the global context

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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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