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It is now widely agreed that something called globalization has been taking

place over the last half-century or so; and many debates about globalization

never get past disputes over starting premises regarding denition, scale,chronology and explanatory framework.

!e don"t know what globalization is, but we have to act.#$%& 'his

sentence, from a peasant activist in (orth )ast 'hailand interviewed in

*angkok on %+ une ++, makes clear why globalization" is still one of

the most contested concepts in recent international political economy.

It is impossible to avoid the issue, but di/cult to specify what it

involves. 0oncerned citizens feel a need to respond, but most are

unclear how. 1s the driver of globalization, 2ultinational corporations

play a crucial role in how to ad3ust 4lobalization

1ccording to 5eat 6++78 2ultinational 0orporations 62(0s8 are

enterprises that in more than one country own or control production or

service facilities and activities that add value. *y any measure, it is

clear that 2(0s are large and important, and that their role and

in9uence has expanded as they have rapidly grown in recent years.

:erlmutter stated that cultural orientations determine the way

strategic decisions are made and how the relationship between

headuarters and its subsidiaries is shaped.

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Aespite the methodological concerns about cross-cultural research, it is now

generally recognized that culturally insensitive attitudes and behaviors

stemming from ignorance or from misguided beliefs 6?my way is best?, or

?what works at home will work here?8 not only are inappropriate but also often

cause international business failure. 'herefore, an awareness of cultural

di=erences is essential for the manager at corporate headuarters as wellas in the host location.1ctivities such as hiring, promoting, rewarding and dismissal will be

determined by the practices of the host country and often are based on a

value system peculiar to that country?s culture. 1 rm may decide to head up

a new overseas operation with an expatriate general manager but appoint as

the department manager a local, a person who is familiar with the host

country?s practices. 'his practice can assist in avoiding problems but can

still lead to dilemmas for senior managers.

'he complexity involved in operating in di=erent countries and employing

di=erent national categories of employees is a key variable di=erentiating

domestic and international 2, rather than any ma3or di=erences between

the activities performed. 'o be successful in the process of I2, these

human" factors are encouraged to be taken into consideration, and are as

important as the nancial and marketing criteria upon which so many

decisions to undertake multinational ventures depend.

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