Globalization and Labor Management Relations

Topics: Culture, Globalization, International trade Pages: 5 (1617 words) Published: February 7, 2012
Sharing core knowledge in international collaborations could be a disadvantage due to the possibility of information leak and duplication of products and services around the world. The idea of sharing core knowledge is a disadvantage in the global economy for both the employer and employees. Many products and services have been duplicated in China due to the fast transfer of information. Obstacles in cultural differences can be overcome through education and experience through trial and error. Many nations fear the impact of globalization on their cultures, with the possibility of ‘Mc Donaldization,’ or American culture replacing other cultures around the world. Though not practical, globalization in its purest form would be one world culture, one world economy, one political power and one language. The United States at one time enjoyed one third of the world economy; however, that imbalance is rapidly in changing in today’s global economy. Entrepreneurs must check the company’s strengths and weaknesses at an international level before deciding to go global, because the wrong decision could cost the company at both domestic and international markets. Unions have come to understand that they are at a national disadvantage when confronting global employers. The current strategy of forming councils of unions around the world to bargain with their common employers has not been very successful. Unions will gain footing over time due to the advancement in communication and other technologies.

There are many downfalls to sharing knowledge in international collaborations and global projects. According to Vittal S. Anantamula from the perspective of the company, the core knowledge is a prized property that creates a competitive advantage since competitors cannot easily replicate it; however, this will be lost in international collaborations (Anantatmula, 2010). From the employee’s standpoint, a person would not want to share his or her knowledge unless the rewards are greater than the perceived value of the knowledge. So from both perspectives, the idea of sharing knowledge is a competitive disadvantage in the global economy. I think this absolutely true, especially in today fast paced environment, because information can be passed to people around the world in an instant. My friend who owns a refrigeration company in Dubai said that almost all of the name brand products in Dubai are duplicates. China is well known for its ability to copy intellectual knowledge and sell it for far less than the original price. Recently an Apple company store located in China was found to be a complete duplicate, illegally selling lookalike Ipads. When dealing at an international level, the core competitive knowledge should distinguished from knowledge absolutely needed for normal business transactions. Individual employees prefer to keep their core knowledge, and virtual communication mixed with cultural differences only adds to this desire (Anantatmula, 2010). Cultural differences are obstacles to effective knowledge management in global projects. I think that these obstacles can be overcome through education, but most importantly through experience of trial and error. As an international representative for a company in Ferndale, I have had several international customers try to resell products back to companies in United States after stating that the purchase was for international sale. The international price list is adjusted to stay competitive with local markets, `but deceitful people try to use this as a means to make profit by reselling in the U.S., thereby interrupting business with our domestic distributors. This is all made possible by advancement in technology and access to the internet. Social networks such as YouTube and Facebook are connecting different cultures by storm (Warloumont, 2010). Managers should be aware of the cultures perspective on globalization. An example of...
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