Management in a Globalized World - Assignment Example

MANAGEMENT IN A GLOBALIZED WORLD Introduction Due to technological advancement, globazation has found its roots in the current times. This has led to different countries conducting business across borders in a bid to strengthen the economic gains as well as international relationship. Due to diverse market structures in various countries, there are different macro and micro level facts that are considered during entry in a different country. Additionally, due to diverse cultural backgrounds across diverse countries, language and other aspects of cultural conflict are bound to be experienced, and thus appropriate strategies are adopted to address the challenges. This paper seeks to address some questions on globalization as listed below: 1. What is globalization in terms of international business? Give a practical example using class source. Globalization entails activities that assist countries and societies to broaden and deepen thus increasing their interdependence around the world. Broadening and deepening is the establishment of links and using them to increase the regularity and intensity of the communications, transactions, relationships and general interactions among the involved societies and states (Cohn, 2011). Globalization has led to developments in management and other significant sectors in the corporate world as companies come up with excellent strategies to overcome the competition and as a way of keeping up with the trends. The vast growth in international market relates with developments in areas such as communication and transportation technologies that are the key facilitators of the strategic links between the participating states and MNCs. However, globalization’s impact varies in the different countries and in most cases; it threatens the domestic autonomy causing issues among the local economies. Upon entry into the international market, countries take up new roles and responsibilities, which do not restrict them from making policy choices. The policy choices are the determinants of states and societies’ experiences of globalization i.e. unity and cooperation or fragmentation and conflict. A good example is the case of Multinational Corporations (MNCs), companies that distribute goods and services across borders with an aim of spreading ideas and controlling assets in more than one state. They play a significant role in globalization and most people argue that they make the greater part of it. MNCs mostly practice Foreign Direct Investments (FDI): this way they are able to manage rights and control economic transactions in different states. 2. Why do macro and micro level facts matter when an expatriate moves to another country? Give two examples, one of which is a class source. Today, there is no certain way to predict global markets because of promptly altering situations in different parts of the world with states such as China, Japan among others setting the bar high (Lehman, 2015). Relative to Amsterdam’s current situation, management should dictate its position on global scale, both in politics and in the economy, relative to their knowledge and skills in exploiting opportunities and having the ability to identify threats (Weihrich, 1999). Typically, these two aspects can either boost a state’s strategy or completely act as the main hindrance to its success based on how the political and economic leaders approach the strengths and weaknesses of the matter. This creates the extensive need for taking note of all the macro and micro level facts to avoid failure or exploitation by flourishing companies. For instance, the labor market on the global platform is among the most promising; however, history and experience clearly depicts that opening labor markets on a global scale has its ups and downs with most developing states and transnational companies arguing that without vast knowledge and skills, it mostly disadvantageous. Appreciably, the possibility of setting up markets on global scale has technology advancements among others as its core facilitators; however, keeping up with these advancements is a challenge itself for most companies and states so most of them focus on global patterns of migration (Hall 2009). Obviously, focusing on only one does not guarantee full results but most of the flourishing parties agree that the best approach is mobilizing or the necessary resources and knowledge (macro and micro level facts) of the global market to counter the adverse challenges and eventually exercise greater power. Definitely, this requires excellent strategies, plans and as most people would argue, connections from different parts of the globe, especially areas where labor markets dominate the economy. 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. Under international business, culture is a self-motivated potency for alterations rather than an inflexible set of constraints that corporations and states must observe sternly. Typically, globalization has a regimenting effect on local cultures due to the impressive progression and escalation in the international markets relative to capital, labor and information. Evidently, this provides vast opportunities for states, organizations and individuals around the world; however, aspects such as survival, language and climates are the key significances and determinants of flourishing in globalizations, particularly under culture (Acar, 2009). Overlooking these factors leads to negative side of the global culture where local culture does losses identity, experience exclusion and at some points, leads to conflict. Customary communities have the hardest time because globalization requires rapid adaptation to modernized and external cultures. Relatively, the adaptation (survival), language (communication) and climate assist states and corporations in establishing how to attain the benefits of international business; moreover, they influence the balance of benefits. This careful approach, depicting culture as the most significant, is not a guarantee of confinement but also creates a chance where people can invest in domestic novelties, skills and other materials for sustainability (Etyan, 2004). On the hand, biculturalism is an emergent attribute in international market as a way of survival; however, the trend of globalization culture might have substantial influence on this (Acar, 2009). Resolutely, individuals with biculturalism will have to adopt a different type of bicultural identity i.e. the combination of local identity with a globally recognized identity, relative to the culture. For instance, an ICT companies adopting biculturalism will have to eliminate their geographical placement as a relevant attribute. 4. Give a brief value comparison of Netherlands and South Africa based on Hofstadter’s work. Ensure you make the analysis relevant to an executive. Give a practical business example related to the Netherlands vs. South Africa. One of the main aims of globalization is creating equal opportunities for countries that are willing to participate in the global economy. As in the cases of Netherlands and South Africa, globalization has long-term underdogs and victors resulting from the increased interdependence between states and societies. Netherlands works with other countries in Europe such as England and Wales whereas South Africa makes contractual agreements with other leaders such as the United States or China, especially in construction of infrastructure and engineering (Euro-monitor, 2015). Relative to Hofstadter’s work both cases depict a form of interdependence; however, the results of the partnerships or collaborations show vast discrepancies. As much as the growth of interdependence is a positive development, the accepted control of globalization from powerful states depicts inequality that leads to poverty as pointed out by interventionist liberals. Unlike Netherlands, South Africa lacks a standard foundation on the international market. In order for states, MCNs and International Organizations to prosper in globalization, they must establish themselves in the prevalent areas such as division of labor or have good relationships with international economic institutions such as IMF or World Bank. In fact, once corporations or even new states enter the global market, it takes some time before they start experiencing the advantages (Euro-monitor, 2015). Today, they rarely reach to such a point without failing because the dominating corporations and states monopolize every opportunity that the developing countries could utilize. This is the main reason for the difference between the Netherlands and South Africa’s stature on the international market. 5. What is cultural distance and what are two limitations of country culture research? What must a culturally intelligent executive be aware? Give one practical example. In international business and management, cultural distance refers to the variations existing between countries i.e. cultural values. Typically, national meanings of values do not apply in international business hence states have to engage in extant practice where they adapt to the existing model/culture on the international platform. These is disadvantageous and limiting for countries, particularly because they cannot implement local cultures as part of their international initiatives and strategies. Cultural distance creates an economic imbalance in country culture research (Etyan, 2004). For instance, over the years, there has been impressive achievement from most countries around the globe because of the increased efforts to make a mark on the international platform. In return, this has been a source of great power and impact for them hence putting any other parties interested in globalization at an awkward position. Engaging in international business means competing with big transnational companies and nations whose economies dominate the entire world. Due to this factor, startups are the worst especially in common divisions such as the labor market, and to make it worse, on an international level. As much as competition advocates for justice, there lacks fairness for country culture as a beginner who has to compete with multinational corporations that can adjust their territorial ventures in the blink of an eye (Rittich, 2000). However, culturally intelligent executives can have positive influence on this by understanding that cultural distance reduction is more prevalent when two countries engage in international trade; the differentiation and constant comparison creates better chances of survival and dominance. Conclusion Globazation is appreciated by various countries across the world since it expands the market in which they can sell their goods and services. Due to diverse set market bar by many countries across the world, macro and micro level facts are an important consideration when venturing in a different country. Moreover, due to cultural diversity, challenges associated with it re bound to occur although with sound strategies, they are easily addressed. Bibliography Acar, S. 2009, ‘Globalization and Labor Markets in the Developing World’, Vol. 5, pp.1-46 Cohn, T. 2011, ‘Global Political Economy’, 6th Ed, New Jersey: Pearson Publishers. Euro-monitor International (EI), 2015, ‘Market Research for Netherlands and South Africa: Euro-monitor International, viewed 21 May 2015, http://www.euromonitor.com/netherlands/south-africa Etyan, A. 2004, ‘Globalization and Biculturalism’: British Journal of Psychiatry, vol.183, no.4, pp.362-363 Hall, J. 2009, ‘Future Labor Markets- Technology Assessments’: Strategic Computing and Communications Technology, viewed 21 May 2015, http://people.ischool.berkeley.edu/~hal/Courses/StratTech09/Tech/Preso/F-labor-paper.pdf Lehman, R. 2015, ‘Overview of Economic, Social and Demographic Trends Affecting the International Labor Market’: United States Department of Labor, viewed 21 May 2015, http://www.dol.gov/dol/aboutdol/history/herman/reports/futurework/conference/trends/trendsVI.htm Rittich, K. 2000, ‘Transformed Pursuits; Quest for Equality in Globalized Markets’: Harvard Human Rights Journal, 13, no.2, pp.232-61 Read More