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.
By study their viewpoint of business, this can give value to international business. Every business as part of its economic objectives always wants to grow. Domestic market is likely to saturate after a limit and ...
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... – Explained! [online] available from < http://www.shareyouressays.com/114495/10-main-advantages-of-studying-international-business-explained > [1 April 2014]
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• jeswald w. salacuse (2) 005 ‘The Top Ten ways that Culture can Affect International Negotiations ‘. Available from < http://iveybusinessjournal.com/topics/global-business/the-top-ten-ways-that-culture-can-affect-international-negotiations#.Uzwdh6iSySp > [ 3 April 2014]
...tract, some cultures view the negotiation process as being about building a relationship, not getting a signed contract. In this type of negotiations the culture who is more concerned about a contract must work at building a relationship, rather than just stating the positive facts of the contract for both companies. Such misunderstandings could result in the negotiations leading to the loss of a contract. If business people do not know more than just the cultural tendencies of the people they are negotiating with, then they will have a much harder time to relate, connect, and ultimately to get a contract. Not knowing more than just cultural tendencies of people that you are working with can create frustrations and misunderstandings for others and yourself, and worst of all, it can lead to a breakdown in communication and the relationship between two companies.
Cross-cultural differences have a significant effect on the output of business negotiations across borderline. Failure to understand and appreciate these differences can render hard work and preparation unfruitful, and result in serious consequences for negotiations. During the meetings between the executives of Canwell and their Chinese customers, both parties demonstrated their willingness to cooperate. Yet due to the lack of acknowledgement in cultural discrepancies, every one behaved only in accordance to the code of their own culture, therefore failed to reach an agreement. In total, the Canadians neglected 3 major points of cultural differences: goal of negotiations, risk preferences
A country's economic environment plays a significant role in the success of businesses operating within that country. Countries with struggling or shrinking economies were not included in the top ten ranking. Economic indicators and trends selected for this analysis:
In life we sometimes experience cultural differences. In The Joy Luck Club Amy Tan shows how mother daughter relationships are affected by these cultural differences. Therefore each of the mothers and daughters has a different view on their Chinese culture.
Everyone contributes in the diversity management of cultural diversity in both every aspect of globalization and in the world add the cultural diversity introduction with regard to the page numbers demonstrate it and on the topic of cultural diversity just the diverse peoples issues they are resolved before and by the world's most fundamental strategies and so forth the secret of this is cultural dominance cultural avoidance and the secret of childcare success would be cultural compromise what do a wide cultural synergy provide it would be just as buckland's on plastic building pieces and strawberry cakes have in common these apparently unique things alongside some more other things can be found in the classes of your nearby child care center
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic. Although he was born in the United States, he has family and friends in the Czech Republic, speaks Czech fluently, and has visited the country of his origin several times. He knows the people and the culture. In this paper, I will analyze the cross-cultural differences between the United States and Czech Republic, determine comparative advantages in this country, and recommend ways to minimize the risks of establishing a franchise overseas.
Zhang, Jian-Dong; Liu, Leigh Anne; Liu, Wu. “Trust and Decption in Negotiation: Culturally Divergent Effects.” Management and Organization Review, [early view].
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
Cross cultural negotiations is about more than just how foreigners close deals. It involves looking at all factors that can influence the proceedings. By way of highlighting this, a few brief examples of topics covered in cross cultural negotiation training shall be offered.
Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.
There are many differences among cultures in the modern world. Certain cultures hold high regard for specific values and distaste for other values. This difference in values can effect international business positively.
Payne, Neil. (Feb 2006)International affairs: in today's global market, knowing how to conduct cross-cultural meetings is essential.(Motivation). In Kitchen & Bath Business, 53, p30(1). Retrieved April 03, 2006, from InfoTrac OneFile
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.