Impact of globalization theories in managing cross cultural issues

Introduction to the research

Globalization is a well liked catchword of politicians and journalists. In addition, it became the main element idea for business practice and theory, and enters the debates of academic. People mean the globalization often confusing and confused. Here there's a description of some key concepts about the theory of globalization and also describes the experience of globalization [Beck, 2000].

Globalization is utilized in a short way to spell it out the connectedness and spread of technologies, communication and production across the world. That spread involves the interweaving of cultural and economical activity. Globalization is also used to refer the efforts of the World Bank, the International Monetary Fund and more to make a global free market for services and goods. This political project is potential and significant for damaging the indegent nations this means to exploit the top process. Globalization is the sense of connectivity in cultural and monetary life across the world that was growing for centuries. Many assume that today's situation is within some other order to what has truly gone before. The speed of the exchange and communication, the scale and complexity of the networks involved and the swerve level of risk, interaction and trade provides label a force for globalization [Carter F, 1996].

With the increase in economic interconnection the deep-seated changes of politics and the indegent countries has become more dependent on the activities in central economies like the United states where in fact the technical and capital expertise have a tendency to be located. You can find shift in the power which is away from the country and argues towards MNC. Additionally it is witness the rise and brand of the globalization. The large corporations operate in a number of countries and they are marketed and developed products that may be bought from Washington. The various brands like Sony, Nike, Coca Cola and the host of others have grown to be a part of the fabric of wide numbers of lives of individuals.

Globalization also involves the diffusion of technologies, practices and ideas. Globalization is something more than the universalization and internationalization. It really is simply the westernization or modernization. It is also the marketplace liberalization. The globalization describes the social relation intensification of worldwide which links the distance places so that the simple occurrences are shaped by the event which occurs with many miles away. This also involves a change that understands the experience localness and geography. The globalization has powerful social, cultural, economic and political dimensions [James, 2000]. The 4 themes that appear with regularity in the literature are:

Supraterritoriality and De-localization;

The capability and speed of associated growth of risk and technological innovation;

The rise of MNC; and

The extent to that your creation and the move into the free markets to lead the division and instability.

Aims and objectives of the study

Primary Objective:

To understand the idea of globalization

To study in detail various theories of globalization.

To identify the cross cultural issues existing in various multinational corporations in India.

To analyze the impact of globalization theories on managing those cross cultural issues.

To measure the effectiveness of application of globalization theories in resolving cross cultural issues.

Secondary Objective:

To create awareness about globalization theories in a variety of multinational corporations in India.

To emphasis the use of globalization theories in resolving cross cultural issues existing multinational corporations

To assist the various multinational corporations in managing cross cultural issues.

Review of literature

There are 4 theories of globalization. They are:

World Economy theory,

Third way theory,

Regional Bloc theory and

World culture theory.

World-Economy Theory:

The description of world economical theory is:

The process by which the capitalist world-system is spread across the whole globe.

The Global marketplace is becoming so integrated and advanced so the nation-state is now waste.

The good thing about this theory is that the marketplace is more rational than the governments [David S, 2000].

The bad thing concerning this theory is the fact the organization power is less sympathetic than government.

The completion of the procedure starts late in the 1500s and early 1600s by the explorers of Europe.

The World-economy include single work force and mobile and single world market.

The core countries have strong military. Consume high profits, high skills and capital production of intensive.

The perceived countries have weak armed forces, low-skill, extraction of raw materials, labor intensive production and weak [Anthony M, 2000].

The Semi-perceived countries have significantly more diversified economies, less dependent on the core than peripheral areas and strong military forces than the perceived countries.

Third Way Theory:

The description of the third way theory is:

This theory seeks to get the relationship between the processes of economy occurring in the local and global scales.

This theory is also called as view of transformationalism because it looks the ways for transforming the energy of nation to cope up with the pressures of globalization [Thompson P, 1999].

This theory does not focus on the global forces which reduces the powers of nation.

The challenge existing institutions are being used to restructure/reform or encourage great local autonomy.

This theory is associated with agenda of politics.

This theory also maintains the diversity in the face of forces of economy that encourages the uniformity.

Regional Bloc Theory:

The description of Regional Bloc theory is:

This theory disagrees strongly with the hyper globalist.

In this theory only 1 world market exists.

The growth in the internationalism of investment and trade is the growth of regional economical blocs [Robert J, 1999].

The growth of the regional trading blocs has benefited some countries.

There is no institution or government to guide the procedure.

This theory also inquisitions the acceptance of capitalism which is the main problem.

The financial efficiency and emphasis competition of capitalism care for the disempowered and oppressed people.

World-Culture Theory:

The description of world culture theory is:

This theory prefer to celebrate and preserve the distinctions contrary to the cultural homogenization.

This theory differs from all the theories since it sees more globalization broadly, to boost the uniformity of culture across the world from the perspective of economics.

This theory is also different because the prior theories view the growth of the single world culture which is possible because of globalization, while this theory treat this as an important part of globalization.

This theory deep roots the traditions of Europeans [Richard G, 1998].

In this theory the progress of continuation begun from several a century ago, with the settlers of Europeans.

This theory has generated control of politics and also brings new models for central government.

In this theory the ideas of individuality and citizenship will spread across traditional boundaries of culture by replacing the traditional priorities of communities in many cultures.

How World Culture Theory works:

Glocalization: The universal processes and ideas involved in the globalization necessarily are absorbed and interpreted differently based on the history of specific groups and vantage point. The glocalization catches the way in which the heterogenization and homogenization join [Robertson, 1992].

Relativization: Each unit in the emerging world takes the form like the others that surround it. For instance as the country becomes a subject for the universal standards which are derived from the common formation of citizenship, humankind in those societies becomes relativized. Similarly, the true politics are common in the international system becomes relativized as the principles of humanitarian who invent this idea. The relativization of societies of the inter-state system occurs particularly in the concerns about identity of nations.

Interpenetration: Specially the particularism and universalism have become a part of single nexus, united in terms of universality of the knowledge and, the increase in the expectation. In globalization, the universal is made concrete and specifically it becomes endlessly avoided. Hence globalization is a kind of institutionalization of the two 2 fold process which involves the particularization of universalism and the universalization of particularism.

Emulation: Although globalization will not create common culture in which everyone holds the same values and beliefs such that it does create single ground where all factors pursue their goals by comparing with others, by using at least some common standards. The early cases are Great Russia and Peter and Meiji Japan. Emulation takes the form of choosing the ideas of incorporating from the global ground [Danny M, 1992].

Contestation: The ideologies of globe-oriented advocate a tight integrated world while some define the difference. Because the religious movements and traditions are participating prominently in producing the images of world and the religion is a hard site for these contestations.

How World Culture Theory change:

The world culture Theory can be changed by:

Permanent globalization dynamics: The idea of World culture describes the open ended and ongoing process. All the features of the idea of world culture require continual change. The conflict of culture is the common mechanism.

Deregionalization Movements: The globalization provokes resistance/ reaction. The globalization that produces the earth equal cultures and substitutes of fundamentalism has its own vision of global. The fundamentalist defines the global fundamentals and operate in terms of global ideas [Waters M, 1995].

Multiple sources: While the theory of world culture emphasizes the role of worldviews and reflexivity in the globalization the principle change can originate anywhere. The idea of world culture is agnostic [Mary K, 2001].

Research methodology

The systematic gathering recording and analyzing of the info about the issues, which formulate the hypothesis and suggested organizing, collecting and evaluating data, reaching conclusion and making corrections by testing carefully the conclusions to find out if they fit to formulate the hypothesis

Two forms of research are undertaken for the purpose of satisfying the objectives of the study:

Primary Research: Data collected through first-hand sources

Secondary Research: Second-hand data collected through different sources

Primary research- Quantitative Research

Quantitative research method will be followed in order to make a detailed analysis of consumers' perception regarding emails and direct mails as marketing medium in India. Quantitative research offers several advantages to the study: Brower et al (2000, pg. 366) assert that "quantitative researchers pursue- and insist that they generate- value-free, unbiased data". Similarly, McLaughlin et al (2002) highlight the following uses of quantitative approach:

- Research and establish explicit hypotheses

- Uses accurate measures of concepts

- Uses tests of statistical significance

- Uses controls for other explanatory variables

- Provides a specific theoretical context

Secondary Research

Secondary data is the information that which was collected before for some other purpose. Usually, researchers start their investigation by studying a rich variety of already accessible data, to see if indeed they can make a breakthrough in the study partly or wholly, without the utilization of expensive, time-consuming first-hand research. The next forms of secondary data will be utilized to analyze purpose:


Journals and articles



Online web portals

Annual Reports

Government Agencies

Independent Agencies

Government official reports

Research Design

This study will be descriptive in nature.

Sampling design

Target population:

The target population in this research refers to the very best multinational corporations which may have been prevailing for greater than a decade in India. The respondents are employees designated at managerial level.

Sample size

This study takes into consideration ten different multinational corporations of India.

Sampling unit

The sampling units will be the following ten multinational corporations and their managers.



Hyundai Motors



Ford Motors




ABN Amro Bank

Sampling method

The sampling technique is taken for the study is "Convenience Sampling". Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher [Joan Joseph Castillo, 2009].

In convenience sampling, the subjects are easy to choose for the analysis since they are available ready. This technique is highly preferred by many because it is fast, easy and inexpensive.

Size of Sample Survey

A sample size of 10 respondents (one for every single multinational corporation) will be looked at because of this study.

Sampling plan:

The data will be collected by mailing them the questionnaires with their workplace.

Questionnaire Design:

The questionnaire will consist of both open-ended and close-ended questions.

Data Analysis and Interpretation

The data collected from primary research will be analyzed and interpreted using statistical tools. It is suitable to the analysis over other tools, because:

It provides both subjective as well as objective results, which subjective can be converted into numbers/scores

It may be used to identify and understand the hidden attributes or constructs which would otherwise (in case there is direct analysis) have been unapparent

It is inexpensive and simpler to implement than other tools.

Limitations of the study

This specializes in the impact of globalization theories on managing cross cultural issues in multinational corporations and does not involve any issue.

This study focuses exclusively on multinational corporations in India.

This study analyzes only the cultural impact created in multinational corporations by globalization theories and will not involve every other impact.

This study does apply for multinational that have been successfully sustaining searching for greater than a decade.

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