Multiculturalism and diversity management - Essay Example

This also touches on the issues concerning the company’s expansion in Japan and Germany including economic and political concerns and the methods that can be utilized for the success of the expansion. Multiculturalism and Diversity In this era of globalization, diversity has been a hot topic to everyone, especially to industries that participate in the global market. As we all know, almost everything today is made in the world’s largest workforce – China. This reality has been an effect of globalization, making the globe as a giant melting pot.

(Gamble, 2002, p 19) Corporations that venture into global expansion face cultural issues with the hosting countries. Since cultural difference is a major issue on this endeavour, managing multiculturalism and diversity plays an important part on global expansion. This enables the expanding corporations to understand the cultural difference of the hosting country from their own culture which allows them to view the strengths and the downsides of the endeavour that prepares them to manage the possible issues successfully.

(Gamble, 2007, p 43) Importance of Multiculturalism and Diversity Management on Global Expansion Multiculturalism and diversity management is an integral part of global expansion. Multiculturalism and Diversity Management 3 This gives the managers and staff of a company to be able to interact to their hosting countries accordingly, without taking the hosting countries’ culture for granted. This provides a more fertile ground for growth of new ideas instead of a culture that is comfortable only with ‘likeness’.

As globalization becomes a hot topic in the business world, companies realize that knowing the cultures of countries that host their offshore sites is and essential part of global expansion to avoid embarrassment, legal offenses that can lead to loss of business and some other important factors to become successful in their endeavour. As a company, the transfer of their technology, practices and beliefs to their hosting country is not enough in order to succeed in the global expansion. Cultural differences surely come into play that could create friction in the workplace.

Economic Concerns Technology is one of the so many economic concerns multinational companies face during global expansion. Some businesses choose to expand internationally to take advantage of the lower cost of labour in developing countries; they need to plan for intermediate and appropriate technology. They should match a country’s resources or may choose to invest in a country that is at par with the current technology being used. (Gamble, 2007, p 76) Financial management is another economic concern MNC has during global expansion.

This concern is a little challenging as countries change in value due to currency exchange rates. Managers of MNC should have a deep understanding in currency values, financial tools like derivatives, hedges, payment timing, price adjustments and balance sheet neutralizing. (Gamble, 2007, p 78) Multiculturalism and Diversity Management 4 Political Concerns Total quality respect is an integral part of a company expanding globally. Since culture varies from one country to another, respect to one’s beliefs is an essential aspect in order to manage an MNC.

Political concerns like religious beliefs and humanity are two of the most common concerns MNC overlook in their international expansion. Managers of MNC should be open to different ideas and beliefs to avoid political