Lec 4 Globalization

8/20/2019 Lec 4 Globalization

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Globalization and Cross-

CulturalManagemen

t


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Setting the Scene

• When a group or a society is in contact with a more powerful society,the weaker group is often obligated to acquire cultural elements fromthe dominant group.

• Acculturation is a process of extensive borrowing in the context ofsuper ordinate—subordinate relations between societies. Acculturationin contrast to diusion comes about as a result of some sort of external

pressure.• any cultural changes in the modern world have been generated,

directly or indirectly, by the dominance and expansion of Westernsocieties. !ommercial exchange is a fundamental change for manycultures that have had other modes of exchange or kinds of economies.

• increased migration for economic necessity or better opportunities

• self"su#cient economies change to trade or cash cropping

• $he growing in%uence of Western societies has also led to religiouschange in many parts of the world

• &lobali'ation is the spread of cultural features around the world.

• &lobali'ation is minimi'ing cultural diversity but not eliminating it.


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What is Globalization?

The shift toward a moreintegrated and

interdependent worldeconomy

Two components:The globalization of marketsThe globalization of production


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Globalization of Production

izio !at panel T is designed in a small o"ce in California

assembled in Me#ico

$rompanels made in South %orea

electronic components made in China

microprocessors made in the &'S'


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(ot )ust manufacturing*

Globalization of production hashistorically been aboutmanufacturing

+ncreasingly companies are usingmodern communications tooutsource

service activities to low-costnations


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Globalization of mar,ets

+n the past each country hadits own companies in manyindustries and its own products

+ ne.er saw /apanese media 0and + sawlittle non-&S media1 in college


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2e3nitions''

• +nternational 4usiness is business whose acti.ities are carried out acrossnational borders 0not only international trade and foreign manufacturing butalso the growing ser.ice industry in areas such as transportation tourismad.ertising construction retailing wholesaling and mass communication1

• $oreign 4usiness denotes the operations of a company outside its home ordomestic mar,et5 many refer to this as business conducted within a foreigncountry' This term sometimes is used interchangeably with international

business• 6 multidomestic company 0M2C1 is an organisation with multicountry a"liateseach of which formulates its own business strategy based on percei.ed mar,etdi7erences

• 6 global Company 0GC1 is an organisation that attempts to standardise andintegrate operations worldwide in most or all functional areas

• 6n international company 0+C1 is a global or multidomestic company• $oreign 2irect +n.estment and 8#porting 2irect in.estments in e9uipment

structures and organisation in a foreign country at a le.el that is su"cient toobtain signi3cant management control5 does not include mere foreignin.estment in stoc, mar,ets

• 8#porting the transportation of any domestic good or ser.ice to destinationoutside a country or region5 the opposite of importing which is thetransportation of any good or ser.ice into a country or region from a foreignorigination point


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Globalisation

• The tendency toward an international integration of goodstechnology information labour and capital or the process ofma,ing this integration happen

• &lobali'ation 0or globali'ation1 is the process of internationalintegration arising from the interchange of world .iews products

ideas and other aspects of culture' 6d.ancesin transportation and telecommunications infrastructure includingthe rise of the telegraph and its posterity the +nternet are ma)orfactors in globalization generating further interdependence ofeconomic and cultural acti.ities'

• &lobality means that from now on nothing that happens on ourplanet is only a limited local e.ent5 all in.entions .ictories andcatastrophes a7ect the whole world


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• 8thnocentric : ;ome o"ce people put incharge of ,ey international positions'

•


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Globalisation 2ri.ers

• 2isposable incomes increasing

• 2emographics

• Gen @ A ma,ing their presence across the globe

• 6ccessability B T +nternet

• Con.ergence B western lifestyle aspirations

• More education western education• 8mergence of middle rich class

• Competition in mar,et-niche

• Global strategyaction'

• Dpen .s Closed trade


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$orces of Globalisation

• (olitical there is a trend toward the uni3cation and socialisation of theglobal community'


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$orces Econtd'F

• arket 6s companies globalise they also become global customers' $or yearsad.ertising agencies established o"ces in foreign mar,ets when their ma)or clientsentered those mar,ets to a.oid ha.ing a competitor steal the accounts' $inding thehome mar,et saturated also sends companies into foreign into foreign mar,ets

• !ost 8conomies of scale to reduces unit costs are always a management goal' Dnemeans of achie.ing them is to globalise product lines to reduce de.elopmentproduction and in.entory costs' The company can also mo.e production or other

parts of the companys .alue chain to countries where the costs are lower' 2ramaticreductions in the cost of generating and transmitting information due to inno.ationsin computing and telecommunications as well as the decline in transportationcosts ha.e facilitated this trend toward relocating acti.ities worldwide

• !ompetitive Competition continues to increase in intensity' (ew 3rms many fromnewly industrialised and de.eloping countries ha.e entered world mar,ets inautomobiles computers and electronics for e#ample' Companies are defendingtheir home mar,ets from competitors by entering the competitors home mar,ets to

distract them' Many 3rms that would not ha.e entered a single country because itlac,ed su"cient mar,et size ha.e established plants in the comparati.ely largertrading groups 08uropean &nion 6S86(1

• T;8 >8S&=T D$ T;+S >&S; TD G=D46=+S6T+D( ;6S 488( 6( 8DWT;+( +(T8>(6T+D(6=


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lobalization affects all parts

of the world –

not always positively…!


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The Globalization 2ebate


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&nintended Conse9uences ofMar,et Globalization

• =oss of national so.ereignty –


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)un *eading" +eangad'h of 'e -rop

• The 8uropean Commission has )ust announced an agreement whereby

8nglish will be the o"cial language of the 8uropean &nion rather thanGerman which was the other possibility' 6s part of the negotiations ;erMa)estyHs Go.ernment conceded that 8nglish spelling had some room forimpro.ement and has accepted a I year phase-in plan that would be ,nownas J8uro-8nglishJ'

• +n the 3rst year HsH will replace the soft HcH' Sertainly this will ma,e the si.ilser.ants )ump with )oy' The hard HcH will be dropped in fa.our of the H,H' Thisshould ,lear up ,onfusion and ,eyboards ,an ha.e one less letter'

• There will be growing publi, enthusiasm in the se,ond year when thetroublesome HphH will be replased with the HfH' This will ma,e words li,eHfotografH KL shorter'

• +n the third year publi, a,septanse of the new spelling ,an be e#pe,ted toreach the stage where more ,ompli,ated changes are possible' Go.ernmentswill en,ourage the remo.al of double leters which ha.e always been a

deterent to a,urate speling' 6lso al wil agre that the horibl mes of the silentHeH in the languag is disgrasful and it should go away'

• 4y the Nth yer peopl will be resepti. to steps such as replasing HthHwith HzH andHwH with H.H' 2uring ze 3fz yer ze unesesary HoH be dropd from .ords,ontaining HouH and similar changes .ud of ,ors be aplid to oza ,ombinationsof letas'

• 6fter ziz 3fz yer .e .il ha.e a rali sensibl riten styl' Oer .il be no mor trubl or

di3,ultis and e.ri.un .il 3nd it ezi tu anderstand ech oza' Oe drem of anunited &rop .il 3nali ,um truP

Lec 4 Globalization

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