Cultural Values

• Globalization is a process that leads to convergence of international markets, make national borders irrelevant. Globalization is also associated with particular set of values ​​based on the market, such as the use of publicly traded Measures in evaluating the performance of the business. Proponents of globalization found that the forces of globalization, which is so powerful that every society should fully accept if not to miss. For example, as the financial markets become increasingly integrated, multinational companies were evaluated in the same manner regardless of where they are. Given this, he argues that globalization has the cultural differences between the countries, which are not relevant to running a business. This seems to be the reason for the attempt to develop a set of global standards for Financial reporting.

• On the other hand, research has shown time and again that people of different have different orientations and cultural values ​​that affect the cultural values every aspect of life, such behavior as a manager, employee and investors. One of the main objectives in managing multinational Business is to motivate employees better. However, a Strategy can not be effective to motivate people from different cultural backgrounds, because they tend to react differently according to their value orientation. For example, financial incentives for employees to be effective in the U.S. Company, but not as effective in a Japanese company. It may be non-financial but culturally sensitive incentives are more effective in motivating Japanese people like to be recognized as a valued member of society. To succeed in business, it is important to be sensitive to local conditions and Circumstances.

What we have is a situation where two forces going in opposite directions, the force Globalization emphasizes towards convergence, and cultural forces the importance of local conditions and values. It is not possible to ignore the one in Support of the other, because...