment to their employers. The Japanese people recognize responsibility and work as extremely important characteristics of their culture. The responsibilities are divided into very small details and are incorporated into a family-style working environment. Business leaders and management participate in all activities. The employees in Japan are motivated by private recognition, the corporate missions of the company, stability, and most importantly being part of a winning team. Formal meetings are considered times for employee to share ideas and visions. In Japanese culture employees can contribute regardless of status. Furthermore informal meetings are seen as occasions to build personal relationships and should contain no direct business discussions. Since Japan has one of the most indirect languages, and many messages are metaphorical it is important to refrain from saying terms such as “No” and “You”; these terms can be seen as rude and should be placed with appropriate terms. Instead of saying “You”, refer to contact by their last name...
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...Abstract In an era of globalization, more and more companies tend to choose global virtual team with members of different cultural backgrounds because leaders gradually promote their company to the world. Global projects with using virtual teams are primarily linked through computer and telecommunications technologies across national boundaries. Globalization of the construction industry has brought unique challenges such as coordination among project participants from different countries, and individual’s preferences in decision make and communication. As economic borders between countries come down, cultural barriers will most likely go up and pose new challenges and opportunities for business. Solving the cultural issues has been found to be of crucial importance for the success of virtual teams. This research attempts to characterize cultural differences along the dimension of cultural values and cultural practices Keywords: Virtual global project; Cultural diversity; Project management. Introduction Traditionally, a team-based project requires all team members physically present in a specific location for a period of time. But virtual global project requires a virtual team that members can engage in and deliver projects with limited or no direct physical interaction with other members. It allows multinational enterprises to draw on the widest talent pool available among their global employee base. Team members typically don't need to meet face-to-face, they can...
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...Managing cross-cultural staff." ABSTRACT Cross-cultural communication in business is a feature of study that looks at how people from dissimilar backgrounds converse, in comparable and different ways among themselves, and how they handle to communicate crosswise with cultures. In this investigation we will try to find which are the problems and what ways can we find in order to manage better employees from around the world. The plan of the essay is to expand a better understanding of the key points that control cross-cultural communication and international staff managing . 1. INTRODUCTION Anthropology includes all aspects of human behaviors and ideas. Anthropologists study diverse cultures to be more compliant and accommodating, more appreciative and to improve our own culture. Culture influences the business setting and management practices of a country and helps appreciate the differences between countries, it is difficult to determine and shows significant dissimilarity inside a country .A cultural approach does not accommodate transform and tends towards stereotypes. Besides every country has its own position of competitive improvement in its politico-economic ,industrial relations ,training and other requirements for firms and workers in their dealings with the state and culture. The resultant 'varieties of capitalism in different countries mediate the influences of global economy and multinational practices (Armit and Shoemaker ,1993).There is a challenge...
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...Global Business Cultural Analysis of South Korea John Smith University of Rochester BUS 800 – INTERNATIONAL BUSINESS Dr. Peterson March 6, 2015 Abstract Today, the United States conducts a substantial amount of business with South Korea. It is important that American managers, entrepreneurs, and businessmen understand the South Korean social, cultural, and religious dimensions of the nation. The South Korean culture and customs are uniquely different from those of the United States. The culture and customs of the United States are based on European traditions and religious Christian beliefs. The culture and customs of South Korea are based on Confucianism’s way of life, Buddhism’s individual salvation, and since the 1950’s Christianity’s redemption of the soul. American businesses that incorporate South Korean culture into American business practices will develop long lasting business relationships with their South Korean counterparts. American businessmen working in multinational corporations have adjusted well the collectivist culture of South Korea. Multinational enterprises considering cross border business in South Korea can feel safe investing in South Korea. Keywords: South Korea, United States, cultural dimensions, multinational business, Hofstede. Introduction South Korea is one of the United States most important strategic and economic partners in Asia. Members of Congress tend to be interested in South Korea for political purposes. South...
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...Topic 4 Managing The Environment What’s Your Global Perspective? • Parochialism - viewing the world solely through your own perspectives, leading to an inability to recognize differences between people. • Ethnocentric Attitude - the parochialistic belief that the best work approaches and practices are those of the home country. Other Global Perspectives • Polycentric Attitude - the view that the managers in the host country know the best work approaches and practices for running their business. • Geocentric Attitude - a world-oriented view that focuses on using the best approaches and people from around the globe. Understanding the Global Environment – Trading Alliances • European Union (EU) - a union of 27 European nations created as a unified economic and trade entity with the Euro as a single common currency. Exhibit 4-1 European Union Map Trading Alliances (cont.) • North American Free Trade Agreement (NAFTA) - an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated. Trading Allowances (cont.) • Association of Southeast Asian Nations (ASEAN) - A trading alliance of 10 Southeast Asian nations Exhibit 4-2 ASEAN Map Global Trade Mechanisms • World Trade Organization (WTO) - a global organization of 153 countries that deals with the rules of trade among nations. • International Monetary Fund (IMF) - an organization of 185 countries that promotes international monetary cooperation...
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...Globalization International Business consists of business transactions between parties from more than one country. Areas that change as you cross borders: boundaries, currencies, cultures, legal systems, availability of resources, and skills & knowledge. International Business Activities: • Exporting and importing: countries can depend heavily on exports, e.g. Netherlands 83%. You can import and export services (invisible traders) or goods (visible trade). Most secure way to test if your good can be well received by another culture. • International investments: Two options. Foreign Direct Investment opens a store in the host country with the same operating system that you use: in your home country. Foreign Portfolio Investment: buying financial assets in another firm in the country. • International licensing: a foreign company gets exclusive rights to use your intellectual property for a specific time in exchange for a royalty. • International franchising: it is a specialized form of international licensing. You not only use the brand and the products, but also keep the same form of operations. For example, Tim Hortons. • International management contract: not very common, but can be used by big companies. Send managers to another country for a specific period of time. Example Disney Paris and Disney USA. Phases of Development (going global): • Domestic Phase: (aka Product oriented phase) focused on development of the product. • Multidomestic phase: (aka market oriented...
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...and Education Cross-Cultural Etiquette and Communication in Global Business: Toward a Strategic Framework for Managing Corporate Expansion Ephraim Okoro1 1 School of Business, Howard University, Washington, USA Correspondence: Ephraim A. Okoro, Department of Marketing, School of Business, Howard University, 2600–Sixth Street, NW, Washington, D.C. 20059, USA. Tel: 1-202-806-1545. E-mail: eaokoro@howard.edu Received: March 22, 2012 doi:10.5539/ijbm.v7n16p130 Abstract The expanding scope of business corporations in the first decade of the twenty-first century is drawing much scholarly attention, and the trend has been described as a fact of life that defies the stretch of human imagination. The concept of global economy has expanded consumer awareness, defined new standards and rules of operations, and increased the need for national and corporate interdependence. Multinational organizations are exploring opportunities around the world, demonstrating sensitivity towards cultural differences in order to gain from the proliferation and growth of international enterprise. Recent studies indicate that while some corporations compete successfully in the global marketplace, others have failed to sustain their competitive advantage because of cultural imperialism or inadequate acculturation of their managers on international assignment. Corporate analysts argued that the key to global business success depends on effective cross-cultural etiquette and global workforce diversity...
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...Assignment 1. Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong? Over the last 30 years, there has been a shift away from a world in which national economies were relatively self-contained entities, isolated by barriers to cross-border trade and investment, and by national differences in government regulation, culture, and business systems; and moving toward a world where barriers to cross-border trade and investment are declining, material cultures are becoming similar, and national economies are merging into an integrated, interdependent global economic system. As companies from Japan and emerging markets like China play a more vital role in the world economy, the dominance of companies from the United States and Western Europe has diminished. Significant implications for British firms involve looking beyond Europe and America for investment and opportunities. Consumer spending power is growing quickly in developing countries. For North American companies, the same holds true, although the importance of the growing prosperity in Latin America suggests a potentially huge market in “their backyard.” Hong Kong is perceived as the gateway to the immense market of mainland China. Since Hong Kong firms are now less taken for granted, access to China is improving along with the move towards a market economy within China. International businesses...
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