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New Balance Athletic Shoe, Indonesia, and Globalization Essay

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With the constant quest for greater profitability, American companies are reaching further and further around the globe for opportunity. Factories are being built in third world countries, and sales efforts continue to increase in the world’s fastest growing economies like China and Brazil. Consumer products corporations, especially, are seeking out the cheapest and most efficient method of production, and many are beginning to look to Indonesia for answers. According to the Indonesian Footwear Association, “sports footwear produced in Indonesia is expected to soar roughly 25 percent to $1.6 billion since 2007,” (Abelson 1). One of the American companies leading the global initiative, New Balance Athletic Shoe Inc., alone expects to…show more content…
One of the most prominent disparities between Western and Southeast Asian culture is religion, specifically in relation to medical practices. When westerners look at the often spiritual and religious eastern medical remedies, they tend to dismiss such practices as solely superstition and ignorance (Landes 12). When developing employee benefits at the Tangerang plant, New Balance senior management must keep in mind that most of their workforce will not comply with Western medical practices. In the book The Lexus and the Olive Tree, Thomas Friedman explains that “globalization [has] the potential to destroy the environment and uproot cltures at a pace never seen before in human history,” (Friedman 23). New Balance must be careful to not dilute the culture of its Indonesian employees. For instance, not only would it be both a waste of time and money to hire on onsite medical professional, but it would also show substantial ignorance of company management. In addition to differences in religion, ancient Asian culture also conditioned its people to view authority in a different way than citizens in the United States. People of the ordinary class in Asian nations historically devoted their lives to enhancing the pleasure of their ruler and their leadership ideals valued obedience rather than
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