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Globalization Free trade Fair trade
Fair Trade The Key Principles of Fair Trade 1. Creating Opportunities for Economically Disadvantaged Producers 2. Transparency and Accountability 3. Trade Relations 4. Payment of a Fair Price 5. No child labour or forced labour 6. Non-Discrimination, Gender Equity and Freedom of Association 7. Working Conditions 8. Capacity Building 9. Promoting Fair Trade 10. Respect for the environment
Why become a multinational? 1. Closer to main markets: �Lower transport costs �Better market information regarding consumer tastes �May be looked upon as a local company and gain loyalty �Other?
2. Lower costs of production �Lower labor rates �Cheaper rate and site costs �Government grants and tax incentives
More advantages � 3. Avoid import restrictions � 4. Access to local natural resources � 5. expanding markets increased sales �Others?
Potential problems � For multinationals: � For host countries: � Communication � Exploitation of local � Language, culture workforce � Pollution � Profits sent back � Westernization � Skills of the local personnel
Types of Unethical behavior �Bribery �Conspiracy �Corruption �Embezzlement �Fraud �Insider trading �Money-laundering �nepotism
Case study Harvard Business case study format 1. Lead-in (questions, brainstorming) 2. Identify the problem (12 words) 3. Cast of characters. 4. State the options (3 -5) Option 1: Advantages – Disadvantages – 5. Write an action plan (recommendation)
Vocabulary. Task 2
Vocabulary. Task 2
Vocabulary. Task 3
The art of Diplomacy High and Low context cultures According to anthropologist Edward T. Hall “Beyond Culture” High Context Less verbally explicit communication, less written/formal information More internalized understandings of what is communicated Multiple cross-cutting ties and intersections with others Long term relationships Strong boundaries- who is accepted as belonging vs who is considered an "outsider" Knowledge is situational, relational. Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority. Examples: Small religious congregations, a party with friends, family gatherings, expensive gourmet restaurants and neighborhood restaurants with a regular clientele, undergraduate on-campus friendships, regular pick-up games, hosting a friend in your home overnight
Low Context cultures Low Context Rule oriented, people play by external rules More knowledge is codified, public, external, and accessible. Sequencing, separation--of time, of space, of activities, of relationships More interpersonal connections of shorter duration Knowledge is more often transferable Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities. Examples: large US airports, a chain supermarket, a cafeteria, a convenience store, sports where rules are clearly laid out, a motel.
Are you aware of the big difference?
High Context Low Context
High Context Low Context Association Relation-centered Task –centered Attention to group process Attention to the goal Social structure-centralized Social structure-decentralized Interaction Non-verbal Verbal Implicit Explicit Indirect Direct
High Context Low Context Association Relation centered Task centered
High Context Low Context Association Attention to group process Attention to goal
High Context Low Context Association Social structure - centeralized Social structure-decenteralized
High Context Low Context Interaction Nonverbal Verbal
High Context Low Context Interaction Implicit Explicit
High Context Low Context Interaction Indirect Direct
High Context Low Context Countries Japan U. S. A. China Germany Korea Scandinavian Arabic Countries North America Latin America Swiss France England
High Context Low Context Conclusion In conclusion, Association and interaction are the key differences between Low and High Context Culture !
High context culture Are you aware of the big difference? Low context culture
Contingency planning �= business continuity planning � = disaster-recovery planning �Contingency planning – immediate steps to be taken in the event of a crisis or emergency
Key steps in contingency planning �Identify the potential disaster �Assess the likelihood of these occurring �Minimize the potential effect (assets, reputation, image, etc. ) �Plan for continued operations of the business