International Business: Assignment

I DOLPHIN ONLINE
International Business
Assignment
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Table of Contents
Q2: Impact of Globalization on International Businesses............................................................................. 3
1. Competition/ Rivalry ............................................................................................................................ 3
3. Novel Opportunities .............................................................................................................................. 3
5. Consumer expectations ......................................................................................................................... 3
7. Location Choice .................................................................................................................................... 3
8. Information/ knowledge transfer .......................................................................................................... 4
10. Multi-cultural management ................................................................................................................. 4
Q5. Hofstede Cultural Dimensions- Critical Review............................................................................... 5
Arguments Against Hofstede model ......................................................................................................... 5
Supported Arguments ............................................................................................................................... 6
References ..................................................................................................................................................... 7
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Q2: Impact of Globalization on International Businesses

International business related to large number of overseas business activities that are important
for rapid progress of the organization. Brisk enhancement in globalization in last two decades
and development of infrastructure and technology assisted business to expand beyond the
national borders. According to Constantinescu (2008), the major impacts of globalization on
international business include multiple factors. Following major impact of globalization
discussed in detail:
1. Competition/ Rivalry
Globalization force companies to stay competitive due to increased threats of local and
multinational companies competition. The nature of competition can range from product/ price to
the production limits of companies. Market share of companies increased with abundant
production and sales to economic sales
3. Novel Opportunities
Kedia (2006) asserted that with availability of more resources and industries facilities in overseas
location increased expansion of small business as well. The expansion in job opportunities for
overseas locations, product innovation and development, increase in executives skills and
expertise, and technology enhancement are some important aspects of globalization.
Globalization becomes another cause of increase in immigration to developed countries and
‘brain drain’ becomes a normal situation in developing countries.
5. Consumer expectations
Increase in expansion of business in overseas countries resulted in more are consumers and high
expectations from local companies’ products/ services. Competitiveness in local and foreign
companies proved more beneficial for customers and latest communication technologies and
internet supported high speed of business progress.
7. Location Choice
The international business expansion to more countries due to globalization increase
competitiveness in countries to provide suitable and promising locations to these businesses. For
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instance, China ., Bangladesh, and India become centers of production for global companies in
garments, sports, and other labour intensive industries due to low cost labour , more government
funded amenities, and low cost production facilities.
8. Information/ knowledge transfer
Transfer of knowledge/ Information become more rapid and valuable due to advancement in
computer and telecommunication technologies. Communication turned out to be a key element
in globalised world and international business reworks progressed due to support of
communication and knowledge sharing technologies.
10. Multi-cultural management

Another important impact of globalization is management of cultural conflicts and produce
harmony in organization a culture when working with globalised workforce. The differences of
origin culture, language ethnicities, and religions affected the development of international HRM
policies in international businesses (Westney, 2005). Further, the cultural differences of host
countries force companies to change their products and operation policies. For instance,
McDonald cannot offer beef products in India and bound to offer Halal meat in Muslim
countries.
In conclusion, globalization found to have numerous significant on the expansion of international

businesses. Furthermore, globalization not only affected the host countries’ economy and
business environment but also provide opportunities and challenges for international businesses.
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Q5. Hofstede Cultural Dimensions- Critical Review
Hofstede framework of national culture comprise fine dimensions of power relationship,

masculinity/ feminism, individualism/ collectivism, long term orientation, and (Hofstede 1980).
This model declared as one of the most pronounced model in understanding differences in
national cultures in the present era of globalization. The critical review of the model interprets
many arguments against and in favour of Hofstede model.
Arguments against Hofstede model

1. Relevancy: the relevancy and accurateness of survey was the main source of criticisms
researchers argued that only survey is not the appropriate research study on this large
scale (Schwartz 1999). Hofstede (1998) responded that other methods were also used to
finalize the survey contents and analyses were not solely based on survey findings.
2. Homogeneity: The most pronounced criticism was the argument against the Hofstede
assumption of homogenous national cultures. According to Redpath (1997), nations
comprised of various groups of ethnicities, communities, and variable subcultures.
Lindell and Arvonen (1996) also criticized that Hofstede ignored community and
subcultures’ influences of national culture.
3. National Divisions: Another argument is about the boundless national cultured
implications, as nations are not limited to physical boundaries (McSweeney 2000).
Therefore, fragmentation of national cultural and its overlapping with other nations needs
to be considered in this model recent wave of rapid immigrations and global village
concepts favoured this argument, but Hofstede convinced that national identities could
only be used to determine national cultural dimensions.
4. Single Company Sample: A heated debate against the use of single multinational
employer for Hofstede study on international culture argued that a single company
sample could not provide all information about national cultures (Graves 1986, 14-15).
Hofstede (1998) supported the use of single company and declared that cross-sectional
research was appropriate to find all cultural dimensions.
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5. Out-dated Results: Some scholars criticized that the study of Hofstede is outdate now
and the massive globalization and increase in telecom technology use on global scale
changed international environment and convergence in any national culture. In contrast,
Hofstede supported his results that cultures on national level cannot be changed
overnight.
Supported Arguments
Beside debates and criticisms on Hofstede model, this research is one of highly acclaimed and
most cited of all researches about culture. According to Søndergaard (1994), the 1980 research of
Hofstede received more than 1000 citations in 10 years time and Furrer (2000) claimed that this
research is most widely used in the studies focused at globalization, international market
expansion and evaluation of cultural challenges in international business environment.
Søndergaard (1994) further exclaimed that Hofstede result provide guidance for business
planning to enter in any foreign country , and R+JRM policies largely based on understanding of
employees behaviour on the bases of Hofstede cultural dimensions in host country. Moreover,
Søndergaard (1994) complimented that this research is one of highly structured pieces and data
collection was coherent, despite the criticism on flawed sample and uneven distribution of study
respondents. Finally, the researches followed Hofstede model proved the accuracy pf model in
estimating basic cultural dimensions.
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References
Constantinescu, M. (2008). “Knowledge Management Through The Lens Of Innovation And
Labour Productivity In A Knowledge Based Economy”, in: Journal of Applied Economic
Sciences, 3(2), pp. 65-80.
Kedia, B. L. (2006). Globalization and the future of international management. Journal of
International Management, 12(2), 242-245.
Furrer, O. (2000). "The relationships between culture and service quality perceptions: Basis for
cross-cultural market segmentation and resource allocation." Journal of Service Research
: JSR 2(4): 355.
Graves, D. (1986). Corporate Culture - Diagnosis and Change: Auditing and changing the culture
of oirganizations. London, Frances Printer.
Hofstede, G. (1998). "Attitudes, Values and Organizational Culture: Disentangling the
concepts." Organization Studies 19(3): 477.
Lindell, M. and J. Arvonen (1996). "The Nordic management style in a European context."
International Studies of Management & Organization 26(3): 73.
McSweeney, B. (2000). The Fallacy of National Culture Identification. 6th Interdisciplinary
Perspectives on Accounting Conference, Manchester, UK.
Redpath, L. (1997). "A comparison of native culture, non-native culture and new management
ideology." Revue Canadienne des Sciences de l'Administration 14(3): 327.
Schwartz, S. H. (1999). "A Theory of Cultural Values and Some Implications for Work "
Applied Psychology 48(1): 23-47
Søndergaard, M. (1994). "Hofstede's consequences: A study of reviews, citations and

replications." Organization Studies 15(3): 447Wallerstein, I. (2005). After
developmentalism and globalization, what? Social Forces, 83(3), 1263-1278.
Westney, D. E. (2005). What is international business? A sociologist’s view. In P. Buckley (Ed.).

What is international business? London: Palgrave.

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I DOLPHIN ONLINE

Q2: Impact of Globalization on International Businesses

8. Information/ knowledge transfer

10. Multi-cultural management

In conclusion, globalization found to have numerous significant on the expansion of international

Q5. Hofstede Cultural Dimensions- Critical Review

Hofstede framework of national culture comprise fine dimensions of power relationship,

Arguments against Hofstede model

Søndergaard, M. (1994). "Hofstede's consequences: A study of reviews, citations and

Westney, D. E. (2005). What is international business? A sociologist’s view. In P. Buckley (Ed.).

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