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English is the primary international language learned by most even almost all countries in
the world, including America. But Americans only learn the English language only. Americans
tend to regard English as the only language of international business and did not see the need to
learn another language.
Monolingualisme is one sign that Americans suffer from parochialism, which means they
view the world solely from the point of view and their own eyes. Parochialism is a significant
obstacle for many managers USA. If managers fall into the trap of ignoring the value and foreign
culture and to quickly implement an attitude of "ours is better than theirs" to foreign cultures, the
managers will have difficulty competing with managers and organizations elsewhere in the world
are trying to understand the customs foreign and differences between markets. , This is a major
obstacle to managers globally oriented. In addition, there are 3 major global attitude, which is as
follows.
Parokhialistis belief is that the approaches and practices that work best are those of the
country of origin (the country in which the corporate headquarters is located). The
manager with the ethnocentric attitude that in many foreign countries do not have the
skills expertise, knowledge,, or experience to make the best business decisions such as
those in his home country. They do not want to entrust important decisions or technology
to its foreign employees
Is the view that managers in the host country (the foreign country where the
business organization) knows best approaches and working practices to run
their business. Managers with polycentric attitude will view each foreign
operation as a different and difficult to understand. With so managers tend to
let foreign facilities and foreign employees to think about their own way of
taking care of everything is best.
Oriented view of the world is focused on the use of the approach and the best people
from all over the world. Managers with that type of attitude convinced that the necessary
global view at the headquarters of the organization in the country of origin and in the
various working facilities overseas. Sought is the best approach and human resources for
the company
There are three things that must be taken to ensure that this strategic alliance is
successful, namely:
a) Selection of partners, which must be clear who will we get the cooperation, whether
the partners can work together achieve the goals and objectives of strategic alliances and
did not take advantage of its alliance soon. And future as a company that will do the
alliance strategy, we have taken various steps such as, searching information about
partners and collect the data and find out about the partner.
b) The structure of the alliance, which determines a structure to occur fairness in the
imposition of risk and avoid the use of partner for his own benefit.
c) Handling of the alliance, in that it can be done with technology security, or the
determination of the contract, where there is a clear agreement or contract, equitable
between the company and its partners with a solid commitment to avoid the risk of
unwanted
Funding for programs in the candidate countries and the member countries of Eastern Europe,
as well as aid to many developing countries through the Phare program and TACIS her.
The establishment of a single market through the European Energy Community South East
Europe Energy Community Treaty
In addition the EU also has cooperation and harmonization in other areas, such as:
Freedom for EU citizens to vote in local government elections and the European Parliament in
any member states as well
Cooperation in criminal matters, including sharing of intelligence (through EUROPOL and the
Schengen Information System), agreement on a common definition of the crime and extradition
procedures.
A common foreign policy as a future goal, however this is still a new long will materialize. The
division between the member states (in the letter of eight) and members who had not yet joined
(the letter Vilnius) during the invasion of Iraq in 2003 highlighted how far the target is in front
before he can become a reality.
A common security policy as a target, including the establishment of the European Rapid
Reaction Force to 60,000 members for the purposes of maintaining peace, an EU military staff
and an EU satellite center (for the purposes of intelligence).
Another important goal is to resolve the dispute, given the trade relations often lead to conflict a conflict of interest. Although there has been approval - approval within the agreed WTO
members, it is still possible there is a difference of interpretation and abuse so that the necessary
legal procedures and neutral dispute resolution has been agreed. With the rule - the WTO rules
that apply equally to all members, whether individuals, companies or governments will have
greater certainty about the trade policy of a country. The binding of a country with the rule - the
WTO rules will minimize the possibility of a change - sudden changes in trade policy of a
country (more predictable)
Differences Global Organization Type
Organizations doing business globally is not something new. DuPont started doing
business in China in 1863.Ford Motor Company opened the first branch of its sales abroad in
France in 1908. In the 1920s, other companies including Fiat, Unilever and the Royal Dutch /
Shell has become a multinational. But then in the mid 1960s anperusahaan Multinational (MNC)
became prevalent, followed by the emergence of Transnational Corporations (TNCs).
There are two fundamental characteristics of multinational companies, that they are a very large
size and the fact that their business operations are spread throughout the world it tends to be
managed centrally by its leaders at its headquarters based in the country of origin. Their sizes are
so large would give economic power (and sometimes also political forces) are very large, so they
are a major force (about 40%) that caused the ongoing globalization of trade in fast. With the
world enormous power, they are in fact often dominate various trade commodities in developing
countries (tobacco, noodles, instant oatmeal, etc.).
Transnational Corporation (TNC). Transnational companies are companies that produce goods or
services in more than one State. Companies such as bias in the form of small companies that
have one or two factories in other countries, or even giant corporations that operate diseantero
this planet. TNCs are some examples of coca-cola, General Motors, Coltgate Palmolive, Kodak
and Mitsubishi. If TNCs have a national basis, they are oriented towards global markets and
global benefits.
Trans-national companies are the heart of the global economy. Two thirds of trade is derived
from such this companies. TNCs also instrumental in spreading global role new technology
diseantero world, and the main actors in the financial markets international. More than 400 TNCs
have an annual income of more than 10 billion dollars a year 1996.pada year Similarly, only 70
countries whose gross national product is equal to that amount. In other words, trans-national
corporate income is greater than the income of the world's countries. However, Transnational
Corporations or Multinational said as a driver of economic growth in Developing Countries and
contribute better to the development is just a tool of domination over the nations Strong countries
weaker, to dominate world trade. This is indicated by 80% of the world trade controlled by the
State-Developed countries and the percentage of world income gap between Developed and
Developing Countries big increasingly. Coca Cola which is a product of the Transnational
Corporations (TNCs) also have a negative impact also for the health and culture.
2. Democracy
political system that leads to the condition that the administration is done by people who are
chosen through elections. And opponent of democracy is totalitarianisme.Totalitarianisme is a
form of government that controls the absolute or dictatorial control.
The manager at a number of global organizations have to constantly get information about the
business.
Economic Environment
Global managers must be aware about economic matters when doing business in other countries.
The first is to understand the type of economic system in the country where the business is
dijalankan.Dua main types of market economy and command economy. However, in practice, the
economic system can be divided into three types, namely:
a) The market economy
Is a purely economic system, in which goods and services are produced entirely by the state, the
amount is not planned by anyone, depending on the interaction between demand and supply.
b) Economy of command
An economic system in which goods and services produced and the price determined by the
government.
c) Mixed economy
An economic system that is between a market economy and command economy, in this system
there are certain sectors that are governed by the market or on the interaction of demand and
supply and also there are some other sectors that are planned by the government.
Managers need to know the system in these countries because it has the potential to limit the
decisions and other economic. That need to be understood by managers include currency
exchange rates, inflation rates, and various tax policy. Global corporate profits may dramatically
change depending on the strength of its domestic currency and the currency of the countries in
which it operates. Any devaluation of the currency of a country will greatly affect the level of
corporate profits. Strength of the currency of certain foreign countries may also influence the
decisions of managers. Inflation means that prices of products and services are rising. However,
it also affects interest rates, currency exchange rates, cost of living, and public interest in the
political and economic system a country. Management need to monitor outcomes inflation trends
so they can make good decisions and anticipate all changed the possibly take place in policy
finances of a country. Tax policy is a major concern for global managers. Some countries tan
house being more restrictive than the country of origin of the organization. Other countries are
much lighter policies. The only certainty is that setting taxation is different in different countries.
The manager requires a certain knowledge of the various tax laws in the countries where they
operate in order to minimize their company's overall tax liability.
Environmental Culture
Each organization has a different internal different cultures. Country also have culture as
well, as it has long been said by the expert anthropology to us. Such as national culture (national
culture) are the values and attitudes held by certain countries that shape the behavior and their
beliefs about what is considered important.
Research shows that national culture has a greater influence on employees than their
organizational culture.
Hofstede Framework
Geert Hofstede has put forward the concept of culture in organizational theory, in this case
as one dimension in understanding organizational behavior. This concept becomes important in
economic theory and management at this time, in the era of globalization, when many
multinational companies operating in different countries with a wide variety of different cultures.
Power Distance
According to Hofstede, "power distance" is a level of trust or acceptance of an unequal power
between people. Cultures in which some people considered more superior than others because of
social status, gender, race, age, education, birth, attainment, background or other factors is a form
of high power distance. In the countries that have a high power distance, people accept more
autocratic power relations and patrenalistik. Meanwhile cultures with low power distance tend to
see similarities between people and more focus on the status achieved than is carried by a person.
Uncertainty Avoidance
One of the dimensions of Hofstede is about how a national culture associated with uncertainty
and ambiguity, and how they adapt to change. In countries that have large uncertainty avoidance,
tend to uphold the conformity and safety, avoid risk and rely on formal rules and rituals. Belief is
only given to family and closest friends. It would be difficult for a negotiator from outside to
build relationships and gain the trust of them. In countries with low uncertainty avoidance, or
have a higher tolerance for uncertainty, they tend to be more accepting of risk, can solve the
problem, have a flat organizational structure, and have a tolerance for ambiguity. For people
from outside the community, it will be easier to live a relationship and gaining trust.
Conclusion
In managing the global market, the most basic thing we should have is a good global
viewpoint, we also have to always know the latest news about global organizations are an
important influence in the world economy, as well as global environmental know very well.