MGT 501

GLOBALIZATION OF BUSINESS AND CROSS CULTURAL MANAGEMENT (2007

INTRODUCTION

In contemporary times , the business operation is becoming more globalized , through the innovative means of communication and transportation . The world is termed in this computer age as a global village , where business operations are conducted across tarns national bs of countries . The neo-liberalists views in international trade has always supported a globalize and open market in which every countries is expected to open up its market and imbibe the culture of free trade , free economy entry and exit of labor and the

opening of the state economy to the international market for active competition . The adoption of open markets have resulted in the political responses in terms of change in the political structure , that is hitherto exhibited and the way government intervene in her country 's economy . This change has resulted in the adoption of the neo-liberal stand . This can be seen vividly in the case of Eastern European countries which are known as communist and socialist states , when free trade doctrine crept into their economies it is seen there is a gradual change in the level of government intervention in the economy

But , cross-cultural differences in international trade are a big hindrance in the effective conduct of international trade

WAYS WHICH CULTURAL DIFFERENCES AFFTECT INTERNATIONAL BUSINESS

Cultural differences in environment where business operates in an international setting tends to affect the way business in conducted Among those implications from cultural differences to business include the following

Different in business culture among countries makes the legislations on business incorporation and license to operate a difficult issue . Some countries due to their cultural background tend to put in place legislation that would protect their cultural heritage , and thus , laws to restrict certain business operational mode would be put in place This tends to be different from what is obtainable in other countries Thus , a new entrant to this environment of business would find it difficult to adapt giving the legislative hindrances

Another way cultural changes in business in international business tends to affect business operation is the need to adopt new strategic framework different from what an organization is know , for it to compete favorably in the new cultural setting it finds itself . Due to difference in cultural setting this tends to pose difference in ways to satisfy customer or client taste , and differences in ways to advertise to attract the society to the organization services and product . Thus it requires a formulation of different strategies to make the organization be able to deal with the differences in the cultural setting where it finds itself . Resistance to paradigm change in favor of incremental change , environmental changes outpaces strategic change which in turn leads to strategic drift (Harding Long , 2001 :146

Cultural differences in business operation in international business operation affect business on how they relate with their workers and what will motivate their human resources . Cultural different setting makes the motivational factor for workers to differ . For instance , most workers in...