International Business

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Conclusion

After analysis of these three kinds of economy, we know that mixed economy is better than market and command economy. Although it is also not perfect.

3. Discuss the effect of the emphasis on individual performance that exists in many Western societies.

Introduction

Individualism emphasizes the moral worth of each individual. It means that an individual should have freedom in his own economic and political pursuits. Individualists promote the exercise of one’s goals and desires and argue that interests of the individual should put at a higher preference than the interests of a social group or a state. Individualism is often contrasted with collectivism or totalitarianism.

Comparison

Eastern countries such as China, Japan and Korea are Confucianism countries. They emphasize the will of social group and the society. Oppositely, Western societies emphasizes the individual will and practice individualism. For example, Eastern people usually dine in a round table and share food while Western people usually dine in a long table and have their own food. (Though Individualism emphasizes on individual, it does not means that it encourages self-fishiness.)

There are some positive effects of the emphasis on individual performance. Since United States put most emphasis on individualism, I will use United States as an example to explain Individualism below.

Positive effects

Creative ideas

First, Individualism respect individual right, individual interest, individual talent and individual happiness a lot. Therefore, the society is more diverse and different. People with different talent can be encouraged. Individual achievement is encouraged and is common. Since ideas are different, society more creative and more innovative. Also, individuals are more initiative since individual right is encouraged. Society therefore tends to be in progress. For example, we can see that the most creativity companies, such as Apple Inc., Microsoft and Facebook are Unites States companies.

Talented people

Second, Individualism encourages freedom and emphasis personal talent. Therefore, talents in other countries immigrate to the United States. This is because every human being prefers freedom; prefers personal right to be protected; prefers talent to be encouraged. We can see that how many talents are there in the silicon valley.

High-level entrepreneurship

Third, Individual under Individualism usually does not prefer work in a group of system, United States has a high level of entrepreneurship. There are thousands of new entrepreneurship set up each year in the United States.

However, there are also some negative effects of the emphasis on individual performance.

Negative effects

Unstable social structure

First, the structure of the society is unstable. For example, the divorce rate in the United States is the highest all over the world.

Low team awareness

Second, Individual under Individualism can hardly form a team with others. However, in fact, teamwork is necessary in a society. Moreover, Individual switches job frequently and works without employee loyalty. It reduces the morale of a company. Though there is more freedom, the uncertainty avoidance is low too.

Big gap of wealth

Third, some people might be leaving behind. The rich might leave behind the poor. Therefore, in the United States, the wealth gap is very high.

Conclusion

However, to conclude, it is improper to say Individualism is better or Collectivism is better. They are just different cultures. For example, United States is the biggest Economy in the world, but the wealth gap is huge as well. For Japan, China and Korea, though they are collectivism countries, their society have a strong power to solve business problem since they have teamwork to work out together.

4. Discuss the importance of learning the third language for doing international business.

Introduction

With the development of globalization, it brings both opportunities and threats to international business. Obviously, companies can entry market easily. But it also brings a lot of competition from competitors. If a country wants to survive in this competitive market, they have to do more than competitors. Learning the third language is a possible method.

Increase competitiveness

Around the world, almost every companies employees can speak English. In order to increase competitiveness, they need to learn third language as a determinant of culture. If companies employees understand three kinds of language deeply, they will know customers culture well. Finally, it helps international companies occupy market share and gets more profit.

For example, Spanish can be the choice of third language, because Spanish is the third most widely-spoken language in the world, after English and Mandarin. What’s more, the Spanish-Speaking population is one of the fasting growing segments in the world. If an international companies can understand Spanish deeply, they know their cultures deeply. Then they get comparative advantages. Finally, will get more profits.

Conclusion

To get successful businesses in a new environment, we have to upgrade our competitiveness, language is powerful tool, and it is affecting daily international management.

Reference:

State-Owned Enterprise (SOE) Definition | Investopedia. (2009, August 23). Retrieved October 19, 2015.

International Business - National Differences in Political Economy - Chapter 2. (n.d.). Retrieved October 19, 2015.

An analysis of the poor performance of state owned enterprises in Africa. (n.d.). Retrieved October 19, 2015.

AmosWEB is Economics: Encyclonomic WEB*pedia. (n.d.). Retrieved October 21, 2015.