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Comparative and Cross-Cultural Management Summary 2019
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Comparative and Cross-Cultural ManagementClass 1.
- Globalization: A qualitative shift towards a global economic system that is no longer based on
autonomous national economies but on a consolidated global marketplace for production,
distribution, and consumption
- Historical perspective of Globalization:
- Forces promoting/impeding (further) globalization:
Forces promoting (further) globalization: Forces impeding (further) globalization:
• Decrease of transportation costs • Lower company profits outside home
market; decreasing economic gains of trade
liberalization
• Decrease of communication costs • Unbalanced distribution of benefits
• Integration international financial markets • Search for cultural authenticity
• Mass media, social media • Limits of democracy
• International migration
, - Limits for Globalization:
Economical Social Cultural Political
Lower company Unbalanced Search for cultural The trilemma of
profits outside home distribution of authenticity globalization,
market benefits sovereignty and
democracy
At the country level The issue of “cultural
globalization has two appropriation”
effects: – Wealth
creation – Wealth
redistribution
The redistributive
effects get larger
relative to the wealth
creation effects as
the level of trade
liberalization
increases
- 4 Scenarios of Globalization:
Convergence of Greater Incremental Hybridization
economies specialization adaptation
Based on the success Economies specialize Culture and Part of the economy/
of the Anglo- in where they have a institutions constrain society adapts to
American version of comparative countries & firms in global pressures;
capitalism; advantage, e.g., their adaptation to other parts may
contradicted by later based on Porter’s the most efficient remain unaffected
success of Japan. “diamond” factors practices
- Can a ‘Global Culture’ exist?
1. No, because the concept of culture implies something which is specific to a particular group
2. No, because culture is based on shared identity rooted in:
• a sense of continuity of succeeding generations.
• Shared memories of specific events and personages.
• A sense of common destiny.
3. Such a collective identity is very often linked to a nation-state.
- What are Institutions?
• The humanly devised constraints that structure political, economic and social interaction
(North)
• Stable, valued, recurring patterns of behavior (Huntington)
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