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The global context. Revision J anuary 2011 D r V esselin B lagoev. ASSESSMENT STRATEGY & SCHEDULE. Examination (70%) 1.5 hour end of unit examination to test all LO’s. Examination paper will be pre-released 24hrs prior to the scheduled time . Closed book - PowerPoint PPT Presentation
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5 Broad Definitions (Scholte, 2000)
Globalization as Internationalization Globalization as Liberalization Globalization as Universalization Globalization as Westernization or Modernization
Globalization as Deterritorialization
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Simply another adjective to describe cross-border relations between countries.
Describes the growth in international exchange and interdependence
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A process of removing government imposed restrictions on movements between countries in order to create an ‘open’, ‘borderless’ world economy
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The process of spreading various products and/or services to people across all corners of the world
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Understood as a dynamic, whereby the social structures of modernity (capitalism, rationalism, industrialism, bureaucratism etc) are spread the world over, normally destroying pre-existent cultures and local self-determination in the process.
Sometimes called ‘Americanization’!
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The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa
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Held et al (1999,p16) define globalisation as:
‘the widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social life, from the cultural to the criminal, the financial to the spiritual.“
Thus, they see globalisation as pervading all areas of society.
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InternationalExport
Global
Multi-nationalMulti-domestic
Born Global11
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Trade & International Competitiveness
Cultural Change
Technological Transformation
Political Flux
Population Dynamics
Resource Demands
Changing Work Roles
The Role of the Nation State13
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Mercantilism
Absolute advantage
Comparative advantage
Hecksher Ohlin
Leontief paradox
Vernon
Linder
“That complex whole which includes knowledge, belief, art, morals, law, customs, and any other capabilities and habits acquired by man as a member of society.”
E.B. Taylor (1871)
“Culture consists of patterns, explicit and implicit, of and for behaviour acquired and transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiement in artefacts; the essential core culture consists of traditional (ie historically derived and selected) ideas and especially their attached values; culture systems, may on one hand, be considered as products of action, on the other as conditioning elements of further action.”
Kroeber & Kluckholn (1952, p181)
Appreciate the importance of International Orientation
Gain an understanding of the dimensions of Culture
The ‘mind set’ of a firm’s managers will determine the extent to which they Internationalize.
Perlmutter (1969)
EPRG Framework◦Ethnocentrism◦Polycentrism◦Regiocentrism◦Geocentrism
ETHNOCENTRISIM
(home-country orientation)◦the foreign market is seen as a place to dispose of excess output
◦the foreign environment and its opportunities are seen as no different from those of the domestic market
POLYCENTRISIM(host-country orientation)
◦every market where it operates is treated as if it were unique
◦the product is modified to suit the local market
◦every market will have its own marketing strategy
REGIOCENTRISIM (regional orientation)◦management views regions as unique and seeks to develop an integrated regional strategy
◦sees similarities and differences in a world of regions
◦is ethnocentric or polycentric in its view of the rest of the world
GEOCENTRISIM (world orientation)◦the firm will attempt to develop uniform global strategies
◦the firm identifies homogeneous international demand segments that can be targeted with a standard product
Power Distance (PDI)The extent to which the less powerful members of society accept that power is distributed unequally
Individualism (IDV)Individualism : people look after themselves and their immediate family only.
Collectivism : people belong to in-groups (families, clans, organizations) who look after them in exchange for loyalty.
Uncertainty Avoidance (UAI)
The extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations.
Masculinity (MAS)
Masculinity : the dominant values in society are achievement and success.Femininity : the dominant values in society are caring for others and quality of life.
Confucian Dynamism (CDI)
The extent to which a society exhibits a pragmatic future-orientated perspective rather than a conventional historic or short-term point of view.
Why People/Organizations Fail◦Ethnocentric Orientation◦Ignorance◦Arrogance◦Time Factor
Success Factors◦Geocentric Orientation◦Respect◦Learning◦Language◦Personal Attitude : Humility & Pride◦Personal Qualities : Adaptability &
Flexibility
How to be Successful◦Study and Preparation◦Awareness of Cultural Differences◦Commitment to Learn◦Do the Work
To Communicate
To Anticipate
To Distinguish
To Identify
Translation and/or reverse translation
Problems faced when conveying a message in another language, or even the same language!
•Monochronic - Time is Money– Germany
•Polychronic - Time is an endless rolling cycle– Italy
5 Major functions◦Instrumental Education◦Affiliative Education◦Political Education◦Mythopoetic Education◦Religious Education
Attitudes to AuthorityAttitudes to OthersAttitudes to Managing OneselfAttitudes to NatureAttitudes to Business Practices
Attitudes to Material Culture and Technology
Pass cultural web
– description
of “traditional FC culture”
Hemilton, L. & Webster, P. (2009). The International Business Environmrnt, Oxford
Keegan, W.J. & Green, M.C. (2011). Global Marketing, Sixth ed., Pearson
Hofstede, G., Hofstede, G.J. and Minkov, M. (2010). Cultures and Organizations – Software of the Mind, 3rd ed, McGraw Hill
Blagoev, V. (2010). Culture: Values, Beliefs, perceptions, Norms and Behaviors, in Lundby, K.& Jolton, J. (ed) Going Global, Jossey-Bass
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Held, D., McGrew, A., Goldblatt, D. & Parraton, J. (1999) Global Transformations – politics, economies and culture, Cambridge, Polity Press
Mulgan, G. (1998) Connexity: Responsibility, freedom, business and power in the new century (revised edition) London, Viking
Scholte, J.A. (2000) Globalization. A Critical Introduction, London, Palgrave
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