Globalization Case Study

Globalization was depicted in the early 1990s as the ultimate stage of development for the field of international management. Globalization would require from large business firms highly skilled managers to cope with the challenges and responsibilities of the so-called global market. Ten years later, the scenario has changed considerably. As globalization headed towards placing an extraordinary amount of power in the hands of large corporations, international management became a major concern not only to business firms and their managers, but also to governments and other institutions (Boddewyn, Toyne, & Martínez, 2004).

As a result of the globalization process is the multinational corporations (MNCs). One can view the seventeenth-century

Expatriates were expected to live and work aboard for an extended period of time. These long term foreign assignments were meant to enhance their (expats) career and the organization had someone whom they trust working for them in a foreign outpost. Since persons selected for a foreign assignment were top performers at home, it was assumed that they will succeed abroad too. But after studying expats performance abroad, it has become clear that a top performer may not necessarily perform at the same level abroad and in reality their performance actually drops substantially during the first year of a foreign assignment. Many expats feel dejected in their foreign assignments during first few months that they request a transfer back home or simply change jobs. The main reason for the failure of an employee sent abroad is Culture

This leads to a lot of unfairness in trade and basic human rights for which the majority of people end up paying the price. For example, some believe that one of the main problems causing the 1998/99 financial crisis around the world is a lack of global regulations to help protect developing nations as they enter a global market. Even the World Bank has cautioned that globalization and localization (the increasing demand for local autonomy) can pose problems as well as offer benefits, if not handled