Globalization and International Trade

Globalization and international trade are not a new and isolated phenomenon. It has been taking place for centuries, every since the man realized that trading is the best way to exchange goods and have access to the ones that he cannot produce owing to geographical, climatic, cultural, technological, economic or even political limitations.

But key recent historical events, along with great advances in technology, communication, mobility and connectivity, among others, have all stimulated an increasingly and fast change in the way we live, trade and do business. In these days that globalization is present, gaining ground in every aspect of our life through the

Internet, social networking, mobiles, etc, the classic management style inherited from

Henri Fayol and Taylor, among other geniuses, has been subject to constant adaptation to meet the demands of the new merging globalized society. “Overseeing manual labor tasks…and running time studies” (Principles of Management, p58) is no longer enough to get great results. As society, and therefore organizations became more complex, the necessity arose for a new way of management, in which “leaders had the ability to influence and motivate others not only to perform work tasks but also support the organization’s values and meet its goals”. (Principles of Management, p59). In the globalization era, “corporations are becoming social movements where charisma plays a more important role than authority. They use the mechanics of social movements to improve their management”. (Principles of Management, p62) People work better when belonging to a group like themselves, so companies are adapting this networking-based model, which allows for collaboration, motivation, retention and even education without necessarily sharing the same physical location. As people share and contribute, they are both learning and teaching, in a highly motivating environment.

Companies have started to expand their frontiers, and no longer are limited by their physical infrastructure.

These are just some of the characteristics of our new society, which demands for managers who, besides being up-to-date as far as advances, trends and technology goes, are capable to deal with the new complex and changing organizations. The new generation or managers face a difficult task, because they are to possess not only managing skills, but also ecological awareness, language skills and serious cultural awareness, as managerial culture may greatly differ from country to country, and even from the regions in the same country.

As an example, in Japan employees cannot be as assertive as their American counterparts. It may look disrespectful to have such attitude. You must show a higher level of humbleness and be rather quiet. Likewise, Japanese workers are expected to work and organize as an effective team, capable of finding their own solutions to their