Main Issues Affecting International Managers

2273 Words Jun 18th, 2018 10 Pages
INTRODUCTION: Enlarged competition and relaxed economic restrictions have given rise to the development of the force of globalisation, which subsequently have led to multinational companies and managers. In 2000, the global trade in exports and imports extended 25% of the world GDP (Govindrajan & Gupta 2000). The rise of globalisation speculates a number of imperative tests to business seeking international incidence, more notably, to these business’s global managers to successfully help achieve this presence. Numerous strategic facets must be measured prior to commitment at an international level, and afterwards. Continuous flexibility is essential in order to adapt to the fluctuating patterns at local, regional and international …show more content…
Hoifstede (1984) asserts to have formulated the focal scopes of the notion of culture that affect work practices in varying countries. These differentiating components of culture are: Power distance, uncertainty avoidance, collectivism vs individualism, femineity vs masculinity and short vs long term orientation.
In a local culture framework, great power distance could turn into prospective corruptive practices. Takyi – Asiedu (1993) related the notion of power distance to the rampant corruption in the sub Saharan Africa. Moreover, it is also found that greater power distance culture, people are more tolerant and acceptable to unethical and immoral practices. In contrast, it is also assimilated that greater power distance with the standardization of financial and accounting work ,which could lead to less or more expensive to the company and its managers manner of conducting business.
Uncertainty avoidance nations are more inclined to have a more solidified legal regulations and more stringent way of conducting business (Pagell & Halperin 2001). In these type of nations, comprehensive auditing tends to be executed more to check whether there is any defiance against the law and rules. These nations seem to have a more standardised and streamlined accounting practices and little disclosure levels (Hill 2004). Whilst from a contrary cultural perspective, a global establishment could possibly view it quite expensive to adapt and integrate to the national standards and
Open Document