International Management And Ethics

Discuss about the International Management and Ethics.

 

 

The aim of the report is to identify and analyse the link between globalization and the cross cultural management. The report identifies the factors that contribute in understanding the requirement of cross cultural management while expanding the business in the international market. GeekChic is to establish its services on an international level and thus it is very important for the company to understand the significance and interconnection between globalization and cross cultural management (Bisbe and Malagueňo, 2012). When a company plans to expand globally, communication is a very important aspect to be taken seriously as miscommunication or communicational gap can lead to poor results and outcomes. Apart from communication, problems can be raised due to the wrong understanding of cultural and ethical differences.

For enjoying the competitive advantage over the global market, it becomes necessary for the companies to practice cross cultural management. The differences and diversities in the cultures of various countries can affect the efficiency and effectiveness of the managers to build up the management system (Fried, 2010). The managers are needed to be aware regarding these changes while working over a global platform. The finance industry can hugely get improved by the cross cultural management. The cross cultural management includes managing the complexities of the communication across culture, the time zones, the distance and various challenges which may concern the managers (Bisbe and Malagueňo, 2012)

The Netherlands has a balanced and well maintained economy, which is the result of openness to international trade and investment and an efficient environment which promotes strict and robust business activities. The financial stability is too well balanced. The judicial system is independent, strong and corruption free providing strong property rights. The 2016 freedom score of Netherlands  is 4.6 while its global ranking is 16^th. The fiscal policies in Netherlands are a matter of concern as the government spending is high. The expenditure made on unemployment support, subsidies and other social support activities kept the balance budget negative (Hou, 2012).

There are political aspects which face corruption and efficient anti-corruption measures and steps are taken. The complete legal structure assures strong protection of the private property rights and establishments of the contracts. The judiciary matters are quite amazingly solved thus having a fair jurisdiction (Ezike and Amah, 2011). The top income tax rate is 52%and the corporate tax rate stands at 25%. The overall taxes include 37% of the total income of the country. The government expenditures are 46.8% of the GDP. The budget of the country has been in deficit and the public debt exceeds 65% of the complete GDP (Hou, 2012).  The EU members have 1% of tariff rate and the trade closures are negotiated with various countries involving US and Japan. There are no strict regulations for foreign investment while investment in fewer industries is restricted. The banking sector is more inclined towards the local market ratherr than the international market.

While comparing various aspects of the both companies, Netherlands and Japan has different and varied cultures. The countries have different currencies and located in different continents. Netherlands is a part of Europe while Japan is a part of Asia. The primary languages of the countries are completely different where the Netherlands has Dutch and French as base languages while Japanese language is used in Japan. Netherland follows government with constitutional monarchy while Japan is a republic nation.

Both the countries have high GDP’s but comparatively Japan has a very high GDP. The GDP of Netherlands is $753 billion and ranks 17thin the world while Japan’s GDP is $4.421 trillion which ranks 83^rd in the world. The GDP growth rate of Netherlands is 1.99% which is quite similar than that of Japan which is 1.51% (Tutunea and Rus, 2012). If we compare the unemployment ratios of the countries, the ratios are quite similar as Netherlands has 6.9% unemployment while Japan has 6.4% unemployment in the country. Netherlands follows Euro while Japan has Lebanese pounds. Netherlands has a high population of 16.9m while Japan has 4.65m which is quite different with each other. As per the Hofstede’s cultural dimensions, the countries are quite different in terms of various aspects and similar in some dimensions.

The pioneer of business management Hofstede proposed culture as a very important aspect in identifying the managerial behavior. Hofstede conducted a huge research for this aspect and analyzed the data which included analysis of more than 100,000 people working in above 50 countries and regions (Micheli and Mari, 2014). As a result of this data, Hofstede developed a framework which determines the prime and main four dimensions which are Power Distance –PDI, V, masculine/feminine and avoidance of uncertainty.  According to the IDV, all the cultures can be featured by the strength and impact of the social forces which is responsible to bring the individuals together into single social entities. This dimension focuses on the importance of an individual over a group while collectivism showcases the importance of the group over individuals  (Ezike and Amah, 2011).

The Hofstede’s models have developed several controversies in terms of over usage and undervaluation. This model is generally stated as a failure by various analyses. Hofstede only evaluated one company and its staff which can be measured culturally representative. The model is not said to representative as it takes the example of one single company involving the scenario of middle class workers (Micheli and Manzoni, 2010). Hofstede proposed that the working of a single entity would eliminate or hinder the effect of the economical policies and management practices for various companies that influence the behavior in a different manner. Howe ever it is seen that the national and organizational cultures are not dependant issues. Even after declining the corporate policies and the management practices, there are still different and various cultures existing in a country. The hofstede’s assumption regarding the culture differentiation of countries by surveying only sing IBM Company’s matters is not justifiable (Lendel and Varmus, 2011). There are various factors which affects the cultural dimensions which are not covered in the Hofstede’s model. Also the significance of community and various community based aspects. Hofstede used some limited survey to explain the values and practices relating to a specific country or company (Ezike and Amah, 2011).

International business and management culture with cross-cultural theory and challenges for the manager in globalized world.

The analogy for a conceptualize framework for cultural intelligence and the theory is been studied with different layers.There are certain aspects which are very much visible as an iceberg. The international business and the management culture differs when observing cultural challenges and theories in a country. Culture mainly includes language, food, music, perceptions and behavior of a person. When a business is undertaking an international affair, it needs to understand the culture of another country. The manager of GeekChic, who is travelling to Japan for a consignment of two years. The company needs an expansion at the higher level and it sends one of the manager who is exceptionally going well with promotions in short period. There are cultural differences that are considered by the company when the components of cultural intelligence are bifurcated and understood in this variance (Varela, Salgado and Lasio, 2010).

There are some objective indicators that have cultural differences and this become a progressive elusive with the levels of values and the assumptions. Cultural intelligence is constructed by managing the gap that focuses on capablities and domains in cross cultural context. As such, there are certain elements that need to be considered while international business is undertaken. There are intergrations and challenges for a person when taking into a generic advice for cultural intelligence. Decision making, values and globalization, leadership and cultural intelligence and negotiation and communication are importantly considered for international business.

The globalization forces have led to an intense condition which is explicitly an evidence which is accepted and influenced in life. Geekchic organization felt an immense need for expansion of its activities that are relevant and felt by the company. As such the concept of globalization has some challenges, there are management cultures that are meant immensely and training to a manager going in Japan is provided by explaining her the relevant value system and the importance of globalization for the organization (Wild and Han, 2008). The rapid economic liberalization has led to globalization and this is an investment and a process of which is possible through information and communication. Globalization is a very complex term that is mostly used while talking about international business. It is even misinterpreted and misused by organizations and individuals.

As such, there are increasing influences that are mainly exerted by political, economic and socio-cultural factors across the globe. These are widely considered while evaluating and accepting the changes that need to be included with new opportunities.

While an international trade takes place, when products are readily available for globalization. Decision regarding how the international business should be carried out is carried out by senior level authorities for production, price and marketing of products at different place. Immense need to cater the requirement is encountered by a survey. While this is a generic advice for all the countries and not specific for some (Minkov and Hofstede, 2012). Therefore a better decision regarding international business, its areas and scope of international business is carried out by the company. For instance, in this case GeekChic company needs to decide the area of expansion.

While this seems to be a common ground of success when cross cultural communication are applied which transmits messages and the nature of relationship interprets the encoding and decoding field. Communication with customers and stakeholders is very important when international business provides advantages to the stakeholders (Husted and Allen, 2008). A high context communication which is called as implicit communication style is carried out specifically in Japan, so this has to be examined while following the cultural contexts with regards to the message communicated to the general public.

Negotiations take place when there is a cope of culture clashes that triggers the other factors such as distractions, deadlines and emotional stressors that overcome in this context with the bargaining table. Negotiations would help GeekChic to reduce certain cultural misunderstanding and help to unfold the dynamic of negotiation.

Leadership matters while international business needs growth and development which is possible when there are good leaders who handle the business at a peak point and fly high while using corporate strategies for expansion of the business. There are cultural intelligence which is termed as CQ and are capable of  increasing the global environment with an impact of diversity and change in business. While cross borders are the main issues, the impact of intercultural negotiations has been carried out. Companies have their working culture and this is very distinctive, as a person joining a new firm may spend few weeks accepting and deciphering the code and ethics of the company (Das and Kumar, 2010). While in this case, a GeekChic company is trying to expand its business and the manager may face cultural and other differences that may rest well as CQ is high at new places with values, ethics and standards of particular company. Expansion of business is possible when there is acceptance of cultural intelligence and applying the wings for success and growth of a company. A manager travelling to Japan must be aware fo what the CQ is an how to accept the changes that are rendered.

There are some challenges that are recognized while international business is carried out by the company. This includes failure because of international standards that are not accepted, cultural differences, less multinational firms in particular country and capital investment which are higher than compared to the domestic trades and vary according to the country’s per capita income (Marieke, 2010).

An expatriate manager must consider the CQ and should be aware about the cultural differences at Japan. These are importantly considered while forming new business ideas and applying the CAGE framework for international business goes well. CAGE framework includes the Cultural, administrative, geographic and economic environment of a country. So the manager must handle the work pressure that has a high level of CQ. As such, these are important for international trade and its impacts while information technology is accepted with the change in the management while being globalized.

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