International Management Essay
Globalization can be defined as the sense of wide spread international movement. It implies a higher place of organization- one at which discrete national entities are themselves dissolving so that all major political and economic decisions are ultimately transmitted globally. Globalization sees the “death of geography” and in particular, the demise of the nation-state. Almost all international processes are considered as aspects of globalization. In this paper, I will research on how globalization impacts the forces associated with it such as trade, technology, migration, environmental pollution and many others.
I will also try to research on how these forces associated with globalization affect several stakeholders involved such as domestic companies, indigenous cultures, farmers, and the different demographic groups. The paper aims at drawing the implications of the issues and their impact on international management practice. Forces associated with globalization Trade Globalization encourages the free flow of international trade. Governments have become involved in international trade negotiations as it is they who are responsible for the actions that regulate the free flow of goods.
This has resulted in the formulation of particular international trade rules. Globalization has been of utmost importance in reducing barriers to trade in both goods and services and capital
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With the industrialization process, many companies have emerged. The location of multinational industries in the foreign countries, especially in the developing nations has resulted to spread of air pollution. This has mainly been through emission of the green house gases which cause global warming. It has also resulted to the deposition of acidic rain, which is caused by the emission of sulphur, when it combines with water in the upper atmosphere. This is not pleasant, especially to the people of the host country, whose health might be at risk because of emissions from the industries.
(George Victor, etal, 2004, pg 47) Technology Globalization and technology are both evolutionary. The two are linked together, although they are not the same thing. New technologies are only new until an even newer technology comes along. Due to globalization, there have been numerous waves of new technologies, each of which has contributed to an industrial revolution, or at the very least, to industrial evolution. New technologies emerge every day in the developed countries like America and China, and then spread to other parts of then world. The accelerating pace of globalization of many economies starts with IT.
This sector has seen dramatic and rapid innovation, as evidenced by unprecedented declines in quality-adjusted prices of computer hardware. Recognition of globalization of production and demand came with the Information Technology Agreement in 1997; 44 economies accounting for more than 90% of trade agreed to eliminate all tariffs on categories of key products related to IT and communications by the year 2000. Communications network of IT busted in 1995, and now encircles the world, enhancing the globalization of business and professional services.
(Smedt Helma De, 2005, pg 27-30) Immigration Globalization is the major cause of immigration. Immigrants find their way in an environment that is new to them and that, moreover, is constantly changing and evolving. It has caused the freedom of people to move to foreign countries and easily acquire passports, work permits and other documents necessary for one to settle in the country. The factors that contribute to immigration may either be positive or negative, like wars and famine. Immigration is helpful to people whose lives are in danger, thanks to globalization.
On the other hand, it can result to undesired effects like spread of diseases from one country to another. (Smedt Helma etal, 2005, pg 27-30) The impact of the forces of globalization to different stakeholders Impact of trade on farmers Trade has an impact on farmers; where increasing globalization has focused governments’ attention to the issue of equivalency in food safety and quality management. As international food trade continues to grow, it has become obvious that no single country is completely self-sufficient in terms of its food needs.
The projected growth of world population from 6 billion in 1999 to an estimated 8 to 10 billion in 2050, with the majority of such growths being in the developing countries, means that there will be a significantly increased demand for more food. Farmers will therefore need to plant more crops for export to other countries. This means that globalization has and will continue to have a positive effect on the farmers as they will have a bigger market for their produce. (George Victor, 2004, pg 47) Impact of environmental pollution to people’s health The effects of environmental pollution are well known.
Emission of the green house gases has resulted to global warming, improving the breeding conditions for disease vectors. For example, mosquitoes, which are known for the spread of malaria, have continued to breed resulting to the spread of the disease. Mortality rates of areas like the sub-Saharan Africa, where most people have poor or no access to treatment has increased. Emission of sulphuric gases, hence acidic rain has brought huge losses to the farmers, whose crops dry up in the field. The direct effect of lack of food to the population results to malnutrition and other diet related diseases.
(George Victor, etal, 2004, pg 47) Effect of immigration on cultures Immigration is a tough, often frustrating and confusing proposition. Under these circumstances, immigrants tend to fall back on their “authentic” identity, which they find in their own culture, religion and language. On the basis of the consideration that certain aspects of communities, such as their language, culture and religion, are variants of a universal and general concept, they may be termed “person”, they claim the right to manifest themselves as being different in equality in the new society in which they find themselves.
Immigration may result to cultural heterogeneity, created through contacts between different cultures. New cultures may be shaped by the entrance of a dominant culture, where few members of the society get assimilated in to the larger culture. On the other hand, many cultures may join to start up a new culture that incorporates the desirable traditions of all the cultures. An example may be the possible emergence of a European Islamic culture. (Smedt Helma etal, 2005, pg 27-30) Effect of technology on the domestic country Globalization has caused the introduction of technology even in the developing or the developed countries.
The domestic countries in which technology is introduced benefit in that they get better technology to help them in production of their goods and services. Production at most developing countries has improved because of globalization through incorporation of new technologies. This has made production at most, if not all of the industries faster, making the companies more competitive. The domestic industries have also been able to participate in types of trade that they were not involved in before introduction of information and technology.
(Smedt Helma De, 2005, pg 27-30) Implication of globalization on international management practice As seen from the research, globalization refers to the increasing integration of markets as well as production processes across borders. It also involves the convergence of different practices from several back grounds. This means that through imperatives of industrialization and economic development, the value systems of managers become increasingly similar. For example, traditionally collectivistic developing countries will take on more individualistic work values.
Therefore, the effect of all the forces associated with globalization, driven by the rapid spread of technology, enables companies from almost, if not all parts of the world to apply identical general business and specific management practices across countries. There is growing evidence of a convergence effect in international business and management practices, especially with regard to strategic planning. (Vance Charles M. etal, 2006, pg 51-52) Research has shown significant converging trends in international human resource management practices across cultures.
It has also been argued that these universal best practices can enhance a firm’s capability and may well contribute to sustainable competitive advantage. Such a view manifests a universalism orientation that calls for a unified approach to different country circumstances. For example, the hiring practices in different countries are undergoing major changes due to the globalization of modern industries. In spite of the prevailing cross-national differences, the trend towards convergence seems to be irresistible. (Vance Charles M. etal, 2006, pg 51-52)
In a comparative study of personnel selection practices in thirteen countries, two selection criteria were found as the most commonly used recruiting practices across these countries. These were evidence of the person’s ability to perform the technical requirements of the job and the impressions gaining from a personal view. Also, striking similarities in hiring practices were also found among U. S. , Australian and Canadian firms due to their common Anglo cultural roots. Likewise, East Asian countries such as Japan, Korea and Taiwan demonstrated a remarkable similarity due to their history and culture.
Although they did not find any universal training and development practices, significant management practices were detected within each specific region of Asia, Mexico, Latin America and North America. (Vance Charles M. etal, 2006, pg 51-52) References 1) George Victor, Page Robert M. Global social problems, Polity, 2004, pg 47 2) Smedt Helma De, Goossens Luc, Unexpected Approaches to the Global Society, Garant, 2005, pg 27-30 3) Vance Charles M. , Paik Yongsun, Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management, M. E. Sharpe, 2006, pg 51-52