MANAGEMENT and GLOBALIZATION
What is Globalization?
It is the movement of people, language,
ideas, and products around the world
- Imported goods are available
- The country can produce what it produces
best and import the rest
- The local industries work hard to compete
with international firms
- Raw material is available
- The standard of life becomes better
- More jobs are created
- There is security from famine, disease, etc.
as international firms intervene.
-Local industries get dislodged.
-In times of war, there is a problem
-There is political interference and conflicts arise
-Profit may be taken back to home
-Under developed countries are exploited
ADVANTAGE BEING AN MNC
-Gaining a strong foothold into the
-Cheaper labor costs
-Cheaper raw materials and distribution costs
-Taking advantage of the many tax breaks
offered by foreign countries
-Access to new technologies and methods
-Availability of government grants
DISADVANTAGE BEING AN MNC
-Trade restrictions imposed at the government-level
-Taxes or tariffs imposed on imports from other
-Limited quantities (quotas) of imports
-Effective management of a globally dispersed
-Difference in cultures at various locations
WHAT IS CULTURE?
It is shared beliefs, attitudes, norms, values and
behavior organized around a central concept or
Why Knowing Culture is Important?
-It builds trust
-It saves time, energy and cost
-It Improves perception
DIFFERENCE IN US AND INDIAN CULTURE
-Result or Role oriented nature
-Importance of Time
-Topic of conversation
-Gossips during work hour
-Openness towards constructive criticism
-Aggression and Proactive ness