As discussed in yesterday’s introduction post, different cultures have very unique ways of doing business; from business dress, to conducting meetings, to even the customs surrounding deal-making. Each nation takes a unique approach to how many holidays they observe; this is a reflection of their distinctive culture and can affect their economy and business environment. In today’s fast-paced, ever-changing work environment, each day off means less output which in turn reflects potentially lost money. Days off are important for worker’s mental and physical health, but there needs to be a balance between productivity and a conducive work environment. The amount of bank holidays that a nation celebrates could be impacting the economy more than you think.
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With 196 countries across the globe and over 7 billion people in the world, differences in culture can be seen almost anywhere. In an increasingly interconnected world, people with different cultures can be found in a country nearby or even in your hometown. As a business person, student, or global citizen what does this mean for you? It simply means that understanding different cultures is becoming incredibly important in our daily lives and for business success on a global and even local level. Understanding cultural differences provides a unique competitive advantage and allows teamwork to thrive in almost any situation regardless of where you might be in the world or who you are working with. This is critical for proper communication and is especially crucial for international business.
Politicians in Estonia, shortly after the collapse of the Soviet Union in 1991, began to realize how computers could positively impact a country with a very small workforce and a general lack of physical infrastructure. For the next twenty years, Estonia concentrated on using the internet to transform its government, economy, and society in general. Today, Estonians can do just about anything electronically. Citizens can pay for bus tickets and parking via text, vote in elections from a laptop, or even sign legal documents from a smart phone.
With some of the largest economies in the world struggling to grow, companies are looking to emerging markets to boost sales. Global corporations are testing their limits as they reach into new untouched markets. While there are many challenges that come with selling in a new market, there is also great potential. Many global companies are discovering this fact as they see emerging markets growing their sales.
In economies that are slightly behind their modern industrial counterparts, entrepreneurship is often viewed as an important component in stimulating economic growth, innovation, competitiveness, and even alleviating poverty for these countries. However, before that is accomplished, there are several unique features that affect entrepreneurship in developing countries. While some of the distinct aspects of developing countries inhibit entrepreneurship, others enable entrepreneurial activities and allow start-up businesses to be successful despite great odds.
With booming agricultural and mining industries, Latin America has seen economic and human development increase exponentially in the past decade. While human capital and resources attracted foreign investors for a past few years, lately it has been the plentiful sunshine that catches the eyes of many venture capitalists.
Chile in particular has caught the “green” bug. While imported fossil fuel accounts for more than 60% of the county’s electricity production, hydroelectric and solar power plants are in high demand by the Chilean government. With the cost of solar power technology falling, Chile’s quest for affordable renewable energy is not too difficult to obtain. A trade deal with the world’s leading solar power technology manufacturer, China, is in the works.
For a majority of small business owners interested in international exporting, complex African markets are typically avoided in comparison to more familiar markets, like those in Western Europe. In spite of this trend, Amethyst Technologies, a Baltimore-based company, has expanded into Tanzania and Kenya with support from the U.S. Commercial Service. Through working with government agencies, such as the U.S. Department of Defense and the U.S. Food and Drug Administration, Amethyst Technologies has found success in historically unpredictable markets, and has also made a positive impact through building laboratories that are used for drug testing and developing standards for education, health care, transportation, and agriculture.
As the world population continues to grow and urbanization increases, enormous amounts of energy will be consumed meaning expensive energy costs and waste management will remain major problems. Sustainable development is a solution to this problem. However, one particular region is experiencing urban population growth at an unprecedented rate and faces exceptional challenges in terms of sustainability. This region is Asia and its urban area population has already tripled over the last fifty years. Although Asia faces many tough challenges to sustainable development, these challenges also provide opportunities for global businesses.
As Cambodia furthers itself from the tumultuous ‘70s, ‘80s, and ‘90s, topics such as economic development and tourism are receiving more and more attention. Developers in Cambodia believe that building casino resorts will be highly beneficial for tourism and the economy alike. Currently, there are 25 casinos in Cambodia, but many of these are small and cater primarily to hard-core gamblers in the surrounding area. Gambling in Southeast Asia is growing rapidly and Cambodia is seeking to capitalize on this, in hopes of increasing tourism and foreign investment.
As technology and communication capabilities increase, it may be safe to assume that the world is becoming more connected with many countries becoming integrated to the world economy. This basic idea is called globalization and with globalization comes many benefits such as new opportunities in emerging markets and increased access to international trade. To many people, globalization is making the world flat meaning businesses can collaborate and operate across borders without regard to geography or distance in today’s modern technological and political landscape. Many businesses are beginning to realize the opportunities abroad made possible by an increasingly connected world. However, is there a way to measure how connected the world really is?