Causes Of Culture Shock

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Any organization or group operating in several countries and making a quarter of it 's profits doing business outside of the

home country is generally termed a multinational corporation. There are four types of multinational corporations, [1] a

multinational decentralized corporation with strong home country ties, [2] an international company that builds on the parent

corporation technology or R &D, [3] a global centralized corporation that requires cost advantage through centralized production

whenever cheaper resources are available, [4] a transitional enterprise that combines the previous three approaches. United

Nations data reports some 35000 companies have direct investments in foreign countries, and the largest 100 of them
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These situations began getting close recognition in the 80s and was termed culture shock; in the International Journal of Business and management,

vol.8, No.13, 2013 (James Rajasekar & Franck Renand) -kohls (1979) defined Culture Shock as " the term used for the pronounced reactions to the

psychological disorientation that is experienced in vary degrees when spending an extended period of time in a new environment."

There are rivalry and sometimes even slavery in international trade and most time without the managerial input to stir international business into good ethical practices, the

wheels of global business goes into turmoil. Management of an international business can be very rewarding but their are many flaws still involved in performing the roles of a

manager in any setting, more so an international one. Some of the challenges managers can face are wide scale ethical issues, so "don 't do a seat - of - the pants."
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The world 's two super powers ; U.S vs. China is a hot topic mentioned in every

economic forum, I 've imagined, both China and the U.S has made tremendous growth in their individual economy throughout the decade, and most times they are adversaries, they

both enjoy the robust benefits of operating in multinational economies, but yet they conduct their business management very differently. article in the Connect East. by (Huang Joy)

reports "China management style can be summarized as "Parental"- the ideal boss is a "benevolent father" (emphasis on Chinese father) who oversees everything, he encourages

discipline and everything is in detailed at a micro level. (he 's not all stiff) he also spends a lot of time caring for the personal welfare of his employees and see it as part of his job

requirement." In contrast "the U.S 'big man ' or 'big woman ' is more democratic- the ideal big man/woman is a " resourceful democratic." He/she set the vision and strategy for the

business and empowers his /her subordinates to execute. He/ she encourages two-way communication and gets everyone involved in the decision making process." The both

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