Globalization and International Business Essay

orbiculateisation and planetary choreThe C one timept of ball-shapedization putting everything into whiz vill fester* The bidding of integration and convergence of sparing, monetary, heathenish and policy- devising forms flummoxwise the world. * sphericization refers to the integration and interaction surrounded by different plurality and nations. * worldwideization is the physical process of worldwide integration arising from the interchange of world views, products, ideas and an some early(a)(prenominal) aspects of finishing.globalization A holistic approach1. scotchal Globalization the increasing integration of subject frugal systems through the increase in inter matter good deal, invest fitforcet fundss and large(p) diminish. 2. Financial Globalization the liberalization of outstanding purports and deregulations, peculiarly of financial assist that led to a mutation in cross boarder capital flows. 3. pagan Globalization convergence of l asts across the world E.g. come codes, ship canal of alive. 4. political relational Globalization the convergence of political systems and processes about the world.Dimensions of frugal Globalization what has changed* Globalization of output signal the change magnitude mobility of the factors of outturn especially the movement of capital that has changed countries traditional specialization roles. (process is made shorter and cheaper) * Globalization of Markers expert strides in communication, transport and travel flummox beatd natural consumer elements. The global marketplaces baffle perish easily inletible. (producing regularize products that atomic number 18 advanced, functional reliable and low damaged).* Globalization of challenger it has intensified in such(prenominal) a way that demarcationes be stickd to path mergers or enter into newborn strategic alliances, competing with new players roughly the globe.* Globalization of technology it has a dvanced rapidly and frankincense cr consume shorter cycles for output of considerablys and go. The running of headachees bring forths much than effective and efficient. In some cases though, several(prenominal) transactiones might live clog keeping up with the advancements due to financial constraints.* Globalization of corporations and Industries sparing liberalization has led to stinting growth in Foreign Direct investitures and relocation of commercial enterprise enterprises as a result, there has been fragmentation in business processes. Where different stages of fruit argon coming out in different countries E.g. Toyota manufactures in lacquer and assembles in South Africa.Factors influencing Globalization (M overs)* sparing relaxation method* Technological Breakthrough* Multilateral Institutions* outside(a) stinting integrations* Move towards redundant selling systems* Rising enquiry and organic evolution costs* Global expansion of business operations* A dverts in logistics management* Emergence of the global customer segmentFactors restraining Globalization* Regulatory controls* emerge shift barriers* ethnic factors* Nationalism* War and civilized disturbances* Management myopia thinking in spite of appearance the knock/boardersQuiz what is meant by internationalization of a degenerates observe chain?Reasons for support of Globalization* Maximization of frugal efficiencies ( hit the booksing to use stintingresources of a kingdom to the fullest electromotive take in) * Enhancing treat* Increase cross-boarder capital movement* Improves efficiency of topical anaesthetic firms* Increases consumer welf atomic number 18Criticism of globalization* Developed Vs Developing countries unequal players in globalization * Widening gap between the rich and brusk* Wipes out interior(prenominal) industry* Leads to massive layoffs and unemployment* Brings in problems related to balance of payments* Increased volatility of markets* fall power of nation states* Loss of pagan identity* Shift of power to multinationalsResponse Strategies to Globalization forces for emerging market companies shielderExtenderDodgerContender1. Defender Strategy When pressure to globalise is low, topical anaesthetic companies exact the defense strategy that centralisees on leveraging local assets in the market segments where multinationals atomic number 18 pallid. 2. Extender strategy when companies posses emulous skills and assets that put forward be transferred abroad, companies crowd out focus on expanding to markets similar to home invertebrate foot utilise competencies create at home.3. Dodger strategy when pressure to globalize is blue, local companies have no option tho to dodge aspiration by cooperating through a joint venture or becoming a supplier or service provider change off to multinational enterprises e.g. Skoda Czech car manufacturing business sold to Volkswagen.4. Contender strategy companies that have high pressure to globalize andcompetitive advantages that can be leveraged overseas can aggressively compete by focusing on upgrading their capabilities in the niche segment to match multinationals globally ie. TATA IndiaConcepts of supranational personal credit line1. internationalist Trade exports of goodnesss and services to a aloof-based buyer ( upshoter) 2. planetary foodstuffing refers to marketing carried out by firms/companies across the national boarder line. 3. International Investment cross boarder transfer of resources to carry out business activities.4. International Management application of management concepts and techniques in a cross unsophisticated environment an modification to different affectionate-cultural, economic, wakeless, political and technological environments.5. International Business all those business activities which involve cross-border transactions of goods and services and resources between cardinal or much nations. 6. Global business conduct of business activities in several countries using a highly co-ordinate and maven strategy across the world.Types of International Business minutes* Transactions exchange of determine between buyer and seller typically involving intermediaries and currency as speciality of exchange. * Exchange of production inputs, components partially/nearly destroyed products, goods/services, ideas/know how.Boarders their significance* State boundaries denote sovereignty, citizenship (political authority), efficacious jurisdiction, security. When theres no boarder, theres no state * National assimilations, National personal identity* sparing Unit eroded due to globalization, economic transactions be chief(prenominal)ly home(prenominal). * Boundaries of mind and habit, boundaries argon psychological not just visible.How boarders make a differenceAs soon as you have different purifications, different contact forms, different legal structures, different valuate revenue environments, the complexity introduced by that is immense.The mind why businesses that expand overseas fail is they undervalue the complexity thats enlarged in an international organization.The Internationalization of Business* Bringing in new ideas* Moving across the boarders* Companies conduct value adding actitvities on a global home base, primarily to organize, source, manufacture and market. * A Level play field international activities appealing to all types of firms large or modest. Manufacturing and services sectors E.g. Banking, Transportation, Design, publicize and retailing.Nature of International Business* Value adding activities* Firms internationalise via experts, irrelevant result investment, licensing, and collaborative ventures. * Foreign portfolio investment less than 10%* Foreign Direct Investment to a greater extent than 10%Reasons for International Business blowup1. Market seeking motives* Marketing opportunities due to life style cycles* Uniqueness of products or services2. Economic motives* Economies of scale of measurement are achieved* Profit index* Spreading research and phylogenesis costs3. Strategic motives* Growth* Risk circleDifferences between Domestic and International Business* Economic environment* Social* Infrastructure* Legal* governmental* Competition* TechnologyThe four-spot riskinesss of International Business1. mystify- cultural risk occurs when a cultural mis say puts some benignant value at stake. * heathen differences* Negotiation patterns* Decision making styles* Ethical practices2. commercialised risk refers to a firms po campial loss or failure from poorly develop or executed business tactics. * Weak partners* operative problems* Timing of entry* Competitive intensity* scurvy execution of strategy3. bullion risk (financial risk) the risk of adverse fluctuations in exchange rates * Currency exposure* Asset evaluation* Foreign taxation* Inflation and transfer4. Coun try risk (political risk) refers to the potentially adverseeffects on federation operations and profitability caused by developments in political, legal and economic environments in a conflicting acres.Risks will forever and a day be present plainly can be managed Managers is such situations should * Anticipate the risks* Understand the implications thereof* direct pro-active action* Reduce adverse effects nigh risks are extremely challenging e.g. the einsteinium Asiatic Economic Crisis in 1998. It generated substantial commercial, currency and country risks.Participants in International Business1. Multinationals E.g. Kodak, Nokia, Samsung,Multinational Enterprises aver worldwide ne dickensrk of subsidiaries.2. Other participants* Small and metier sized enterprises In the regular army a small/medium enterprise sized entity is described as that having 500 or fewer employees. * Comprises of 90-95% of all firms in nigh countries .* Increasingly to a greater extent than(p renominal) SMEs get into in International Business.Why do firms internationalise?* Seek growth opportunities through market diversification * To earn higher(prenominal)(prenominal) margin profits* discover new ideas about products, services* Better service to customers that have relocated abroad * Be impending to supply sources* Benefit from global sourcing advantages* come across tractability in sourcing products* Gain access to better value factors of production* Develop economies of scale in sourcing, production, marketing and R&D * Confront international competitors more effectively or thwart the growth of competition in the home market. * Invest in a potentiallyrewarding business venture.What caused the East Asiatic Economic CrisisTheories of TradeAbsolute Advantage when a country is efficient in producing a goodness than any other country. Countries should therefore specialize in producing a product of which they are efficient in producing and then batch such product for goods produced by other countries.Output per hour of labour using the like resources Cloth WheatCountry A 100 200Country B 250 one hundred sixtyTotal Interpretation clearlyThe Political parsimony of International TradeThe political reality of International Trade is that while legion(predicate) nations are nominally committed to put subject tidy sum, they tend to intervene in international trade to protect the engagement of politically historic convocations.Instruments of trade policy are tariffs, subsidies, import quota, voluntary export restraints, local issue unavoidablenesss, administrative policies and anti-dumping duties.* A tariff is a tax levied on imports that effectively raises the cost of imported products relative to domestic products. * Specific tariffs are levied as a wintry charge for separately unit of a good imported. * Ad valorem tariffs are levied as a dimension of the value of the imported good.* A subsidy is a government payment to a domestic producer. Subsidieswhitethorn take form of a tax break, gold grants, low- kindle loan. * Subsidies help domestic firms by lowering production costs * Help them compete against foreign imports* Gain export markets* Government pay for subsidies by burdensome individuals(consumers)* Import Quota is a direct restriction on the quantity of some good that whitethorn be imported into a country.* Voluntary export restraints are quotas on trade imposed by the export country, typically at the request of the importing countrys government.* A local content requirement demands that some specific fraction of a good be produced domestically.* The requirement can be in physical or value terms.* Local content requirements benefit domestic producers and jobs, scarcely consumers face higher prices.* Administrative policies are informed bureaucratic formulas knowing to make it difficult for imports to enter a country. For suit Japanese usage inspectors insist on spring a large proportion of show up packages to inhibit for pornographic materials. * This process that can delay express packages has made it difficult for FedEx to expand its global cargo ships services to Japan. * These policies hurt consumers by denying access to by chance superior foreign products.* Dumping is selling goods in foreign markets down the stairs their cost of production/ jolly market value. * Anti-dumping policies are designed to punish foreign firms that engage in dumping. Dumping is viewed as a method by which firms unload excess production in foreign markets sometimes at prices below the cost of production.* The goal is to protect domestic producers from raw foreign competition. * US firms that believe aforeign firm is dumping can file a complaint with the government. * If the complaint has merit, antidumping duties, excessively known as countervailing duties may be imposed.Why Governments intervene?fundamentally there are three reasons Political, Economic and cultural1. Political reasons include* Protecting jobs and industries from foreign competition, trade controls usually result in higher price for consumers. * National Security defense related industries a great deal get this kind of protection. * Retaliations are threats used as bargaining tasks to help open foreign markets and force trading partners to play by the rules. It is usually in retaliation to a trading partners trade policy. Protect consumers from unsafe products.2. Economic Reasons* The infant industry argument(protecting them)* Strategic trade policy policies that government enact to ensure that firs-mover advantages are reserved for local firms in industries where substantial economies of scale exist.3. Cultural Motives friendless influence causes great distress and can force governments to axisk imports. Many countries have laws that protect their media programing for cultural reasons for example in Canada about 35% of music played on TV and piano tuner must be of Canadian orig in.Economic IntegrationThe abolition of trade restraints between nations. It is the growing economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers to trade and investment.* Three Levels of Economic Integration* Global trade liberalization by GATT or WTO* regional advantageous treatment of section countries in the group ie.SACU, SADC, COMESA ,etc. * bilaterally symmetric preferential treatment between two countries * regional and Bilateral agreements are against the MFN clause (normal trading relations), but allowed under WTO. * Visit www.wto.org for regional trade agreements.Regional Economic Integration* Growing economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers of trade and investment. nearly 40% of the world trade now occurs via economic axis of rotation agreement.Cooperating nations obtain* Increased product choices, productivity, li ving pecuniary standards * low-spiriteder prices and* More efficient resource use.Economic BlocA geographical area that consists of two or more countries that agree to pursue economic integration by reducing tariffs and other restrictions to cross-border flow of products, services, capital and in more advanced stages, labor.Examples EU, NAFTA, MERCOSUR, APEC, ASEAN and many others.thither are five possible levels of economic integration* Customs uniting* Common Market* Economic join* Political Union1. informal Trade area countries agree to reduce tariffs but not eliminate everythingThe simplest most universal arrangement, member countries agree to gradually eliminate formal trade barriers within the axis, while severally member country maintains an independent international trade policy with countries outside the bloc. Eg. NAFTA2. Customs Union similar to a free trade area except that the members harmonize their trade policies toward non-member countries, by enacting com mon tariff and non-tariff barriers on imports from non-member countries. E.g. SACU(Lesotho, Swaziland, Namibia, SA). Members have a revenue pool and it is dual-lane match to how much each has contributed.3. Common Market (single market)- give care a custom trades union except products, services and factors of production such as capital, labor, and technology can move freely among the member countries. E.g. COMESA requires much cooperation among the member countries on labor and economic policies.4. Economic Union like a common market, but members in addition aim for common fiscal and monetary policies, standard commercial regulations, affectionate policy, etc. E.g. the EU is mournful toward economic union by forming a monetary union with a single currency the EURO.5. Political Union perfect unification of all policies by a common organization. Submersion of all sever national bases e.g. former USSR * Remains ideal, but insofar to be achieved.The atomic number 63an Union What is the European Union?* Shared values liberty, democracy, regard, for human rights and fundamental freedom, and the rule of law.European Coal and Steel Community* In the aftermath of the World War II, the aim was to see to it peace among Europes victorious nations an pack them together as equals, cooperatingwithin overlap institutions. * found on a plan by french foreign minister Robert Schuman. * Six founding states/countries Belgium, the national Republic of Germany, France, Italy, Luxembourg and the Netherlands signed a treaty. explanation of the EU* treaty of Paris (1951)Formation of ECSCTreaty of Rome (1957)Formation of ECC (European Economic Community) -initially free trade area, becoming a custom union in 1967.* The Stockholm convention in 1960 created EFTA by seven countries to counteract ECC. * Single European mask of 1993* mental institution of single market (common Market) effective on January 1 1993 * Rename EEC by EU (15 members)* Treaty of Maastricht (1 992)* Creation of an economic union, EMU* cheek of European Central Bank on July 1998* design of a common currency, Euro on 1 January 1999 * Circulation of Euro on 1 January 2002.The EU featuresA full-fledged Economic Union1. Market access tariffs and most non-tariff barriers have been eliminated. 2. Common market removed barriers to cross national movement of production factors i.e labor, capital and technology. 3. Trade rules eliminated customs procedures and regulations, streamlining transportation and logistics within Europe. 4. Standards harmonization harmonizing technical standards, regulations, and enforcement procedures on products, services and commercial activities. 5. Common fiscal, monetary, taxation and brotherlyThe European Union Today* 27 members* untried members e.g. Poland, Hungary, Czech Republic are low-cost manufacturing sites. * Peugeot, Citroen(france) factories in Czech Republic. * Hyundai (South Korea) Kia plant in Slovakia.* Suzuki (Japan) factory in Hungary.* Most new EU entrants are one-time satellites of the Soviet Union, and have economic growth rates for higher than the 15 Western European counterparts. * Developing economies e.g Romania, Bulgaria, may take decades of foreign aid to catch up.Four Institutions that govern the EU1. Council of the European Union the main determination-making body. Makes decisions on economic policy, budgets, and foreign policy and gateway of new member countries.2. European Commission represents the interest of the EU as a whole. Proposes legislation and is creditworthy for implementing decisions of the Parliament and the council.3. European Parliament up to 732 representatives, compass joint sessions each month. Three main functions are * Devise EU legislation* Supervise EU Institutions* Make decisions on the EU budget.NAFTA (Canada, Mexico, USA)NAFTA passage (1994) was facilitated by the maquilladora program, in which US firms allocated manufacturing plants just South of the USA border to access low-cost labor without meaty tariffs.NAFTA has* Eliminated tariffs and most non-tariff barriers for products and services. * Established trade rules and uniform customs procedures. * Instituted investment rules and intellectual property rights. *Provided for dispute settlements for investment, unsportsmanlike pricing, labor issues, and the environment.NAFTA Results* Trade among the members more than tripled, and now exceeds 1 trillion per year. * In the early 1990s Mexicos tariffs averaged 100% and gradually.How the Mexican Economy benefited from NAFTA* Mexico exports to the US grew from 50 jillion to over 100 billion per year. * attack Canada and the US helped launch many Mexican firms in industries such as electronics, cars, textiles, medical products, and services. * Yearly US and Canadian investment in Mexico rose from 4 billion in 1993 to nearly 20 billion by 2006. * Mexicos per capita income rose to about 11 000 in 2007, making it the richest country in Latin Am erica. *Why nations pursue economic integration1. flourish market size* Greatly increases the scale of the market place for firms inside the economic bloc. Eg. Belgium has a universe of just 10 million the EU has a population of nearly 500 mil. * Consumers can access much bigger selection of products and services.2. Achieve economies of scale and enhance productivity* Bigger market facilitates economic scale* Internationalization inside the bloc helps firms learn to compete more effectively outside the bloc. * project and other inputs allocated more efficiently among the member countries, bakshishing(p) to lower consumer prices.3. Attract investment from outside the bloc* Compared to investing in stand-alone countries, foreign firms prefer to invest in countries that are part of an economic integration bloc. E.g General Mills, Samsung, TATA invested heavily in the EU.4. involve stronger defensive and political posture* Provide member countries with a stronger defensive posture relative to other nations and world regions, an original motive of the EU.Factors contributing to the victor of Regional Integration1. Economic Stability the more similar the economies of the member states, the more apparent the bloc will succeed. Eg. Wage rates, economic stability e.g. SADC, EU2. Political Stability similarity in political systems is advert. Countries should share similar aspirations and a willingness to surrender national self-reliance e.g EU3. Similarity of culture and lecture Helpful but not absolutely necessary.4. geographical proximity facilitates transportation of products, labor, and other factors. Neighboring countries tent to share a common history, culture and vocabulary E.g. NAFTA, EUConsequences of Regional Integration* Trade Creation as barriers fall, trade is generated inside the bloc. * Trade digression as within the bloc trade becomes more attractive, member countries discontinue some trade with non-member countries. * gist effect N ational patterns of trade are altered. More trade occurs inside the bloc. * A concern a bloc might become an economic bulwark rangeing to more within-bloc trade and less between bloc trade can harm global free trade. * Loss of National Identity increased cross-boarder contact makes members more similar to each other E.g. in response Canada has restricted the ability of US movie and TV producers to invest in the Canadian film and broadcasting industries.* Sacrifice of Autonomy in later stages of regional integration a underlying authority isset up to manage the blocs affairs. Members must sacrifice some autonomy to the central authority, such as control over their own economy. E.g Britain in the EU. * Transfer of power to advantaged firms can concentrate economic power in the men of fewer larger firms, often in the most advantaged member countries. * Failure of small or debile firms as trade and investment barriers fall, protection is eliminated that antecedently shielded sm aller or weaker firms from foreign competitions. * in corporal restructuring and job loss Increased competitive pressures and corporate restructuring may lead to role player layoffs or re-assigning employees to distant locations, disrupting giveers lives and entire communities.* Internationalization by firms inside the bloc internationalization gets easier after regional integration. * Rationalization of operations managers develops strategies and value-chain activities suited to the region as whole, not individual countries, by restructuring and consolidation company operations. The goal is to reduce costs and redundancy, increase centralise distribution, instead of decentralization to individual countries. * Mergers and acquisitions Economic blocs lead to mergers and acquisitions, the tendering of one firm to buy another, or of two or more firms to merge and form acquisitions.Cross Cultural risk* A situation or event where a cultural mis-communication puts some human valu e at stake. * Arises when we enter environments characterized by unknown languages and unique value systems, beliefs, attitudes and ports. * One of the four major risks in international business.Manifestations of Cross-Cultural risk* ethnocentric orientation using our own culture as the standard for judging other cultures. * Polycentric orientation a mindset in which the manager develops a greater affinity with the country in which he/she does business than the home country. * Geocentric orientation a global mindset in which the manager is able to understand a business or market without postulate to national boundaries. * Managers should strive for ageocentric orientation.Definitions of grow* Incorporates both objective and subjective elements.* Objective aspects of culture include tools, roads, television programme, architecture and other physical artifacts. * Subjective aspects include norms and values, ideas, customs and other coreful symbols. * Hofstede, a well-known Du tch organizational anthropologist views culture as a collective mental programming of mass and the software of the mind how we think and how we reason. floriculture Is* Not right or wrong it is relative. in that respect is no cultural absolute, different nationalities simply encompass the world differently. * Not about individual behavior culture is about groups. It refers to a collective phenomenon of shared values and meaning. * Not inherited culture is derived from the social environment. We are not born with a shared set of values and attitudes, we learn and acquire as we grow up. Culture is learned* Socialization the process of learning the rules and behavioral patterns appropriate to ones given society. Eg. Cultural learning* Acculturation the process of adjusting and adapting to a culture other than ones own. Commonly experienced by expatriate workers.* Culture is like an ice-berg-above the surface. sure characteristics are visible, below the surface is massive base of assumptions, attitudes and values that strongly influence decision making relationships, conflict and other dimensions of business.Cross-cultural growth is preponderating in Managerial tasks. Examples* Developing products and services* communication and interacting with foreign business partners * Negotiating and structuring international business ventures * Interacting with modern and potential customers* Preparing advertising and promotional materials.Cross cultural differences may create challenges* Teamwork what should managers do if foreign and domestic nationals dont get along? * lifetime employment workers in Japan often await to work for the same firm throughout their careers How should foreign firms handle that? * Pay for performance system In China and Japan, a persons age is important in promoting workers.Yet how do such workers perform when merit performance-based measures are used? * organizational Structure preferences for centralized, bureaucratic struct ures may deter study sharing. * Union-management relationships workers in European firms enjoy a more equal status with managers. * Attitudes towards ambiguity if youre uncomfortable working with minimum guidance or winning independent action, you may have difficulty registration into some cultures.Three approaches to interpreting culture* Metaphors refer to a distinctive tradition or institution strongly associated with a society a kick the bucket to deciphering attitudes, values and behaviors. * Stereotypes are generalizations about a group of people that may or may not be factual, often over looking real, deeper differences. * An accent is an human face whose symbolic meaning is different from its material meaning.The Nature of Stereotypes* Are often erroneous and lead to unjustified conclusions about others. * Still most people employ stereotypes, either consciously or unconsciously, because they are an easy means to judge situations and people. * There are real dif ferences among groups and societies, we should examine descriptive behaviors rather than gauge stereotypes. * An examplesome Latin Americans procrastinate via the manana syndrome.E.T. residences High and Low context culturesLow Context* Rely on elaborate communicatory explanations putting much emphasis on verbalise words. * Tend to be in northern Europe and North America which place central importance on the efficient delivery of messages. * Communication is direct and explicit dont beat around the bush.High Context* Establish trust stolon* Personal relations and goodwill are value* Agreements punctuate trust* Negotiations slow and ritualistic* dialect is on non-verbal messages and use communication as a means to promote smooth harmonious relationships. * choose an indirect, polite, face-saving style that emphasizes a mutual intellect of care and respect for others, careful not to shame or offend others. * It is difficult for Japanese people to say No when expressing disa greement. Much more likely to say it is different an ambiguous response. * In East Asian cultures, showing impatience, frustration, irritation, or anger disrupts capital of New Hampshire and is considered rude and offensive. * To succeed in Asian cultures, it is vital to notice non verbal signs and body language.Hofstedes compartmentalization of National culture1. Individualism Versus Collectivism refers to whether a person primarily functions as an individual or within a group. 2. Power Distance describes how a society deals with inequalities in power that exists among people. 3. Uncertainty escape refers to the extent to which people can tolerate risk and uncertainty in their lives. 4. Masculinity Vs Femininity1.1 individualistic Society ties among people are relatively loose,each person tends to focus on his/her own self interests. E.g Australia, Canada and the UK 1.2 Collectivist Societies ties among individuals are more important than individualism business is condu cted in the context of groups where everyones norms are strongly considered. E.g China, Panama, and South Korea.2.1 High Power outgo societies have substantial gaps between the powerful and the weak are relatively indifferent to inequalities and allow them to grow. E.g. Guatemala, Malaysia, the Philippines.2.2 Low-power surmount socities have minimal gaps between the powerful and weak. E.g. Denmark and Sweden governments instituted tax and social welfare systems that ensure their nationals are relatively equal in terms of income and power.* Social stratification affects power withdrawnness. In Japan almost everybody belongs to the pose class, while in India the upper stratum controls decision making and buying power. * In high distance firms, autocratic management styles focus power at the top3.1 High Uncertainty avoidance societies create institutions that minimize risk and ensure financial security, companies emphasize stable careers and produce many rules to regulate worke r actions and minimize ambiguity.3.2 Low-uncertainty avoidances societies socialize their members to accept and become modify to uncertainty managers are entrepreneurial and comfortable with risk taking, decisions are made quickly, people accept each day as it comes.5.1 Masculine cultures value competitiveness, assertiveness, ambitions and the assemblage of wealth. Both men and women are assertive, focused on career and earning money, and may care little for others. E.g Australia and Japan. The US is a moderately masculine society, as are Hispanic cultures that display a zest for action, bodacious and competitiveness. In business, the masculinity dimension manifests asself-confidence, pro activeness and leadership.5.2 Feminine cultures emphasize nurturing roles, interdependence among people, and affectionateness for less fortunate people for both men and women. e.g. Scandinavian countries welfare systems are highly unquestionable and education is subsidized.Subjective Dimens ions of cultureSubjective dimensions values and attitudes, manners and customs, deal versus relationship orientation, perceptions of time, perceptions of space and religion.* value represent a persons vox populi about what is good or bad, acceptable or unacceptable, important or unimportant and normal or abnormal. * Attitudes and preferences are developed based on values, and are similar to opinions, except that attitudes are often unconsciously held and may not have a sensible basis. * Prejudices are rigidly held attitudes, usually unfavorable and aimed at particular groups of people. Examples values in North America, Federal Europe, and Japan hard work, punctuality and the acquisition of wealth. recognise Vs Relationship Culture* Deal Oriented cultures- managers focus on the task at hand are impersonal, typically uses contacts and want to just get down to business. Example, Australia, North Europe, and North America.* Relationship Oriented cultures- managers have affiliations with people, rapport and get to know the other ships company in business interactions, relationships are more important than the deal trust is highly valued in business, agreements. Example, China, Japan, Latin America etc. It took nine days for Volkswagen to negotiate an automobile factory in China.address and Customs* Manners and Customs are ways of behaving and conducting oneself in public and business situations. * Informal cultures democratic in which people are equal and work together cooperatively * Formal cultures status, hierarchy, power and respect are very important. * Varying Customs eating habits, mealtimes, work hours and holidays, drinking, appropriate behavior at social gatherings (handshaking, bowing and kissing), gift-giving (complex), roles of women.Religion* A system of common beliefs or attitudes concerning a being or system of thought people consider to be scared, divine, or highest truth as well as the ethical motive codes, values, traditions, and ritua ls associated with this system. * Influences culture, and therefore business and consumer behavior. * Example The protestant work ethic emphasizes hard work, individual achievement and experience that people can control their environment the underpinnings for development of capitalismLanguage as a profound dimension of culture* The mirror or expression of culture, essential for communication provides insight into culture. * Linguistic proficiency is a great asset in International Business. * Language has verbal and non verbal (unspoken, facial expressions and gestures) * There are nearly 7000 active languages including 2000 in Africa.Technology, the lucre and Culture* Technological advances are a key determinant of culture and cultural change more leisure time, and computers, multimedia, and communications systems that encourage convergence in global culture. * The death of distance refers to the demise of the boundaries that once separated people, due to modern communications, information, and transportation technologies more homogenized cultures are developed. * The internet also promotes the airing of culture, with rapidly growing numbers of internet users.Are cultures converging?The concept of SovereigntySovereignty meaning Self Rule is when a state or government is able to make and enforce laws within its boundaries without interference from foreign nations. It is also connected to the ability of a country to guarantee the best interest of its own citizens.How does Globalization affect sovereignty? treat the effect of Globalization on National culture1. Stripped us of our culture since people become more attached to western culture and lose their ways of doing things.Critically evaluate various dimensions of Economic globalization and their impacts on business enterprises explain how it is touched and give examples.1. Globalization of Production increased mobility of the factors of production has changed traditional specialization roles2. Globaliz ation of Competition competition with international businesses has intensified and therefore cost simplification is encouraged to improve efficiency.3. Globalization of markets markets have become easily accessible, allowing for expansion and growth. Goods are made of a standard level since customers worldwide have the same tastes and preferences.4. Globalization of Technology it has advanced rapidly leadership to shorter production cycles. It also makes managing a business more effective and efficient. Advancements in technology have also become difficult tomaintain due to financial constraints for some businesses.5. Globalization of Industries they have the options of putting up shops anywhere in the global village, giving customers a variety of choices in terms of goods and services.Convergence speech together two or more thingsGlobalization putting everything into one village.