The Importance Of Globalization In International Business

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Over the past few decades, the information age has had a major impact on business – one of the biggest being globalization. This has, out of necessity, changed how business is managed – and introduced new and fascinating facets and concerns for business management, as well. We’ll look at a few of them here: multinational corporations, culture shock experienced by managers working abroad, fair trade issues, ethical issues faced by managers in dealing with international business, the difference in managerial styles that can occur between different countries, and the management style of privately held companies in China. Multinational corporations are the big engines of globalization. According to Guillen, the 500 largest multinationals account…show more content…
This is a huge advantage for small independent producers and helps level the playing field for them against big corporations. However it’s difficult to ensure it’s fair for all: for example big companies like Cadburys Chocolate that use fair trade products to make one of their chocolate bars (marketed as fair trade) utilizes non-fair trade sugar in its production in Australia (Business Think 2012). This is because Australia has so much domestic sugar production that trying to market fair trade sugar would be useless, but allows a loophole for Cadburys(Business Think 2012). It is also able to establish a presence in more stores, reducing the space for smaller companies to market their own, fully fair trade products (Business Think 2012). But it buys a vast amount of fair trade ingredients from smaller producers, as well (Business Think 2012). Fair trade is a great premise, but is definitely not without its management…show more content…
The ethics of business may be vastly different among the countries they operate in (Bloomberg.com 2008). One way that can play out is business marketplace corruption. It’s not uncommon in developing countries for bribery in order to win big business contracts to be the norm, and the manager in Africa may protest to the higher ups in America that if this is not engaged in, they will be at a competitive disadvantage (Bloomberg.com 2008). That’s not inaccurate! Bloomberg proposes (and I agree) that the solution is to have a global system of ethics for your corporation – one with integrity. The wisest and healthiest long-term solution is to resist the urge to cut ethical corners to adapt to local practices – and try and stem the tide of corruption by example. If fair play becomes the standard to participate in globalization, then local business will follow
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