Discussion Response
Response to Discussions
1 PM –
After reading the first two chapters of our textbook, I was interested in exploring how globalization impacts inequality within nations. The text notes that studies differ on how freer trade and offshoring affects the wage gap in developed and developing nations (Wild & Wild, 2019, p. 19). With historic issue of global commerce growing more significant with advances in technology, I chose this topic since it has and will shape the foreign relations, economic wellbeing and national security the United States. The perpetual debate on this subject prompted me to become more educated on how it truly influences any nation involved in globalization.
The article I chose was The Impact of Globalization on Economic Growth, and its author began with the very revealing statistic that 35.6% of clothing and shoes sold in the U.S. is made in China compared to 3.4% made in U.S (Kuepper, 2018). This immediately illustrates how globalization has affected certain ubiquitous products in America. The article suggests that globalization has always been a net positive by, “making markets more efficient, increasing competition, limiting military conflicts, and spreading wealth more equally around the world” (Kuepper, 2018). These benefits are driven when foreign investors inject capital into real estate, technology and overall infrastructure that leads to increase in economies of scale (Kuepper, 2018).
The author does note a consensus amongst the global community of negative side effects to globalization. First, if a country becomes a main supplier for a specific item or service and they are indisposed in any manner, the decreased production in that country may impact their trade partners (Kuepper, 2018). Secondly, citizens may begin to feel of loss of their identity as jobs relocate to developing nations. This may give rise to nationalistic and tendencies (Kuepper, 2018). Lastly, the author cites the stigma that global free trade ultimately benefits the richest nations or the richest individuals within a nation (Kuepper, 2018).
I learned that globalization is not guaranteed to improve the lives of every nation; however, it will benefit most nations that open their economic borders to the world. In a sense, you can see this in examples of Capitalism with local business in this country. Smaller, less developed townships in the U.S. may decide to bring in large retailers whose supply chain bankrupts the generational family businesses. The community may have a moral argument against it but are pleased with the conveniences and lower prices offered by the major chains. This, essentially, is a form globalization on a local scale.
Article URL: https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-1978843
Discussion Question:
Do you believe that globalization has help your community?
2 – SC
Wild & Wild defines stereotyping as a generalization about a person while ignoring presence of individual difference. (Wild & Wild, 2019). You hear so much about businesses stereotyping people, whether it is by race or gender, there are a lot of problems out there. The article that I chose for this is Liz Malatestinic: Stereotypes lead to bad business decisions about workers. This article is specifically about stereotyping millennials. These are people who were born between 1981 and 1996. They have been accused of being unmotivated, narcissistic and entitled. On a side note, I can personally agree with the way people perceive this stereotype because I have experienced it a lot. This has been the worst turnover I have ever seen in 7 years at my job because this is the time that the millennials are getting jobs. It is not true about everyone though, I do give everyone a fair chance at first.
The article states that millenials are looking for positions where the workplace is "fun". Companies don't really see the reason in trying to make it a fun workplace by adding pingpong tables or Free Beer Fridays, because it doesn't make the job anymore rewarding. (Malatestinic, 2018).
Student loans are huge for the millenial group, so you are seeing a lot more companies offering some type of compensation to pay towards their loan payments, which can take some of the stress off their shoulders and allow them to focus more on their job. (Malatestinic, 2018).
In your field of business, have you had to let go any millenials because they fit in with the stereotype?
Malatestinic, L. (August 17, 2018). Stereotypes lead to bad business decisions about workers. Indianapolis Business Journal.
Wild, J., Wild, K. (2019) International Business: The Challenges of Globalization. Pearson Education.
3- SO
For this week’s discussion, the topic I found the most interesting is E-Business or E-Commerce. E-Business is described as the use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners (Wild 12). An example of a company who uses e-business is Amazon. Amazon provides a great example of e-business because they do all of their selling, servicing, and collaborating through computer networks. The article I found that relates to e-commerce from Business Insiders is Amazon's success is unparalleled — and 'Type 2 decisions' are a major reason why.
Within this article, there is a focus on type 1 and type 2 decisions. Type 1 decisions are irreversible and should be taken with caution. Type 2 decisions can be reversed and should be made quickly. Type 2 decisions are a very big part of why Amazon has become so big.
When making purchases on Amazon, many customers have the comfort of knowing that if they order a product that comes incorrect, they can simply return the product and order a new one. This comfort is provided because Amazon is so immersed in e-business. Many customers who go to stores will consider more decisions that they make, because they will have to make another trip out to return products. Through e-commerce, customers can order products knowing that they can reverse the decision simply by mailing the product back to the seller. Purchases made on Amazon can all be considered Type 2 decisions, because any products purchased on Amazon can be reversed. However, type 2 decisions can be made by both the buyer and the seller. The article describes how Amazon has become most successful because they are willing to make type 2 decisions if a product or idea is not providing success. For example, Amazon tries many new concepts like Amazon Prime and the fire phone. The fire phone seemed to not be doing as well, so Amazon quickly made the decision to omit the fire phone in order to make more room for more possible successful ideas.
I selected the topic of e-business because I am a big fan of e-commerce. Throughout my workday, I communicate mainly through email. I also am a fan of e-commerce because this broadens the opportunity for me to order more products than I am able to find in stores.
This article is relevant for me because I make many type 2 decisions in my workplace. If I see that something I am doing isn’t creating profit for the business, I am able to make the decision to change it on the spot, without much consideration.
Through reading about the topic of e-commerce, and tying it into the concept of type 1 and type 2 decisions, the main thing I learned is that I make more type 2 decisions than type 1 decisions. One of the biggest type 1 decisions I made recently is the house I am in the process of buying. When considering the house I wanted, it was not a quick whimsical decision. Instead, it took a lot of consideration and time to make a decision.
Discussion Question: How often do you use e-business in your everyday routine? Do you think e-business is beneficial to society?
Sources: Lebowitz, Shana. “Amazon's Success Is Unparalleled - and 'Type 2 Decisions' Are a Major Reason Why.” Business Insider, Business Insider, 8 Oct. 2017, www.businessinsider.com/why-amazon-is-so-successful-2017-10.
4 – RC
The specific topic I chose to review for this week’s discussion board is Globalization of Production. Wild & Wild define Globalization of Production as the distribution of production activities to locations that aim to help a company achieve cost savings, or increased value for a good or service (pg. 9). The article I chose to review, “9 Things You Need to Consider Before You Globally Source Your Goods” by Chris Blood-Rojas
In short, the article explains nine points companies of all sizes should consider prior to sourcing goods from around the globe. I found the article complimented this week’s reading by explaining how implementing Globalization in a firm can prove to be costly if not applied correctly. The article starts off by detailing the importance of understanding the scope of work that will be handled abroad versus domestically. For instance, will raw material be transported from international sources to become work in process in the US, or will it be worked overseas and imported as a finished good? Each scenario can have impacts on the companies bottom line, lead times and quality of goods. On the same note, there are other monetary risks associated with international sourcing. The article explains how fluctuating shipping costs, delays and processing fees can prove to be very costly for firms importing goods from other nations.
What I found most interesting in the article was the notion that although procuring raw materials, or processes abroad may help reduce costs and increase quality, it does not always lead to a competitive advantage in the marketplace. Intellectual property and is prominent point of contention throughout the article. Blood-Rojas explains that companies should be weary of divulging too much information about what goes into their product, as the more the supplier knows, the less competitive advantage the company has. An example of this would be a company that manufactures an epoxy adhesive. If the company relies on an outside supplier for component A for their finished goods, they should do their best to insure the supplier is unaware of any additional components that make up their product. Otherwise, they risk losing competitive advantage in the marketplace because other companies might be able to create a substitute.
Other points of consideration relate to culture, ethics, and regulatory affairs. Companies who depend on materials from other countries need to ensure that the foreign company is operating ethically. If not, the company may face scrutiny or backlash from consumers who oppose the practices. Varying cultures may produce unintentional negative feedback which can lead to a misunderstanding of scope work, expectations or even pricing. Lastly, different countries have different regulations, laws and standards. It will be important for any company that is interested in globalizing its supply chain to understand and abide by such regulations. If not, the company could face heavy fines or penalties and delays.
I found this topic (and article) interesting for several reasons. For one, I work in International Logistics. By trade, I work with many companies that are sourcing material from all over the world or attempting to bring their products to new markets. However, only dealing with the logistics portion of Globalization of Production leaves many questions unanswered. Secondly, the political environment in recent years has focused on certain aspects of Globalization or Production, and has even enforced new policy, trade barriers and impacted the way firms do business. Chapters 1 and 2 as well as the article were very insightful in examining some of the advantages and disadvantages of Globalization or Production
Discussion Question: Considering the points above, do you feel as though it may be easier for certain industries (Auto, Tech etc.) to adapt a globalized strategy?
Sources
Blood-Rojas, C. (2018, July 14). 9 things you need to consider before you globally source your goods Original article: http://www.tradeready.ca/2017/fittskills-refresher/everything-you-need-to-consider-before-you-globally-source-good. In Trade Ready. Retrieved from http://www.tradeready.ca/2017/fittskills-refresher/everything-you-need-to-consider-before-you-globally-source-goods/
Wild, J. J., & Wild, K. L. (2018). International Business The Challenges of Globalization (9th ed., p. 9). New York, NY: Pearson
5 – CG
After reading the first and second chapters of Wild & Wild’s 9th edition of International Business, I found the topic of customs in culture in Chapter 2, page 47 to be particularly interesting. In the text, customs are defined as “habits or ways of behaving in specific circumstances that are passed down through generation in a culture” (Wild & Wild, 2019, pg. 47). There are many types of customs including folk customs defined as “behavior, often dating back several generations, that is practiced by a homogeneous group of people” along with popular customs defined as “behavior shared by a heterogeneous group or by several groups” (Wild & Wild, 2019, pg. 47). All around the world each country and group of people you come into contact with will have different customs and as a business person, you need to be aware of of these to avoid any dispute and uncomfort. Being aware of different cultural customs as a manager helps you relate to your clients, bosses, manufacturers, investors, etc. If you are meeting with a Japanese investor you wouldn’t walk into the meeting and shake hands with your investor, but instead you would bow your head as a sign of respect. Along with bowing your head when meeting with a Japanese investor, you shouldn’t blow your nose or pour your own glass of water in any meeting as both are seen as rude and disrespectful (businessinsider.com).
According to an article on the Forbes website, “Cultural Competency is Key To International Business Success,” “embracing cultural norms in business is the key to penetrating new markets, attracting international customers and enabling a local product or service to find a global audience” (Bath, 2018). The article goes on to explain how before meeting with any potential foreign markets, you need to research the culture and customs of the potential clients/investors/manufacturers in advance. Then right before your meeting, you should review expected forms of greetings, etiquette, including how to act during a business meal, and how to negotiate a deal in regards to promises, pricing, and settling disagreements in order to improve the chances of closing the deal with your foreign partner.
Being able to relate, I chose the topic of custom in culture and business because I work for a company named eLearning Mind, that creates digital learning modules for fortune 500 companies and we have recently consulted with Godiva Chocolatier in Japan. Before our Chief Learning Officer traveled to Japan to consult with the team, I helped him research Japanese customs and culture before traveling across the world. Having this knowledge before the meetings helped our CLO to close the deal and create a great relationship with our client.
After reading both the article and our text, I have learned a lot about how customs fit into globalization and how careful you need to be in order to respect others and their cultures along with your own.
Discussion Question: What do you believe are some of the most important customs to respect and learn when traveling around the world?
References: Bath, V. (2018, July 16). Cultural Competency Is Key To International Brand Success. https://www.forbes.com/sites/forbeslacouncil/2018/07/16/cultural-competency-is-key-to-international-brand-success/#5477187e53c0
Thrastardottir, A. (2015, February 18). 11 Japanese customs that are shocking to foreign travelers. Retrieved from https://www.businessinsider.com/japanese-customs-that-are-shocking-to-foreign-travelers-2015-2
Wild, J., Wild, K. (2019) International Business: The Challenges of Globalization (pg 47). Pearson Education