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Organizational Behavior: Solutions for Management
Paul D. Sweeney, University of Central Florida
Dean B. McFarlin, University of Dayton

Behavioral Challenges in International Management

Chapter Objectives


1

In international business, much growth has been seen among smaller or medium-size firms. This trend and others suggest that a working knowledge of international business practices and cultures is beneficial.

2

Since many firms are going international, it is useful to understand how that process unfolds. As it turns out, there are common phases a company might go through in extending its business across borders.

3

Businesses in every stage of international development can profit from an understanding of their partners and customer’s perspective. Almost certainly this includes an awareness of the legal, political, and cultural environment in which a firm does business.

4

Three important legal systems include civil law, common law, and Islamic law. Each system poses constraints on business relative to the others.

5

Political systems are probably more complex, but the concept of risk underlies each system. It is important to understand the impact that political risk can have on global firms and the various methods available for classifying, quantifying, and managing that risk for your business.

6

Cultural differences present a major challenge to international managers. Unfortunately, these differences are less well known and are accorded little respect by the typical U.S. company; American managers have a relatively poor reputation for understanding and appreciating cultural differences.

7

A worldwide effort exists to categorize various cultures on a few common, underlying work-related value dimensions. The position of the U.S. on these dimensions is often in contrast to the positions of other countries in which Americans might do business. In fact, some very traditional and rarely questioned American management techniques might not work - and sometimes even backfire - in other cultures.

8

Given the growth of international business, Americans need to be aware of issues involved in managing in a foreign environment, as well as issues surrounding expatriation. Typically, little concern is given to the expatriate and, hence, little cross-cultural training is provided. Fortunately, there are some ways to overcome the high failure rate of American expatriate managers.




McGraw-Hill/Irwin