BSB119 Study Guide - Final Guide: Market Power, Transaction Cost, New Trade Theory
Document Summary
Importance of managing cultural diversity for international business. The employees of multinational companies of various nations around the globe are working together to fulfil the task entrusted to them. Together with the new millennium, the global economy that is "world without borders" has become an everyday way of modern business. Given the large number of contacts with various people, the successful usage of cultural diversity has become an important area of management. Although the area of managing cultural diversity is still emerging, it is an area of vital importance for management in the modern economy. Modern business does not recognise the boundaries between the countries, and expects us to embrace and utilize all types of competitive advantages that the modern environment brings. Culture is for sure potential advantage, but it has to be managed properly. In the liberalized economic environment, management of mixed culture is all set to play a highly critical role in the process of business development.
