Quiz 4: Managing in a Global Environment


To characterize or describe the partners economic, legal-political, and sociocultural differences which influence the partner relationship of the US based Rocky River Industries and China based Shanghai Fabric Ltd, one can see there are several differences. Rocky River's economic influence is high margin/profit moving forward to try to recover all of the costs and red tape of the first three years. However, they have to overcome the legal-political barrier of the government in order to be viewed as exploiting the citizens of China. Reducing employees to achieve higher returns could be viewed very negatively by the Chinese government. Shanghai Fabric is heavily monitored and controlled. The government is happy to see them employing so many people. However, this viewpoint could change quickly if employees are let go. Under the GLOBE Project dimensions of assertiveness, future orientation, gender differentiation, performance orientation, and humane orientation, one should examine assertiveness on the US side as well as performance orientation. Both assertiveness and performance are very important factors to the success of US businesses. For China, on should examine the future orientation and gender differentiation aspects of GLOBE dimensions. The Chinese government is more interested in building a good long term partnership at a lasting profits, versus a quick hit business methodology that may fizzle out in the long term.

An expatriate assignment can help the managers to develop their skills and effectiveness by, • Improving the understanding of challenges in international business. As the managers will face real-time situations; observe the business scenario in a country different from their own; will manage situations totally unknown. This understanding will make the managers more effective in handling matters related to international business. • The managers will be equipped with skills to manage culturally diverse team. • The manager will be well aware of the laws and regulations associated with the international business. • Will get a hands-on experience in tackling the global market conditions and will learn how local cultures affect the progress of a business. • There will be improvement in communication and negotiation skills of the managers.

As a startup company that does not have a lot of time to wait to fund its first drug, it would make sense for the biotech firm to make use of doing the clinical trials in Albania, where the drug is needed and the doctors are willing to quickly participate. It would be important to understand their liability within that governments medical legal systems first however. If there are any issues upon withdrawal, some funding can be setup based off the profits, but also within other organizations that will do international outreach.