Cross Cultural Management
Running Head: Cross Cultural ManagementCross Cultural ManagementCross Cultural ManagementIntroductionThe term Globalization is ruling the actions of the world since two decades. It is interesting that a term like globalization which rules this century does not have any precise definition. The general perception about globalization is that the world is becoming a place where collaborations and shared ideas are given preference over everything. From economics to finances to technology and culture, the world has turned into a shared place (Held, 2003). With the globalization of the whole world, it is no surprise that the financial aspect of the world has also been globalizing since a decade, or more. Since 1970s, the world’s financial flow has increased due to globalization. Majority of the countries are now involved in global financial markets. Developing countries financial flows saw an upward flow as well in the early 1990s but they started falling down after that. Since the crisis of 1997, East Asia’s currency has been depreciating with any overburden of economic instability. Trading of equities, issuing of bonds and global banking have seen a tremendous growth from its earlier negligible levels. The yearly yield of foreign exchange markets is at a 60 times value of the world trade. Every financial transaction, anywhere in the world, is made easier because of the instant online resources. International finance markets set the long term interest rates and exchange rates of countries (Held, 1999).
Financial globalization is believed to have changed the financial perspective of the world; however, the international financial markets are anything but integrated. Evidences of constant market segmentation, correlations between domestic savings and investment and bias of home countries are witnessed in the globalized financial markets (Schmukler, 2004).Despite its limitations, financial globalization is great contributing factor to the world’s perception of globalization. This increasing globalization, of any type, gives rise to the need for cross-cultural management has increased. The nature of multinational companies demands them to have their operations in different regions and countries which require them to be educated about different cultures and languages in order to efficiently work cross culturally. In order for multinationals to function effectively abroad, the demand for cross cultural managers has been increasing tremendously (Velo, 2011).The role of cross cultural management mainly revolves around organizational behavior. Cross cultural management works towards improving communication and interaction between customers, clients, colleagues, suppliers, partners, investors and employers from different backgrounds, cultures and countries. It also focuses on the comparison between organizational behaviors between countries and also describes the organizational behavior of different countries (Velo, 2011). Clever Clogs International is immersing in this cross cultural management by expanding their operations in Netherlands. Clever Clogs International in order to expand efficiently is sending their Lebanese manager to Netherlands in order to actively participate in globalizing their financial market. The main purpose of this report is to advice the manager of Clever Clogs International on being part of the diverse community (Zeynep Aycan, 2014).