Globalization in Business - Assignment Example

Globalization in Business Globalization in Business Introduction Globalization refers to the changes in the world where we are moving away from self-contained countries and toward a more integrated world. Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries. The impact of globalization on business can be placed into two broad categories: market globalization and production globalization. People have created an interconnection of information and money flow for fast and efficient purposes. Globalization tidal wave has increased production of goods and services (Gore, 2013). Globalization in business results to free trades that create a way for economic growth by creating jobs brings the point of competition between companies which result to reduction in prices to cover a bigger market demand. Globalization opens up opportunities for poor countries that see through democracy and human rights. Globalization and democracy should go together to increase the global economy by promoting mutual trust and respect. The two power blocks will promote business for the involved countries. This will create an international market for consumers of different countries (Gore, 2013). Globalization in business gradually creates world’s power by promoting unity in the world by merging of political powers and common pool of decision making. By creating a common pool of decision making benefit the world as compared to compartmentalized power sectors. Globalization promotes interconnection and hence, benefits many countries to share information. With sharing of information, result to the sharing and borrowing of cultural activities between different countries (Gore, 2013). The purpose for global changes is to promote globalization through government and originations sharing of common financial interests in business. Globalization have resulted to social tolerance with people of different countries and therefore promoting world wide economy. Speeds in interconnection and sharing of information through internet are promoted by globalization (Gore, 2013). Question 2: Why do macro and micro level facts matter when an expatriate moves to another country? Give 2 examples, one of which a class source. Differences exist between native countries and immigrants in relations to job openings and political illustration. Youth of marginal ethnic background encounter sidelining when participating in the job market. Furthermore, minority ethnic employees are under-embodied in economic and political domains. There is an wide-ranging records on the causes why people might be willing to work overseas. Core backgrounds encompasses an individual’s family and personality, early experiences and social background, among other reasons (Daniels & Radebaugh, 1995). Family and Other Social Upbringing Aspects - Customs and ethics obtained through environment and family, background, one’s language capability, cross-national and national interactions of oneself and one’s relatives, the social upbringing of the family and other inspirations that model a person’s opinion of the world has an impact on the inclination to participate in worldwide employment and professions (Daniels & Radebaugh, 1995). Personality and Safety - Self-self-assurance is often regarded as escalating person’s accessibility to international occupations. Personality qualities such as inquisitiveness, integrity, humility and hardiness enhance the ability to work overseas. Career and Development concerns - Expatriates appreciate their international encounter as a chance for personal growth, career and professional advancement. Individual Interests and Drives - Individuals regularly chase personal interests by working overseas. Amongst the conspicuous reasons are the desire for personal challenge, life change, travel and adventure (Daniels & Radebaugh, 1995). Considerations of Friends, Partner and Family - There is a growing literature on the relatives of globally movable persons, expatriate partners and twin careers. Question 3: What is culture in terms of international business and why are factors such as survival, language and climate important? Please give an example how this may affect bi-cultural individuals, using class source. The impact of the diverse cultures in the global business world is important for creating effective International Relations. This concern is established on the new international business viewpoints and what is significant to regard in growing an International Business strategy. Businesses have the difficulty of offering and developing into new horizons and it is very essential to wholly comprehend those fresh markets that the business is strategizing to develop and invest in (Clearlycultural.com, 2009). Taking time to identify the culture of the state in which you are going to be transacting with is very essential as it displays a symbol of esteem and it will be intensely valued. In fact, not performing this gesture will result to awkward scenario between businesses (which could cause in the disaster of the company.) So it is vital to state that those who successfully react to the lifestyle and culture of the country where they design to increase, have more opportunities of growing fruitful businesses than those who do not (Clearlycultural.com, 2009). One realistic instance that supports this culture in international business is clarified in the book Management Across Cultures: Challenges and Strategies. The author employs the analogy of a grasshopper to describe how it is perceived in different cultures: In the United States it is regarded as an epidemic and of no use, while in China it is regarded as a pet and in Thailand it is regarded as a goody to be sandwiched in snacks. A grasshopper is skillful in making numerous viewpoints, different features, among different cultures (Clearlycultural.com, 2009). Question 4: Give a brief value comparison of the country of The Netherlands based on Hofstede’s work in comparison to South Africa. Ensure that you make the analysis relevant to an executive. Give a practical business example related to The Netherlands vs. South Africa. South Africa scores 49 on this dimension of power distance which implicate that people to a greater extent agree with the categorized order in which everyone has a place and which requires no extra explanation. Chain of command in an institution is perceived as reflecting characteristic disparities, monopolization is prevalent, junior employees anticipate to be articulated what to partake and the perfect manager is a kind dictator. On the other hand, Netherlands score 38 which is low on this dimension that implicate the features the Dutch style of being independent, equal rights ladder for convenience only, management facilitates, superiors accessible, empowers and coaching leader. Distance power in Netherlands is distributed and bosses depend on the encounter of their team members. Staffs anticipate to be asked first. Control is not accepted and assertiveness towards bosses are casual and on first name basis. In Netherlands communication is straight to the point and contributive (Geert-hofstede.com, 2015). On the masculine dimension, South Africa the society covers 63, therefore a masculine society. In masculine states individuals “live in order to work”, bosses are anticipated to be influential and self-confident, the stress is on justice, performance and competition and conflicts are determined by resolving them. On the masculine dimension, South Africa the society covers 14, therefore a feminine society. In feminine states it is essential to preserve the work / life balance and you make certain that all are incorporated. An operational boss is compassionate to his/her employees and decision making is accomplished through participation. Bosses struggle for harmony and people value solidarity, quality and fairness in their working livelihoods. Fights are resolved by concession and negotiation. South Africans are popular for their long negotiations until accord has been reached (Geert-hofstede.com, 2015). Question 5: What is cultural distance and what are two limitations of country culture research? What must a culturally intelligent executive be aware of? Give 1 practical example. Probably the most essential cultural dimension acknowledged in Hofstede’s work is power distance, which regards the extent to which a culture allows and supports the fact that power is dispersed unfairly in the society. Another dimension Hofstede acknowledged is collectivism/individualism. Individualist cultures displays a comparative inclination for the individual in disparity to the collection. Doubt evasion regards the grade to which cultural members are eager to consent and contract with unclear or dangerous instances (Brumagim & Xianhua, 2005). The concept of power distance assists to define the significance of respect Korean Air’s co-pilots displayed towards their captains. It is essential to note, though, that a state’s position along a particular cultural dimension is not an analysis of whether members of that culture methodology conditions better or worse than in other cultures (Hofstede, 1994). Conclusion It is note-worthy that the dimension of uncertainty avoidance did not surface as an individual cultural dimension in an advanced research that Hofstede directed using a Chinese corresponding of his novel research created by Chinese social researchers. Hofstede’s cultural value totals have also been employed to calculate total cultural distances between states along four dimensions in sequence to enumerate cultural disparities between states. However, these cultural distance scores have been broadly employed to describe various phenomena in international business such as performance of multinational companies, international diversification and entry mode choice 12, this approach has also been widely critiqued (Hofstede, 1994). References Brumagim, A. and Xianhua, W. (2005). An Examination of Cross‐cultural Differences in Attitudes Towards Risk: Testing Prospect Theory in the People’s Republic of China. Multinational Business Review, 13(3), pp.67-86. Clearlycultural.com, (2009). Geert Hofstede cultural dimensions | Clearly Cultural. [online] Available at: http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/ [Accessed 21 May 2015]. Daniels, J. and Radebaugh, L. (1995). International business. Reading, Mass.: Addison-Wesley. Geert-hofstede.com, (2015). South Africa - Geert Hofstede. [online] Available at: http://geert-hofstede.com/south-africa.html [Accessed 21 May 2015]. Geert-hofstede.com, (2015). Netherlands - Geert Hofstede. [online] Available at: http://geert-hofstede.com/netherlands.html [Accessed 21 May 2015]. Gore, A. (2013). The future. [S.l.]: WH Allen. Hofstede, G. (1994). The business of international business is culture. International Business Review, 3(1), pp.1-14. Read More