Mgt448 Week 1 Dq's

What technological advances in telecommunications and transportation have influenced global business in the last decade? How have these technological advances affected regional economic development?

The advancements in telecommunication include the Internet and World Wide Web. The advancement of the microprocessor has increased the amount and speed of processing information. The microprocessor is also the key to the advancements in wireless, satellite, and fiber optics technology (Hill, 2009). As the microprocessor technology continues to develop, the cost continues to decrease. It has become more affordable and reliable to communicate via Internet, phone, or satellite.

Transportation technological advancements include commercial airlines and containerization (Hill, 2009). Commercial airlines make it possible for people to travel globally in a shorter amount of time. Containerization has decreased the amount of labor it takes to ship globally. Furthermore, containerization is more efficient and less expensive.

The technological advances have affected regional economic development by increasing competition. The reduced cost of communication and transportation means less developed countries can now enter the global market, and the United States’ world output decreases.

References
Hill, C. W. (2009). International business. Competing in the global marketplace (7th ed.). Boston, MA: McGraw-Hill.

Discuss how culture, language, and religion might influence the costs of doing business in a particular country. Support your statement with specific examples.

Countries have different cultures, religions, and different languages. Although the language for business is considered English, many people who speak English as a second language still encounter language barriers. Misunderstandings in communications can cause companies to lose money due to lost contracts or production problems. Furthermore, the translation from one language to another can change the meaning, causing problems with slogans, packaging, or policies and procedures. The translation problems can cost a lot of money in lost sales.

Cultural and religious differences can affect the way a company does business. In Egypt, the businesses generally have a hierarchy structure. The decision maker is usually male and makes all decisions. The subordinates follow his direction and do not show any initiative (CDA Media, 2012). If an employee is not specifically asked to do something, it will not get done and could have a financial impact on the company.

Egypt is also a very religious culture. Islamic businesses have a religious supervisory board that governs its operations to ensure they comply with the Islamic religion. The Islamic companies are shut down for prayer sessions and the employees must be Muslims (CDA Media, 2012). If one were going to do business with an Islamic company, he or she must learn about the religion and understand its importance in the business practices. Because of the daily shutdown for prayer, one may have to alter timelines for specific projects; otherwise, he or she could have increased financial risks.

Reference
CDA Media (2012). Business culture in Egypt. Retrieved from http://www.worldbusinessculture.com/Doing-Business-in-Egypt.html

Discuss the following theory: The study of global business is relevant if you work or plan to work in a large multinational company, but it has little or no significance for individuals who work in smaller national firms. Do you agree or disagree? Defend your argument with at least two supporting statements.
I disagree that one working in a smaller national company does not need to study global business. With over 400,000 international companies (Grant & Wilburn, 2013) it is likely that a national company will do business with an international company. Kimberly-Clark, 3M, Coca-Cola, and American Express are just a few multinational companies. Some knowledge of International business can only benefit both the national company and its employees.

In addition, even a national company will have a diverse workforce. Studying international business can prepare one for working and understanding a culturally diverse workforce both in and out of the company. According to Stanford Graduate School of Business (2009), “Having a successful business career these days often means interacting with colleagues around the world" (para. 3).

Studying international business can also create a competitive advantage when looking for a job. If one has at least some knowledge of international business, a company may see that as an asset if they intent to globalize in the future.

References
Grant, J. E., & Wilburn, R. L. (2013). Multinational corporations. Retrieved from http://www.referenceforbusiness.com/management/Mar-No/Multinational-Corporations.html#b
Stanford Graduate School of Business (2009). Encouraging greater global business knowledge. Retrieved from http://www.gsb.stanford.edu/giving/news/new_global_fund.html

References: Grant, J. E., & Wilburn, R. L. (2013). Multinational corporations. Retrieved from http://www.referenceforbusiness.com/management/Mar-No/Multinational-Corporations.html#b Stanford Graduate School of Business (2009). Encouraging greater global business knowledge. Retrieved from http://www.gsb.stanford.edu/giving/news/new_global_fund.html