INTERNATIONAL BUSINESS

International business



International business

Introduction

In business market there is so much competition that companies sell outside country to increase sales. Increasing internationalization of business is requiring managers to have the global business perspective and an understanding of differences in environmental forces of markets in which they operate. (Hofstede 1997:45)

Decision making in international environment is more complex and having an understanding of external environmental forces enables international managers to be alerted to new opportunities. External forces are commonly called uncontrollable forces. Although managers have no direct control over external forces, knowledge of these forces will better prepare them for greater success in international business environment. Five of uncontrollable forces to be identified and their impact on Australia and Italy discussed are economic forces, financial forces, physical and environmental forces, political forces and sociocultural forces. (O'Neill 2002:81)

When Portuguese explorer, Alfonso de Albuquerque, arrived in Malacca, Malaysia, in 1511, he encouraged marriage of local Malay women with Portuguese men. Unknowingly, he was about to create the Creole culture referred to as “Kristang” or Christians, the community that survives to present day, speaking an archaic form of Portuguese, observing Roman Catholic religion, and preserving many Portuguese customs. Neither truly Portuguese nor Malaysian, Kristang represents an entirely authentic cultural expression related to, but different from, original parent cultures. Cultures inevitably change when they come into communicate with other heritage, new ideas, and different practices. This process of cultural change is the fact of social life. (Amine 2003:373)

This special issue looks at impacts of globalization on cultural changes from several different perspectives. Awidespread topic is that globalization is an inexorable tendency that is worthy of study, despite of whether its penalties are good or bad. There is the sense in some of articles that globalization is somehow different from processes of cultural and social change that have taken place in past. Globalization seems to be associated with homogenization and standardization, at least at the cultural level. Somehow, we are becoming more alike than different. Yet experience of Kristang in Malacca reminds us that cultural and social change has always occurred. The key is to identify what is exclusive about such change today. (Bird and Stevens 2003:395)

Much of work on globalization by international business scholars makes the series of assumptions that need to be carefully examined. First, heritage are considered to be somewhat homogeneous. Second, culture is largely viewed as the practice, rather than “soft ward of mind” as (Hofstede, 1997) calls it. Third, globalization represents the major rupture with way life is experienced by many people. Fourth, globalization is single major force that is shaping cultures of industrialized countries today. In this commentary, I would like to analyze these assumptions and then propose some ways in which these assumptions may be too restricted and need to be relaxed. (Brooks 2004:10)

Cultures are homogeneous

(Bird and Stevens, 2003) and (Amine, 2003) share an assumption that cultures, both international and nationwide, are equitably homogeneous. However, this assumption is highly questionable. Research indicates that national “cultures” usually represent values and practices ...