MANAGEMENT and GLOBALIZATION

What is Globalization?

It is the movement of people, language,ideas, and products around the world

MERITS

- Imported goods are available- The country can produce what it produces best and import the rest- The local industries work hard to compete with international firms- Raw material is available- The standard of life becomes better- More jobs are created- There is security from famine, disease, etc. as international firms intervene.

DEMERITS-Local industries get dislodged.

-In times of war, there is a problem

-There is political interference and conflicts arise

-Profit may be taken back to home

-Under developed countries are exploited

ADVANTAGE BEING AN MNC

-Gaining a strong foothold into the international market -Low-cost locations -Cheaper labor costs -Cheaper raw materials and distribution costs -Taking advantage of the many tax breaks offered by foreign countries -Access to new technologies and methods -Availability of government grants

DISADVANTAGE BEING AN MNC

-Trade restrictions imposed at the government-level -Taxes or tariffs imposed on imports from other countries -Limited quantities (quotas) of imports

-Effective management of a globally dispersed organization

-Difference in cultures at various locations

WHAT IS CULTURE?

It is shared beliefs, attitudes, norms, values and behavior organized around a central concept or idea.

Why Knowing Culture is Important?

-It builds trust

-It saves time, energy and cost

-It Improves perception

DIFFERENCE IN US AND INDIAN CULTURE

-Result or Role oriented nature-Importance of Time-Topic of conversation-Visiting Cards-Gossips during work hour-Openness towards constructive criticism-HR policies-Aggression and Proactive ness