Managing Global Organizations

Managing Global Organizations

A Cultural Perspective

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

The globalization of business is a reality that confronts organizations of all sizes from different nations and cultures. This book serves as a comprehensive guide for understanding the nature of cultural variations that affect important aspects of organizational behavior.

Chapter 3: Culture and globalization

Rabi S. Bhagat, Harry C. Triandis and Annette S. McDevitt

Subjects: business and management, international business


The trading of goods and services among various traditional societies such as China, India, Greece, and Egypt has been in existence for over a thousand years. It is not just since the advent of the Internet that economies of the world have started to become highly intertwined with each other. Humans have realized the significance of trading goods of various kinds (e.g., gold, diamonds, silver, silk, food products, spices, and handicrafts) since the time of Alexander the Great or earlier. The development of the Silk Road, which connected the distinct economies of West Asia with China and some countries in the West, has had a long history and was a major factor in encouraging the development of international trade routes and the early stages of globalization. Since the end of World War II, trade barriers have been falling in most parts of the world, and trade among countries involving manufactured goods, agricultural products, and recently service has grown faster than the rate of domestic production in almost all countries. In other words, the rate of growth of international trade involving two or more countries is higher than the rate of growth of the domestic economies in these countries when considered one at a time. This phenomenon is unique and is a product of major improvements in global travel and faster access to sea routes for international trade.

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