The Impact Of Globalization And Management Of Mncs

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A multinational corporation (MNC) is a company engaged in producing and selling goods or services in more than one country. (Shapiro, A; 2010) Globalization has given rise to the number of multinational corporations resulting from the ease of communication, transportation and management, compounded by the constant and rapid growth and development in information and technology. Management of MNCs face the challenges of different government, laws, market, culture, and language (just to name a few), which varies from country to country, this means that managers of MNCs have to be very adaptive in their approach to management. Management of MNCs is no longer two dimensional but multi-dimensional. This being an exponential increase in the management …show more content…

In addition managers have to manage cultural and religious issues, which in some countries are as important as the business relation or even greater. • The difference in managerial styles in selected countries: (for example Japan vs. the U.S. or Saudi Arabia vs. the U.S.) “Dominique D. Mals (2012) from the Philosophy faculty at Westfälischen Wilhelms-Universität in Münster wrote a doctoral thesis about Japan being the leader in corporate social responsibility in the 21st century. According to Mals‘ research, Japanese organizations follow the beliefs that an individual should be "contributing to the society as a whole." On the other hand, American companies are focused more on satisfying themselves first and only then comes the society”. (3) “In Saudi society today, most individuals are motivated by status and position. The reasoning is that most of the younger generation of Saudis have been exposed to their parents attaining high-ranking and well paid positions, thus they are looking to follow suit. These people are not motivated to stay in lower-ranking jobs”.

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