Globalization has become the main real feature of the modern world system essay
Globalization has become the main real feature of the modern world system, one of the most influential forces that determine the course of the development of our planet. According to the common understanding of globalization, no action or process in the community (economic, political, legal, social, etc.) can be considered isolated as it is. Globalization of international relations is the increasing interdependence and interinfluence of different spheres of social life and activities in the field of international relations. It affects almost all spheres of public life, including economics, politics, ideology, social sphere, culture, environment, safety, lifestyle, as well as the very conditions of human existence.
The processes of global development, within which the structures of national production and finance become interdependent, accelerate due to the increase of the number of concluded and implemented external transactions. Globalization covering all regions and sectors of the global economy fundamentally alters the relationship between external and internal factors of the development of national economies in favor of the first ones. No national economy regardless of the size of countries (large, medium, small) and development level (developed, growing or transitional) can be self-sufficient any longer based on the available factors of production, technology and capital needs. No state is able to rationally create and implement economic development strategy, not taking into account the priorities and norms of conduct of the major players of the world economic activity (Eitzen & Zinn, 2011; Sшderberg & Holden, 2002; Mead, 2004; Elashmawi, 2001).
In the context of globalization, entrepreneurship goes far beyond the national boundaries, involving in its orbit the increasing number of people from different cultural outlook. As a result, cultural differences start playing a growing role in business organizations and have stronger influence on the marginal business efficiency (Anheier& Isar, 2008). If to keep strictly to the internal factors of the organizational success (i.e. detract from macro-factors like exchange rates, which, of course, can simply negate the efforts of individual managers in any country), the correct evaluation of differences in national cultures and their adequate accounting are becoming increasingly important (Browaeys & Price, 2011).
Consequently, emerge the cross-cultural issues in international business – the contradictions in the work in the new social and cultural conditions determined by the differences in stereotypes of thinking between separate groups of people. The formation of the human thinking occurs under the influence of knowledge, belief, art, morals, laws, customs and any other capabilities and habits acquired by the society in the process of development. It is possible to feel these differences only through assimilation with a new society, a carrier of another culture (Browaeys & Price, 2011).
From geographical and spatial point of view, international market is the largest one in the world, since it is possible to sell products and services in many countries. The territorial boundaries do not play any role comparing to much more important cultural boundaries that divide the world. One can sell the same goods and services in the vast territory, but it is important to consider the significant differences between consumers from different cultural areas (Cateora et al., 2010; Eitzen & Zinn, 2011; Elashmawi, 2001). It is therefore important, first of all, to understand the structure of cross-cultural issues, that is, characterize the variables that shape the cultural environment of international business. This will provide a certain degree of visibility: a clear understanding of cross-cultural issues and ways to improve international management.
