Globalization and International Business Essay

globalization and Inter topic communication channelThe C oncept of globalisation putting everything into oneness sm tot every last(predicate)y t throw* The functioning of integration and convergence of stinting, financial, ethnic and political systems across the ground. * globalisation refers to the integration and interaction between diametric community and nations. * globalization is the process of multi case integration arising from the interchange of world views, proceedss, ideas and other aspects of subtlety. globalisation A holistic approach1. stinting globalization the increasing integration of national economical systems finished the growth in international disdain, investments and capital black foodstuff. 2. monetary Globalization the ease of capital movements and deregulations, especially of financial operate that take to a sport in cross boarder capital flows. 3. ethnic Globalization convergence of kitchen-gardenings across the world E.g. Dress c odes, ways of living. 4. political Globalization the convergence of political systems and processes almost the world.Dimensions of sparing Globalization what has changed* Globalization of exertion the increased mobility of the factors of production especially the movement of capital that has changed countries handed-down metier roles. (process is made shorter and cheaper) * Globalization of Markers technological strides in communication, transport and transit con whole created overbold consumer segments. The global merchandises welcome become well price of admissionible. (producing order products that atomic number 18 advanced, functional reliable and low priced).* Globalization of argument it has increase in a lot(prenominal) a way that drilles argon forced to contour mergers or enter into new strategic alliances, competing with new recreateers around the globe.* Globalization of technology it has advanced rapidly and thus creating shorter cycles for prod uction of legals and services. The running of personal line of credites becomes much effective and efficient. In nearly cases though, several line of productses might have obstruction keeping up with the advancements callable to financial constraints.* Globalization of corporations and Industries scotch liberalization has led to economic growth in un standardised Direct investment fundss and motility of line of descent endeavours as a result, at that place has been fragmentation in business processes. Where varied stages of production atomic number 18 coming out in different countries E.g. Toyota manufactures in Japan and assembles in South Africa.Factors influencing Globalization (Movers)* Economic relaxation* Technological Breakthrough* Multilateral Institutions* world(prenominal) Economic Integrations* Move towards fire merchandising systems* Rising query and development prices* Global involution of business trading operations* Adverts in logistics doment* Emergence of the global node segmentFactors restraining Globalization* Regulatory controls* Emerging flip-flop barriers* ethnic factors* nationalism* War and civil disturbances* Management myopia thinking within the quoin/boardersQuiz what is meant by internationalization of a unwaverings none value chain?Reasons for support of Globalization* Maximization of economic efficiencies (learning to use economicresources of a nation to the fullest po collapsible shelterial) * Enhancing clientele* Increase cross-boarder capital movement* Improves power of topical anesthetic anesthetic firms* Increases consumer welf arCriticism of globalization* Developed Vs Developing countries unequal players in globalization * Widening gap between the rich and ugly* Wipes out internal industry* Leads to massive layoffs and unemployment* Brings in problems related to labyrinthine sense of payments* Increased volatility of allots* Diminishing power of nation states* Loss of cultural iden tity* Shift of power to transnationalsResponse Strategies to Globalization forces for emerging market companies DefenderExtenderDodgerContender1. Defender Strategy When pressure to globalise is low, local companies adopt the defense scheme that focuses on leveraging local as line ups in the market segments where multinationals be weak. 2. Extender strategy when companies posses competitive skills and assets that can be transferred abroad, companies can focus on expanding to markets similar to home base use debatencies developed at home.3. Dodger strategy when pressure to globalize is high, local companies have no option but to dodge competition by cooperating through a joint venture or becoming a supplier or service provider selling off to multinational enterprises e.g. Skoda Czechoslovakian car confoundr sold to Volkswagen.4. Contender strategy companies that have high pressure to globalize andcompetitive advantages that can be leveraged oversea can aggressively postul ate by focusing on upgrading their capabilities in the niche segment to match multinationals globally ie. TATA IndiaConcepts of internationalist blood line1. outside(a) swop exportings of smashings and services to a overseas-based clouder (importer) 2. International Marketing refers to marketing carried out by firms/companies across the national boarder line. 3. International Investment cross boarder transfer of resources to carry out business activities.4. International Management application of management concepts and techniques in a cross realm environment an adaptation to different social-cultural, economic, legal, political and technological environments.5. International art all those business activities which involve cross- call transactions of goods and services and resources between dickens or much nations. 6. Global business conduct of business activities in several countries using a highly co-ordinate and single strategy across the world.Types of Interna tional Business Transactions* Transactions exchange of set between buyer and seller typically involving intermediaries and currency as average of exchange. * Exchange of production inputs, components partially/nearly finished products, goods/services, ideas/know how.Boarders their implication* State boundaries denote sovereignty, citizenship (political authority), legal jurisdiction, security. When theres no boarder, theres no state * theme cultures, National Identity* Economic Unit eroded due to globalization, economic transactions argon generally domestic help. * Boundaries of mind and habit, boundaries argon psychological not nevertheless physical.How boarders go for a differenceAs soon as you have different cultures, different cutaneous senses builds, different legal structures, different taxation environments, the complexness introduced by that is immense.The reason why businesses that expand overseas fail is they belowestimate the complexity thats enlarged in an international organization.The Internationalization of Business* convey in new ideas* Moving across the boarders* Companies conduct value adding actitvities on a global scale, primarily to organize, source, manufacture and market. * A Level play field international activities appealing to all types of firms large or small. Manufacturing and services sectors E.g. Banking, Transportation, Design, Advertising and retailing.Nature of International Business* Value adding activities* Firms internationalize via experts, strange direct investment, licensing, and collaborative ventures. * alien portfolio investment slight than 10%* Foreign Direct Investment More than 10%Reasons for International Business expanding upon1. Market seeking demands* Marketing opportunities due to lifestyle cycles* Uniqueness of products or services2. Economic motives* Economies of scale argon achieved* Profit ability* Spreading research and development costs3. Strategic motives* Growth* Risk spreadDiffer ences between Domestic and International Business* Economic environment* Social* radical* Legal* Political* Competition* TechnologyThe Four risks of International Business1. puzzle- cultural risk occurs when a cultural misunderstanding puts some human value at stake. * Cultural differences* Negotiation patterns* Decision making styles* honorable practices2. Commercial risk refers to a firms potential passing play or failure from poorly developed or executed business tactics. * Weak partners* Ope thinking(prenominal) problems* Timing of entry* Competitive intensity* vile execution of strategy3. Currency risk (financial risk) the risk of adverse fluctuations in exchange rates * Currency exposure* Asset evaluation* Foreign taxation* Inflation and transfer4. Country risk (political risk) refers to the potentially adverse cause on comp each operations and profitability cause by developments in political, legal and economic environments in a external country.Risks will eer be present but can be managed Managers is such situations should * shout the risks* Understand the implications thereof* Take pro-active action* Reduce adverse effectsSome risks are extremely challenging e.g. the East Asian Economic Crisis in 1998. It generated substantial technical, currency and country risks.Participants in International Business1. Multinationals E.g. Kodak, Nokia, Samsung,Multinational Enterprises own world(a) nedeucerk of subsidiaries.2. Other participants* Small and strong point sized enterprises In the USA a small/medium enterprise sized entity is described as that having 500 or fewer employees. * Comprises of 90-95% of all firms in close countries .* Increasingly to a greater extent SMEs participate in International Business.Why do firms Internationalize?* Seek growth opportunities through market diversification * To earn high(prenominal) margin profits* catch new ideas around products, services* Better service to customers that have relocated abroad * Be closer to supply sources* Benefit from global sourcing advantages* turn over flexibility in sourcing products* Gain access to better value factors of production* Develop economies of scale in sourcing, production, marketing and R&D * demo international competitors more effectively or thwart the growth of competition in the home market. * Invest in a potentially reward business venture.What caused the East Asian Economic CrisisTheories of deal outAbsolute gain when a country is efficient in producing a commodity than any other country. Countries should therefore specialize in producing a product of which they are efficient in producing and then share such product for goods produced by other countries.Output per hour of labour using the same resources material WheatCountry A 100 200Country B 250 160Total Interpretation clearlyThe Political Economy of International TradeThe political reality of International Trade is that while umpteen nations are nominally committed to f ree trade, they tend to intervene in international trade to protect the interest of politically important groups.Instruments of trade form _or_ system of government are tariffs, subsidies, import quota, voluntary export restraints, local case requirements, administrative policies and anti-dumping duties.* A tariff is a tax levied on imports that effectively raises the cost of merchandise products relative to domestic products. * Specific tariffs are levied as a fixed charge for each unit of a good imported. * Ad valorem tariffs are levied as a proportion of the value of the imported good.* A subsidy is a government payment to a domestic producer. Subsidiesmay take form of a tax break, cash grants, low-interest loan. * Subsidies abet domestic firms by lowering production costs * Help them compete against impertinent imports* Gain export markets* Government pay for subsidies by levy individuals(consumers)* Import Quota is a direct restriction on the quantity of some good that m ay be imported into a country.* Voluntary export restraints are quotas on trade imposed by the exporting country, typically at the request of the importing countrys government.* A local content requirement demands that some specific fraction of a good be produced domestically.* The requirement can be in physical or value term.* Local content requirements benefit domestic producers and clienteles, but consumers lawsuit higher prices.* Administrative policies are informed bureaucratic encounters intentional to make it baffling for imports to enter a country. For example Japanese springer duty inspectors affirm on spreading a large proportion of express packages to discover for pornographic materials. * This process that can delay express packages has made it difficult for FedEx to expand its global shipping services to Japan. * These policies hurt consumers by denying access to possibly superior hostile products.* Dumping is selling goods in foreign markets below their co st of production/fair market value. * Anti-dumping policies are designed to punish foreign firms that engage in dumping. Dumping is viewed as a method by which firms unload excess production in foreign markets sometimes at prices below the cost of production.* The goal is to protect domestic producers from inequitable foreign competition. * US firms that believe aforeign firm is dumping can file a complaint with the government. * If the complaint has merit, antidumping duties, as well known as countervailing duties may be imposed.Why Governments intervene? essentially there are three reasons Political, Economic and Cultural1. Political reasons let in* protecting jobs and industries from foreign competition, trade controls usually result in higher price for consumers. * National Security defense related industries often embark on this kind of vindication. * Retaliations are threats used as bargaining tasks to help open foreign markets and force trading partners to play by the ru les. It is usually in retaliation to a trading partners trade policy. Protect consumers from unsafe products.2. Economic Reasons* The infant industry argument(protecting them)* Strategic trade policy policies that government enact to ensure that firs-mover advantages are reserved for local firms in industries where substantial economies of scale exist.3. Cultural Motives unwanted influence causes great grief and can force governments to axisk imports. Many countries have laws that protect their media scheduling for cultural reasons for example in Canada about 35% of music contend on TV and radio must be of Canadian origin.Economic IntegrationThe abolition of trade restraints between nations. It is the growing economic interdependency that results when countries within a geographic region form an alliance aimed at reducing barriers to trade and investment.* trey Levels of Economic Integration* Global trade liberalization by GATT or WTO* regional preferential treatment of por tion countries in the group ie.SACU, SADC, COMESA ,etc. * Bilateral preferential treatment between two countries * Regional and Bilateral declarements are against the MFN clause (normal trading traffic), but allowed under WTO. * Visit www.wto.org for regional trade agreements.Regional Economic Integration* ripening economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers of trade and investment.About 40% of the world trade now occurs via economic bloc agreement.Cooperating nations obtain* Increased product choices, productivity, living standards * Lower prices and* More efficient resource use.Economic axis of rotationA geographical area that consists of two or more countries that agree to pursue economic integration by reducing tariffs and other restrictions to cross-border flow of products, services, capital and in more advanced stages, labor.Examples EU, NAFTA, MERCOSUR, APEC, ASEAN and many others.There are fiv e possible levels of economic integration* custom married couple* unwashed Market* Economic articulation* Political coalition1. Free Trade ara countries agree to reduce tariffs but not eliminate everythingThe simplest some common arrangement, atom countries agree to gradually eliminate formal trade barriers within the bloc, while each member country maintains an independent international trade policy with countries outside the bloc. Eg. NAFTA2. springer Union similar to a free trade area except that the members constipationonize their trade policies toward non-member countries, by enacting common tariff and non-tariff barriers on imports from non-member countries. E.g. SACU(Lesotho, Swaziland, Namibia, SA). Members have a revenue pussy and it is shared according to how much each has contributed.3. Common Market (single market)- a exchangeable(p) a custom union except products, services and factors of production such as capital, labor, and technology can move freely amon g the member countries. E.g. COMESA requires much cooperation among the member countries on labor and economic policies.4. Economic Union like a common market, but members also aim for common fiscal and monetary policies, standard commercial regulations, social policy, etc. E.g. the EU is abject toward economic union by forming a monetary union with a single currency the EURO.5. Political Union perfect unification of all policies by a common organization. Submersion of all separate national institutions e.g. former USSR * Remains ideal, but yet to be achieved.The European UnionWhat is the European Union?* Shared determine liberty, democracy, respect, for human rights and fundamental freedom, and the rule of law.European Coal and Steel Community* In the aftermath of the realism War II, the aim was to secure peace among Europes triumphal nations an bring them together as equals, cooperatingwithin shared institutions. * Based on a plan by French foreign minister Robert Schuman. * six founding states/countries Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands signed a treaty. floor of the EU* Treaty of Paris (1951) ecesis of ECSCTreaty of Rome (1957)Formation of ECC (European Economic Community) -initially free trade area, becoming a customs union in 1967.* The Stockholm convention in 1960 created EFTA by seven-spot countries to counteract ECC. * Single European Act of 1993* Creation of single market (common Market) effective on January 1 1993 * Rename EEC by EU (15 members)* Treaty of Maastricht (1992)* Creation of an economic union, EMU* Establishment of European primal Bank on July 1998* Introduction of a common currency, Euro on 1 January 1999 * Circulation of Euro on 1 January 2002.The EU featuresA full-fledged Economic Union1. Market access tariffs and most non-tariff barriers have been eliminated. 2. Common market upstage barriers to cross national movement of production factors i.e labor, capital and technolo gy. 3. Trade rules eliminated customs procedures and regulations, streamlining transportation and logistics within Europe. 4. Standards harmonization harmonizing technical standards, regulations, and enforcement procedures on products, services and commercial activities. 5. Common fiscal, monetary, taxation and socialThe European Union To sidereal day* 27 members* New members e.g. Poland, Hungary, Czech Republic are low-cost manufacturing sites. * Peugeot, Citroen(france) factories in Czech Republic. * Hyundai (South Korea) Kia plant in Slovakia.* Suzuki (Japan) factory in Hungary.* Most new EU entrants are one-time satellites of the Soviet Union, and have economic growth rates for higher than the 15 Western European counterparts. * Developing economies e.g Romania, Bulgaria, may take decades of foreign aid to catch up.Four Institutions that govern the EU1. Council of the European Union the main decision-making carcass. Makes decisions on economic policy, budgets, and foreign p olicy and admission of new member countries.2. European Commission represents the interest of the EU as a whole. Proposes legislation and is responsible for implementing decisions of the Parliament and the council.3. European Parliament up to 732 representatives, make prisoner joint sessions each month. Three main functions are * Devise EU legislation* Supervise EU Institutions* Make decisions on the EU budget.NAFTA (Canada, Mexico, USA)NAFTA passage (1994) was facilitated by the maquilladora program, in which US firms allocated manufacturing plants just South of the USA border to access low-cost labor without significant tariffs.NAFTA has* Eliminated tariffs and most non-tariff barriers for products and services. * Established trade rules and uniform customs procedures. * Instituted investment rules and intellectual property rights. *Provided for dispute settlements for investment, unfair pricing, labor issues, and the environment.NAFTA Results* Trade among the members more than tripled, and now exceeds 1 trillion per year. * In the early 1990s Mexicos tariffs averaged 100% and gradually.How the Mexican Economy benefited from NAFTA* Mexico exports to the US grew from 50 billion to over 100 billion per year. * Access Canada and the US helped launch many Mexican firms in industries such as electronics, cars, textiles, medical examination products, and services. * Yearly US and Canadian investment in Mexico rose from 4 billion in 1993 to nearly 20 billion by 2006. * Mexicos per capita income rose to about 11 000 in 2007, making it the richest country in Latin America. *Why nations pursue economic integration1. Expand market size* Greatly increases the scale of the market place for firms inside the economic bloc. Eg. Belgium has a population of just 10 million the EU has a population of nearly 500 mil. * Consumers can access much big selection of products and services.2. Achieve economies of scale and enhance productivity* Bigger market facilitates economic scale* Internationalization inside the bloc helps firms learn to compete more effectively outside the bloc. * Labor and other inputs allocated more expeditiously among the member countries, leadership to lower consumer prices.3. Attract investment from outside the bloc* Compared to investing in stand-alone countries, foreign firms prefer to invest in countries that are part of an economic integration bloc. E.g General Mills, Samsung, TATA invested heavily in the EU.4. Acquire stronger defensive and political posture* Provide member countries with a stronger defensive posture relative to other nations and world regions, an original motive of the EU.Factors contributing to the success of Regional Integration1. Economic Stability the more similar the economies of the member states, the more likely the bloc will succeed. Eg. lucre rates, economic stability e.g. SADC, EU2. Political Stability similarity in political systems is key. Countries should share similar aspirations and a wil lingness to surrender national impropriety e.g EU3. Similarity of culture and language Helpful but not absolutely necessary.4. Geographic proximity facilitates transportation of products, labor, and other factors. Neighboring countries tent to share a common history, culture and language E.g. NAFTA, EUConsequences of Regional Integration* Trade Creation as barriers fall, trade is generated inside the bloc. * Trade Diversion as within the bloc trade becomes more attractive, member countries discontinue some trade with non-member countries. * Aggregate effect National patterns of trade are altered. More trade occurs inside the bloc. * A concern a bloc might become an economic fortress leading to more within-bloc trade and less between bloc trade can harm global free trade. * Loss of National Identity increased cross-boarder contact makes members more similar to each other E.g. in response Canada has dependant the ability of US movie and TV producers to invest in the Canadian f ilm and broadcasting industries.* Sacrifice of Autonomy in later stages of regional integration a primeval authority isset up to manage the blocs affairs. Members must sacrifice some autonomy to the central authority, such as control over their own economy. E.g Britain in the EU. * communicate of power to advantaged firms can concentrate economic power in the detention of fewer larger firms, often in the most advantaged member countries. * misadventure of small or weak firms as trade and investment barriers fall, protection is eliminated that previously shielded smaller or weaker firms from foreign competitions. * Corporate restructuring and job loss Increased competitive pressures and corporate restructuring may lead to role player layoffs or re-assigning employees to distant locations, disrupting workers lives and entire communities.* Internationalization by firms inside the bloc internationalization gets easier after regional integration. * Rationalization of operations managers develops strategies and value-chain activities suited to the region as whole, not individual countries, by restructuring and consolidation company operations. The goal is to reduce costs and redundancy, increase centralized distribution, sooner of decentralization to individual countries. * Mergers and achievements Economic blocs lead to mergers and acquisitions, the tendering of one firm to buy another, or of two or more firms to merge and form acquisitions.Cross Cultural risk* A situation or event where a cultural mis-communication puts some human value at stake. * Arises when we enter environments characterized by unfamiliar languages and unique value systems, beliefs, attitudes and behaviors. * One of the four major risks in international business.Manifestations of Cross-Cultural risk* Ethnocentric orientation using our own culture as the standard for judging other cultures. * Polycentric orientation a mindset in which the manager develops a greater affinity wi th the country in which he/she does business than the home country. * Geocentric orientation a global mindset in which the manager is able to understand a business or market without regard to national boundaries. * Managers should strive for ageocentric orientation.Definitions of Culture* Incorporates both objective and subjective elements.* Objective aspects of culture complicate tools, roads, television programming, architecture and other physical artifacts. * Subjective aspects include norms and value, ideas, customs and other meaningful symbols. * Hofstede, a well-known Dutch organizational anthropologist views culture as a collective mental programming of people and the software of the mind how we think and how we reason.Culture Is* Not right or wrong it is relative. There is no cultural absolute, different nationalities simply encompass the world differently. * Not about individual behavior culture is about groups. It refers to a collective phenomenon of shared determine and meaning. * Not inherited culture is derived from the social environment. We are not born with a shared set of determine and attitudes, we learn and acquire as we grow up. Culture is wise(p)* Socialization the process of learning the rules and behavioral patterns appropriate to ones given society. Eg. Cultural learning* Acculturation the process of adjusting and adapting to a culture other than ones own. Commonly experienced by expatriate workers.* Culture is like an ice-berg-above the surface. Certain characteristics are visible, below the surface is massive base of assumptions, attitudes and values that strongly influence decision making relationships, conflict and other dimensions of business.cross-cultural proficiency is paramount in Managerial tasks. Examples* Developing products and services* communication and interacting with foreign business partners * Negotiating and structuring international business ventures * Interacting with current and potential customers* P reparing advert and promotional materials.Cross cultural differences may create challenges* Teamwork what should managers do if foreign and domestic nationals dont get along? * Lifetime employment workers in Japan often expect to work for the same firm throughout their careers How should foreign firms handle that? * Pay for performance system In China and Japan, a persons age is important in promoting workers.Yet how do such workers perform when merit performance-based measures are used? * Organizational Structure preferences for centralized, bureaucratic structures may deter information sharing. * Union-management relationships workers in European firms enjoy a more equal status with managers. * Attitudes towards equivocalness if youre un satisfactory working with minimum guidance or fetching independent action, you may have difficulty fitting into some cultures.Three approaches to interpreting culture* Metaphors refer to a distinctive tradition or institution strongly ass ociated with a society a guide to deciphering attitudes, values and behaviors. * Stereotypes are generalizations about a group of people that may or may not be factual, often over looking real, deeper differences. * An accent is an expression whose symbolic meaning is different from its literal meaning.The Nature of Stereotypes* Are often erroneous and lead to unjustified conclusions about others. * Still most people employ stereotypes, either consciously or unconsciously, because they are an aristocratic mover to judge situations and people. * There are real differences among groups and societies, we should examine descriptive behaviors rather than tax stereotypes. * An examplesome Latin Americans procrastinate via the manana syndrome.E.T. signs High and Low context culturesLow Context* aver on elaborate literal explanations putting much emphasis on spoken words. * Tend to be in northern Europe and pairing America which place central importance on the efficient pitch sh ot of messages. * Communication is direct and explicit dont beat around the bush.High Context* Establish trust first* Personal relations and goodwill are value* Agreements accent trust* Negotiations slow and ritualistic* Emphasis is on non-verbal messages and use communication as a means to promote smooth harmonious relationships. * Prefer an indirect, polite, face-saving style that emphasizes a mutual sense of care and respect for others, careful not to impede or offend others. * It is difficult for Japanese people to say No when expressing disagreement. Much more likely to say it is different an ambiguous response. * In East Asian cultures, showing impatience, frustration, irritation, or anger disrupts harmony and is considered underbred and offensive. * To succeed in Asian cultures, it is critical to notice non verbal signs and body language.Hofstedes Classification of National culture1. Individualism Versus Collectivism refers to whether a person primarily functions as an individual or within a group. 2. authority Distance describes how a society deals with inequalities in power that exists among people. 3. doubtfulness avoidance refers to the extent to which people can tolerate risk and uncertainness in their lives. 4. Masculinity Vs Femininity1.1 Individualistic Society ties among people are relatively loose,each person tends to focus on his/her own egotism interests. E.g Australia, Canada and the UK 1.2 Collectivist Societies ties among individuals are more important than individualism business is conducted in the context of groups where everyones norms are strongly considered. E.g China, Panama, and South Korea.2.1 High Power distance societies have substantial gaps between the powerful and the weak are relatively indifferent to inequalities and allow them to grow. E.g. Guatemala, Malaysia, the Philippines.2.2 Low-power distance socities have minimal gaps between the powerful and weak. E.g. Denmark and Sweden governments instituted ta x and social welfare systems that ensure their nationals are relatively equal in terms of income and power.* Social stratification affects power distance. In Japan almost everybody belongs to the middle class, while in India the upper story controls decision making and buying power. * In high distance firms, magisterial management styles focus power at the top3.1 High uncertainty avoidance societies create institutions that minimize risk and ensure financial security, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity.3.2 Low-uncertainty avoidances societies interact their members to accept and become accustomed to uncertainty managers are entrepreneurial and comfortable with risk taking, decisions are made quickly, people accept each day as it comes.5.1 Masculine cultures value competitiveness, assertiveness, ambitions and the accumulation of wealth. Both men and women are assertive, focused on career and earning money, and may care little for others. E.g Australia and Japan. The US is a moderately masculine society, as are Hispanic cultures that present a zest for action, daring and competitiveness. In business, the masculinity dimension manifests asself-confidence, pro activeness and leadership.5.2 Feminine cultures emphasize nurturing roles, interdependence among people, and caring for less fortunate people for both men and women. e.g. Scandinavian countries welfare systems are highly developed and education is subsidized.Subjective Dimensions of cultureSubjective dimensions values and attitudes, manners and customs, deal versus relationship orientation, perceptions of time, perceptions of space and religion.* Values represent a persons judgment about what is good or bad, delicious or unacceptable, important or unimportant and normal or abnormal. * Attitudes and preferences are developed based on values, and are similar to opinions, except that attitudes are often unconsciously held and may not have a rational basis. * Prejudices are rigidly held attitudes, usually unfavorable and aimed at particular groups of people. Examples values in North America, Northern Europe, and Japan hard work, punctuality and the acquisition of wealth.Deal Vs Relationship Culture* Deal Oriented cultures- managers focus on the task at hand are impersonal, typically uses contacts and want to just get down to business. Example, Australia, North Europe, and North America.* Relationship Oriented cultures- managers have affiliations with people, rapport and get to know the other party in business interactions, relationships are more important than the deal trust is highly valued in business, agreements. Example, China, Japan, Latin America etc. It took nine years for Volkswagen to bring off an automobile factory in China.Manners and Customs* Manners and Customs are ways of behaving and conducting oneself in public and business situations. * Informal cultures classless in which people are eq ual and work together hand in glove * Formal cultures status, hierarchy, power and respect are very important. * Varying Customs eating habits, mealtimes, work hours and holidays, drinking, appropriate behavior at social gatherings (handshaking, bowknot and kissing), gift-giving (complex), roles of women.Religion* A system of common beliefs or attitudes concerning a cosmos or system of thought people consider to be scared, divine, or highest truth as well as the morals codes, values, traditions, and rituals associated with this system. * Influences culture, and therefore business and consumer behavior. * Example The protestant work ethic emphasizes hard work, individual achievement and sense that people can control their environment the underpinnings for development of capitalist economyLanguage as a key dimension of culture* The reverberate or expression of culture, essential for communication provides insight into culture. * Linguistic proficiency is a great asset in Internat ional Business. * Language has verbal and non verbal (unspoken, facial expressions and gestures) * There are nearly 7000 active languages including 2000 in Africa.Technology, the Internet and Culture* Technological advances are a key determining factor of culture and cultural change more leisure time, and computers, multimedia, and communications systems that move on convergence in global culture. * The death of distance refers to the demise of the boundaries that once separated people, due to modern communications, information, and transportation technologies more homogenized cultures are developed. * The meshwork also promotes thediffusion of culture, with rapidly growing numbers of internet users.Are cultures converging?The concept of SovereigntySovereignty meaning self Rule is when a state or government is able to make and enforce laws within its boundaries without interference from foreign nations. It is also connected to the ability of a country to guarantee the best in terest of its own citizens.How does Globalization affect sovereignty?Discuss the effect of Globalization on National culture1. Stripped us of our culture since people become more attached to western culture and neglect their ways of doing things.Critically evaluate various dimensions of Economic globalization and their impacts on business enterprises explain how it is stirred and give examples.1. Globalization of Production increased mobility of the factors of production has changed traditional specialization roles2. Globalization of Competition competition with international businesses has intensified and therefore cost reduction is encouraged to improve efficiency.3. Globalization of markets markets have become easily accessible, allowing for expansion and growth. Goods are made of a standard level since customers worldwide have the same tastes and preferences.4. Globalization of Technology it has advanced rapidly leading to shorter production cycles. It also makes managing a bus iness more effective and efficient. Advancements in technology have also become difficult tomaintain due to financial constraints for some businesses.5. Globalization of Industries they have the options of putting up shops anyplace in the global village, giving customers a variety of choices in terms of goods and services.Convergence bringing together two or more thingsGlobalization putting everything into one village.