The Influences of Globalization Essay

The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.

Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization

Individual Identity: Every year my family tries to take a trip back to China in order to see family. On trip back played a big role in shaping my identity. In the summer of 2012 I had the daunting task of travelling alone China. This consisted of mastering the Chinese phrases needed to guide me along the way and some way of figuring out how to transfer flights. Surprisingly the hardest part was not finding my way it was merely being alone I found that I got very lonely in the long 14 hour trip and I needed to find a way to occupy myself in order to avoid loneliness. The things I learned from being lonely help form my identity. I found that the more I tried to push away the loneliness the more it just came

Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

Cross Cultural management explains the behaviour of people in organizations worldwide, helping managers and firms to understand how to act in business matters dealing with the different cultures. (Adler, 2008)

The escalation of globalization in recent times has brought a phenomenal change in the market and business. The argument that arises is how and where the firm should enter the comprehensive arcade. The research into international business has become an active area of study over the last four decades and is likely to become even more so, as the procedure of economic globalization accelerates into the future. The most fascinating and current are the issues relating to national culture and its outcomes on business process (Venaik and Brewer, 2008).

The success and failure can be explained using a core perspective named institution-based view, which was introduced as part of the concept of global business. Culture, an informal institution plays a major role in the success and failures of multinational enterprises around the world. The formal institution includes laws, regulations, and rules, also termed as political systems, legal systems, and economic systems. Informal institution includes cultures, ethics, and norms. Both come under the main umbrella of institution based view of the unified framework model for global business. (Peng, 2014)

With globalization and increasing interconnectedness between countries, today’s organizations operate in a rapidly changing environment which is fraught with complexity and uncertainty. Factors such as increasing diversity among culture, people and nations is impacting global organizations.

In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.

Aspects of Globalisation The Organisation for Economic Cooperation and Development (OECD) defined globalisation as, 'The geographical dispersion of industrial and service activities (for example, research and development, sourcing of inputs, production and distribution and the cross border networking of companies (for example through joint ventures and the sharing of assets) Economic activity is becoming organised on a global scale giving a new international division of labour, with production, investment patterns and movements and technology transfers all becoming global. In this strategy, activities are established in many sites spread over the world, based on a country's comparative

The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. The question of standardization or adaptation affects all avenues of a business’ operations, such as R&D, finance, production, organizational structure, procurement, and the marketing mix. Whether a company chooses to standardize or adapt its operations depends on its attitudes toward different cultures. These attitudes are defined by three orientations toward foreign culture: ethnocentric, polycentric, and geocentric.

Globalization has created a great amount of advantages and disadvantages for businesses of all different varieties. International business relationships have allowed companies to operate more efficiently by moving manufacturing to foreign nations that offer cheaper labor (Petri, 1991). Additionally, the business environment is greatly impacted by global forces that may put organizations at a disadvantage (Lowe & McCrohan, 1989). When companies operate on a global level, they are expected to respond to the cultural and economical dynamics of the nations in which they are conducting business (Petri, 1991). Failing to acknowledge such dynamics can ultimately discourage foreign consumers from purchasing goods and services that are offered from international businesses (Lowe & McCrohan, 1989). Moreover, organizations face larger competition as well as exchange risk.

As more businesses turn to international markets, professionals are discovering themselves in overseas locales, wheeling and dealing like never before. Thus to be successful working abroad, one must understand the different aspects of a culture and how the cultural dimensions play a role in business transactions, negotiations, and managerial positions. Once those differences and dimensions are understood a person must be willing to make personal adjustments and implement courses of action to accomplish acculturation. Consequently, our cultural intelligence, literacy, and communication abilities play a significant role in the success or failure of working internationally; furthermore, establishing credibility amongst colleagues.