Wild, John J. International Business: The Challenges of Globalization, 8th Edition. Pearson Learning Solution.
The Challenges of Globalization
It is hard to imagine that these 5 weeks are coming to a close. I went from someone who had limited international business practice knowledge to someone who has a better understanding. The five things that I have learned more about are:
1. Globalization: Globalization refers to a process where organizations and businesses operate on an international scale due to increased interactions between companies as a result of advancement in communication and transport technology (Staff, 2018). The current globalization boom is as a result of two major driving factors: technology and public policy. Advancement in information technology (IT) has turned the world into a global village due to increased interaction and easy flow of information across borders. The integration of free market economic system and trade agreements by governments worldwide have increased industrialization and eliminated barrier to trade (Forces Behind Globalization, 2015).
2. Culture and International Trade: Culture plays significant roles in the success of any business which plan to venture into the global sector. An organization management should understand the complexities of culture in the global market and plan decisively in order to avoid making mistakes. For example, the success of General Motors in China was promoted by local partnership because the local firm understands the culture much better; understand the people needs and their ability to purchase. Furthermore, the local firms usually have employees who have necessary skills and their languages are compatible with the local community hence making it easy for any international business which gets into partnerships with a local firm to succeed.
3. Economic Systems: A planned economy is an economy which is controlled by one person or group. The business worked together to produce goods and services planned and distributed by the government. In this economic every seller is a supposed to follow guidelines set up by the controlling body. The people in this market have absolutes freedom to produce what they want, choose where to work and get the thing they need (Uddevalla Symposium, JohanssonKarlsson, & Stough, 2006).
4. Comparative Advantage: Punctuality is important for the business occasion. Also, Americans make their minds quickly about a certain decision and they usually like straightforward and to the point information. American lifestyles affected product development strategies of Corona beer. The American lifestyles are different to Mexican in a variety of ways, for example, Mexican lifestyles are centered on the family setting. Therefore, Mexican can take a day out to enjoy with their family and loved one. On the other hand, American lifestyles are centered on workplace and earning and therefore needs to enjoy with family and loved one is not basic necessity among American. This lifestyle affects the product development strategies because American may not desire to drink beer which may interfere with their lifestyles.
5. Human Resources: Wild/Wild tells us that, “the main benefit of a global strategy is cost savings due to product and marketing standardization. These cost savings can then be passed on to consumers to help the company gain market share in its market segment. A global strategy also allows managers to share lessons learned in one market with managers at other locations” (p.281). Due to difference laws among countries, a small company venturing into a global market in the U.S may be forced to restructure its workforce to embrace diversity. To embrace diversity the company can change its recruitment process, selection and training employees to value diversity
Forces Behind Globalization. (2015, August 11). Retrieved from http://www.economicsdiscussion.net/international-economics/forces-behind-globalization-with-diagram/4217
Staff, I. (2018, April 16). Globalization. Retrieved May 11, 2018, from https://www.investopedia.com/terms/g/globalization.asp
Wild, John J. International Business: The Challenges of Globalization, 8th Edition. Pearson Learning Solutions, 02/2015. VitalBook file
Wonders, W. C. (2003). Canada’s changing North. Montreal [u.a.: McGill-Queen’s Univ. Press.
Uddevalla Symposium, Johansson, B., Karlsson, C., & Stough, R. (2006). The emerging digital economy: Entrepreneurship, clusters, and policy. Berlin: Springer.