Internationalization of the Business

Topics: Culture, Internationalization and localization, Decision making Pages: 3 (747 words) Published: December 16, 2012
Short Essay _ s3298285

The world is becoming more and more united and the term internalization is not just merely somewhere, but all around us. Sometimes it shows in the form of opportunities, sometimes it comes as a new challenge. Internationalization problems that companies face are identified as both internal and external. This essay aims to present some common difficulties that firms might face with and how they would establish their management to operate smoothly while internationalizing.

During internationalization, firms face several external issues, some commonly caused by the difference in culture (Christoper & Deresky 2008). According to Quer, Claver and Rienda (2007), states that the gap of culture can lead to difficulty in transferring of work practice from one country to another. Carmichael (2002) believes too that, culture misunderstandings form disagreements in most cross-culture ventures. For instance, Western and Eastern businesses are culturally distinguished. Western people prefer directly getting to the core of issues, while Eastern people recognize them through emotion-driven approaches (HRM Asia 2011). That is why culture training becomes more important than ever as this serves as the foundation factor of a company’s successful internationalization (Earley & Peterson 2004).

Therefore, in order to solve the problems and achieve their goals, Early and Peterson (2004) suggest that manager who are assigned as expatriate employees need to prepare adequate knowledge to increase their” cultural intelligence” (CQ) and provide 3 training methods “metacognitive-cognitive facet training”, “motivational facet training”, and “behavioral facet training”.

For example, Flat World Knowledge (2011) said those multiple culture companies such as Apple, Google, and Microsoft operate in a new country, they allow “their new employees fit their respective corporate cultures, which usually emphasize creativity, innovation, teamwork balanced...

References: Carmichael, DG 2002, Disputes and International Projects, Taylor & Francis, UK.
Christopher, E & Deresky, H 2008, International Management: Managing Across Borders and Cultures, Pearson, Frenchs Forest, NSW.
Earley, PC & Peterson, RS 2004, ‘The Elusive Cultural Chameleon: Cultural Intelligence as a New Approach to Intercultural Training for the Global Manager’, Academy of Management Learning & Education, vol. 3, no. 1, pp. 100-115.
Garcia, H, Taulet, A & Andres, B, 2007, Marketing Strategy In Internaltionalisation Processes: An Approach To The Role Of Perceived Problems, University of Valencia, Spain, <>
HRM Asia 2011, ‘Cross cultural business relationships’, HRM Asia, HRM, 11 March, viewed 7 July 2012, <>.
Quer , D, Claver, E & Rienda, L 2007, The impact of country risk and cultural distance on entry mode choice - An integrated approach, vol. 14, no. 1, pp. 77-78.
Sampietro, A 2011, The problems (and solutions) of internationalizing, viewed 11 November 2012, <>
The Flat world knowledge, 2011, What Is Culture, Anyhow? Values, Customs, and Language, New Charter University, Chapter 3, viewed 10 November 2012, <>
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