Chapter 1: Global realities and Management challenges

- Red Sea Crisis: Houthi Conflicts--> lengthen the journey --> ship now must
move through Cape of Good Hope--> Price increases.
- Nations in OECD, G20 (annual submission of some solutions to global co
operation), EU, ILO
- Viet Nam has established 18 FTAs including EU, China, Korea,… (link)

- Global crisis --> Deflation. Supply chain breakdown during the covid -->
price increases.
- Milestones of information technology:
+ WWW, Internet, 2G,3G,5G emerged.
- Increase the Privatization in terms of BOT for infrastructure construction.
The Silk Road and Geographic Discovery are symbols of liberalization of
trade. Covid hinders two above trends.
- Migration into America for well-paid vocations and better settle-downs.
- More exchange student and exotic workers present.
- Increasingly interdependent political economy.
- Trade barriers to protect domestic markets. Production expansion to reduce
cost. Especially semiconductor production moved to other countries for lower
labour cost.
- Enriched demand for exotic products, and recently, organic and healthy ones.
- The competition to use the new technology:
+ The developing ones: learn to acquire for globalization
+ The developed ones: commercialize their inventions
- Emerging markets: China, South East Asia, South Korea,..
- Cross border investment in finance, namely George Sorozs who
speculated, buying a coin and selling other coins.
- CPTPP

Positive Negative
- Provide a vehicle by - Globalization represents
which less developed the exploitation of the
nations can acquire the weak by the strong, and in
technology, foreign doing so threatens the
investment, and training cultural viability of many
necessary to compete regions of the earth. It is a
head-on in the future. mechanism used by
(Economists) multinationals and their
- governments to oppress
 and destabilize the workers
and governments of
weaker nations
(Sociologists). =>
Contradictory and
complex (1)

Mitigations
- (1) Focusing on understanding parallel and often competing
globalization dualities (the global environment exists as a series of
push-pull realities that can make simple conclusions both inaccurate
and risky)--> improve analysis and understanding:
+ Globalization pressures people and communities towards:
– Cultural convergence
– Plurality of cultures
– Inclusion of all parties
+. . . but also pressures people and communities towards:
– Cultural divergence
– Cultural pluralism
– Exclusion of some parties

OPTION 1:
Positive consequences of globalization:

.
From intermittent to continual change:
.
 Increased transfer and diffusion of technological innovation across borders.
 Enhanced competition among nations to develop and adopt advanced technologies,
driving technological development to new heights.
 Improved coordination and collaboration across borders facilitated by affordable and
reliable computer and communication technologies.
.
From isolation to interconnectedness:
.
 Greater economic and political interconnectedness between countries and companies.
 Increased opportunities for international strategic alliances and joint ventures, fostering
global partnerships.
 Enhanced access to markets, labor force management, shared costs, and venture financing
through global partnerships.
.
From biculturalism to multiculturalism:
.
 Development of a more multicultural or global environment, requiring managers to
succeed simultaneously in multiple cultures.
  Increased exposure to diverse perspectives and approaches, fostering innovation and
creativity.
 Expansion of business opportunities by understanding and leveraging cultural differences
in various markets.

Negative consequences of globalization:

.
From intermittent to continual change:
.
 Rapid and unpredictable changes in markets and industries, leading to economic
turbulence and uncertainty.
 Vulnerability to economic downturns and global recessions, affecting both rich and poor
countries.
 Potential for technological obsolescence, as advancements occur at an accelerated pace.
.
From isolation to interconnectedness:
.
 Heightened susceptibility to global economic shocks and crises, such as the collapse of
financial markets.
 Increased economic interdependence, leading to ripple effects across different regions
and industries during crises.
 Risk of unintended consequences, such as the impact of market changes in one region on
essential commodities in another.
.
From biculturalism to multiculturalism:
.
 Challenges in navigating cultural differences and conflicts, leading to misunderstandings,
lost business opportunities, and ineffective collaboration.
 Difficulty in adapting to diverse cultural norms and expectations, hindering effective
communication and relationship-building.
 Risk of cultural biases and misconceptions influencing managerial decisions and
behaviors, potentially leading to cultural insensitivity or conflict.

Mitigation strategies for managers and companies:

. Implement cross-cultural training programs to enhance cultural awareness, sensitivity, and

communication skills among employees.
. Foster a culture of inclusion and diversity within the organization, encouraging open-mindedness
and respect for different cultural perspectives.
. Develop flexible and adaptable strategies to accommodate diverse cultural norms and preferences
in business practices and operations.
. Establish clear communication channels and protocols for virtual or remote intercultural
interactions, ensuring effective collaboration across borders.
. Encourage cross-cultural exchange programs and initiatives to facilitate mutual understanding and
relationship-building among employees from different cultural backgrounds.
. Invest in technology and tools that facilitate cross-border collaboration and communication, such
as video conferencing platforms and translation services.
. Continuously monitor and assess the impact of globalization on the organization, adapting
strategies and practices accordingly to mitigate potential risks and capitalize on opportunities.
Chapter 2: Cultural environments

Chapter 3: Organizational environment

Chapter 4: Cross-Cultural Communication and Negotiation

Chapter 5: Ethics and behaviors Across Cultures

Chapter 6: Leading global organization

Chapter 7: Motivation Across Cultures

Chapter 8: Human Resource Selection and Development Across Cultures