MGT305 – International Business
Module #: Introduction to Globalization
******Page I: What is globalization?
******Page II: The changing global economy
******Page III: Differences in culture
******Page IV: Business and economic implications of differences in culture
COURSE OVERVIEW
This course explains how and why the world’s countries differ, by looking at their demographic, political, legal, economic, and technological environments. Students will be able to learn and apply in practice how these variables affect the business decision-making process. The course also presents a thorough review of the economics of international trade and of the global monetary system. Students will also examine and apply strategies of international business,
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Moreover, it is essential to know the implications of cultural variations for international business.
Learning Outcomes
1. Understand what is meant by the term globalization.
2. Spot the main causes of globalization.
3. Describe the changing nature of the global economy.
4. Assess the forces that lead to differences in social culture and structure.
5. Know the business and economic implications of differences in culture
6. Understand how the process of globalization is creating opportunities and challenges for business managers.
READINGS
Required:
Chapters 1 & 4 in Global Business Today
DeCarlo, S., and Nicolas Rapp, N. (2016, July 20th). This Chart Shows the World’s 500 Largest Companies. Retrieved from http://fortune.com/global-500-companies-chart/
Baronchelli, G., and Cassia, F. (2014). Exploring the antecedents of born-global companies ' international development. International Entrepreneurship and Management Journal, 10(1), 67-79. doi:http://dx.doi.org/10.1007/s11365-011-0197-9
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For example, when there are different norms between how individuals from different countries interact, make purchase decisions and negotiation, the costs of doing business rise as people deal and adapt to unfamiliar ways of doing business.
Different class structures and social mobility also raise the costs of doing business, because they may increase communication deficiencies, impact corporate culture and even increase labor costs. Variations in ethical norms and values can also lead to differences in attitudes towards work, entrepreneurship, honesty, fairness, and social responsibility. Finally, a country 's education system can have important implications for the costs of business and the ability to find a specialized workforce. Therefore, culture can have implications on different aspects of an international business, from communication and ethics, to labor
Griffin, R. & Pustay, M. International Business, 2003, Pearson Education, Upper Saddle River. Pg. 301
Wild, J. J., Wild, K. L., & Han, J. C. (2008). (CH2)Cross-Cultural Business and (CH5)International Trade,. International business: the challenges of globalization (4th ed., pp. 48, 61-62, 132, 136, 147). Upper Saddle River, N.J.: Pearson Prentice Hall.
Another challenge is brought about by the fact that the concerns of customers in developed countries are different from the concerns of the customers in developing ones, (Bruce Kennedy, 2014). This variation necessitates the need for companies operating in both environments to strike a balance and manage any conflicting situation appropriately and with
As the improving in technology and transportation, the scope of business conducting has enlarged. Local business cannot satisfy the businessmen and expansion of business geographically can be seen everywhere. However, with the business being globalized, the differences in laws, working conditions, health insurance and salary, etc. become significant and it also creates unfairness to some of the stakeholders. For instance, the coffee bean farmers in Africa work very hard to earn their livings, but only can earn 41.17 US cent per pound before 2004 whereas the retailers can earn billions of dollars (Wikipedia). The prices which are paid to the farmers are unfair and too little and hardly for them to survive.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
Among the other developments I have found that International business is the most important developments within a company, it’s the main key to make the company profitable and recognized by the world. It connects the company with the outside world economy. Moreover, international business is the transaction between two rejoins or more, it can be by investment, sales and transportation. This essay will showcase the future of international business, advantages and disadvantages of international business, the legal and ethical side of international business, and the risks of international business.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
Consider whether centralized and decentralized business structures will make different business decisions depending on the cultural values in the region.
As culture may impact people's behaviours generation by generation, in other words, the consumer's need of business in some level depends on cultural influence. Cultural influence lies in a variety of forms, from laws, regulations, religions to personal interests.
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
Globalisation has been one of the most significant developments of the last half century, and issues such as trade and international commerce have become increasingly important. In consequence, problems such as poverty, unfair wages and poor working conditions in third world countries have been drawn to the attention of consumers (Hayes and Moore, 2007). This is a growing global issue which cannot be ignored by anyone concerned about the problems in developing countries. Free trade and Fair Trade have both been offered as solutions to these issues.
Using 1997 financial crisis and other examples, discuss how globalization is important to the modern business journalism. Introduction
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.