The paper 'Key Drivers Associated with Globalization in the Context of Growing Economic Interdependence" is a great example of business coursework. There exist a number of key drivers that are closely associated with globalization and more so in relation to the ever-growing economic interdependence between countries. One of the major drivers to globalization is the development of international institutions such as the WTO and the regional trade agreements. Through such trade agreements countries have been able to be more collaborative with each other (Birkinshaw 78). Through this, there has been the transfer of ideas from one country to another and thus some standards have been also accepted in other countries.
Through this key driver, the interdependence between countries has also increased and countries tend to major on what they can do best. Another key driver of globalization is the emergence and the continued development of multinational corporations. Multinational corporations are those firms and corporations that have based their operations in more than one country and their services and production facilities even outside the countries of origin. The corporations tend to foster economic interdependence between various national governments.
Through the investments that are usually made by the multinational corporations, there is a wide range of substantial benefits and more so to the living and working conditions of a great number of people in the world (Birkinshaw 103). Through multinational corporations, there has been the diffusion of certain organizational best practices and models and thus they are therefore seen as being major forces behind the convergence of the globe. The other major driver of globalization in relation to the interdependence between countries is the development of communication and transport systems.
Through this one is usually able to make business contacts with even companies that are in other continents even without travelling. In respect to this, there has been the development of technologies such as web conferencing where people are able to conduct meeting even without meeting and this has decreased in level of money spent since they do not have to travel to other countries (Birkinshaw 99). Also through the improved level of transportation people are able to move from one place to another and conduct business there.
Thus based on the development of transport and communication systems the economic interdependence between countries seems to be on the rise. Culture shock and how it can be reduced in international business In the business world, we are currently living in the importance of international cooperating and negotiation seems to be on the rise. Each and every company tends to be involved in international business activities and thus the need to deal with all the intercultural issues that may arise. Culture shock is commonly termed as the personal confusion that an individual may feel in instances when he is experiencing an unknown way of life when he/she visits a new country, move to a new social environment or at times travels to a different kind of life (Macionis and Gerber 54). There exists a number of ways of reducing culture shock and the first are the need for efficient international human resource management.
Based on the continued growth of companies, networks, strategic alliances and cross-cultural mergers and acquisitions there has been an increase in the number of expatriates. Efficient international human resources management will play a great role in reducing culture shock in international business.
Birkinshaw, Julian. Entrepreneurship in the global firm, London: Sage, 2000. Print.
Branstetter, Lee, and Robert, Feenstra. “Trade and foreign direct investment in China: a political economy approach,” Journal of International Economics 58 (2002): 335-358. Print.
Macionis, John, and Linda Gerber. "Chapter 3 - Culture." Sociology. 7th edition ed. Toronto, ON: Pearson Canada Inc., 2010. 54. Print.
Theodore, Moran, and Gerald, Thomas. International political risk management: Vol. 3: Looking to the future. Washington: World Bank Publications, 2005. Print.