Importance Of Globalization In International Business

Introduction

Globalization has been more significant nowadays. Many of the large firms are truly global and even some small organization increasingly participate in cross border activities. Globalization has offer many opportunities and challenges to individual managers, businesses and governments. The expansion of global market has created a need for managers who are familiar to the problems of international trade and finance such as culture, technology, foreign exchange and political structure. The trend toward a single global economy is expanding markets and providing opportunities to managers.today, countries are going to work together as more of a global economy.

Globalization is a process of interaction and integration among the people,

Understand the culture is acquired through the process of learning has important content for the conduct of international business. Understand the culture can lead to greater acceptance of cultural differences which is a requirement for effective intercultural communication within a business setting. A company have to communicate with its workforce, suppliers, customers, and host country government. When one think that effective communication among people are from the same culture is often difficult, it is extremely difficult for them to communicate which people from a different culture who do not speak

Cultural differences need to be concerned to avoid problems that might occur. The ways that can alleviate the problems are training and preparation, study of language, current issues within the countries and daily life interactions.

Culture affects employee motivation in different way. In any culture, an employee’s job performance will improve if the company implements goal-setting, reward programs and a performance rating and feedback system. In the United States, people are high on being individualistic and overseas employees are group-orientated. When a person work at an environment that they are not familiar with, it may causes tightness and it will decrease the job performance.

Another difficulty with culture is communication. Employees motivation will decrease if they do not understand what their superiors, colleagues, or subordinates are trying to communicate to them. If a person are not be able to understand what another person wants is a major problem at culture and motivation. This will lead to miscommunication, employee quarrel and poor morale. At last, it will happen the problems such as employee motivation decrease and the tightness among employees