International Management and Cross-Cultural Competence

Prepared by: Prof. Emilia. S. Bio

Source: Principles of Management by Krietner, 11th Edition

The Global Economy: A Brief History

It was in 1571 that modern global commerce began. That year, the Spanish empire founded the city of Manila in the Philippines to receive its silver-laden galleons that made their way across the vast Pacific Ocean from the New World. The metal was bound not for Spain, but for imperial China. For the first time, all of the worlds populated continents were trading directlyAsia with the Americas, Europe, and Africa. They were highly interdependent: when silver depreciated in later decades, worldwide inflation ensued.

Ive always thought of travel as a university without walls. -Anita Roddick, Founder of The Body Shop

The Global Economy

Like any other productive venture, an international corporation must be effectively and efficiently managed. Consequently, international management, the pursuit of organizational objectives in international and intercultural settings, has become an important discipline.

Managing the global enterprise and modern business management have become synonymous. -Nancy Adler

Global Organizations for a Global Economy

Global and Transnational Companies

The difference between these two types of international ventures is the difference between actual and theoretical. That is to say, transnational companies are evolving and represent a futuristic concept. Meanwhile, global companies do business in many countries simultaneously.
By definition:
Global Company: a multinational venture centrally managed from a specific country. Transnational Company: a futuristic model of a global, decentralized network with no distinct national identity.

The best way to predict the future is to create it.

-Alan Kaye

Global and Transnational Companies

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Corporate Giants Worldwide

The best way to predict the future is to create it.

-Alan Kaye

Cross-Cultural Effectiveness

Culture by Focus
People in individualistic cultures focus primarily on individual rights, roles, and achievements. The United States and Canada are highly individualistic cultures. People in collectivist culturessuch as Egypt, Mexico, India, and Japanrank duty and loyalty to family, friends organization, and country above selfinterests. Group goals are shared achievements are paramount to collectivists; personals goals and desires are suppressed.

The best way to predict the future is to create it.

-Alan Kaye

Time
It is the silent language of culture. It can be distinguished into:
1. Monochronic Time
It is based on the perception that time is a unidimensional straight line divided into standard units, such as seconds, minutes, hours, and days. Everyone is assumed to be on the same clock, as such, it adopts the concept of Time is Gold.

2.

Polychronic Time
It involves the perception of time as flexible, elastic, and multidimensional. Managers tend to view schedules and deadlines in relative rather thana absolute terms.

Competencies Needed to Work Effectively Across Cultures

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The best way to predict the future is to create it.

-Alan Kaye