BRAC University

EMBA Program
1 Quiz Examination
st

Managing in the Cross Cultural Environment 

Submission Time: 6 November, 12 Noon
th
      Marks: 20
(Answer any one of the following questions)

1. What factors have contributed to the growth of globalization in Bangladesh? Explain with
example.
2. Explain with example the three major operating objectives that underlying the reasons for
engaging in international business.

Name: Tamzid Rahman                                                                               ID: 20174007

Answer To the Question: 01

Globalization is a process of expanding trade and commerce creating borderless market all
over the world. This increase in global interactions has caused a growth in international trade
and the exchange of ideas and culture. Economically, it involves goods, services, data,
technology, and the economic resources of capital. The expansion of global markets opens the
economic activities of the exchange of goods and resources.
Must consider many factors when setting up any business internationally. These factors include:

 GEOGRAPHICAL FACTORS
Simple challenges that come with the change in geography have to be studied
when considering international business. There are differences in storage requirement,
supply chain requirements, connectivity issues, etc. from country to country. Example:
Lux-Sun silk products will face a thousand challenges to reach rural areas of BD where
there is a lack of basic necessities such as water, electricity, transportation, etc.
 POLITICAL FACTORS
Political factors are very important in international business. It is very difficult to
set up shops in countries that are politically disturbed or are going through some
tensions. Example, most companies don’t want to expand its business in Ctg Hill tracks,
as there is so much disturbance and distance.
 LEGAL POLICIES
 Every country has different laws and governing policies. Company should check
all the legal requirements in the country in which it wants to conduct business. The basic
laws that need attention are organization laws, securities laws, consumer protection
laws, employee’s protection laws etc.

 BEHAVIORAL FACTORS
Every country has different cultures and beliefs, and people can be very sensitive
to these beliefs. An international company, if not careful, can land a lot of issues if they
don’t take care of the country’s behavioral factors. For example, Domino pizza cannot
sell its pork item in BD.

 ECONOMIC FORCES
These factors include the county’s currency values, market size, cost, inflation,
etc. These are important because it directly affects the profitability of operations. Every
company should consider these factors before expanding internationally if they want to
manage its bottom line.

All these above-mentioned factors play an important role in how successful or unsuccessful in
its international business adventures. All these factors should be considered in the research and
planning stage to get maximum benefit out of it.
Like many other developing countries, Bangladesh is not in a comfortable position to cope up
with the winds of globalization, as it has less access to and use of different opportunities, living
at the margin in the orders of global order with low technological base and weak industrial
infrastructure. It is very important in understanding how the process of globalization will reveal
in future. Bangladesh will work out its physical, social and competitive factors as it tries to gain
its benefits out of it. Here below some point where way to rise globalization
1. Foreign Direct Investment:
Foreign investment is definitely essential for economic development of
Bangladesh. It should focus to broaden the scope for prosperity through the creation of
a modern and efficient economy. Also we can create work opportunity for Bangladeshi
worker as well. Example: Construct more EPZ area.

2. Political Stability:
Political stability in a country effects business operations. This is especially true
for the companies which operate internationally. Now a day in BD political even is better
than previous years. Example: Tariff & Taxes and government spending, which
ultimately affect the economy. Reduced tariff barriers which encourage global trade.

3. Improved Technology:
 Technological expansions reduce costs of transportation and communication
across nations and thereby enable global sourcing of raw materials and other inputs. It
encourages globalization as the firm owning the patent can exploit foreign markets
without much competition. Technological change also affects investments. Example;
Website has reduced the barriers of time and place in business dealings. Buyers and
sellers can now make transactions at anytime and anywhere.

4. Better Transportation:
Globalization increases the need for efficient supply chains where all modes of
transportation are reliable. Congestion at seaports, on railways, at border crossings and
on freeways occurring as a result of globalization causes potentially harmful. Example:
We need construct the road with extra lane, Create another sea port for better sea
shipment.

5. Mobility of Labor:
People are more willing to move between different countries in search for work.
Global trade remittances now play a large role in transfers from developed countries to
developing countries: Example: People who work in middle east.

6. Access of Market:
Bangladesh has to negotiate favored access to the markets of the western
developed countries, as well as those of India and China, huge trade gap in the joint
trade relations has to be restored. In the era of competition, Bangladesh will not
necessarily get what it thinks to deserve but only what it can negotiate; Example: Offer
them better land for industrial park with plenty of electricity and water access. Provide
skillful workers for better productivity.

7. Quality Education:
A broader education brings the ability to specialize in an industry and
bring business internationally. More skilled laborers bring the ability for a country to
increase their potential and economy and move outside their borders to become a part
of international business. Example: Enrolling more children to school and colleges. Start
many skill development program.

Like many other countries Bangladesh faces the challenges of globalization.

Bangladesh has to be engaged with all its development partners in a healthy and
constructive process of interaction on our stabilization and reform programme and
other critical issues. Bangladesh needs to deal with challenges like transnational
economic and financial forces.  the majority part of the country’s population could not
have the opportunity or will not have the capability to have the access to the benefit of
the globalization. The capability of the poor must be reach up to the level so that they
can build the capability to absorb the benefit of the globalization. Thus it is the quality of
the government to understand their people and build the capacity of the people to give
them access to the resources.