Question 1. Conduct research on the technological environment. Identify the recent developments in technology affecting business and propelling globalization. What problems/challenges have arisen regarding use of the Internet for the global business environment and what probable solutions can you suggest?
Question 2. Research one of the major Regional Trade Agreements (RTAs). How has it helped in reducing trade barriers and in improving global economy? What roles can multinationals play to further your chosen RTA’s objectives?
Question 3. The operations of multinational managers are made complex given the diverse cultural environments in which they operate. Research Hosfede’s findings in any of the BRIC countries relating to the five dimensions of power distance, uncertainty avoidance, individualism, masculinity, and time orientation. How do they compare with those of the United States? What country-specific factors account for the differences? What impacts would they have on your management operations?
Multinational Management-a strategic approach by John B. Cullen and K. Praveen Parboteeah.
- Some of the recent developments in technology affecting business and propelling globalization are:
- Use of the portable gadgets that are internet enabled, for instance, the Smartphones and tablets that allow users to stay connected throughout the day. These devices have certain applications that enable the users to perform different businesses as well as deliver government services. Alongside offering significant opportunities for enhancing workplace productivity, these applications speed up the globalization process (Cullen & Praveen, 2013).
- Improvements in Artificial Intelligence enable the business persons to automate knowledge from the humans to the machines. This has a significant impact on how the business persons organize and carry out the knowledge work. It reduces the unemployment rate by minimizing the rate of outsourcing jobs to foreign workers.
- Integration of business equipment and devices with the internet is quickly being adopted by most organizations. For example, healthcare organizations can now provide healthcare services via the internet without requiring their patient to travel long distances seeking for health (Cullen & Praveen, 2013).
Some of the problems/challenges have arisen regarding use of the Internet for the global business environment and the ways to resolve them are:
- Feedbacks and comments posted on the social media sites regarding the poor services the client receives or the unfavorable workplace environment for the employees are likely to affect the overall reputation of the organization. In solving such problems, most companies create online assistance whereby clients and workers can share their grievances (Cullen & Praveen, 2013).
Internet hacking can affect e- Businesses. Data breaching and cybercrimes have become very common in global business. However, with suitable secure business processes and contingency plans, business persons may reduce the rate of damage.
- One of the major Regional Trade Agreements (RTAs) is the Preferential Trading Agreements (PTAs). PTAs help in lowering trade barrier among the members. A good example of a successful PTAs is the one initiated in 1977 between the Papua New Guinea and Australia.
How has it helped in reducing trade barriers and in improving the global economy? What roles can multinationals play to further your chosen RTA’s objectives?
- Although initiating free trade among the member states generates overall benefits, eliminating a trade barrier on a certain good or product often hurts the shareholders and the workers of the local industries associated with that good/product. However, PTAs promises political firmness and economic opulence of the member states by acting as anchors in the democratic processes. They also reduce the probability of political and social disturbances in countries deemed economically and politically important to the business interest of the country that initiates the trading agreement. PTAs as well tends to speed up the advancement of the multilateral trade agreement, such as GATT, as a way of ensuring a timely and considerable reduction in trade barriers, especially in agricultural products. PTAs also help in reducing trade barriers by countering the economic and political supremacies created within a country by expanding and integrating the European Union with other multinationals (Cullen & Praveen, 2013).
Russia is a country with abundant resources and recently plays a significant role in harnessing the global economic development. Research into Hofstede’s cultural dimensions of power distance, uncertainty avoidance, individualism, masculinity, and time orientation will play a significant role in understanding the Russian people and their values (Cullen & Praveen, 2013).
- Power Distance
The Russian people have a low power distance. The low PDI cut point of 18 percent suggests the need for promoting equality among the citizens. Russia shares almost as equal score with its neighbors such as, China, but a rather different score with countries such as India, which has the highest score among its neighbors. A low PDI scope implies that by encouraging power-sharing attitude in the workplace environment, the country can register positive results. The power distance in Russian culture is much lower compared to that of the United States.
Russians have an exceptionally high level of masculinity with a score of close to 103 percent, which is perhaps the highest globally. An extremely high score in Masculinity suggests a preference for competitiveness acquisitiveness, inflexible role relationships, and aggressiveness. However, this is different from Russia since in normal situations a high masculinity score relates well with a high power distances score. The Russian culture is more masculine in comparison to that of the United States (Cullen & Praveen, 2013).
Russian culture is individualistic with a score of close to 71 percent. With regard to the culture of Individualism, Individualism score in Russia is considerably higher than its neighbors, but lower compared to that of the United States. A strong individualistic culture implies a higher preference for individual rights and accountabilities.
- Uncertainty Avoidance
Russia has a high level of uncertainty avoidance culture with a cut point of 92 percent. A high level of uncertainty avoidance culture engenders a feeling about the future occurrences. Furthermore, strong uncertainty avoidance implies a strong reluctance to change and have a habit of implementing policies and regulations to reduce uncertainty (Cullen & Praveen, 2013).
- Long-Term Orientation
Russia embraces a short-term oriented culture with a score of approximately of 41 percent. A culture with a low long-term orientation focuses on the current situations and expects quick outcomes. Russia has a long-term oriented culture compared to that of the United States.
What impacts would they have on your management operations?
Understanding the people is a significance step in managing businesses. Understanding the national cultures is important since organizations become considerably multicultural with diverse employees that operate in numerous countries. Therefore, understanding cultural differences is a crucial managerial skill since these differences affect the global operations.
Cullen J.B, Praveen, K (2013) Multinational Management-a strategic approach, 6th Ed. Cengage Learning
Liotta, M (2013). How Mongolia is regaining the frontier crown. International Financial Law Review, 32(6), 70