It assumes first that non-U. Second, it ignores that free trade also opens our own markets to others.
Cultural differences can be challenging, leading to misunderstandings between employees and management as well as between the company and its customers and partners.
By enhancing cross-cultural training and adapting to local needs, multinational companies can succeed in bridging cultures. Workplace Values One problem encountered by multinational companies is differences in workplace values.
Geert Hofstede, a researcher and published author on workplace culture, has identified six dimensions of national culture that affect employee values. The first of these is power distance, which deals with how society views inequalities among people.
Some societies accept without question the concept of a hierarchy, while others demand justification for unequal power, Hofstede says.
A third dimension is competitiveness vs.
Understanding these dimensions helps determine compensation structures; for example, if collectivism and cooperation are strong cultural attributes, companies will reward employees as a team based on team performance.
Communication Styles Multinational companies also are challenged by different communication styles that affect developing strong relationships with partners or clients.
For example, Western communication style is straightforward and direct, but people in India and China are more accustomed to a less aggressive approach.
In these cultures, patience is required to build the relationship outside of the board room.
Because of the need to build these connections, business deals might take five times longer to complete in China than in the United States, reports Business Insider. Video of the Day Brought to you by Techwalla Brought to you by Techwalla Concept of Time A third challenge is that cultures tend to view time differently.
In polychronic cultures, such as the Middle East or Latin America, maintaining relationships and socializing is more important than the schedule. Tips Differences in concepts of time can pose challenges for multinational companies; one example is in how meetings are run.
An American executive trying to stick to a strictly timed agenda might be seen as brusque in Peru.Multinational corporations (MNCs) engage in very useful and morally defensible activities in Third World countries for which they frequently have received little credit.
Feb 26, · The contemporary challenges of managing a Multi-National Corporation (MNC) Another problem that multinational companies may face is communication and culture differences.
It is especially essential that managers understand the traditions and ethical norms of other countries so that they can avoid any misunderstandings or. How U.S. Multinational Companies Strengthen the U.S. Economy. Matthew J. Slaughter Executive Summary.
The contribution to the American economy of U.S. multinational companies . "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries.
One of the problems with English is that it has a number of influences. Latin, German, French and even Celtic all combine to confound learners; throwing curve balls at any rules they may have learned that aid pronunciation.
You only have to consider the differing sounds of words such as ‘though.
Problems Facing the Pharmaceutical Industry and Approaches to Ensure Long Term Viability Abstract This paper examines the Pharmaceutical (Pharma) industry and the changes that have .