The trend of the world economy toward becoming a more interdependent system.
Relationship between globalization and information technology
Information technology was necessary to enable globalisation and this technology emerged from developed countries.
It changed the economic relationship between countries because it made knowledge an increasingly important component in the production of goods and services.
Knowledge and high tech industries are the fastest growing in the world today and companies need to invest substantially in education and training.
What is currency translation exposure?
The risk that a company’s equities, assets, liabilities or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities or income in a foreign currency.
It happens when balances are translated at the current rate
-measured by net assets translated at current rate different points in time
-balance sheet risk
What level of social responsibility is expected from domestic firms?
It is expected the two extreme opinions related to social responsibility for domestic firms.
1.The only responsibility of a business is to make a profit.
2.Business should anticipate and try to solve problems in society
What level is expected from international firms?
It is expected more complex than domestic firms for the complex issues related to global business. Economic development, Cultural issues, Additional stakeholders, Legal issues etc.
What is sustainable development?
It is progress towards sustainability while improving quality of life for people.
Why is sustainability a dilemma for MNCs
Each country has different values are a society’s ideas about what is good or bad, right or wrong. For example, when a company do negotiation, people should follow the Business ethics but it has not yet globalized.
The impact of the Internet on various cultures?
Culture is determining how the Internet may be used in various countries is through the local attitude to information privacy.
What is the difference between parochialism and ethnocentrism?
How you expected Japanese people act because they are Japanese.
For example, Japanese classmates constantly asks question and disturbs other member of class by talking loudly and making noise.
I expected Japanese students are shy and quiet in class.
How you expected none Japanese people to behave because Japanese people behave correct.
When I am in the bus, I am feeling stress that some people listen music without earphone and some people are speaking loudly on the phone for a long time. Because I expected everybody patinas in the public place like Japanese people. I believed that Japanese behavior is the number one.
What are some of the differences between Japanese and American communication styles? What can American managers do to improve business communications with Japanese managers?
Japanese expresses in indirect verbal and nonverbal communication. In contrast, American is more direct verbal and nonverbal communication.
Japanese is patient and prefers longer-term negotiators. On the other hand, American prefers shorter-term negotiators.
Japanese avoids decision making in public. American frequent decision in public at negotiating tables.
American manager can be aware of Japanese culture and expect and understand their behavior.
Why is language often a cause of miscommunication across cultures?
The miscommunications come from the relationship between cultural differences and variety of language use, and their impact on miscommunication.
What can international managers do to minimize communication problems that stem from language differences?
International managers would be wise to follow the intercultural communication include the development of cultural sensitivity (dress up, talk slow), careful encoding, selective transmission, careful decoding, and appropriate follow-up actions. Eye contact, posture, tone, etc
What are the main differences between Japanese and American negotiators?
In the American style, the American’s cultural norms of explicit communication impose on the Japanese by invading the person’s private self.
The Japanese style of implicit communication causes a negative reaction from the American because of what is perceived as too much formality and ambiguity, which wastes time.
Describe the strategies of globalization and regionalization.
Globalization is all over the world. It involves many countries, customs and legal restrictions because business must cross international borders.
Regionalization is more limited to an area like a prefecture. The prefecture has many cities. Each city has unique, special ways of doing business.
When can each strategy be used most effectively? Globalization
Globalization is most effictive for increasing competitive clout resulting from regional trading
blocs. Declining tariffs, which encourage trading across borders and while opening up new markets to support the increased use of information technology. This makes the coordination of distant operations easier while increasing the commonality of consumer tastes.
When can each strategy be used most effectively? Regionalization
Regionalization serves to provide unique consumer preferences resulting from cultural or national differences. An example of this is targeting customers like marketing whitening cream makeup ro Asian women. Another advantage of regionalization is the use of domestic subsidies and tax exemptions.
New production technologies on a regional level tend to facilitate product variation for less cost than before.