Global businesses are a reality nowadays. The development of technology, the decrease of tariff and non tariff barriers, the creation of international trade values and institutions such as the World Trade Organisation (created in 1995 as a successor for the GATT) allow companies to trade worldwide with less and less constraints. Between the end of the 1970's and the end of the 1980's international exports have been multiplied by three and are still growing. Thus, companies operate in more and more countries. It is not unusual to see companies trading in more than 50 countries. General Motors sales its products in more than 160 countries, L'Oreal employs people of 86 nationalities, and ATT delivers communication services among 81 countries… However, even if legal and technological constraints have decreased, companies are still facing some difficulties when they move abroad. Actually, selling products in 160 countries means convincing people of 160 different cultures. Managing people from 86 different nationalities implies constructing work relationships between people that do not have the same culture. Because of this cultural diversity, global businesses are now facing cultural constraints.
Because this diversity has direct impact on Marketing and Management policies, one can wonder if it is primarily a concern for Marketing or HRM.
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee