A Cultural Perspective
Chapter 1: Introduction to managing the global organization
The internationalization of businesses has become a reality all over the world. It is not just the richer countries of the world, such as the US, the UK, Germany, France, Japan, and Italy, that are expanding their international operations to culturally dissimilar countries, but there has also been significant growth of international business activities on the part of corporations from the emerging economies. The 2003 BRIC report (on Brazil, Russia, India, and China) by the global financial firm of Goldman Sachs states that in 2040 the largest economies of the world will be the US, followed by the People’s Republic of China (including Hong Kong), and India. The economies of Brazil and Russia are currently behind the economies of China and India. Such a phenomenon was inconceivable in the early 1960s when Gunnar Myrdal coined the term “the Asian drama” in his classic inquiry into the riches and poverties of nations (1968). Myrdal, a Nobel laureate in economics, inquired into the economic and non-economic factors that are responsible for spurring as well as sustaining economic growth in different regions of the world.