Global Operations Management - Research Paper Example

334). Other issues are clearly disclosed by Fisher (2003) as: “whether globalization results in unfair labor practices in developing countries; whether globalization damages the environment; whether multinational corporations have become too powerful to the detriment of developing country citizens and governments; whether globalization gives rise to tax competition that undermines the capacity of governments to raise revenues and thus to provide necessary services to their citizens; whether intellectual property protection is damaging the health of developing country citizens” (p. 7). Political issues include government regulations imposed on foreign organizations including policies on deregulation, risks faced from local violent groups and insurgents, level of organized crime and terrorist activities in the host foreign country. 2. Explain what cultural barriers and diversity issues are commonly encountered by international/multinational (MNC) and global organizations.

Cultural barriers and diversity issues are commonly encountered by international/multinational and global organizations for the reasons that each country has developed its own set of values, traditions, cultural norms and beliefs that could be significantly different from the home country. For instance, Japan and Germany have different cultural mindsets and practices that have been ingrained in the general population since the beginning of time. Operating in Japan or Germany should therefore necessitate orienting oneself on cultural disparities and business practices to ensure that expanding to these countries would not compromise, intimidate, impose oneself and run contrary to the people’s beliefs and value system.

As emphasized by Firoz, Maghrabi and Kim (2002), “theoretical reasoning and statistical analysis revealed the four main dimensions on which country cultures differ. They were labeled Power Distance, Uncertainty Avoidance, Individualism, and Masculinity” (p. 32). 3. Why has diversity become such an important topic in the international arena? Diversity has become such an important topic in the international arena because in order for global organizations to effectively operate in a foreign country, the barriers to effective operation must be addressed: language and communication barriers, business ethics, value systems (religion), business practices, and external factors that impinge on the expanding organization.

Due to diversity in culture, there could be significant differences in cultural norms, values and traditions that could not simply be imposed on the host country. 4. What can occur when issues related to multiculturalism and diversity are ignored in an international company? If these are not effectively and appropriately addressed, the risk of failure is increased. There would be eminent problems in communication, in expecting that policies and procedures would simply be adhered to or followed, and in imposing one’s normal way of doing things on another culture that has been accustomed to a different way of doing business or a way of life. 5. Describe at least 2 political and 2 economic issues that may arise during global expansion and proposed methods of addressing them.

The political issues that may arise during global expansion are: (1) barriers to entry and (2) political upheaval.