Globalization

Question 1

Analysis of globalisation from a business perspective

Answer 1

1. globalisation of markets -> rising sales of foreign products, growing similarity, importance of transnational customers
2. globalisation of value chain -> outsourcing, pressure for economies of scale, growing standardisation
3. globalisation of technology -> increasing geographical dispersion, tighter interdependence

Question 2

Hofsetede’s Model to measure cultural difference

Answer 2

1. Power distance Index (PDI)
   -> High = significant power gap between individuals and authority
2. Individualism vs. Collectivism (IDV)
   -> fulfil your own goals or be loyal to the company
3. Masculinity vs. Feminism
   -> competitiveness, assertiveness, achievement vs. cooperation, modesty, quality of life
4. Uncertainty avoidance Index (UAI)
   -> High UAI = structure, rules, resistance to change
5. Long- vs. Short-term orientation (LTO)
6. Indulgence vs. Restraint (IND)
   -> High IND = relaxed social norms regarding behaviour and lifestyle