Nonverbal communication and culture. Identity, stereotypes and prejudices, страница 48

Live together like brothers and do business like strangers

Arab proverb

Key words:

Acquisitions, business protocol, competition, globalization, intermediary, mergers, managerial expertise, management practices, multinational corporations, joint ventures, partnerships, subcontract.

Many countries are tied directly to an international system of economic interdependence, and most countries have at least one asset within their boundaries that is needed by another country.

No country is completely self-sufficient. Foreign competition and the need to trade more effectively overseas have forced most corporations to become more culturally sensitive and globally minded. Consequently, never before in history has the business arena portrayed such global qualities and a need for effective intercultural communication.

The increase in globalization is a result of growth in U.S. and foreign multinational industries since the 1960s. Trade agreements like GATT (General Agreement on Tariffs and Trade) and NAFTA (North American Free Trade Agreement) that lower tariffs and improve standards of living in the world have become commonplace. Multinational corporations increasingly participate in various international business arrangements involving joint ventures between two or more organizations that share in the ownership of a business undertaking.

Globalization also requires new approaches to doing business. Business models and practices that sufficed within a country are usually inadequate for international markets. According to Rogers and Steinfatt, companies in many industries today operate in a global marketplace. They must design products to fit a wide diversity of cultures, advertise them in numerous languages, and meet the demands of very different consumers. The global marketplace means that these companies are vitally involved in intercultural communication.

One approach to globalization has been the uniting of national businesses to form multinational organizations. Through acquisitions and mergers, many long-familiar U.S. companies have been absorbed into other companies or gained new names. For instance, the recent merger of Daimler-Benz and Chrysler has created the new Daimler-Chrysler Company. The acquisition of Columbia Pictures by Sony represents another recent example of acquisitions.

Another approach to globalization has been through partnerships among two or more companies.

Subcontracting has also become commonplace in the global economy. Subcontracts are arrangements in which a company pays another company to perform part of the production process in manufacturing a product.

Finally, management contracts have also increased dramatically over the last decade. In management contracts, one company provides another company with managerial expertise, production, technical, and marketing advice for a fee.

These international business arrangements usually result in individuals from one culture working not only with, but also for individuals from another culture. This situation often proves to be difficult because “. . . there are many problems when working or living in a foreign environment. Communication across cultural boundaries is difficult. Differences in customs, behavior, and values result in problems that can be managed only through effective cross-cultural communication and interaction” (Harris & Moran, 1996: 19).

In the final analysis, the most successful firms in the global arena will be those companies whose managers not only understand world economics and global competitiveness but who also are "sensitive to the broader implication of his or her actions and decisions upon organizational and world cultures" (Harris & Moran, 1996: 181).

This challenge exists because even a seemingly universal concept like "management" can be viewed differently from culture to culture. We now turn our attention toward the views various cultures hold regarding management and managers.