Buma 20063 International Studies in Business Shared Im With Itech Domt 1

Polytechnic University of the Philippines
College of Business Administration

DEPARTMENT OF OFFICE ADMINISTRATION
BACHELOR OF SCIENCE IN OFFICE ADMINISTRATION
INSTRUCTIONAL MATERIALS
FOR
BUMA 20063
INTERNATIONAL STUDIES IN BUSINESS
Prepared by:
MA. LOLITA V. ABECIA, MBE

Chairperson
Department of Office Administration
and
JULIUS C. SABANDO, MBA

Part-Time Faculty
Department of Office Administration
1
Overview
The COVID 19 pandemic has considerably affected education systems on a global scale.
With schools and universities struggles not to hamper the education of the students, the teachers
are doing their best to keep learning going during this pandemic. PUP has adopted the
flexible/blended learning in order to reach the students at home and continue their education.
The country is currently has more companies and organizations who are being managed
by multinational companies. The movement of goods and services are distributed across borders
of many nations. The offices are becoming more dynamic and diverse. Many workplaces contain
a diverse mix of individuals with different nationalities, cultures, ethics, religious beliefs or political
creeds. The Office Administration program provide courses focusing on the needs of the
workplace and at the same time nurturing and transforming their students to become a global
Administrative Professionals.
Welcome to the International Studies in Business course. The International Studies in

Business course aims to provide the students with the knowledge and skills that will help them
shape their future dealings with clients, co-workers, managers and other business stakeholders
in international business settings. The course introduces the students to international business
operations, globalization issues, ethical and cultural sensitivity that are essential for a graduate to
become a global Administrative Professional.
The students of Bachelor of Science in Office Administration (BSOA) are the future
Administrative Professionals (AP). Administrative Professionals are the great support in the
administrative function of any organization. They work in partnership with executives and
professionals in different specializations such as medical, legal and business industries. In
today’s business environment, the Administrative Professional is an extension of the executive
team as tasks become more automated and Admins are more efficient than ever. Admins are
business partners to the executives, departments, and companies they support. They are often
one of the few employees in a company who knows the entire business and is expected to
understand how the company’s unique business system works.
The topics in the four Chapters are carefully gathered and selected to get the latest and
up-to-date information. There are learning objectives to be achieved and assessments/activities
to be accomplished by the student at the end of the per week topics. Book references used are
available at PUP Main Library, NALLRC Building, Sta. Mesa, Manila. Web references and links
are also provided to get the latest information and development in business and industries.
Questions, suggestions, comments and feedback matter. The teacher/adviser may be

contacted by joining the google classroom created for the class with code number _____________
or through email address at _____________________ and mobile no. __________________.
The student shall submit all requirements of the course via official courier of the University
on January 13, 2021 to the respective teacher at the College of Business Administration,
Department of Office Administration, PUP, Main Campus, Sta. Mesa, Manila
2
BUMA 20063 – Internet and Web Design with Lab for Administrative Professionals
INTERNATIONAL STUDIES IN BUSINESS
(BUMA 20063)
Table of Contents
Overview………………………………..……………………………………………………… 2
Course Outcomes……………………………………………………………………………… 7
Development of International Business …………………………………………...………… 17
The Global Business ………………………………………………………………………….. 25
Cross-Cultural Business………………………………………………………………………. 32
Business Communication…………………………………………………………………..… 38
Foreign Language Part 1 ………………………………………………………………........ 42
Foreign Language Part 2 ……………………………………………………………………. 44
Review of Past Lesson ………………………………………………………………………... 46
Midterm Examination………………………………………………………………….……….. 47
The ASEAN Integration………………………………………………………………………… 48
Workplace Environment in Five Major Countries…………………………………………… 55
International Business Ethics…………………………………..……… ……………………… 67
International Career Opportunities……………………..…………………………………….. 73
Final Examination……………………………………………………………………………… 84
Grading System………………………………………………………………………………… 85
References……………………………………………………………………………………... 86
Page 3
BUMA 20063 – INTERNATIONAL STUDIES IN BUSINESS
COURSE OUTCOMES:
At the end of the course, the student should be able to:
1. Describe the aspects of international business and its operations;
2. Identify diversities and familiarize with strategies that promote harmony in the workplace;
3. Adopt international business ethics and observe different ethical behaviour practice
in different countries;
4. Enhances skills in English Communication and learn other language/s related to the region
of focus to extend access to information, experiences and inter-cultural understanding.
5. Conduct research focusing on global trends and issues on international business and
trade;
6. Familiarize with Asian cultures that makes profitable business internationally;
7. Explore international career opportunities for Administrative Professionals;
8. Develop confidence and respect in dealing with clients, co-workers, managers and other
stakeholders with different nationalities, cultures, religion, races and respect;
Page 4
Week 1: ORIENTATION
Learning Outcomes:
At the end of the lessons, students should be able to:
1. Display enthusiasm in knowing the philosophy, mission, vision of PUP, goals and
objectives of the college.
2. Interpret and apply the student guidelines
3. Summarize one by one the requirements of the course.
Topics:
1.1 Orient the Students in the Vision, Mission, Philosophy of the University, Goals of the College
and Objectives of the Program
1.2 University Student Guidelines
1.3 Requirements of the Course
• Topics to be discussed
• Activities
• Assessment
• Grading System
• House Rules
Course Materials:
Vision
Clearing the paths while laying new foundations to transform the Polytechnic University of the
Philippines into an epistemic community.
Mission
Reflective of the great emphasis being given by the country's leadership aimed at providing
appropriate attention to the alleviation of the plight of the poor, the development of the citizens,
and of the national economy to become globally competitive, the University shall commit its
academic resources and manpower to achieve its goals through:
1. Provision of undergraduate and graduate education which meet international standards of
quality and excellence;
2. Generation and transmission of knowledge in the broad range of disciplines relevant and
responsive to the dynamically changing domestic and international environment;
3. Provision of more equitable access to higher education opportunities to deserving and
qualified Filipinos; and
4. Optimization, through efficiency and effectiveness, of social, institutional, and individual
returns and benefits derived from the utilization of higher education resources.
Philosophy
As a state university, the Polytechnic University of the Philippines believes that:
Page 5
• Education is an instrument for the development of the citizenry and for the enhancement
of nation building;
• Meaningful growth and transformation of the country are best achieved in an atmosphere
of brotherhood, peace, freedom, justice and a nationalist-oriented education imbued with
the spirit of humanist internationalism.
Strategic Objective: 8-Point Agenda
1. Pursuing Academic Excellence through Disciplinal Integrity

2. Embedding a Culture of Research in PUP
3. Assuring Transparency and Participatoriness in Giving Rewards and Sanctions
4. Modernization and Upgrading of Physical Facilities, Equipment, Library and Campus
Development
5. Reconceptualization of Academic Freedom
6. Institutionalizing Civil Society Engagement and Involved Extension Service Program
7. Fiscal Responsibility
8. Assessment of the Institutional Processes and Critical-Rational Review of the Entire
Organization
Shared Values
• God-Fearing
• Love for Humanity and Democracy
• Collegiality
• Integrity and Credibility
• Transparency and Accountability
• Passion for Learning
• Humanist Internationalism
Program Description per CHED Memorandum Order No. 19, series of 2017
The Bachelor of Science in Office Administration is a four-year program that prepares the
students for a career in an outcome-focused, technology rich, professional environment. Courses
in the curriculum are those that will thoroughly familiarize the students with current techniques in
office practice and procedures, developments in office systems and technology, good team-
working and management skills, and application of the principles of human relations and
communications to prepare them to be key players in day-to-day office operations. Lessons in
writing routine reports and correspondence and speaking effectively to employers, employees,
and the general public are provided in selected courses. The BSOA program also trains the
students to work independently without the need for on-site supervision.
Course Description per CHED Memorandum Order No. 19, series of 2017
The course prepares students for internationally focused careers in government, non-profit
and private sectors. It enables students to think critically, creatively and independently about
important international issues that will help them shape the global future.
Page 6
BSOA JOB TARGETS LOCAL AND INTERNATIONAL
INTERNATIONAL JOB TARGETS
LOCAL JOB TARGETS 2019 Job Classification and Salaries Per Year
1. Entry Level Jobs 1. Court Reporter
• Clerk/Encoder • Canada C$43,895

• Stenographer/Transcriber • Singapore S$73,447
• Bookkeeper • United Kingdom UK28,000
• Contact Center Services • United States $90,530
• Customer Relations
• Customer Service Representative
• Front Desk Specialist/Office Clerk 2. Medical Transcriptionist
• Administrative Assistant
• Legal Secretary • Canada C$39,000
• Human Resource Assistant • Singapore S$32,172
• Accounting Assistant • United Kingdom UK23,363
2. Advanced Office Position • United States $32,000
3. Administrative Professionals
• Officer Supervisor/Manager
• Executive SecretaryExecutive Assistant • Canada C$39,513
• Office Manager/Operation Manager • Singapore S$34,971
• Medical Transcriptionist/Medical Editor • United Kingdom UK20,448
• Healthcare Documentation Specialist • United States $45,606
• Paralegal/Legal Secretary 4. Medical Coder
• Researcher
• Human Resource Officer/Administrator • Canada C$45,825
3. Specialized Administrative Professionals • Singapore S$34,971
• United Kingdom UK20,448
• Court Stenographer/Court Reporter • United States $45,606
• Legal Interpreter/Transcriptionist 5. Medical Billing Clerk
• Medical Language Specialist
• Medical Coder/Biller • Canada C$38,956
• Corporate Secretary • Singapore S$36,461
• Corporate Documentation Specialist • United Kingdom UK25,000
4. Entreprenuerial/Self-Employment • United States $35,500
• Freelance Stenographer
• Home-based Medical Transcriptionist Source:
• Home-based Administrative Assistant
• Owner of Placement Agency • https://neuvoo.ca/salar/?job=Court%20Reporter
Specializing in Office Administration • https://www.salaryexpert.com/salary/job/medical
transcriptionist/singapore
• https://www.indeed.co.uk/m/jobs?q=Administrat
ive+Assistant&I=London
• https://www.ziprecruiter.com/Salaries/Medical-Coder-
Salaryhttps://www.ziprecruiter.com/Salaries/Medical-
Billing-clerk-Salary
Page 7
Week 2: COURSE OVERVIEW
Learning Outcomes:
At the end of the lessons, student should be able to:
1. Describe organizations doing international business

2. Discuss the aspects of international business
3. Demonstrate awareness on the importance of studying international business
4. Classify the benefits of doing business internationally
5. Share insights of current issues relating to international business
The world is fast becoming borderless, where there are no boundaries to stop free trade and
communication. Keeping pace with it, the way we do business has changed in an unprecedented
manner. The competition, in the global marketplace, is at its peak where all companies want to
sell their goods to everyone, everywhere on the globe. International business mainly concerned
with the issues that are related to international companies and governments cross borders
transaction. It is a broad term including not only movement of goods and services but various
other aspects.
Course Materials:
Definition: International Business
International business refers to the trade of goods, services, technology, capital and/or
knowledge across national borders and at a global or transnational scale.
It involves cross-border transactions of goods and services between two or more countries.
Transactions of economic resources include capital, skills, and people for the purpose of the
international production of physical goods and services such as finance, banking, insurance, and
construction. International business is also known as globalization.
To conduct business overseas, multinational companies need to bridge separate

national markets into one global marketplace. There are two macro-scale factors that underline
the trend of greater globalization. The first consists of eliminating barriers to make cross-border
trade easier (e.g. free flow of goods and services, and capital, referred to as "free trade"). The
second is technological change, particularly developments in communication, information
processing, and transportation technologies.
Overview
"International business" is also defined as the study of the internationalization process of

multinational enterprises. A multinational enterprise (MNE) is a company that has a worldwide
approach to markets, production and/or operations in several countries. Well-known MNEs
include fast-food companies such as: McDonald's (MCD), YUM (YUM), Starbucks Coffee
Company (SBUX), Microsoft (MSFT), etc. Other industrial MNEs leaders include vehicle
manufacturers such as: Ford Motor Company, and General Motors (GMC). Some consumer
electronics producers such as Samsung, LG and Sony, and energy companies such as Exxon
Mobil, and British Petroleum (BP) are also multinational enterprises.
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Multinational enterprises range from any kind of business activity or market, from consumer goods
to machinery manufacture; a company can become an international business. Therefore, to
conduct business overseas, companies should be aware of all the factors that might affect any
business activities, including, but not limited to: difference in legal systems, political
systems, economic policy, language, accounting standards, labor standards, living
standards, environmental standards, local cultures, corporate cultures, foreign-exchange
markets, tariffs, import and export regulations, trade agreements, climate, and education. Each
of these factors may require changes in how companies operate from one country to another.
Each factor makes a difference and a connection.
One of the first scholars to engage in developing a theory of multinational companies was
Canadian economist Stephen Hymer. Throughout his academic life, he developed theories that
sought to explain foreign direct investment (FDI) and why firms become multinational.
There were three phases of internationalization according to Hymer's work. The first phase of
Hymer's work was his dissertation in 1960 called the International Operations of National
Firms. In this thesis, the author departs from neoclassical theory and opens up a new area of
international production. At first, Hymer started analyzing neoclassical theory and financial
investment, where the main reason for capital movement is the difference in interest rates. After
this analysis, Hymer analyzed the characteristics of foreign investment by large companies
for production and direct business purposes, calling this Foreign Direct Investment (FDI). By
analyzing the two types of investments, Hymer distinguished financial investment from direct
investment. The main distinguishing feature was control. Portfolio investment is a more passive
approach, and the main purpose is financial gain, whereas in foreign direct investment a firm has
control over the operations abroad. So, the traditional theory of investment based on differential
interest rates does not explain the motivations for FDI.
According to Hymer, there are two main determinants of FDI; where an imperfect market structure
is the key element. The first is the firm-specific advantages which are developed at the specific
companies’ home country and, profitably, used in the foreign country. The second determinant is
the removal of control where Hymer wrote: "When firms are interconnected, they compete in
selling in the same market or one of the firms may sell to the other," and because of this "it may
be profitable to substitute centralized decision-making for decentralized decision-making".
Hymer's second phase is his neoclassical article in 1968 that includes a theory of
internationalization and explains the direction of growth of the international expansion of firms. In
a later stage, Hymer went to a more Marxist approach where he explains that MNC as agents of
an international capitalist system causing conflict and contradictions, causing among other
things inequality and poverty in the world. Hymer is the "father of the theory of MNEs", and
explains the motivations for companies doing direct business abroad.
Among modern economic theories of multinationals and foreign direct investment

are internalization theory and John Dunning's OLI paradigm (standing for ownership, location
and internationalization). Dunning was widely known for his research in economics of international
direct investment and the multinational enterprise. His OLI paradigm, in particular, remains as the
predominant theoretical contribution to study international business topics. Hymer and Dunning
are considered founders of international business as a specialist field of study.
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Operations
All firms that want to go international have one goal in common; the desire to increase their
respective economic values when engaging in international trade transactions. To accomplish
this goal, each firm must develop its individual strategy and approach to maximize value, lower
costs, and increase profits. A firm's value creation is the difference between V (the value of the
product being sold) and C (the cost of production per each product sold).
Value creation can be categorized as: primary activities (research and development, production,
marketing and sales, customer service) and as support activities (information systems, logistics,
human resources).[4] All of these activities must be managed effectively and be consistent with
the firm strategy. However, the success of firms that extend internationally depends on the goods
or services sold and on the firm's core competencies (Skills within the firm that competitors cannot
easily match or imitate). For a firm to be successful, the firm's strategy must be consistent with
the environment in which the firm operates. Therefore, the firm needs to change its organizational
structure to reflect changes in the setting in which they are operating and the strategy they are
pursuing.
Once a firm decides to enter a foreign market, it must decide on a mode of entry. There are six
different modes to enter a foreign market, and each mode has pros and cons that are associated
with it. The firm must decide which mode is most appropriately aligned with the company's goals
and objectives. The six different modes of entry are exporting, [5] turnkey
projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up
a new wholly owned subsidiary in the host country.
The first entry mode is exporting. Exporting is the sale of a product in a different national market
than a centralized hub of manufacturing. In this way, a firm may realize a substantial scale of
economies from its global sales revenue. As an example, many Japanese automakers made
inroads into the U.S. market through exporting. There are two primary advantages to exporting:
avoiding high costs of establishing manufacturing in a host country (when these are higher) and
gaining an experience curve. Some possible disadvantages to exporting are high transport costs
and high tariff barriers.
The second entry mode is a turnkey project. In a turnkey project, an independent contractor is
hired by the company to oversee all of the preparation for entering a foreign market. Once the
preparation is complete and the end of the contract is reached, the plant is turned over to the
company fully ready for operation.
Licensing and franchising are two additional entry modes that are similar in operation. Licensing
allows a licensor to grant the rights to an intangible property to the licensee for a specified period
of time for a royalty fee. Franchising, on the other hand, is a specialized form of licensing in which
the "franchisor" sells the intangible property to the franchisee, and also requires the franchisee
operate as dictated by the franchisor.
Lastly, a joint venture and wholly owned subsidiary are two more entry modes in international
business. A joint venture is when a firm created is jointly owned by two or more companies (Most
joint venture are 50-50 partnerships). This is in contrast with a wholly owned subsidiary, when a
firm owns 100 percent of the stock of a company in a foreign country because it has either set up
a new operation or acquires an established firm in that country.[10]
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Risks
• Faulty Planning
To achieve success in penetrating a foreign market and remaining profitable, efforts must be
directed towards the planning and execution of Phase I. The use of conventional SWOT
analysis, market research, and cultural research, will give a firm appropriate tools to reduce risk
of failure abroad. Risks that arise from poor planning include: large expenses in marketing,
administration and product development (with no sales); disadvantages derived from local or
federal laws of a foreign country, lack of popularity because of a saturated market, vandalism of
physical property due to instability of country; etc. There are also cultural risks when entering a
foreign market. Lack of research and understanding of local customs can lead to alienation of
locals and brand dissociation.[17] Strategic risks can be defined as the uncertainties and untapped
opportunities embedded in your strategic intent and how well they are executed. As such, they
are key matters for the board and impinge on the whole business, rather than just an isolated unit.
• Operational risk
A company has to be conscious about the production costs to not waste time and money. If the
expenditures and costs are controlled, it will create an efficient production and help the
internationalization. Operational risk is the prospect of loss resulting from inadequate or failed
procedures, systems or policies; employee errors, systems failure, fraud or other criminal activity,
or any event that disrupts business processes. [19]
• Political risk
How a government governs a country (governance) can affect the operations of a firm. The
government might be corrupt, hostile, or totalitarian; and may have a negative image around the
globe. A firm's reputation can change if it operates in a country controlled by that type of
government.[17] Also, an unstable political situation can be a risk for multinational
firms. Elections or any unexpected political event can change a country's situation and put a firm
in an awkward position.[20] Political risks are the likelihood that political forces will cause drastic
changes in a country's business environment that hurt the profit and other goals of a business
enterprise. Political risk tends to be greater in countries experiencing social unrest. When political
risk is high, there is a high probability that a change will occur in the country's political environment
that will endanger foreign firms there. Corrupt foreign governments may also take over the
company without warning, as seen in Venezuela.
• Technological risk
Technological improvements bring many benefits, but some disadvantages as well. Some of
these risks include "lack of security in electronic transactions, the cost of developing new
technology ... the fact that this new technology may fail, and, when all of these are coupled with
the outdated existing technology, [the fact that] the result may create a dangerous effect in doing
business in the international arena."
• Environmental risk
Companies that establish a subsidiary or factory abroad need to be conscious about the
externalizations they will produce, as some may have negative effects such as noise or pollution.
This may cause aggravation to the people living there, which in turn can lead to a conflict. People
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want to live in a clean and quiet environment, without pollution or unnecessary noise. If a conflict
arises, this may lead to a negative change in customer's perception of the company. Actual or
potential threat of adverse effects on living organisms and environment by effluents, emissions,
wastes, resource depletion, etc., arising out of an organization's activities is considered to be risks
of the environment. As new business leaders come to fruition in their careers, it will be increasingly
important to curb business activities and externalizations that may hurt the environment.
• Economic risk
These are the economic risks explained by Professor Okolo: "This comes from the inability of a
country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal
or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct
international business."[17] Moreover, it can be a risk for a company to operate in a country and
they may experience an unexpected economic crisis after establishing the subsidiary. Economic
risks is the likelihood that economic management will cause drastic changes in a country's
business environment that hurt the profit and other goals of a business enterprise. In practice, the
biggest problem arising from economic mismanagement has been inflation. Historically many
governments have expanded their domestic money supplying misguided attempts to stimulate
economic activity.
• Financial risk
According to Professor Okolo: "This area is affected by the currency exchange rate, government
flexibility in allowing the firms to repatriate profits or funds outside the country.
The devaluation and inflation will also affect the firm's ability to operate at an efficient capacity
and still be stable." Furthermore, the taxes that a company has to pay might be advantageous or
not. It might be higher or lower in the host countries. Then "the risk that a government will
indiscriminately change the laws, regulations, or contracts governing an investment—or will fail
to enforce them—in a way that reduces an investor's financial returns is what we call 'policy risk.'"
• Terrorism
Terrorism is a voluntary act of violence towards a group(s) of people. In most cases, acts of
terrorism is derived from hatred of religious, political and cultural beliefs. An example was the
infamous 9/11 attacks, labeled as terrorism due to the massive damages inflicted on American
society and the global economy stemming from the animosity towards Western culture by
some radical Islamic groups. Terrorism not only affects civilians, but it also damages corporations
and other businesses. These effects may include: physical vandalism or destruction of property,
sales declining due to frightened consumers and governments issuing public safety restrictions.
Firms engaging in international business will find it difficult to operate in a country that has an
uncertain assurance of safety from these attacks. [17]
• Bribery
Bribery is the act of receiving or soliciting of any items or services of value to influence the actions
of a party with public or legal obligations. This is considered to an unethical form of practicing
business and can have legal repercussions. Firm that want to operate legally should instruct
employees to not involve themselves or the company in such activities. Companies should avoid
doing business in countries where unstable forms of government exist as it could bring unfair
advantages against domestic business and/or harm the social fabric of the citizens
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Aspects of international business
The movement of goods from country to another (exporting, importing, trade). Contractual
agreements that allow foreign firms to use products, services, and processes from other nations
(licensing, franchising). The formation and operations of sales, manufacturing, research and
development, and distribution facilities in foreign markets
The study of international business involves understanding the effects that the above activities
have on domestic and foreign markets, countries, governments, companies, and individuals.
Successful international businesses recognize the diversity of the world marketplace and can
cope with the uncertainties and risks of doing business in a continually changing global market.
An international businesses strategy, organization, and/or functional decisions categorize it as:
A multi-domestic company with independent subsidiaries that act as domestic firms; or
Global operations with integrated subsidiaries; or a combination of the two.
The challenging aspect of international business, however, is that many firms combine aspects
of both multi-domestic and global operations:
➢ Multi-domestic – A strategic business model that involves promoting products and services
in various markets around the world and adapting the product/service to the cultural norms,
taste preferences and religious customs of the various markets.
➢ Multinational – A business strategy that involves selling products and services in different
foreign markets without changing the characteristics of the product/service to accommodate
the cultural norms or customs of the various markets.
International business also increases competition in domestic markets and introduces new
opportunities to foreign markets. Global competition encourages companies to become more
innovative and efficient in their use of resources. For consumers, international business
introduces them to a variety of goods and services. For many, it enhances their standard of living
and increases their exposure to new ideas, devices, products, services, and technologies.
The Challenges and Considerations of International Business
Because nation-states have unique government systems, laws and regulations, taxes, duties,
currencies, cultures, practices, etc. international business is decidedly more complex that
business that operates exclusively in domestic markets.
International Business Aspects (Features)
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Large scale Operations
To cope with the global competition in international business, all the operations are conducted on
a very huge scale and generally using special purpose machinery and high skill labour. Production
and marketing activities are conducted on a large scale. The international market is tapped, after
satisfying the domestic market.
Heterogeneous Markets:
The international markets lack homogeneity on account of differences in climate, language,

preferences, habit, customs, weights and measures, etc. International buyer’s behaviour in each
case would, therefore, be different. International trade takes place between differently cohered
groups.
Immobility of Factors:
The degree of immobility of factors like labour and capital is generally greater between countries
than within a country due to the immigration law, citizenship, qualifications, etc. Similarly, the
international capital flows are prohibited or severely limited by different governments having
different fiscal policies.
Economic Integration:
Arrangement between different regions that often includes the reduction or elimination of trade
barriers, and the coordination of monetary and fiscal policies.
It also aims to reduce costs for both consumers and producers and to increase trade between the
countries involved in the agreement.
Dominated by developed countries and MNCs:
International business is dominated by developed countries and their multinational corporations

(MNCs). MNCs encompass a number of countries. Their sales, profits, and the flow of production
is reliant on several countries at once. Companies from large economies like USA, UK, Japan,
China, Germany, India and etc. dominate international trade because they have large financial,
other resources, best technology and research and development facilities. Therefore, they
produce good quality goods and services at low prices. This helps MNCs and developed countries
to capture and dominate the global market.
Beneficial to Participating Countries:
Developing countries get foreign capital and technology from developed countries. They get rapid
industrial development. Hence, developing countries open up their economies through liberal
economic policies.
Keen Competition:
International Business increase competition in domestic markets and introduces new

opportunities to foreign markets. The global competition encourages companies to become more
innovative and efficient in their use of resources. Hence, developing countries find it very difficult
to face competition from developed countries.
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Science and Technology:
Developed countries are high technologies. Therefore, they dominate global business.
International business helps them to transfer such top high-end technologies to the developing
countries. It helps them to receive ground-breaking training and unlock the door to
entrepreneurship.
International Restrictions:
International business faces many restrictions on the inflow and outflow of capital, technology,
and goods. The main types of trade restrictions are tariffs, quotas, embargoes, licensing
requirements, standards and subsidies. It helps domestic procedures of similar products to sell
them at higher prices.
Sensitive Nature:
The international business is very sensitive in nature. Any changes in the economic policies,
technology, political environment, etc. has a huge impact on it. Similarly, the culture and beliefs
of that country also play very important role in international business. Therefore, international
business must conduct marketing research to find out and study these changes and sensitivity of
the society.
The Removal of Trade Barriers and the Development of Trading of:
After the World War II, the General Agreement on Tariffs and Trade (GATT) and the WTO have
reduced tarrifs and various non-tarrif barriers to trade. It enabled more countries to explore their
comparative advantage. It has a direct impact on globalization. The “regional trade agreement”
(RTA) abolished internal barriers to trade and replaced them with a common external tarrif against
non-members.
Different Politics and Different Currencies:
Economic and political policies differ from one country to another. Policies related to trade,
commerce, export and import, taxation, etc., also differ widely among countries. Trade restriction
policy adopted by government interfere with the course of normal trade between the countries. At
the same time, international trade involves the use of different types of currencies. Hence, we
have to consider the exchange rate policies of the countries involved in international business.
“International business also increases

competition in domestic markets
and introduces new opportunities
to foreign markets.”
Benefits of international business
WHY STUDY INTERNATIONAL BUSINESS?
Increasingly people work across borders or gain employment in foreign countries. New Zealand
companies work and do business in many different parts of the world. The workforce in New
Zealand is also becoming more multi-cultural and this has implications for human resource
Page 15
management. Future trade and business partners visit New Zealand from overseas, so while
global competition has become more intense opportunities for cooperation across borders have
never been greater. Long-term survival of businesses, and indeed entire economies, depend on
how well these forces are understood and leveraged. Students of International Business will be
well eq .uipped in these respects when they enter the marketplace.
Double majors or conjoint degrees enhance employ- ability. Additional capabilities in the areas of
finance, economics, law, accounting, marketing and management and foreign languages are
valuable complements to an international business degree. An interest in policy alongside
international business is useful for careers in government, particularly in the areas of trade and
investment and export development. An International Business major complements any other
major by providing a global perspective and hence greater career opportunities. It is an exciting
field requiring an interest in world events and the ability and motivation to keep up to date with
economic and political changes
Importance of studying international business
The international business standards focus on the following:
• raising awareness of the inter-relatedness of one country's political policies and economic
practices on another;
• learning to improve international business relations through appropriate communication
strategies;
• understanding the global business environment—that is, the interconnections of cultural,
political, legal, economic, and ethical systems;
• exploring basic concepts underlying international finance, management, marketing, and trade
relations; and
• Identifying forms of business ownership and international business opportunities.
By focusing on these, students will gain a better understanding of Political economy. These are
tools that would help future business people bridge the economic and political gap between
countries.
There is an increasing amount of demand for business people with an education in international
business. A survey conducted by Thomas Patrick from University of Notre Dame concluded
that bachelor's degree and master's degree holders felt that the training received through
education were very practical in the working environment. Increasingly, companies are sourcing
their human resource requirement globally. For example, at Sony Corporation, only fifty percent
of its employees are Japanese. Business people with an education in international business also
had a significantly higher chance of being sent abroad to work under the international operations
of a firm.
Importance of Language and cultural studies
A considerable advantage in international business is gained through the knowledge and use of
language, thereby mitigating a language barrier. Advantages of being an international
businessperson who is fluent in the local language include the following:
• Having the ability to directly communicate with employees and customers

• Understanding the manner of speaking within business in the local area to improve
overall productivity
Page 16
• Gaining respect of customers and employees from speaking with them in their native tongue
In many cases, it plays a crucial role. It is truly impossible to gain an understanding of a culture's
buying habits without first taking the time to understand the culture. Examples of the benefit of
understanding local culture include the following:
• Being able to provide marketing techniques that are specifically tailored to the local market
• Knowing how other businesses operate and what might or might not be social taboos
• Understanding the time structure of an area. Some societies are more focused on timeliness
("being on time") while others focus on doing business at "the right time".
• Associating with people who do not know several languages.
• Language barriers can affect transaction costs. Linguistic distance is defined as the amount
of variation one language has from another. For example, French, and Spanish are both
languages derived from Latin. When evaluating dialogue in these languages, you will discover
many similarities. However, languages such as English and Chinese or English and Arabic
vary much more strongly and contain far fewer similarities. The writing systems of these
languages are also different. The larger the linguistic distance there, the wider language
barriers to cross. These differences can reflect on transaction costs and make foreign
business operations more expensive.
Assessment:
Answer the question below and write your answer in a yellow pad paper.
As a future administrative professional, is there a need to continuously update yourself

with the current international trends and news? Please elaborate your answer.
Week 3: DEVELOPMENT OF INTERNATIONAL BUSINESS
Learning Outcomes:
1. Discuss the developments of international business

2. Identify the factors that influence the growth of international business
3. Describe the key players in international business
4. Adopt to the challenges that will affect the workplace conditions in international business
Course Materials:
2.1 The growth of international business
International business has growth dramatically in recent years because of strategic imperatives
and environmental changes.
Page 17
Strategic imperatives include the need to leverage core competencies, acquire resources, seek
new markets, and match the actions of rivals. Although strategic imperatives indicate why firms
wish to internationalize their operations, significant changes in the political and technical
environment have no doubt facilitated the explosive growth in international business activity that
has since World War 2. The growth of the internet and other information technologies is likely to
redefine global competition and ways of doing international business once again.
Factors that influence the growth of international business

There are many reasons why international business is growing at such a rapid pace. Below are
some of those reasons:
1. Saturation of Domestic Markets
In most of the countries due to continuous production of similar products over the years has led
to the saturation of domestic markets. For example in Japan 95% of people have all types of
electronic appliances and there is no growth of organization there, as a result they have to look
out for new markets overseas.
2. Opportunities in Foreign Markets
As domestic markets in some countries have saturated, there are many developing countries
where these markets are blooming. Organizations have great opportunities to boost their sales
and profits by selling their products in these markets. Also countries that are attaining economic
growth are demanding new goods and services at unprecedented levels.
3. Availability of Low Cost Labor
When we compare labor cost in developed countries with respect to developing countries they
are very high as a result organizations find it cheaper to shift production in these countries. This
leads to lower production cost for the organization and increased profits.
4. Competitive Reasons
Either to stem the increased presence of foreign companies in their own domestic markets or to
counter the expansion of their domestic markets more and more organizations are expanding
their operations abroad. International companies are using overseas market entry as a counter
measure to increase competition.
5. Increased Demands
Consumers in counties that did not have the purchasing power to acquire high-quality products
are now purchasing them due to improved economic conditions
6. Diversification
To counter cyclical patterns of business in different parts of the world, most of the companies
expand and diversify their business, to attain profitability and uncover new markets. This is one
of the reasons why international business is developing at a rapid pace.
Page 18
7. Reduction of Trade Barriers
Most of the developing economics are now relaxing their trade barriers and opening doors to
foreign multinationals and allowing their companies to set-up their organizations abroad. This has
stimulated cross border trade between countries and opened markets that were previously
unavailable for international companies.
8. Development of communications and Technology
Over last few years there has been a tremendous development in communication and technology,
which has enabled people sitting at their home at one part of the world to know about demands,
products and services offered in other part of the world. Adding to this is the reducing cost of
transport and improved efficiency has also led to people expanding their business.
9. Consumer Pressure
Innovations in transport and communication as led to development of more aware consumer. This
has led to consumers demanding new and better goods and services. The pressure has led to
companies researching, merging or entering into new zones.
10. Global Competition
More companies operate internationally because
– New products quickly become known globally
– Companies can produce in different countries
– Domestic companies, competitors, suppliers have becomes international
As international companies venture into foreign markets, these companies will need managers
and other personals who understand and are exposed to the concepts and practices that govern
international companies. Therefore the study of international business may be essential to work
in global environment.
Key players in International Business
Focal firm the initiator of an international business transaction;

conceives, designs, and produces offerings intended
for consumption;
primarily MNEs and SMEs
Distribution Channel Intermediary a specialist firm that provides various logistics and
marketing services for focal firms as part of
international supply chain;
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home and abroad

Licensor firm that enters contractual agreement with a foreign
Facilitator a firm or giving
partner, individual
themwith
thespecial
right toexpertise that assists
use certain
focal firms in
intellectual performance
property of international
for a specified business
period of time
transactions;
Franchisor focal firms that plan, finance, organize, manage, and
banking, legal
implement advice, of
all phases customs, etc
a project;
Freight forwarder then giveand

provides it to arranges
foreign customer
international shipping on
behalf of exporting firms
Joint venture partner
focal firm that creates and jointly owns a new legal
Multinational Enterprise (MNE) large company
entity with substantial
through equity investmentresources thatofperforms
or pooling assets
various business activities through a countries network
Project-based, nonequity venture of subsidiaries and affiliates in multiple
partners collaboration where partners create a project without
creating a new legal entity
Small and Medium sized Enterprise
(SME)
Foreign Distributor company with 500 or fewer employees
an intermediary that works under contract in a

Born Global Firm foreign market for an exporter;
young entrepreneurial company that initiates
international
distributes businessproducts
exporters early in in
itsaevolution;
national market;
performs sales,into
moves rapidly promotions, and after-sale service
foreign markets
Agent
intermediary that handles orders in international
business transactions for commission;
Manufacturer's representative
intermediary contracted by the exporter to represent
and sell products/service in designated country
Trading company
intermediary that engages in import and export of a
variety of products/services
Export Management Company (EMC) domestically based intermediary that acts as an

export agent on behalf of client company
Logistics Service Provider facilitator;

transportation specialist that arranges for physical
distribution/storage of products on behalf of focal
firms
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Customs Brokers
facilitator;
arrange clearance of products through customs on
behalf of importing firms
Sovereign wealthy fund

state-owned investment fund that invests in global
activities
The challenges and considerations of international business
Challenge #1: Language and cultural barriers
It should go without saying that if you don’t speak the same language as your customers,
communication is going to be a challenge. It’s certainly possible to run your product descriptions
through Google Translate – which is a great tool in certain circumstances, but we would not
recommend solely relying upon it to represent any company in a new country.
We recommend you need at least one person on your team who speaks the local language.
Obviously, this makes expanding into Anglophone countries like the US, UK, and Canada more
appealing for Australian and New Zealand companies.
Of course, one should also bear in mind local differences in language. An Australian company
trying to export thongs to the UK will quickly find that they’re better off referring to them as flip
flops, since ‘thong’ means something entirely different in British English.
If that sort of confusion exists between two countries that share a common language, imagine the
challenges you might face expanding into a country with a radically different language and culture!
You’ll also need to understand that different countries work at difference paces. Your company
needs to be aware of the infrastructure you have to work with, and to compete with, in your target
country. In some countries, customers expect next day delivery and customer service that’s
available 24/7. If your business can’t provide this, you run the risk of alienating your customers.
It is not the strongest of the species that survives, nor the most intelligent that survives.
It is the one that is most adaptable to change.
Solution: Adapt to the environment and establish a go-to market strategy

Your company will need to evolve to face the realities of your new market. Perhaps you’ll need to
overhaul business practices, in order to meet compliance regulations, or perhaps you’ll find a new
niche market for one of your products. Whatever the specifics, you’ll need to ensure you really
are adapting to fit into your new environment.
Expanding into your second country should be easier than the first time around. Why? Because
you can apply the lessons you learned on the first attempt, without needing to make the same
mistakes.
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As you expand, you’ll come to understand what works best for your company, and your
customers. You can use this knowledge to build a market strategy that you can apply in a number
of situations. Just remember that you’ll sometimes need to be flexible. If you do that, a solid go-
to strategy can make sure you succeed.
Challenge #2: Local competition

If you’re making a killing selling handmade knives in Australia, you might think you can just export
that business model to the UK. But what if there’s another company selling handmade knives?
One that’s based in the UK?
Well, obviously that might put you at a disadvantage right from the start. You’ll have to deal with
import fees and tariffs, potentially slower turnaround times, and the problem of dealing with two
currencies while your British counterpart can just work in pounds sterling.
You’ll need to be cautious, and be very aware of what your competitors are doing in order to
counteract the advantages they have over you.
Solution: Find the right partner and build relationships with local businesses
Yes, if you expand into new territories, you’ll inevitably come into conflict with some new
businesses. However, if you’re smart, you can build working relationships with overseas
companies – shipping, storage, and logistics firms for example – and use these to help your
business grow.
With local knowledge and expertise, these companies can bring many benefits. By working
closely with them, you can deliver your products to their customers, or have them help you find
your own customers, making the transition into trading in your target country that much easier.
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Challenge #3: Tax codes and compliance issues

Dealing with tax can be a headache even when you’re only operating in a single nation. Dealing
with taxes, fees, and tariffs for international trade can be a major obstacle for a lot of companies
– especially smaller businesses.
You also need to be aware of trading standards and regulations. Failing to meet compliance
regulations in a country you’re attempting to expand into can not only put a halt to your expansion
plans, but also create additional costs in your home country.
Solution: Do due diligence and sort out legals, tax, and finance
As we’ve said, dealing with the taxes, laws, and tariffs of your new market will be a challenge.
However, so long as you take a sensible, unrushed approach by making sure you or someone
working for you knows exactly what they’re doing, it doesn’t need to be a problem.Study the details
before you get started, and make sure you understand what you need to do. Most tax and legal
requirements ultimately amount to ticking the right box, so all you need to do is make sure you
know which box you need to tick before you start expanding.
Challenge #4: Supply chain risks

Imports, exports, shipping, and logistics are all things that large enterprises have departments
dedicated to. That’s because managing a supply chain that crosses national boundaries can be
a real challenge.
If you’re shipping goods from the APAC region to Europe or America, you’ll have to contend with
geographical distance. However, the cost and time involved in shipping aren’t the only problem.
What if a container ship full of your goods is delayed a week, or doesn’t show up at all? What if
your goods are impounded by customs?
These are all risks you face when trading internationally, and you’ll need to understand how things
work in order to avoid them.
Solution: Develop a strategy, a business plan, and a budget
The absolute worst thing you can do is rush into international expansion without proper planning.
If you don’t find yourself competing with an unexpected competitor, you could
potentially overstock or understock on key products, and maybe even end up spending more
than you expected.
Conducting due diligence and having a solid plan in place makes it that much easier to avoid
unexpected surprises. You wouldn’t wander into a foreign city without a map, and at least a vague
idea of where you’re going, so why would you try to trade in a new nation without a firm, well-
thought-out plan of campaign?
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Challenge #5: Operational risks with hiring staff

You will need more staff to handle the increased pressure on your business of working in another
country. You may even need to hire staff on the ground in the new country. The specifics vary
from business to business, and from country to country.
However, regardless of your specific situation, hiring more staff is always a risk. You’ll not only
have increased overheads, but you’ll have to put your trust in new people – potentially even new
people you never meet face to face.
Solution: Making sure your product and organization are ready, and establish a great team
As Shopify points out, “but if done well, the increased revenues and profits can easily pay for
some extra time and/or staff to help manage your newly-invigorated micro-multinational”.
• Have you hired the new team members you need to meet the increased time demands of
your expansion?
• Do you have the necessary infrastructure in place to handle exports?
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• Are all of your financial and logistical documents in place, ready to be used as necessary?
You need to ensure that your organization is 100% prepared for the challenge of international
trade in order to succeed and grow effectively.
You should also ensure that your product is ready. If there are any changes to be made, you
need to make them ASAP. If you roll out the right product in the right place and at the right
time, success can be almost guaranteed.
Similarly, if you take care with who you hire, and how you manage them, you can leverage their
expertise, skills and strengths to achieve your company’s goals and objectives.
One final note: Consider the impact of new ideas both locally and in your new market
Business is constantly changing. New products and new technologies are innovating all the time.
Market trends change quicker than most can keep up with, so, if your business can keep up, you
have a great opportunity on your hands.
By remaining open to new ideas and new points of view, Your business will be able to connect
with partners and customers in your target nation.
If you take a careful considered approach to new ideas, implementing those that fit with your
business goals and discarding those that don’t, you can help your business expansion plans run
smoothly. You could also improve your business in your original market too.
Assessment:
Answer the question and write your answer in a yellow pad paper.
Is there a need for a company to adopt to the challenges in going international business?
Can they practice the same solution as they were successful locally?
Week 4: THE GLOBAL BUSINESS
Learning Outcomes:
1. Describe the global business environment

2. Identify the forces that drives globalization
3. Participate in the discussion on the implication and benefits of globalization
Page 25
Instructional Materials:
Globalization or globalisation (Commonwealth English; see spelling differences), is the

process of interaction and integration among people, companies, and governments worldwide.
Globalization has accelerated since the 19th century due to advances
in transportation and communication technology. This increase in global interactions has caused
a growth in international trade and the exchange of ideas and culture. Globalization is primarily
an economic process of interaction and integration that is associated with social and cultural
aspects. However, conflicts and diplomacy are also large parts of the history of globalization, and
of modern globalization.
Economically, globalization involves goods, services, data, technology, and the economic
resources of capital.[1] The expansion of global markets liberalizes the economic activities of the
exchange of goods and funds. Removal of cross-border trade barriers has made the formation of
global markets more feasible. [2] Advances in transportation, like the steam
locomotive, steamship, jet engine, and container ships, and developments
in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been
major factors in globalization and have generated further interdependence of economic and
cultural activities around the globe.
Though many scholars place the origins of globalization in modern times, others trace its history
to long before the European Age of Discovery and voyages to the New World, and some even to
the third millennium BC. The term globalization first appeared in the early 20th century
(supplanting an earlier French term mondialization), developed its current meaning sometime in
the second half of the 20th century, and came into popular use in the 1990s.[7] Large-scale
globalization began in the 1820s, and in the late 19th century and early 20th century drove a rapid
expansion in the connectivity of the world's economies and cultures.
In 2000, the International Monetary Fund (IMF) identified four basic aspects of
globalization: trade and transactions, capital and investment movements, migration and
movement of people, and the dissemination of knowledge. Environmental challenges such
as global warming, cross-boundary water and air pollution, and over-fishing have been linked to
globalization.[10] Globalizing processes affect and are affected
by business and work organization, economics, sociocultural resources, and the natural
environment. Academic literature commonly divides globalization into three major
areas: economic globalization, cultural globalization, and political globalization.
Globalization environment
Globalization has also meant an important conceptual change in the way we think about the
environment. Many of us now see environmental problems as being of international concern, not
just national interest—such as protection of the oceans and the atmosphere from pollution.
The environment is now considered the “common heritage of mankind,” and environmental
problems are increasingly the subject of international efforts because of their cross-border effects
and the impossibility that just one or a few nations can solve these problems on their own (Baslar,
2011).
There is a growing body of literature from environmentalists and NGOs about the importance of
such global environmental governance (Esty, 2001). A 2007 proposal by former French president
Page 26
Jacques Chirac for the creation of such a body within the UN garnered the support of over forty
other countries.
A dialogue about such an establishment has also reached the top levels of the WTO where it has
been suggested numerous times by directors and is debated in annual public forums and
conferences. The UN environment body has not been created mainly because of the
unwillingness of the United States and China. In January 2012, France again called for the
creation of a World Environment Organization to prevent resource conflicts and the growing threat
of global climate change, however this was again rejected in the Rio+20 conference. The
conference did, however, result in stronger proposals for strengthening the current United Nations
Environmental Programme (Johnson, 2012).
Others have questioned the need for rigorous environmental protection, however, on scientific,
economic, and sovereignty grounds.
Critics of environmental protection argue that alleged dangers, such as global warming, have
been exaggerated and the economic harm from regulation of natural resources has been
minimized, in pursuit of a radical, anti-capitalist agenda. They argue that too much regulation is
both unnecessary and ultimately harmful because it keeps people poor by preventing the
competitive use of their resources (Murray, 2006).
In contrast, advocates of environmental protection say that unregulated economic activity has led
to environmental destruction and must be slowed, and they say that their critics are uniformed
and pursuing their own agenda of unfettered capitalist expansion (Malakoff, 2007).
Environmental protection can entail a drag on economic growth in the short-term. Industries that
have to adjust to environmental regulations face disruption and higher costs, harming their
competitive position.
The question is what to make of this. Some argue that it may be worth slower economic growth
in order to protect the environment. Others say that the free market and technological advances
are the best tools to solve environmental problems and lift people out of poverty, rather than
greater regulation.
Economic globalization impacts the environment and sustainable development
in a wide variety of ways and through a multitude of channels.
The link between the environment and economic development may be more complex than that,
however.
In fact, in many ways, protecting the environment and promoting economic growth are
complementary goals.
Poverty in developing countries is a leading cause of environmental degradation. For instance,

“slash-and-burn” land-clearing by subsistence farmers has been a major cause of depletion of the
Amazon rain forest (Butler, 2012). Boosting economic growth may then be an effective tool to
promote protection of the environment. This is the idea behind the sustainable development
movement, which seeks to advance economic opportunities for poorer nations in environmentally
friendly ways.
Page 27
“The more integrated environmental

and trade policies are, the more
sustainable economic growth
will be and the more globalization
can be harnessed for the
benefit of the environment.”
Forces driving globalization
What are the driving forces behind globalisation?

The production of goods and services has increased around the world due to a number of factors,
particularly globalization. Many companies have gone beyond their national borders to have
operations, even in remote corners of the world. McDonald’s, Subway, Kellogg’s, Walmart, Tesco,
Coca Cola, and Pepsi are some of the best examples in this regard.
No doubt that globalization has increased the production of goods and services throughout the
world. So, what is driving globalization? There are a number of factors which requires attention.
Improved transportation, cultural exchange, low barriers to trade, and technological change to
name but a few. So, let us now look at some of the driving forces behind globalization.
The driving forces behind globalisation
Cultural exchange
Cultural exchange has been one of the biggest drivers of globalisation. People travel to different
countries and share their cultural beliefs and practices with each other. Through this process, a
cultural understanding takes place which drives globalisation. Today, people around the world
like and use the same smart phones whether they are iPhone, Samsung, HTC, or Sonny Xperia.
No wonder why Indian/Bengali curries, and Chinese takeaways are so popular in the UK!
Likewise, now wonder why people around the globe are crazy for American burgers, softwares,
movies, and many more!
Improved transportation
We live in a ‘global village’. People can move around the world fairly quickly due to improved
transportation systems. Airlines, ships, large vehicles, and others have improved the delivery time
of products to and from abroad. A business man from London can go to Paris to do his ‘business’
and come back to London on the same day. Likewise, goods can be transported beyond the
national border on the same day. This happens in many parts of the world on a daily basis.
Low barriers to trade and investment
This also drives globalization significantly. Many of the world trades are currently done through
free trade, bilateral, and multilateral agreements. Interestingly, countries which were very hostile
or unfriendly to foreign investment few years ago, are inviting other countries for inward foreign
direct investment (FDI). China is a very good example in this regard.
Technological change
Technology is also an important driver of globalization. Advanced E-commerce system has made
the emergence of companies such as Amazon.com, Alibaba.com, ebay.com, and many others
possible and successful. Many US and UK companies have outsourced many of their business
activities to countries such as China, India, Mexico, Turkey, Bangladesh, and many others. This
Page 28
technological revolution enables traders from remote parts of the world to sell their
products/services to customers around the world on virtual platforms.
In a nutshell, there are a number of driving forces behind globalization. Many companies are now
multinational corporations with subsidiaries around the world. This gives managers more
opportunities for growth and development. However, globalization is not without challenges. In
fact, it has its own pitfalls. For instance, according to some analysis’s as cited in Saval (2017),
local workers in some countries had endured a major fall in the real value of their wages, which
dropped by more than 20% because of globalization.
Globalization of production and markets
Economic globalization involves trade, capital flows and the movement of labour, and an
important element in the process is the globalization of production. With the gradual dismantling
of trade barriers, and capital flows becoming easier, globalization of production has flourished. It
is no longer necessary to produce goods in one location. Even though a product may bear the
market of being produced in a particular country, its components may come from different
locations. Particularly for high-tech products, research and development (R&D) is usually carried
out in developed countries, components are made in different countries depending on their
competencies and final assembly takes place in another country. This approach is also used for
labour-intensive goods such as garments, shoes, etc.
Globalization of production has influenced the world of work in ways not seen before. While some
impacts have been positive from the point of view of workers, others have given rise to serious
concerns. On the positive side, new employment opportunities hitherto unknown in many
developing countries have opened. On the other hand, serious pressure on the working class
has come through the stagnation of real wages and adverse workplace conditions. The term
‘race to the bottom’ has come into circulation in this context. But this does not have to be the only
way forward, since there are useful positive aspects from which workers could benefit alongside
the rest of the global community. This paper explores possible paths to such outcomes.
Implications of Globalization
International business is a term used to describe all commercial transactions, in general, (private
and governmental, sales, investments, logistics and transport) which occur between two or more
regions, countries and nations beyond their political borders (Radebaugh & Sullivan, 2007).
International business refers to those business activities which include crossborder transactions
of goods, services or resources between two or more nations. Transactions of economic
resources include capital, skills, people for international production of physical goods or services,
such as finance, banking, insurance, construction (Joshi, 2009). According to Rugman and
Collinson, international business analyzes transactions that take place across national borders in
order to meet the needs of individuals and organizations. These economic transactions consist of
trade (imports and exports) and foreign direct investment (Rugman, Collinson, & Hodgetts, 2006).
According to Ball, international business is a business whose activities are carried out beyond the
borders of their country and here not only include international trade and international production
but growing service trade in areas such as transport, tourism, advertising, construction, retail and
mass communication (Ball, McCulloch Jr., Frantz, Geringer, & Minor, 2002). The companies that
are active in international business are called multinational enterprises. Multinational enterprise
is an enterprise or corporation that owns substantial resources and performs various business
Page 29
activities through a network of branches located in different countries and each branch form its
business strategy, based on the different market characteristics (Cavusgil, Knight, &
Riesenberger, 2008). Multinational company is based in one country but has business activities
in several countries. There are opinions that the multinational company is one that is so structured
that conducts business or property held in many countries or a company is organized into global
production parts. The reasons why a company becomes a multinational, Ansoff separates the two
categories (Ansoff, 1984): • Operational needs: providing materials, equipment, technology and
release of surplus production; • Strategic needs: ensuring the inviolability of future changes in the
external environment, steady growth (maintaining historic patterns of growth, avoiding stagnation
caused by saturation, increasing the volume of business, increasing the rate of growth) and better
profitability. The development of international business activities coincided with widespread
phenomenon of globalization of markets (Cavusgil, Knight, & Riesenberger, 2008). The
globalization of markets refers to the growing economic integration and the growing
interdependence of countries worldwide. Internationalization of the companies refers to the
tendesncy of the companies to systematically increase the international scope of their business
activities, while globalization refers to a makrotrend intensive economic relations between the
countries in the world. Globalization encourages companies to internationalize and to
substantially increase the volume and types of cross-border transactions in goods, services and
capital. Also, the globalization leads to rapid dissemination and diffusion of products, technology
and knowledge in the world, regardless of the origin. The process of globalization is a natural
process that is a result of the growing and accelerated process of generalizing of the character
and process of production. The development of science, engineering and technology and the
expansion of markets for goods, worldwide, lead to internationalization of economic and financial
developments and their global deployment. If globalization is understood as a process that leads
to greater economic integration of national economies, as a process of fragmentation of the world
economy and the international economy, than the globalization is a process of opening of national
economies through the removal of economic and financial boundaries of national economies and
thus their transformation into an international economic and financial market (Jovanovski, 2007).
Globalization is a worldwide trend, through which economies in the world lose their borders and
connect to each other.
The companies are no longer imprisoned in their borders and can implement a wide range of
business activities around the world. Many companies are present in markets around the world,
procured their raw produce or conduct research and development worldwide. Trade barriers fall
and global trade between countries in goods and services is growing faster than domestic
production. As a result of this, companies cannot afford the luxury to assume that the success of
the domestic market will lead to long-term profitability (Cullen & Parboteeah, 2010). The flow of
money across national borders is freer, and companies seek better financing rates in the world
and investors everywhere are looking for a more favourable return on investment. Globalization,
developed from economic aspect, has two main components: the globalization of markets and
globalization of production. The globalization of markets refers to the merging of historically
different and separate national markets into one big global market. In recent years, constantly is
discussed that the tastes and preferences of consumers in different countries and nations begin
to resemble on a global level and the way that they help in the creating of a global market. The
companies that offer standardized products worldwide, help in the creation of a global market.
The most common global markets are not the markets for mass consumer products, because
there are still differences between countries in terms of tastes and preferences, which still have
great meaning and a sort of brake on globalization, but these are the markets for industrial goods
and materials that have universal need the world. The globalization of production refers to the
tendency of the companies to find suppliers of goods and services from locations around the
world, in order to realize the advantage of national differences in price and quality of the factors
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of production. Companies do this in order to reduce overall costs and thereby to improve the
quality or to improve the functionality of their product offering to compete more effectively (Hill,
2008).
Trade liberalization, global consumer habits, rising development costs and the need for
economies of scale, pressure from foreign competitors in the domestic market as well as the
development of information and communication technologies, are considered drivers of the
globalization. Because of the need to introduce new products and investment in research,
development and innovation, achieving economies of scale, reduce costs and access to cheaper
raw materials; companies are forced to plan activities, taking into consideration the global market.
Economies of scale and cost reduction are the main goal of management.
That is why companies decide to locate production in countries where the cost of developing and
producing are smaller. • Competition. One of the reasons that the companies join global strategies
is the need of maintaining or gaining a competitive advantage in foreign markets and avoiding
competition in the domestic market. Competition in international markets is huge and growing,
with more multinational competitors who win markets worldwide. The companies improve their
competitive position by opposing competitors in international markets or premature intrusion into
the domestic market of the competitor in order to destabilize or to suppress its development. As
the globalization increases the speed and prevalence, and for the companies more opportunities
are opening easily, to perform on the international markets. The managers develop and adapt
strategies for internationalization in order to transform their organizations into globally competitive
enterprises. Managers seek to coordinate the supply, production, marketing and other activities
based on international activities. The organization of the company globally is a challenge and
requires strategic positioning, organizational skills, a high degree of coordination and integration,
attention to the needs of individual markets and the implementation of common processes. The
strategy, in an international context, is an organization plan for positive positioning, compared to
the competitors.
This plan lead the company to selected customers, markets, products and services in global
markets, not just a particular international market. The strategy in an international context should
help managers to formulate a strong international vision, allocation of scarce resources on the
World, the participation of the major markets, implementation of global partnerships, and
involvement in competitive activities in response to global rivals and establish activities that add
additional value on a global level (Cavusgil, Yeniyurt, & Townsend, 2004). When the companies
compete outside of their country, they face a number of challenges and pressures. These
pressures and challenges to maintain competitiveness, require from the companies cut costs, in
order the consumers do not evaluate their products or services as too expensive. This leads to
the need to locate production facilities in places where production costs are lower, and the
development of high standardized products in most countries. In the context of the pressure to
reduce costs, managers must strive to be ready to respond to local pressures to adapt products
to local market requirements, where the company is active.
This requires differentiation of their offer and strategies in different countries, in order to preserve
the tastes and preferences of consumers, but also the differentiation of distribution channels,
management of human resources, and government regulations. Because the strategies and
tactics for differentiation of products and services in local markets create additional costs, they
can also lead to increased costs for the company. These two pressures that enterprises face,
resulting in four basic strategies that the companies use to compete in the global market. These
strategies are: international, global, multi-domestic and transnational strategy (Dess, Lumpkin, &
Taylor, 2004). The strategy that will be chosen by the company depends on the pressure faced
by cost-cutting and the importance of adapting to local markets.
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Assessment:
Answer the questions below and write your answer in a yellow paper.
Cite a company who has been successful locally but did not decide to go global. What
are the reason/reasons behind staying local.
Week 5-6: CROSS-CULTURAL BUSINESS
Learning Outcomes:
1. Discuss cultural differences

2. Identify national cultures and subcultures
3. Simulate the identified manners and customs of different countries
4. Describe the world’s major religions that influence business relations
Course Materials:
Cross Culture
Cross culture in the business world refers to a company's efforts to ensure that its people interact
effectively with professionals from backgrounds different from their own. Like the adjective cross-
cultural, it implies a recognition of national, regional, and ethnic differences in manners and
methods and a desire to bridge them.
How Cross Culture Works

The concept of cross culture is becoming critically important with the globalization of businesses.
Many companies that seek to expand the markets for their products devote substantial resources
to training employees on how to communicate and interact effectively with those from other
cultures.
KEY TAKEAWAYS
• Cross culture is a concept that recognizes the differences among business people of
different nations, backgrounds. and ethnicities, and the importance of bridging them.
• With globalization, cross culture education has become critically important to businesses.
• Business people working abroad need to learn subtle differences in style and substance
in order to be effective.
For example, when employees of an international company transfer to another country, they need
to master the cross culture. They must not only learn the language but adapt to its social norms.
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Today, cross culture education is considered imperative for employees acting in managerial
capacities abroad. Failure to effectively communicate with subordinates or understand their
actions can lead to cascading problems within the business.
Definition of Culture
In a globalised economy, cultural sensitivity is essential. As more companies grow, and the global
marketplace becomes more accessible for small businesses, multinational and cross-cultural
teams are becoming more common. This means that it is crucial, now more than ever, for
businesses to understand the culture of their foreign market if they wish to succeed internationally.
Culture is the ideas, customs, and social behavior of a particular person or society. But how does
culture affect international business?
In a business context, culture relates to what behavior is common and accepted professionally in
one location, compared to another. What may be acceptable business practice in one country,
may be very different from the approach that is used by businesses overseas. Therefore,
recognising how culture can affect international business is something that should be understood
in order to avoid misunderstandings between colleagues and clients, and also to make sure that
businesses are presenting themselves to their new market in the best way they can.
Developing Cultural Literacy
When you do business internationally, you may assume that all businesspeople have the same
basic understandings. Although you will find a common appreciation for making profits and
reducing costs, you may run across business approaches that surprise you. Diverse cultures
have different business values and practices. A little effort at gaining some cultural literacy can
help you deal successfully with people around the globe.
Cross-Cultural Core Competency
It's important that you demonstrate that you are a global citizen so international customers are
willing to do business with you. It's not realistic to set a goal of gaining a deep understanding of
all the cultures you may deal with in the course of growing your international marketing. Instead,
aim for a core competency. According to an article in "Profit" magazine, you can look at six
areas of knowledge you need: Familiarize yourself with cultural attitudes about dealing with
strangers, language barriers, how groups respond to sales pitches as either favors or cut-and-
dried presentations, local channels you must use for brand awareness, the technical proficiency
and capacity of the country or region and how the culture views the importance of doing things
on time or relaxing about meeting times and deadline dates.
Cultural Roots of Business Etiquette
You must understand how a culture views business dealings so you know what style to use
when approaching businesspeople in that culture. Some cultures look at a transaction as a favor
among friends, while others embrace the more American style of a straightforward discussion
about making money. Still others may allow business discussions only in certain settings and
frown on them at other times. Look into this aspect of the culture before you make any business
proposals.
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Considering Context
You can evaluate your business transactions with a culture different from your own in light of
that culture's contextual clues. This helps you avoid gaffes and create business communications
that have a positive impact. The country's history and assumptions about Americans can affect
how your message is received. Be sensitive to hot-button issues and avoid any phrases or
words that could suggest you look down on the culture or that you consider the person yo u're
dealing with to be a second-class citizen in his own culture. This kind of cultural literacy is of
utmost importance when you communicate so you can avoid unintentional negative cultural
messages when conducting business.
Avoiding Americanisms
Using internationally accepted word choices and phrases ensures your business dealings won't
be misunderstood. Some American phrases do not translate well. For example, "We shall see"
means "No" in China. Other phrases such as, "Flying by the seat of our pants" o r "Ballpark
figure" may not have any meaning at all in other cultures. Scrutinize your written
communications for figurative language that may not translate. In addition, cut your verbal
communications to the basics. It's important for a company doing global business to remember
that the language at its home office may not be universal.
Components of Culture
Symbols
Every culture is filled with symbols, or things that stand for something else and that often evoke
various reactions and emotions. Some symbols are actually types of nonverbal communication,
while other symbols are in fact material objects.
A common one is shaking hands, which is done in some societies but not in others. It commonly
conveys friendship and is used as a sign of both greeting and departure. Probably all societies
have nonverbal symbols we call gestures, movements of the hands, arms, or other parts of the
body that are meant to convey certain ideas or emotions. However, the same gesture can mean
one thing in one society and something quite different in another society (Axtell, 1998). In the
United States, for example, if we nod our head up and down, we mean yes, and if we shake it
back and forth, we mean no. In Bulgaria, however, nodding means no, while shaking our head
back and forth means yes! In the United States, if we make an “O” by putting our thumb and
forefinger together, we mean “OK,” but the same gesture in certain parts of Europe signifies an
obscenity. “Thumbs up” in the United States means “great” or “wonderful,” but in Australia it
means the same thing as extending the middle finger in the United States. Certain parts of the
Middle East and Asia would be offended if they saw you using your left hand to eat, because
they use their left hand for bathroom hygiene.
Gestures are the signs that we make with our body, such as hand gestures and facial
expressions; it is important to note that these gestures also carry meaning. This familiar gesture
means “OK” in the United States, but in certain parts of Europe it signifies an obscenity. An
American using this gesture might very well be greeted with an angry look.
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For most Americans, the flag is not just a piece of cloth with red and white stripes and white stars
against a field of blue. Instead, it is a symbol of freedom, democracy, and other American values
and, accordingly, inspires pride and patriotism. During the Vietnam War, however, the flag
became to many Americans a symbol of war and imperialism. Some burned the flag in protest,
prompting angry attacks by bystanders and negative coverage by the news media.
Language
Perhaps our most important set of symbols is language. In English, the word chair means
something we sit on. In Spanish, the word silla means the same thing. As long as we agree how
to interpret these words, a shared language and thus society are possible. By the same token,
differences in languages can make it quite difficult to communicate. For example, imagine you
are in a foreign country where you do not know the language and the country’s citizens do not
know yours. Worse yet, you forgot to bring your dictionary that translates their language into yours,
and vice versa, and your iPhone battery has died. You become lost. How will you get help? What
will you do? Is there any way to communicate your plight?
Language is a key symbol of any culture. Humans have a capacity for language that no other
animal species has, and children learn the language of their society just as they learn other
aspects of their culture.
Norms
Cultures differ widely in their norms, or standards and expectations for behaving. We already
saw that the nature of drunken behavior depends on society’s expectations of how people should
behave when drunk. Norms of drunken behavior influence how we behave when we drink too
much.
•Norms are the formal and informal rules regarding what kinds of behavior are acceptable and
appropriate within a culture.
•Norms are specific to a culture, time period, and situation.
Norms are often divided into two types, formal norms and informal norms. Formal norms, also
called mores (MOOR-ayz) and laws, refer to the standards of behavior considered the most
important in any society. Examples in the United States include traffic laws, criminal codes, and,
in a college context, student behavior codes addressing such things as cheating and hate speech.
Informal norms, also called folkways and customs,refer to standards of behavior that are
considered less important but still influence how we behave. Table manners are a common
example of informal norms, as are such everyday behaviors as how we interact with a cashier
and how we ride in an elevator.
Rituals
Different cultures also have different rituals, or established procedures and ceremonies that often
mark transitions in the life course. As such, rituals both reflect and transmit a culture’s norms and
Page 35
other elements from one generation to the next. Graduation ceremonies in colleges and
universities are familiar examples of time-honored rituals. In many societies, rituals help signify
one’s gender identity. For example, girls around the world undergo various types of initiation
ceremonies to mark their transition to adulthood. Among the Bemba of Zambia, girls undergo a
month-long initiation ceremony called the chisungu, in which girls learn songs, dances, and secret
terms that only women know (Maybury-Lewis, 1998). In some cultures, special ceremonies also
mark a girl’s first menstrual period. Such ceremonies are largely absent in the United States,
where a girl’s first period is a private matter. But in other cultures the first period is a cause for
celebration involving gifts, music, and food (Hathaway, 1997).
Values
Values are another important element of culture and involve judgments of what is good or bad
and desirable or undesirable. A culture’s values shape its norms. In Japan, for example, a central
value is group harmony. The Japanese place great emphasis on harmonious social relationships
and dislike interpersonal conflict. Individuals are fairly unassertive by American standards, lest
they be perceived as trying to force their will on others (Schneider & Silverman, 2010). When
interpersonal disputes do arise, Japanese do their best to minimize conflict by trying to resolve
the disputes amicably. Lawsuits are thus uncommon; in one case involving disease and death
from a mercury-polluted river, some Japanese who dared to sue the company responsible for the
mercury poisoning were considered bad citizens (Upham, 1976).
The Work Ethic
Another important value in the American culture is the work ethic. By the 19th century, Americans
had come to view hard work not just as something that had to be done but as something that was
morally good to do (Gini, 2000). The commitment to the work ethic remains strong today: in the
2008 General Social Survey, 72% of respondents said they would continue to work even if they
got enough money to live as comfortably as they would like for the rest of their lives.
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Manners and Customs
Manners are the codes of socially accepted behavior.
Customs is the heritage of social norms, ethical values, traditional customs and belief
Important Elements of Social Cultures
The arts – vast subdivision of culture, composed of many creative endeavors and disciplines.
The arts encompasses visual arts, literary arts and the performing arts
Literature – the art of written works
Performing arts – those forms of art that use the artist's own body, face, and presence as a
medium
Visual arts – art forms that create primarily visual works
Entertainment – any activity which provides a diversion or permits people to amuse themselves
in their leisure time. Entertainment is generally passive, such as watching opera or a movie.
World’s Major Religions
Religion, human beings’ relation to that which they regard as holy, sacred, absolute, spiritual,
divine, or worthy of especial reverence. It is also commonly regarded as consisting of the way
people deal with ultimate concerns about their lives and their fate after death. In many traditions,
this relation and these concerns are expressed in terms of one’s relationship with or attitude
toward gods or spirits; in more humanistic or naturalistic forms of religion, they are expressed in
terms of one’s relationship with or attitudes toward the broader human community or the natural
world. In many religions, texts are deemed to have scriptural status, and people are esteemed to
be invested with spiritual or moral authority. Believers and worshippers participate in and are often
enjoined to perform devotional or contemplative practices such as prayer, meditation, or
particular rituals. Worship, moral conduct, right belief, and participation in religious institutions are
among the constituent elements of the religious life.
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Demographical classification
The five largest religious groups by world population, estimated to account for 5.8 billion people
and 84% of the population, are Christianity, Islam, Buddhism, Hinduism (with the relative numbers
for Buddhism and Hinduism dependent on the extent of syncretism) and traditional folk religion.
Five largest 2010 2010 2000 2000

Demographics
religions (billion)[11] (%) (billion)[109][110] (%)
Christianity by
Christianity 2.2 32% 2.0 33%
country
Islam 1.6 23% 1.2 19.6% Islam by country
Hinduism by
Hinduism 1.0 15% 0.811 13.4%
country
Buddhism by
Buddhism 0.5 7% 0.360 5.9%
country
Folk religion 0.4 6% 0.385 6.4%
Total 5.8 84% 4.8 78.3%
Classifying Cultures
According Dynamism
1. Static – same culture/cultural patterns are transmitted from generation to generation

2. Dynamic – culture/cultural patterns continue to change as they are passed on from
one generation to another.
According to Stability
1. Stable Culture – the culture patterns are satisfying to the group

2. Unstable culture – many people in the group are not satisfied the way things are being
done
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According to Form and Component
1. Material culture – these are material objects and all tangible objects made, used and
shared by people
2. Non-material culture – the ways and methods of utilizing the material culture and
satisfy man’s needs.
Assessment:
Answer the question and write your answer in a yellow pad paper.
Is there a need to adopt to different cultures where the company is expanding? Explain
your answer.
WEEK 7: BUSINESS COMMUNICATION
Learning Outcomes:
1. Practice business communication and effective conversation

2. Recognize business communication and body language as identified in business
communication specifically to prosper international business relations.
3. Create acceptable business conversation in English language
Course Materials:
What Is Business Communication
Business communications the process of sharing information between employees within and
outside a company.
Effective business communication is how employees and management interact among each other
to reach organizational goals and be more aligned with the core company values. Its main
purpose is to improve organizational practices, eliminate silos, keep employees informed and
reduce errors.
Effective business communication is essential for success and growth of every

organization. Unlike everyday communications, business communication is always goal
oriented.
Page 39
Spoken Language
There are components forming the framework for business communication in order to be
successful. Communication involves written and verbal aspects, and it is suggested that verbal
communication is one of the top competencies needed to excel in a managerial position.
Companies communicate internally and externally. External communication refers to relationships

with persons outside of the company; examples include investors, suppliers, and customers.
Internal communication refers to communicating with employees; communication within an

organization. It comprises of formal and informal communication. Formal communication refers
to letters, memos, and guidelines.
Informal communication refers to personal relationships and the exchange of ideas and opinions.
Communication can be represented in two forms, verbal and non-verbal (“Different Types of
Human Communication,” 2013).
A preliminary corpus-based study of spoken business English
Michael McCarthy, Michael Handford
Discourse in the professions: Perspectives from corpus linguistics 16, 167-201, 2004
The term spoken business English has a broad embrace within the literature, as does the term
business English in general (St John 1996). Work in SBE ranges from descriptive studies of
business meetings within and across corporations (most notably Bargiela-Chiappini and Harris
1997), including studies of buying and selling negotiations (eg Firth 1995; Charles 1996) and what
might be termed office talk or workplace talk (eg Grimshaw 1989; Koester 2001), to more
pedagogical concerns such as the authenticity or otherwise of spoken business English as
portrayed in language teaching materials (eg Williams 1988), and the language needs of students
of business (eg Crosling and Ward 2002).
There is, too, a robust tradition of research into cross-cul-tural issues in spoken business
communication (eg Yamada 1990; Garcez 1993; Halmari 1993; Ulijn and Li 1995; Ulijn and
Murray 1995; Connor 1999; Gimenez 2001).
The themes and preoccupations of such studies are equally many and varied. Of central concern
seems to be the generic organization of different types of spoken events (eg phone calls,
meetings), the negotiation and building of identities, the manifestations of status and roles
(Charles 1996), the creation and maintenance of business cultures, the metaphors and other
institution.
Body Language
“In business negotiations,

body language plays a significant role in the communication”
In business, the way you communicate can enhance or impair your interactions, relationships and
further opportunities in your company. Your body language, the unspoken language you portray
in conversation, can make or break your business future.
Page 40
For this reason, it is imperative that you understand the effect and influence your body language
has on your business interactions. Here are 4 areas of body language that, if mastered, can
influence your business communications for the better.
Eye contact
Eye contact is the first level of connection that you share with another person. It happens before
you even say a word. It is an unambiguous gauge for expressing attentiveness, confidence, and
sincerity. If you struggle to make eye contact with a person when you engage in conversation,
you are putting your interaction at risk of not being taken seriously, or having your intentions
misinterpreted. Looking someone in the eye as you meet and talk with them shows you are paying
attention. Listening is the most important human relations skill, and good eye contact plays a large
part in conveying your interest in others.
Facial expressions
Facial expressions are critical to competent communication, and you need to hold your face
accountable when engaging in a business interaction. For example, do you frown when you
shouldn’t? Or, do you open your eyes wider when you disagree with something that is being said?
No matter what you say, you’ll lose credibility if your face tells another story.
Posture
Your posture says a lot about who you are and whether you should be taken seriously. If you
mean business, stand tall (shoulders back, stomach in, chest out, head up and spine erect) to
communicate confidence and professionalism. Even while sitting, make sure your posture
conveys the right message about your business mindset. Slouching and holding your head in your
hands communicates a very different message than sitting upright with your head held high.
Gestures
Gestures are an extension of communication that enhance verbal communication. They add
impact to what you are saying by showing, not just telling. This adds a layer of engagement and
allows your body to inspire a visceral reaction in the listener. For example, hand-to-face
movements such as holding the chin or scratching the face shows concern or lack of conviction.
If you cover your mouth while engaging in conversation, you may not be taken seriously, or even
believed!
Elevate your business interactions by being mindful of your body language, it can be practised so
watch other people and take notice of yourself and before long you will be mastering your personal
body language.
English as an International Language in Business
“The fastest-spreading language in human history, English is spoken at a useful level by

some 1.75 billion people worldwide—that’s one in every four of us.”
For multinational companies, some problems may arise when the lingua franca is English. It may
become difficult for employees to understand each other because they may be native English
speakers and non-native English speakers.
Page 41
Lingua Franca is used for business operations; hence employees must speak some degree of
the language, and this can be tricky when each employee may have different degrees of
competency in the language.
In a study whereby Swedish was the language employed as the corporate language, employees
felt confident when they needed to speak only in business terms (using specific terminology);
however, they had difficulty in acting assertively in negotiations, expressing opinions in meetings
and being able to conduct casual conversations (Charles, 2007).
Native English speakers are better able to adequately articulate their preferences in business
negotiations than Non-Native English speakers. Business English Lingua Franca is aimed to
provide essential business communication vocabulary, which can be a downfall if the language is
incorrectly articulated. This can affect not only business negotiations, but also have a negative
impact on employees (Sweeney, E., & Zhu, H., 2010).
Ready or not, English is now the global language of business. More and more multinational
companies are mandating English as the common corporate language—Airbus, Daimler-
Chrysler, Fast Retailing, Nokia, Renault, Samsung, SAP, Technicolor, and Microsoft in Beijing, to
name a few—in an attempt to facilitate communication and performance across geographically
diverse functions and business endeavours.
There’s no question that unrestricted multilingualism is inefficient and can prevent important
interactions from taking place and get in the way of achieving key goals.
The need to tightly coordinate tasks and work with customers and partners worldwide has
accelerated the move toward English as the official language of business no matter where
companies are headquartered.
Three primary reasons are driving the move toward English as a corporate standard:
Competitive pressure.
If you want to buy or sell, you have to be able to communicate with a diverse range of customers,
suppliers, and other business partners. If you’re lucky, they’ll share your native language—but you
can’t count on it. Companies that fail to devise a language strategy are essentially limiting their
growth opportunities to the markets where their language is spoken, clearly putting themselves at
a disadvantage to competitors that have adopted English-only policies.
Globalization of tasks and resources.
Language differences can cause a bottleneck—a Tower of Babel, as it were—when geographically

dispersed employees have to work together to meet corporate goals. An employee from Belgium
may need input from an enterprise in Beirut or Mexico. Without common ground, communication
will suffer. Better language comprehension gives employees more first-hand information, which is
vital to good decision making.
Assessment: Answer the question and write your answer in a yellow pad paper.
Will the company prosper and succeed in going global if they only focused on written business
communications and disregard gestures and body language of local country? Explain.
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WEEK 8: CHAPTER 6 – FOREIGN LANGUAGE PART 1 – CHINESE/MANDARIN LANGUAGE

English Chinese Transliteration
你好 / 您好 Hello / Hello (formal) Nǐ hǎo / Nín hǎo
我很高兴认识你 Nice to meet you. Wǒ hěn gāoxìng rènshí nǐ.
谢谢 Thank you Xièxiè
请 Please Qǐng
不客气 You’re welcome Bù kèqì
没问题 No problem / You’re welcome Méi wèntí
Mandarin Chinese is the official language of Mainland China and Taiwan, and it's one of the
official languages of Singapore and the United Nations. It is the most widely spoken language in
the world.
Mandarin Chinese is sometimes referred to as a “dialect,” but the distinction between dialects and
languages is not always clear. There are many different versions of Chinese spoken throughout
China, and these are usually classified as dialects.
There are other Chinese dialects, such as Cantonese, which is spoken in Hong Kong, that are
very distinct from Mandarin. However, many of these dialects use Chinese characters for their
written form, so that Mandarin speakers and Cantonese speakers (for example) can understand
each other through writing, even though the spoken languages are mutually unintelligible.
Basic Mandarin Conversation
English Chinese Transliteration

你好 / 您好 Hello / Hello (formal) Nǐ hǎo / Nín hǎo
很高兴认识您，先 I am very glad to meet you, sir. Wǒ huì shuō yì diǎr hànyǔ.
生
请问您能再说一遍 Excuse me, can you say it Qǐng wèn, nín néng zài shuō
again? yí biàn ma?
吗?
我明白了, 谢谢 I understand, thank you wǒ míng bái le xiè xiè
希望近日能得到您 Hope to hear from you soon Xīwàng jìnrì néng dédào nín
de huífù.
的回复
Page 43
Basic Business Communication in Mandarin
Body Gestures/Language
1. Nod
Nodding is one of the easiest ways to greet someone. It is often used with people you’re not very
familiar with, in formal business occasions, or when you don’t have time to talk. You can just
simply nod with a smile to the person you wish to greet.
2. Shake Hands
Shaking hands is a vital body gesture for showing courtesy and friendliness in Chinese culture. It
shows a good measure of politeness and respect. You can use this gesture either in a formal
business occasion or at a casual party to make some new friends.
3. Wave Hands
Like Western culture, waving hands when saying goodbye or hello is very common in China as
well. It’s more likely to be used between close friends or people your age.
4. How to Point to Yourself
In Chinese culture, when you are relating something to yourself, you may point to your own nose
with your index finger. The meaning of this is completely different from its meaning in Western
culture, where it may be considered rude to do so. However, remember to avoid pointing your
finger to other people’s nose. It’s perfectly fine for yourself, but when referring to others, you may
want to use your whole palm instead to show full respect.
5. “Come Here” Gesture
When you want to summon someone to come to you, as commonly known in Western culture,
you usually make this sign with your palm facing up. This is slightly different in China. Chinese
people are accustomed to making their palm face down while summoning people.
Anyhow, this is usually for people who are younger than you, kids, your employees, taxis, or
waiters. For peers or your elders, this may be considered inappropriate and perceived as a lack
of respect. You may instead want to politely invite them over with your arm suggesting the
direction, or with a proper bow.
Assessment: Answer the question and write your answer in a yellow pad paper.
How do Chinese gestures differ from the gesture of other countries. Does the meaning
establish the kind of respect given to the receiver?
Page 44
WEEK 9: CHAPTER 7- FOREIGN LANGUAGE PART 2 – KOREAN LANGAUGE
Learning outcomes:
1. Practice basic Korean communication used in business.

2. Appreciate the importance of learning the Korean language.
3. Establish personal connections by learning the basic gestures of Korean people;
Course Materials:
Korean Language
Korean, known in the language itself as Kugo, is the language of the Korean Peninsula in
northeast Asia. In the Democratic People's Republic of Korea (DPRK, or North Korea) there are
20 million speakers and in the Republic of Korea (ROK, or South Korea) there are 42 million
speakers. Korean is also spoken by almost 2 million people in China, mainly in provinces
bordering North Korea. There are approximately half a million speakers in Japan and Russia, as
well as significant numbers in the United States (over 600,000) with large communities on the
west coast and in New York. Other communities are found in Singapore, Thailand, Guam, and
Paraguay. The total number of speakers is 72 million (Grimes 1992).
7.1 Basic Korean Conversation
Korean English Transliteration
안녕하세요 How are you/Hello annyeonghaseyo
만나서 Nice to meet you mannasuh

반갑습니다 bangapseumnida
감사합니다 Thank you kamsahamnida
오랜만이다 Long time no see orenmanida
만나서 참 I am very happy to meet you mannaseo cham

bangawoyo
반가워요
천만 에 요 You are welcome / don’t cheonman e yo

mention it
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7.2 Basic Business Communication in Korean
Korean English Romanization
반갑습니다. Nice to meet you. panggapssŭmnida.
여기 제 Nice to meet you. yŏgi ce myŏnghamimnida.

명함입니다.
내일 찾아뵙고 I'd like to meet with you năil chajabwepkko

싶은데요. tomorrow siphŭndeyo.
무슨 요일이 What day is good for you? musŭn yoiri

괜찮으세요? kwănchanhŭseyo?
내일 회사에 계실 Will you be at work tomorrow? năil hwesae kyesil

건가요? kŏnggayo?
7.3 Body Gestures/Language
1. Peace Sign
Everyone knows what the V sign is. However, the meaning of this gesture varies depending on
the cultural context. In Korea, the peace sign is commonly used when taking pictures. Also, it can
be used to show how proud you are of something. For example, when you’re praised by your
friend for receiving a full mark for an exam, you can show this peace sign for “victory.” This is one
of the more common hand gestures in Korean cultures.
2. Korean Heart
This Korean hand gesture is relatively new in Korea and to make this hand gesture is very easy.
Take your thumb and index finger and cross them to make the shape of a heart—that’s it!
The heart gesture shows a tiny heart, but if you look at the entire hand, you’ll come to realize that
it’s actually the shape of a human’s heart. Your fist is the shape of a heart and your two fingers,
which are the index and the thumb, are two main vessels.
3. Receiving and Giving Something to Someone

Giving and receiving an object with only one hand is considered rude in Korea. This is one of the
common mistakes that foreigners make, since doing this movement with one hand is completely
okay in many countries.
In Korea, you need to receive or give something with both hands; this is to show that you are
showing respect. You don’t necessarily need to do this for your friends, but you’ll definitely need
to use both hands for elders or people of higher status.
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4. Covering Mouth when Laughing
We are not sure where this popular gesture in Korea originated from. However, it could be
influenced by Confucianism, where it is believed that public displays of emotion should not be
expressed to others. Another assumption is that Korean women are shy in general and by hiding
their mouth while laughing, they can avoid embarrassment (for instance, of food stuck in their
teeth).
5. Promise Handshake
Everyone knows how to make a “promise” hand gesture – it’s similar to a pinky swear. In Korea,
a promise hand gesture itself isn’t enough; we have many more hand gestures after that. The
most popular ones are “signature,” “scan,” and “handshake.” There are many varieties in Korea,
so ask your Korean friends what their promise handshake gestures are.
Assignment:
Prepare a short introduction of yourself in Chinese Mandarin and Korean Languages in a yellow
pad paper. Please include your personal, family, education, and interest. Be sure to practice your
introduction in both languages.
Assignment:
Create a video of yourself introducing yourself in both Chinese Mandarin and

Korean Language.
WEEK 10: REVIEW OF PAST LESSONS CHAPTER 1-7
Learning Outcomes:
1. Apply the concepts of international business in workplace administration
2. Perform simple Conversation using Mandarin and Korean Language
3. Discuss the importance of studying international business
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MIDTERM EXAMINATION
Part 1. Answer the following questions. Write your answers in short bond paper
(maximum of 2 sheets).
1. What are the current issues relating to International Business?
2. What are the factors that influence the growth of International Business?
3. Describe the global business environment.
4. What are the forces that drives globalization?
Part 2. Discussion
1. As an Administrative Professional, discuss why it is important to study International Business.
2. Choose a country, where you want to work aside from the Philippines. Discuss the country’s
language, culture and business communication.
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WEEK 11-12: THE ASEAN INTEGRATION
Learning Outcomes:
1. Recognize the purpose of the regional integration of member countries

2. Discuss the different areas of cooperation and its implications to the economies of the
ASEAN countries
3. Distinguish the opportunities and challenges brought by ASEAN integration
Course Materials:
ASEAN
The Association of Southeast Asian Nations is a regional intergovernmental

organization comprising ten countries in Southeast Asia, which promotes intergovernmental
cooperation and facilitates economic, political, security, military, educational,
and sociocultural integration among its members and other countries in Asia.
ASEAN also regularly engages other countries in the Asia-Pacific region and beyond. A major
partner of Shanghai Cooperation Organisation, ASEAN maintains a global network of alliances
and dialogue partners and is considered by many as a global powerhouse, [the central union for
cooperation in Asia-Pacific, and a prominent and influential organization. It is involved in
numerous international affairs, and hosts diplomatic missions throughout the world.
8.1 Brief History
ASEAN was preceded by an organisation formed on 31 July 1961 called the Association of
Southeast Asia (ASA), a group consisting of Thailand, the Philippines, and the Federation of
Malaya. ASEAN itself was created on 8 August 1967, when the foreign ministers of five
countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand, signed the ASEAN
Declaration. As set out in the Declaration, the aims and purposes of ASEAN are to accelerate
economic growth, social progress, and cultural development in the region, to promote regional
peace, collaboration and mutual assistance on matters of common interest, to provide assistance
to each other in the form of training and research facilities, to collaborate for better utilization of
agriculture and industry to raise the living standards of the people, to promote Southeast Asian
studies and to maintain close, beneficial co-operation with existing international organisations
with similar aims and purposes.
The creation of ASEAN was motivated by a common fear of communism.[21] The group achieved
greater cohesion in the mid-1970s following a change in the balance of power after the end of
the Vietnam War in 1975. The region's dynamic economic growth during the 1970s strengthened
the organization, enabling ASEAN to adopt a unified response to Vietnam's invasion of
Cambodia in 1979. ASEAN's first summit meeting, held in Bali, Indonesia in 1976, resulted in an
agreement on several industrial projects and the signing of a Treaty of Amity and Cooperation,
and a Declaration of Concord. The end of the Cold War allowed ASEAN countries to exercise
greater political independence in the region, and in the 1990s ASEAN emerged as a leading voice
on regional trade and security issues.
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Aims and Purposes
Against a backdrop of the Cold War and the tumultuous transition to independence in many
Southeast Asian states, ASEAN’s objective at its establishment was “to accelerate the economic
growth, social progress and cultural development in the region through joint endeavours in the
spirit of equality and partnership in order to strengthen the foundation for a prosperous and
peaceful community of South-East Asian Nations”.
As set out in the ASEAN Declaration, the other aims and purposes of ASEAN are:
• To promote regional peace and stability through abiding respect for justice and the rule of law in
the relationships among countries of the region and adherence to the principles of the United
Nations (UN) Charter;
• To promote active collaboration and mutual assistance on matters of common interest in the
economic, social, cultural, technical, scientific and administrative fields;
• To provide assistance to each other in the form of training and research facilities in the
educational, professional, technical and administrative spheres;
• To collaborate more effectively for the greater utilisation of agriculture and other industries, the
expansion of trade (including the study of problems of international commodity trade), the
improvement of transportation and communications facilities, and raising the living standards of
their peoples;
• To promote Southeast Asian studies; and
• To maintain close and beneficial cooperation with existing international and regional organisations
with similar aims and purposes, and explore all avenues for even closer cooperation among
themselves.
Three Pillars of the ASEAN
ASEAN Community Councils
The ASEAN Community Councils comprise Council of all the three pillars of ASEAN. Under their
purview is the relevant ASEAN Sectoral Ministerial Bodies.
1. ASEAN Political-Security Community (APSC)
The APSC Blueprint promotes political stability, democracy and good governance among
the member countries. It also contains the promotion and protection of human rights and
fundamental freedoms to enhance political development. As the rule of law, human rights
is addressed as a rules-based community of shared values and norms.
Under APSC, lists of specific action are to be undertaken by ASEAN member states to
promote and protect human rights including the rights of migrant workers, the rights to
women and children and other civil society organizations as well as to education and
public awareness on human rights.
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The APSC Blueprint also suggests strengthening criminal justice responses to

trafficking in persons and enhancing cooperation to combat people smuggling.
2. Composition of the ASEAN Economic Community (AEC)
The AEC Blueprint fosters equitable and stable economic development on a global level. It
includes establishment of a single market, production base and regional competitiveness.
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Priority Integration Sectors (PIS)
Conduct a biannual review to monitor status, progress, and effectiveness of the PIS road maps
to ensure timely implementation. Identify sector-specific projects or initiatives through regular
dialogues or consultation with stakeholders, particularly the private sector.
A. Food, Agriculture and Forestry

• Enhance trade and long-term competiveness of ASEAN food, agriculture and
forestry products.
• Promote cooperation with international and regional organizations and the
private sector.
• Develop a competitive policy
• Strengthen consumer protection
• Regional cooperation in intellectual property rights (IPRs)
• Regional Cooperation in infrastructure development
• Complex network of bilateral agreements on avoidance of double taxation
• Promote electronic commerce (e-commerce)
B. Competitive Economic Region
1. Develop a competitive policy
2. Strenghthen consumer policy
3. Strengthen consumer protection
4. Regional cooperation in intellectual property rights (IPRs)
5. Regional cooperation in infrastructure development
6. Complex network of bilateral agreements on avoidance of double taxation
7. Promote electronic commerce (e-commerce)
C. Equitable Economic Development
1. Accelerate the development of small and medium-sized enterprises (SMEs)
2. Enhance the initiative for ASEAN Integration (IA) to narrow the development
gap.
D. Competitive Economic Region
1. Achieve the coherent approach towards external economic relations, including
its negotiations for free trade area (FTAs) and comprehensive economic
partnership (CEP) agreements
2. Enhance participation in global supply networks
3. Composition of the ASEAN Socio-Cultural
The ASCC Blueprint establishes a socially responsible ASEAN community with the view
of achieving as well as building a sharing and caring society to fill the gap of the country
level.
The goal of the ASCC Blueprint is to enhance the well-being and provide equitable access
to human resource. It calls the access to primary healthcare of the vulnerable groups or
people at risk.
This is in line with the Declaration of the Right to Development by the UN General
Assembly on 4 December 1986. Three objectives are set to achieve the ASCC Blueprint:
advancing and prioritizing education, investing in human resource development and
promotion of decent work.
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8.4 AEC Characteristics and Areas of Cooperation
The establishment of the ASEAN Economic Community (AEC) in 2015 is a major milestone in the
regional economic integration agenda in ASEAN, offering opportunities in the form of a huge
market of US$2.6 trillion and over 622 million people. In 2014, AEC was collectively the third
largest economy in Asia and the seventh largest in the world.
The AEC Blueprint 2025, adopted by the ASEAN Leaders at the 27th ASEAN Summit on 22
November 2015 in Kuala Lumpur, Malaysia, provides broad directions through strategic measures
for the AEC from 2016 to 2025. Along with the ASEAN Community Vision 2025, and the ASEAN
Political-Security Community (APSC) Blueprint 2025 and the ASEAN Socio-Cultural Community
(ASCC) Blueprint 2025, the AEC Blueprint 2025 forms part of ASEAN 2025: Forging Ahead
Together. It succeeded the AEC Blueprint (2008-2015), which was adopted in 2007.
The AEC Blueprint 2025 is aimed towards achieving the vision of having an AEC by 2025 that is
highly integrated and cohesive; competitive, innovative and dynamic; with enhanced connectivity
and sectoral cooperation; and a more resilient, inclusive, and people-oriented, people-centred
community, integrated with the global economy
The AEC Blueprint 2025 consists of five interrelated and mutually reinforcing characteristics,
namely:
(i) A Highly Integrated and Cohesive Economy;
(ii) A Competitive, Innovative, and Dynamic ASEAN;
(iii) Enhanced Connectivity and Sectoral Cooperation;
(iv) A Resilient, Inclusive, People-Oriented, and People-Centred ASEAN; and
(v) A Global ASEAN. These characteristics support the vision for the AEC as envisaged in
the ASEAN Community Vision 2025.
The AEC Blueprint 2025 sets out the strategic measures under each of the five characteristics of
AEC 2025. To operationalise the Blueprint’s implementation, these strategic measures will be
further elaborated in and implemented through the work plans of various sectoral bodies in
ASEAN. The sectoral work plans will be reviewed and updated periodically to ensure their
relevance and effectiveness. Partnership arrangements with the private sector, industry
associations and the wider community at the regional and national levels will also be actively
sought and fostered to ensure an inclusive and participatory approach to the integration process.
Institutions will be strengthened and enhanced approaches to monitoring and public outreach will
likewise be developed to support the effective implementation of the Blueprint.
The AEC 2025 Consolidated Strategic Action Plan (CSAP) comprises of key action lines that will
operationalise the strategic measures in the AEC Blueprint 2025. It takes into account the relevant
sectoral workplans, and will be reviewed periodically to account for developments in each sector.
The inaugural issue of the ASEAN Economic Integration Brief (AEIB) was released on 30 June
2017. The AEIB provides regular updates on ASEAN economic integration progress and
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outcomes, and is a demonstration of ASEAN’s commitment to strengthen communication and

outreach to raise stakeholder awareness of the AEC.
The AEC Blueprint 2025 will lead towards an ASEAN that is more proactive, having had in place
the structure and frameworks to operate as an economic community, cultivating its collective
identity and strength to engage with the world, responding to new developments, and seizing new
opportunities. The new Blueprint will not only ensure that the 10 ASEAN Member States are
economically integrated, but are also sustainably and gainfully integrated in the global economy,
thus contributing to the goal of shared prosperity.
The ASEAN Good Regulatory Practice (GRP) Core Principles was adopted at the 50th AEM
Meeting in 29 August 2018 and subsequently endorsed by the AEC Council. ASEAN GRP Core
Principles, which is a practical, non-binding set of principles to serve as a guide to mainstream
GRP into ASEAN work, and assist ASEAN Member States in improving their regulatory practice
and fostering ASEAN-wide regulatory cooperation.
8.5 Philippine Educational Landscape
Our country’s uniqueness as the only Christian and English-speaking archipelago in Southeast
Asia impacts our education system more than we acknowledge.
Our country’s anglophonic culture and religious system are all results of colonialism, backed up
by our rich history of being colonized by the Spanish regime for three centuries, followed by the
US occupation for nearly five decades.
The US colonialism has always had a huge impact on the development of the education system
in the Philippines. In fact, the American English has always been imposed in our schools and
become second to the Filipino as our national language.
Our strong knowledge in the English language could be a global tool in personal economic growth,
particularly if you’d consider the business process outsourcing industry in the global landscape.
Despite this, Filipinos are still very dependent on attaining college degrees in terms of climbing
the professional ladder, as a college diploma is still a very basic requirement or qualification in
landing on financially fulfilling jobs. Luckily though, a lot of advancements have happened in the
modern Philippine education system that is designed to empower Filipinos personally and
professionally.
One of the most notable milestones in the Philippine education is that the government actively
seeks to expand access and participation in higher education and, even more importantly, tries
to improve the quality of education.
According to the Philippine National Development Plan, “the number of higher education
institutions in the Philippines is ten times more than its neighboring countries. The Philippines’s
lackluster performance in producing innovators, researchers (81 researchers per million
population versus 205 in Indonesia and 115 in Vietnam) and knowledge producers (28 out of 777
journals, or 3.6 percent are listed under Thomson Reuters, Scopus or both) indicates that the
country has lagged behind many of its Asean neighbors in producing researchers, innovators and
solutions providers needed to effectively function in a knowledge economy.”
Although the participation in higher education in the Philippines has expanded in recent years,
with the gross tertiary enrolment rate growing from 2.2 million in 1999 to 4.1 million in 2016, the
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information from the Philippine National Development Plan that we have a shortage in local
“researchers and innovators” should not be overlooked nor ignored. Enrolment rates for college
students are expected to expand even more, with the bold decision of President Duterte in 2017
to make education at state universities and colleges tuition-free, yet this does not automatically
mean that such changes can result in producing a new generation of researchers and innovators.
On the other side, the previous administrations K-12 reforms have inevitably led to decreased
rate of college enrollees, too, at least in the short-term, since many of the students that would
usually have entered higher education after Grade 10 now have to complete two additional years
of school.
In 2013 the Philippine government initiated the extension of the country’s basic education cycle
from ten to twelve years—a major reform that former Education Secretary Armin Luistro has called
“the most comprehensive basic-education reform initiative ever done in the country since the
establishment of the public education system more than a century ago”. Between 2015-2016 and
2016-2017, the total number of tertiary students already dropped from 4.1 million to 3.6 million—
a decrease that is particularly apparent when looking at undergraduate enrollment rate, according
to data from the Commission on Higher Education.
Despite some predicaments, qualitative improvements and achievements in the Philippine

education system are still notable in a number of areas. This includes a slight increase in the
number of higher-education faculty holding higher degrees. The percentage of instructors with
master’s and doctorate degrees grew from 38.87 percent and 11.09 percent in 2010, respectively,
to 40.34 and 12.62 percent in 2015.
ASEAN Prospects, Opportunities, and Challenges
Deeper economic integration is an imperative although the symphony of integration is unfinished

in ASEAN. All stakeholders must resolve, firmly and soon, to take the next steps toward the AEC.
To do less would surely mean a future less rewarding, less prosperous, less secure and less
equitable for all the peoples of ASEAN. That is the challenge facing all of us but the challenge
can be managed.
ASEAN’s resilience has not been derailed by the recent oil price shock and higher interest rates.
Economic growth is expected at a respectable rate of about 5.5 per cent in the next few years,
according to the Asian Development Bank. All these augur well for the region’s own
transformation into a vibrant AEC a decade from now
But such dynamism also underpins a meaningful and differentiated role of ASEAN economies in
the Pan-Asian region where the world’s manufacturer of choice (China) and the world’s back office
(India) are situated. In particular, ASEAN-China trade has grown substantially and very fast in the
recent years. ASEAN now has a free trade agreement on goods with China and with the Republic
of Korea., while FTAs with Australia and New Zealand, India and Japan are under negotiation.
Thus, ASEAN is not standing alone in our historic efforts at AEC formation. The future looks bright
with sustained regional and international collaboration, including from the EU and other partners
of ours, in response to the constant emergence of opportunities for inclusive and stable
development.
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Assessment:
Answer the following question in one sheet of yellow pad paper.
1. Supposing a company resides in South East Asia, will a company succeed in

international trade (ASEAN neighbour country) if the local country is not a
member of ASEAN?
2. Is being an ASEAN member guarantee success in business perspective?
WEEK 13: WORKPLACE ENVIRONMENT IN FIVE MAJOR COUNTRIES
Learning Outcomes:
1. Describe the physical environment of the five major countries

2. Identify major differences in workplace
3. Establish a model workplace environment to work for
Course Materials:
What is a work environment?
A work environment is the setting, social features, and physical conditions in which you perform
your job. These elements can impact feelings of wellbeing, workplace relationships, collaboration,
efficiency, and employee health. Here are the significant aspects of a work environment:
• Physical environment: This element is made up of the size, layout, and location of a
workplace, whether work is conducted indoors or outdoors, the facilities offered in a
workplace and the furnishings used while working.
• Company culture: This element refers to the way a company and its employees operate,
including what effective communication looks like between different levels of staff,
employees’ perspective of company leaders, the company’s goals and what the
organization values.
• Working conditions: This element includes the formal terms under which staff members
are hired, such as the rate of pay, contract of employment and length of the workday. It can
also cover recreational activities and other initiatives to promote a healthy workplace.
The Physical Environment
The physical conditions you work under will play a crucial role in enabling you to reach your full
potential. Some critical aspects of your physical environment to consider include:
• Size: The size of your working area can have an impact on whether you have everything
at hand to accomplish your job, while at the same time significantly influencing how you
feel at work. To evaluate the size of your workspace, consider the amount of space you
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have to move freely, whether you have all the equipment you need nearby and if the area
is large enough to accommodate all staff members.
• Layout: Some indoor workplaces have an open floorplan, while others use cubicles or
other dividers to separate spaces. The design of a workplace may depend on the type of
work. For example, a more collaborative environment may benefit from an open layout,
while a job that requires discretion would better operate with separate offices or cubicles to
ensure privacy.
• Furnishings: Desks, chairs, conference tables and other workplace furniture can also
impact employees on the job. Access to comfortable and adequate seating, clean
workspaces and functional desks can ensure indoor workplaces remain efficient. Outdoor
workplaces may include comfortable furniture for break times.
• Equipment: Some roles require special equipment to do their job, and depending on the
company, the employer may or may not provide it. Some roles, such as a mechanic, may
be required to bring their own set of tools. Indoor office spaces are more likely to provide
the necessary equipment, such as computers, printers and other essential technology used
on the job.
• Facilities: Other facilities can influence how you feel physically and mentally during your
working life. Being able to take a break or go to the bathroom are essential parts of any
productive daily routine, so the location of these facilities can also impact the work
environment. Additional facilities such as relaxing spaces and on-site gyms can also have
a positive influence on employees.
• Location: Some roles predominantly work inside; some spend most of their working day
outside and certain roles may have a mixture of both indoor and outdoor work. Many
employers may provide additional facilities or equipment to ensure employees are
comfortable while working and productivity is maintained.
Company culture
Your company’s beliefs and how their goals align with yours can be a substantial factor in your
comfortability in the workplace. Here are the significant elements of company culture:
• Code of conduct: Some companies may explain their business culture in a formal code
of conduct or provide guidelines for employees. These documents can have you following
certain conditions when performing tasks as well as when interacting with coworkers,
workplace leaders and external stakeholders. These guidelines are often found in an
employee handbook.
• Encouragement and development: Some employers directly promote collaboration and
teamwork, emphasize positive feedback, and consistently celebrate employees who
succeed. Other employers may provide more constructive feedback to encourage
employees to improve.
• Company mission statement: This statement is a set of values the company seeks to
advance through its work. While these values may not be discussed daily, they guide every
task you do and each goal you set as a contributor in the organization.
Working conditions
The following elements determine what the day-to-day may look like and how your employment
impacts areas of your life unrelated to work:
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• Work-life balance: The number of hours worked each week and when can vary depending
on the role, company, and industry. Some organizations may promote work-life balance by
offering generous paid time off or flexible work schedules. Other employers may encourage
employees to work overtime to meet deadlines or provide 24/7 service to clients.
• Terms of employment: In addition to set hours, these terms may include whether your
work is a temporary contract or permanent employment. This element may also include
benefits and paid time off stipulations as well.
• Workplace safety: There are nationally mandated workplace safety regulations that all
employers must follow. Your employer might display the regulations in public spaces to
ensure all employees understand and adhere to these policies. In addition, the safe use of
equipment, as well as accessibility to exits, emergency equipment and first-aid, also
impacts this element of working conditions.
• Healthy lifestyle: Some employers may encourage employees to stay fit and eat balanced
meals to improve their overall wellbeing. They may even stock healthy snacks, partner with
a nearby gym or host team events that incorporate physical activity.
Differences of Workplaces
American Work Environment
Working hours and holidays

Traditional working hours in the US are Monday to Friday from 9:00am to 5:00pm, with half an
hour for lunch. However, workplaces are becoming more flexible, and many companies allow their
employees to set their own work schedules.
While the standard work week is 40 hours long, many Americans end up working notoriously long
hours. This is because, in the US, your workday does not end when you go home. Employees
are generally expected to keep up with emails and deadlines after work, and the higher you move
up the career ladder, the more will be expected of you.
If you are used to European holiday times, American holiday schemes can seem brutal. The US
does not guarantee its workers any paid vacation time or parental leave, instead leaving it up to
individual employers to provide these. Most new employees receive just one or two weeks of paid
vacation per year, and it can take up to 10 years to work your way up to four weeks. Perhaps
most surprisingly, many Americans do not even end up taking all of their vacation days.
If you have more of a “work-to-live” and not “live-to-work” attitude, the American work environment
can take some getting used to. People here strongly identify with their jobs, and they are willing
to put in the hard work.
Salaries and benefits

The salary is just one component of a job offer but, at least for Americans, it is usually the most
important one. The cost of living in the US can be high, particularly in big cities. However, salaries
also tend to be higher there. The federal minimum wage is $7.25 an hour, but many cities and
states have higher minimum wages to match rising costs of living.
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Salaries for some professions, like those for nurses or schoolteachers, vary greatly from state to
state, so it is wise to do research before you start applying for jobs. Another important factor you
should consider is the benefits package of a job offer. Depending on the size and nature of the
company, your employer may offer benefits including health insurance (required for larger
companies), retirement plan (401k), dental insurance, vision care, and life insurance. It is a good
idea to be informed about the changing market conditions or other factors that might affect your
salary and benefits before making a decision.
Job security and office culture

Job protection laws in the US are not as strong as in other advanced economies. This means that
companies can hire and fire employees with fewer restrictions, making for a flexible job market
but less security for workers. However, this also varies depending on your job. Some professions,
such as dentists, lawyers, psychologists, and statisticians, enjoy good job security, while less
specialized professions are not as secure. While this can be an intimidating aspect of the job
market, most Americans do not worry about losing their jobs; in fact, they choose to leave them
more often than in other countries.
Traditionally, the East Coast is more conservative and formal in terms of dress code and manners
than the West Coast. Overall, though, office environments tend to be informal. Individual opinions
are always welcomed in meetings, and employees are treated as equals. Diversity is also highly
valued in the workplace, and you will likely be working with people from different backgrounds.
American Vs. Japanese Work Environment
American culture is individual driven. From a young age people in the United States are taught to
be self- reliant and make decisions for themselves. What this often translates to as adults is an
expectation for a great deal of individual responsibility in the workplace. A side effect of this is that
an individual’s achievements are often valued more highly than the team’s overall contributions.
One way this individualism has influenced the physical structure of workplaces in the United
States is seen by a preference for cubicle-type office layouts. Cubicles and individual offices are
valued in American work culture because they provide employees a quiet place to get their work
done by limiting potential outside interference and distractions. However, according to Forbes,
despite how unpopular they are with employees in the United States, open office floor plans made
up 70% of all office designs in America as of 2017. One reason this might be is simply because
open floor plan offices are cheaper to set up than the alternatives.
In contrast to the individual driven culture found in the west, Japan is thought to be an example
of a more group-oriented society. There is much debate on whether this remains true today.
According to the Hofstede Insights cultural dimension theory, Japan is often perceived as being
collectivist when compared to western countries, but more individualistic when compared to
neighboring Asian countries. Regardless, the fact is there is still a large cultural emphasis placed
on the importance of teamwork and consideration for what is best for the group found in Japan.
The way this collectivist tendency manifests in the physical structure of Japanese workplaces can
be found in the abundance of open office layouts. Open office layouts are favored because they
are thought to better facilitate communication and teamwork in the workplace. One drawback of
the open office layout is employees often feel overly exposed. This can be beneficial for a
supervisor who wants to be able to easily track what their employees are doing during the day,
but micromanagement like this can backfire by negatively impacting workplace morale and
productivity.
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In America, the traditional workday is typically from “9-to-5” making 8 hours the standard (although
this can differ a great deal depending on industry). Overtime hours in the United States are
typically paid, sometimes even at a rate higher than an employee’s base salary. Companies are
often reluctant to approve overtime because of the costs this accrues. By contrast, in Japan the
work hours are notoriously long, and overtime is often unpaid. The expectation in Japanese work
culture is that you get to the office early, and you stay until all your work is done. If you must work
overtime the problem might be that perhaps you did not use your time during the day as effectively
as you could have. Additionally, the day does not end after you clock out either. In Japan there is
a tradition for afterhours drinking with co-workers. This is considered to strengthen camaraderie
and let loose after a long day in the office.
The United States is traditionally referred to as a “melting pot” of people from different ethnicities,
nationalities, and cultural backgrounds. It is because of this perceived diversity that the typical
workplace in America is often staffed with people coming from many different cultural
backgrounds. In Japan, although there is debate on the extent of how homogenous Japanese
society actually is, the fact is that people who were born and raised in Japan share a common
language and cultural background to an extent greater than what is found in a more culturally
diverse country such as the United States.
Americans are thought to be very direct when conducting business. American employees are
frequently very casual with one another and refer to each other using first names. This culture of
familiarity in the workplace can make a person seem more likable and personable to their clients
and co-workers. However, in Japan this could be considered very rude. Coworkers are often more
formal with one another when in the workplace. Additionally, they are less direct than their
American counterparts when it comes to conducting business. Decision making is frequently
conducted through a rigid chain of command that is determined by the hierarchy of seniority.
Although this method is often considered slower and less efficient, in theory it is a much more
thorough approach that leaves less room for error.
Despite the above listed differences, American and Japanese work cultures do share some
commonalities. Surveys show that American and Japanese workers both do not take enough
vacation hours and breaks when compared to other developed countries. When they do take
vacation, Americans have a bad habit of staying connected and continuing to check work related
emails, while Japanese workers will feel guilty about the vacation hours they do take. Both
cultures tend to not adequately take advantage of their time off to properly recharge before
returning to work.
Chinese Work Environment
Overtime
One of the standout features of China’s working environment is that people are usually
accustomed to working overtime, which often is never compensated. This can often be a surprise
to Americans who usually work for 9 hours a day and get paid for any overtime they put in. To be
clear, the Chinese government does have a law that mandates that employees are made to work
only for 8 hours per day. Only 36 hours of overtime is permitted. However, such rules are usually
overlooked, especially in the tech industry where 12-hour schedules are the norm.
Founder of Alibaba Jack Ma even endorsed the harsh working times, saying that those who are
not able to work for 12 hours should not even apply to the company. Recently, there has been an
employee pushback to cut down on the work time. But since leaders of the tech industry worry
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that doing so would affect their international competitiveness, not much progress has taken place
on the matter. So, if you work in any field related to technology, keep in mind that you might have
to work longer than usual.
Deep relationships
When you arrive at your Chinese workplace, you will be expected to know everyone well
eventually. Co-workers often hang out after office hours, drinking, eating out at restaurants, or
even visiting other places. Not participating in their invitations can make you appear too self-
centered. And in a collectivist society, you better ensure that people do not view you as selfish or
prudish. Chinese people are deeply attached to their families and many of them will invite you to
their family home during important events like the Chinese New Year.
Contractual flexibility
In America, a contract is iron clad. To get the other party to add certain conditions or modify
existing agreements in the contract can be tough. But in China, people are willing to be flexible.
In case you find that something needs to be added to a contract, talk to the other party. If what
you ask is reasonable, they will likely agree to the changes.
Napping is okay
This might come as a surprise to you — napping is considered okay in China. One might think
that a society that mandates a 12-hour working day might be strict about how the time is spent.
But it seems like businesses are okay with employees sleeping, as it is viewed as a tradeoff for
making them work for long hours.
Government connections
Being an authoritarian state, the government keeps a tab on everything in the country, including
businesses. You will have to develop relationships with officials so that the business you work for
does not get caught up in any trouble. Never antagonize authorities, as it can bite back very
painfully in the future. In America, any corrupt or condescending official can be sued and brought
to court. That is not the way Chinese society works. If you are unsure how to deal with such
people, watch how your co-workers and managers interact and handle such relationships in a
similar manner.
Korean Work Environment
Workplace Environment
Korean culture has clear hierarchical structures in it, and Korean work culture is no different. While
there may be some confusion sometimes over what your actual job position is, it is always clear
where you stand in the food chain. And the higher the better.
This means that it may sometimes be tough to be the newbie – especially since you will continue
to be the newbie until another new person is brought onto the team. Your opinions will not carry
as much weight in team meetings, it’s hard to say “no” to those with seniority over you, and
sometimes your seniors may even be purposefully brusque just because you’re new.
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But at the same time, Korean companies also value close knit teams and cohesive company
environments. There will be the yearly Membership Training event, either for just the team or
sometimes the whole company. At this event, the group will go on an overnight excursion to the
countryside together. There might be other types of company parties as well.
Working Hours.
On paper, the hours stated in the contract do not sound all that bad, with 9am to 6pm being
standard. So, at a quick glance there may not seem to be a difference to your home country’s
working hours.
Unfortunately, there is also a big unwritten rule that you are expected to work overtime quite
regularly. It is also often frowned upon to leave the office before your boss has left. This means
that Koreans typically work far longer hours than stated in their working contracts. And they may
not even receive any type of compensation for it.
Language Used
Most offices use Korean as their primary language. However, that depends on the type of
company. Some multi-national companies may use a mix of Korean, English, and other
languages. These days, it is usually a requirement for Korean applicants to have TOEIC score to
demonstrate their English abilities. However, they may not actually need to use English in the
office.
Because of the hierarchical systems, you will probably notice Koreans using honorifics at the
office.
Team Environment
In order to keep the team environment as close to family as possible, the company will also often
have group dinners. In other words, on occasion the team will leave the office together to go have
dinner, drinks, and possibly even a karaoke session. This part of Korean work culture is also
highly dependent on the company and the team. Some teams may enforce this activity several
times a week, while others do it less than once a month or even just once a year.
Emiratis (Dubai) Work Environment
Working days
The working week goes from Sunday to Thursday while Friday and Saturday are rest days. In the
Arabic culture, Friday is the day for special prayers and family gathering. During Ramadan,
working hours are shortened by two or three, depending on the organization.
Language
The traditional language in Dubai is Arabic, however, English is well accepted and quite
widespread. You can even find road signs, directions, building names, etc., in these two
languages: English and Arabic.
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Culture and religion
Nearly 80% of the UAE population are expats while the rest are local citizens. Emiratis are
traditionally conservative. Dubai is the most tolerant emirate thanks to its diversity of cultures and
beliefs - which is why a lot of expats choose to move there. Islam is the official religion in the UAE,
and it has a strong influence on laws, education, and daily routines.
Ramadan
All restaurants and cafes are usually closed during the day and open after sunset in the holy
month of Ramadan. To show respect to local culture and tradition, better to avoid drinking and
eating in public, especially if your colleagues are Muslim. It is a sign that you understand and
respect the culture of your host country. If you are planning meetings, it is better to schedule them
outside the prayer time and major Muslim holidays.
Dress code
You should really be careful with the professional dress code. It is conservative, and the clothes
should cover arms and legs for both men and women. Avoid flashy colors at work.
Punctuality
In the Arab world punctuality is not a significant factor. Sometimes you could keep waiting long
hours for someone to turn out. However, it is less a lack of respect and more an aspect of the
Arab culture.
Inshallah
'Inshallah', is a term that you will hear most of the time, regardless of the circumstances, which
basically means 'If God will'. So, don't be surprised to hear it from your colleagues and even your
employer.
Phone calls
Doing business in Dubai like in the rest of the UAE requires a lot of patience. Other guests or
telephone conversations might interrupt meetings, but again this is not a sign of disrespect.
General behavior
Even though Dubai is a multicultural city, the way you approach men and women is very different.
Adopting the right behavior is essential. Unlike in Western countries, men cannot shake hands
with women. Men are advised to avoid having eye contact with Arab women as it can be
misunderstood and mistaken for flirting. It is always useful to learn about different cultures and
behaviors, especially when you are doing business in a multinational environment.
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Saying no
An Arab does not say no to your face, so you might consider the meeting positive and successful,
but you will never know what is on your business partner's mind - which is why a follow up is
essential.
World’s Best Workplaces
The World’s Best Multinational Workplaces list, compiled each year by Fortune research partner
Great Place to Work, is based on surveys of employees working for companies with offices around
the globe.
Here’s the top 10 World’s Best Workplace
1. Cisco
Company Info
Headquarters United States
Countries Where the Argentina, Australia, Brazil, Costa Rica, Canada, China ,
Company Was Colombia, Germany, India, Ireland, Italy, Korea, Mexico,
Recognized on a GPTW Nigeria, Peru, Poland, Portugal, Singapore, Spain, UAE,
National List United Kingdom, United States
Number of Countries 22
Industry Information Technology
Employees (Worldwide) 72,094
Web Address https://www.cisco.com
2. Hilton
Countries Where the Australia, Brazil, Canada, China, Colombia, Germany,

Company Was India, Italy, Mexico, Peru, Kingdom o f Saudi Arabia, The
Recognized on a Netherlands, Turkey, UAE, United Kingdom, United States
GPTW National List
Industry Hospitality
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Employees 165,804
(Worldwide)
Web Address https://www.hilton.com/en/corporate/
3. Salesforce
Countries Where the Australia, Canada, France, Germany, India,

Company Was Recognized Ireland, Japan, Singapore, The Netherlands, United
on a GPTW National List Kingdom, United States
Web Address http://www.salesforce.com
4. DHL Express
Headquarters Germany
Countries Where the Argentina, Australia, Austria, Bolivia, Brazil, Chile, China,
Company Was Colombia, Costa Rica, Denmark, Ecuador, El Salvador,
Recognized on a France, Greece, Guatemala, Honduras, India, Ireland,
GPTW National List Japan, Korea, Mexico, Nicaragua, Norway, Panama,
Paraguay, Peru, Rep Dominicana, Kingdom of Saudi
Arabia, Singapore, Sri Lanka, Switzerland, UAE, Uruguay
Industry Transportation
Employees 99,597
(Worldwide)
Web Address https://www.dhl.com/en.html
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5. Mars, Incorporated
Countries Where the Argentina, Australia, Austria, Belgium, Brazil, China,

Company Was Denmark, Finland, France, India, Ireland, Italy(2),
Recognized on a Japan, Korea, Norway, Portugal, Spain , Switzerland,
GPTW National List United Kingdom, Una sola operaci?n regional
Centroam_rica y Caribe, United States,
Industry Manufacturing & Production
Employees 68,025
(Worldwide)
Web Address https://www.mars.com
6. SAP SE
Headquarters Germany
Countries Where the Argentina, Australia, Brazil, Costa Rica, Canada,

Company Was Recognized Chile, China, Colombia, France, India, Ireland,
on a GPTW National List Japan, Korea, Peru, Singapore, United King dom,
United States
Web Address http://www.sap.com
7. EY
Headquarters UK
Countries Where the Austria, Belgium, Canada, China, France, India, Ireland,
Company Was Recognized Korea, Mexico, Paraguay, Poland, Portugal, United
on a GPTW National List Kingdom, Una sola operaci?n regional Centroam?rica y
Caribe, United States
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Industry Professional Services
Web Address -
8. Stryker Corporation
Countries Where the Australia, Brazil, Canada, China, France, Italy, Japan,
Company Was Korea, Mexico, Singapore, Spain, Un ited Kingdom,
Recognized on a GPTW United States
National List
Industry Health Care
Employees 30,808
(Worldwide)
Web Address https://www.stryker.com/us/en/index.html
9. SAS
Countries Where the Australia, Austria, Belgium, Canada, France,

Company Was Germany, India, Ireland, Italy, Japan, Poland,
Recognized on a GPTW Portugal, Kingdom of Saudi Arabia, Spain,
National List Switzerland, The Netherlands, United Kingdom,
United States
Web Address http://www.sas.com/
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10. Workday
Countries Where the Company Was Germany, Ireland, Sweden, United

Recognized on a GPTW National List Kingdom, United States
Web Address http://www.workday.com/
Assessment:
Answer the following questions in one sheet of yellow pad paper.
1. Select at least three countries where you like most to work for based on your readings.
State the reason why do you want to work in those countries.
2. Describe punctuality in different countries, namely; United States, Japan and Philippines.
WEEK 14-15: INTERNATIONAL BUSINESS ETHICS
Learning Outcomes:
1. Discuss the importance of learning international business ethics of other countries.

2. Practice some business ethics of other countries to be able to apply in the future career.
3. Distinguished the business etiquette practice in five major countries of the world.
Course Materials:
What are International Business Ethics?
The importance of international business ethics has been rising steadily along with the growth of
international business. Technologies like the Internet have made international business even
more viable, and many companies can only find the desirable growth and profit they seek by
expanding into new markets. This means that just as business ethics domestically have grown in
importance along with the power and significance of major businesses, so must international
business ethics take canter stage as a major concern of the modern era.
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Business Etiquette from Around the World
Etiquette is a code of behavior for social interactions according to contemporary conventional

norms within a society or group. We all know that because we have been raised so by our parents,
and then learned more of them in the many years of school. Basic stuff that is familiar to everybody
(even though not everybody chooses to apply it), but have you ever thought what the normal
etiquette is in other countries? How different or similar they are?
The current economy encourages a multicultural workplace, and having strong knowledge of
business etiquette can differentiate you from others in a competitive job market or simply enable
you to be more confident in a variety of situations when you engage with foreign people.
Manners from around the World
Being polite and having good manners might seem easy: When someone does something nice,
you say “thank you,” right? As it turns out, that all depends on your location. Good manners,
etiquette, and what it means to be polite are different all over the world. And doing business—
especially providing customer service—in a world brought closer together by technology can be
a daunting task when the manners of other countries are unknowns. What's customary, good
manners and etiquette in one culture might be rude manners in another. For example, hugging
etiquette in America is considered an uncommon manner in China.
One thing is certain: you need to treat people with respect. We hope this infographic will allow
you to do just that, by helping teach you how to navigate the world of global behaviors, manners,
and social etiquette.
But be warned, even within many countries, manners will differ from region to region,
neighborhood to neighborhood, and person to person. Always do plenty of research when
traveling abroad or interacting with customers in countries outside of your own. Otherwise, it is
easy to come across as someone with bad manners and bad behavior.
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Here is some of Global Manners
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Business Etiquette in Five Major Countries (United States, Japan, China, Korea, Dubai)
Argentina
What to do:
▪ A simple handshake and a smile are enough for the first interaction.
▪ Maintaining eye contact shows interest.
▪ Be punctual but be prepared to wait for a little for your counterpart.
▪ If receiving a gift, open it immediately.
▪ If offering a gift, a bottle of imported spirits is always a good idea.
What to avoid:
▪ Pouring wine backhanded is considered impolite.

▪ Do not start eating before the host invites you to do so.
▪ Avoid direct confrontation.
▪ Wait for a toast to be completed before you take the first sip.
Japan
What to do:
▪ Both men and women should dress conservatively.

▪ Showing that you know to use the chopsticks at dinner will impress your Japanese
counterparts.
▪ Always show respect to the elderly person in the room.
▪ Because they avoid saying “no”, be sure to phrase your question in such a way that they
can reply with “yes”.
What to avoid:
▪ Never raise your voice or get too confrontational during negotiations.

▪ If you want to give a gift of any sort, be sure to avoid the number 9.
▪ The Japanese non-verbal communication is a big part of their culture, so be sure to pay
attention to your gestures and facial expressions.
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China
What to do:
▪ Be punctual or arrive a little early if you are the guest.

▪ Present and receive cards or gifts with both hands.
▪ Do not point with your finger, instead use your open palm.
▪ Wear dark colored, conservative suits.
▪ The Chinese are born negotiators, so be sure that your starting price leaves room for
negotiation.
What to avoid:
▪ Wearing jeans, they are not acceptable for business meetings.

▪ Women should avoid wearing heels and dresses with a low neckline – the Chinese do not
approve of women who show too much skin.
▪ Do not write on someone’s card unless so directed.
▪ If drinks or food are offered by the host, be sure to accept it; it is rude to refuse them.
South Korea
What to do:
▪ Prepare before meeting a South Korean as there is a strict protocol to be followed as

greeting.
▪ If you don’t have a personal connection with the one you’re doing business, it is a must to
get introduced by a third-party.
▪ Plan the appointments with 3-4 weeks in advance.
▪ Be direct and concise when answering questions as, when it comes to communication,
“less is more” in their culture.
What to avoid:
▪ For a South Korean, the business card is an important indicator of how will treat the person
so do not write on somebody’s business card in their presence.
▪ Avoid raising questions that do not require a direct response as they tend to reply with only
“yes” to questions.
▪ Do not remove your jacket unless the most senior South Korean does so.
▪ Do not give a gift that is more expensive then what they could afford to give you.
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Dubai
What to do:
▪ Appointments should be made several weeks in advance as a sign of respect and morning
meetings are generally preferred.
▪ Business meetings can take place in offices, but they can often be informal and take place
in restaurants or cafés.
▪ Offering a coffee or tea before the meeting starts is recommended.
▪ Punctuality is essential. In Dubai, punctuality is considered a sign of respect.
▪ Handshakes with Arab clients should be gentle and not firm or dominant.
What to avoid:
▪ Do not wear open clothes (including open shoes) – shoulders, arms, and legs must be
covered.
▪ Welcoming a Muslim woman, one should refrain from anybody contact. As for women,
when greeting a Muslim man, you should not hold out your hand – wait until a man gives
you his hand first, and if that does not happen, you should refrain from trying to shake his
hand.
▪ You should not refuse from extra servings during lunch, as this is considered impolite.
Assessment:
Quiz: Answer the following question in one whole sheet of yellow pad paper.
1. Aside from five (5) major countries mentioned above, what may be the sixth country you should
consider for expansion. Cite at least three (3) major reasons why.
2. Select a country where you want to work for and discuss the business etiquette practice in that
country.
WEEK 16-17 INTERNATIONAL CAREER OPPORTUNITIES
Learning Outcomes:
At the end of the lessons students should be able to :
1. Develop skills that students will qualify to work abroad;

2. Plan for their future international career as an Administrative Professionals;
3. Prepare themselves working in a multinational company.
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Course Materials:
International Career
An international job can mean working in a country abroad, working for an international company
in the United States or working in a job that requires global travel. If you are considering an
international career, you should ask yourself some questions first:
Why are you interested in an international career?
Consider your answer to this question carefully. Not only will it help guide your job search, it will
also prepare you for the interview process. Ask yourself:
• What is my purpose for wanting to go abroad? (travel, new experience, build a career)
• What do I rate as most important? (job, location, pay)
• Why am I drawn to an international career? (emphasize the positives)
• What do I hope to achieve?
What skills do you have?
Communicate your value to prospective employers by emphasizing the skills you bring to the
table. Hiring an employee from a foreign country can be a considerable risk for any organization,
so it is important to demonstrate your value and commitment. Some helpful skills and personality
traits may include:
• Technical skills in engineering or computer science

• Experience working in cross-cultural environments
• Fluency in multiple languages
• An adventurous spirit
• Interest in learning new things
• Demonstrated initiative and drive
• Flexibility, adaptability, and tenacity
Working for a Multinational Company
A multinational corporation is an agency which owns assets in at least one country other than its
domestic market. Anything of value qualifies for this label, ranging from a partnership, office
space, or retail product. The only stipulation is that there must be something owned (not leased)
in 2+ countries to qualify. A partnership could also transform a company into a multinational
corporation under certain circumstances.
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The nature of the multinational corporation is that it runs through a centralized hierarchy that
focuses on the primary office in its home nation. Each office, product, or contract receives direct,
local support from the organization to create revenues, but those who manage the foreign markets
must still report to the C-Suite of the firm – which could be half of a world away.
This structure is what makes a multinational corporation different, by definition, from a

transnational organization. The latter allows each market to operate independently from every
other one – making it more like a DBA rather than a true satellite from the central office.
A. Advantages
1. Multinational corporations are often responsible for today’s best practices.
Most multinational corporates rely on merchants and distributors for their goods and services.
Some even use these third-party entities to create additional sales opportunities. Because of their
global presence and overall sizes, these organizations use leverage with their associates to
produce a required action for each customer.
If the vendor fails to do so, then the multinational corporation can move to a different supplier
immediately. This practice directly eliminates some distribution businesses overseas with a single
decision, which is why this structure creates competences of scale that keep prices down while
still ensuring reasonably excellent product quality.
2. Innovation happens because of the investments made by multinational corporations.
Most multinational corporations spend about 5%-10% of their yearly budget on innovative
research and development projects. Most of the firms that invest richly into R&D are the
organizations who are on the Fortune Global 500 list consistently.
Only two companies, Stanley Black and Decker and Apple, qualify as high-leverage innovators
because of their investments today. The world’s largest spenders increased their investments by
11.4% in 2018 to total almost $800 billion. Without these investments, the world would be a very
different place.
3. The world has more cultural awareness because of multinational corporations.
When an organization decides to expand to a foreign market, then they are presented with brand-
new sociological certainties. Multinational companies are amazingly diverse, giving them
additional power because of this diversity. The current marketplace requires agencies to know
what the pain points of the local market are before it becomes possible to create products or
services for them.
When each person expands their reasoning to include new viewpoints, the planet becomes a
healthier place because of that action. These organizations provide a resolute influence on cross-
culture information when this advantage becomes a prime preference for them.
4. Multinational companies focus on consistency for the consumer.
Multinational companies work from centralized structures. That means there is a fundamental
expectation that every asset will look and function as every other item does. Even though a
company in China serves different products than one in Canada, the core ethics and values of
the corporation are still displayed for all to see.
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You will see similar designs, ordering procedures, and best practices implemented at all managed
locations for a multinational company. Customers believe in these institutions because they
realize what the value proposition is before they ever spend any money with that brand. This
advantage works the same way for every business which excels because of their status in
different markets.
5. Diversification becomes possible because of multinational corporations.
Most populations, developing nations, and marketplaces depend on a set of core products for
their survival. Most of the items tend to link up with agriculture-based industries, such as farming.
Multinational companies offer these economies more variety in product and price choice, which
creates another layer of diversity for the local consumer. This advantage reduces their reliance
on materials that often have volatile pricing structures due to their supply and demand levels
frequently changing – sometimes daily.
B. Disadvantages
1. Multinational corporations can use their structure to form monopolistic markets.
Most countries treat the assets of a multinational corporation as an independent structure, like a
transnational company, instead of looking at the hierarchy of the business for what it tends to be.
This disadvantage allows each firm to have more flexibility in how they handle the local
marketplace with their presence. Global monopolies do not currently exist, by firms like Alphabet,
Illumina, and Broadridge all manage a 50% share or more of their industry.
When these structures are present and treated in this way, then the benefits of scale allow the
multinational corporation to price everyone out of the market. There might still be local
competition, but the average consumer will work with the cheapest offer whenever if provides a
similar amount of value for them.
2. Because of their size, multinational corporations put SMEs out of business.
Did you know that 9 out of 10 companies will eventually fail? The most critical time for any small
business is during the first five years of operation. About one-third typically fail in their first 12
months of existence. One of the contributing factors to this problem is the size and scale of
multinational corporations. Bigger companies can produce larger bulk orders, which means they
can see a per-unit price savings when compared to SMBs and SMEs.
“Multinational corporations do control,” said California Governor Jerry Brown. “They control the
politicians. They control the media. They control the pattern of consumption, entertainment, and
thinking. They’re destroying the planet and laying the foundation for violent outbursts and racial
division.”
3. Multinational corporations often take advantage of the international standard of living.
Many states in the U.S. are approaching or exceeding $12 per hour for their minimum wage.
Several of the 2020 Presidential candidates for the Democratic party are pushing for a $15 per
hour minimum wage. The goal of this legislation is to provide a “living salary’ for workers who are
putting in full-time hours to support their families, but it is also an effort that encourages more
offshoring.
Did you know that the minimum wage in China is the equivalent of less than $1 per hour? Some
African countries have a minimum wage that pays workers less than a nickel per hour for the work
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that they do. If a multinational company can transfer hundreds of jobs and save $10 per hour in
wages without a harmful drop in quality, then that cost savings can go straight into their budget
and the pockets of their C-Suite.
4. Political corruption typically rises with the influence of a multinational corporation.
“The multinational corporations are now developing budgets that are often bigger than medium-
sizes countries,” said Paddy Ashdown, a British diplomat and politician who served as the leader
of the Liberal Democrats for over a decade. “These live in a global space which is largely
unregulated, not subject to the rule of law, and in which people may act free of constraint.”
Legal lobbying is a multi-billion-dollar industry, even if you were to only take the spending that
happens in the United States. According to data published by Open Secrets, the U.S. Chamber
of Commerce spent $94.8 million on lobbying efforts in 2018. The National Association of Realtors
spent $72.8 million, while the Pharmaceutical Research and Manufacturers of America spent
$27.9 million. When you add in the under-the-table deals that happen internationally, corruption
occurs because companies have the power of the purse.
5. Multinational corporations can cause harm to the environment.
Most developing countries do not have the same level of regulation and oversight that the
developed world maintains to protect the environment. When these firms decide to do business
in the international market, they are subject to local laws – not the ones that govern their domestic
headquarters – when working to obtain raw materials.
Smaller, less developed governments often trade an increase in revenues for access to their
natural resources. The lower standards create better pricing structures for each customer, but it
also creates environmental damage that could have future generations paying the price for
today’s decisions. Some nations even trade in recycled materials and trash, which can place even
more stress on local resources.
Working with a Foreign Nationals/Impress your Foreign Boss-Harvard Business Review
Impress Your Foreign Boss
by Andy Molinsky
Enrique Llamas could not believe what he was hearing. Lacking confidence? Not a team player?
Not willing to contribute to group discussions? Enrique had thought he was all those things. So
why did he receive such a negative performance evaluation? Enrique felt hurt by the news and
wanted to figure out where things could have gone wrong.
Enrique had started his job as a consultant at a firm in Houston, Texas, a few months earlier and
was very keen on making a positive impression with his superiors. But this was Enrique’s first
experience working abroad, and he was not entirely sure how to do that. In Mexico, where Enrique
was from, he knew exactly what to do. To succeed, a young consultant should get along with
others, do good work, and respect his boss. Enrique figured that the same things mattered in the
U.S., so that is what he did. He worked long hours and made sure that his work was top quality.
Interestingly, that did not seem to be a problem in his performance review.
What was a problem, however, was the fact that he was not a “team player” and was “unwilling
to contribute in team discussions.” That was only partially true, Enrique thought. With peers, he
was quite willing and able to participate, but when his boss and his boss’s boss were in the room,
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Enrique did what he would have done in Mexico: let his superiors guide the meeting and be
available to help or contribute if asked. Enrique was very concerned about this negative evaluation
and was also highly motivated to succeed. What could he do to improve things going forward?
If you think that it’s hard to impress your boss in your native culture, imagine what it’s like in a
different culture where the way you’d naturally make a positive impression falls flat. That was
certainly the case for Enrique and is also the case for hundreds of thousands of professionals in
the world who work for bosses with very different expectations for how to make a positive
impression. Consider, for example, the case of an employee from China working for a Brazilian
manager in Brazil. In China, employees are typically valued for their formality, reserve, and self-
control, but in Brazil, it would be close to the opposite. The Brazilian professional culture is quite
informal and emotionally expressive. People will typically call each other by their first name at
work and often by their nicknames. This is true with colleagues and even with bosses. In many
Brazilian companies, there is little formal protocol, and the atmosphere is light and casual, often
with a great deal of joking among colleagues. So, imagine someone from China trying to get to
know and ultimately impress her Brazilian boss — and how challenging it might be to make this
switch.
So how do you impress a foreign boss? The good news is that you start with what you’d typically
do in your native culture: do great work, show loyalty to your boss and to the organization, and
help your boss accomplish his or her professional goals. The challenging part, however, is that
the way in which you accomplish each of these tasks can vary quite significantly across cultures.
For example, “doing great work” in some cultures can mean listening carefully to what your boss
tells you to do and then performing a given task in a very precise and accurate manner. In other
cultures, it might mean something completely different, like taking the initiative, volunteering for
assignments, thinking outside of the box, and being an independent producer that your boss can
always count on. You can see how these different images of effectiveness can be in great conflict.
So, the first key piece of advice when trying to impress a foreign boss is to step outside of your
own cultural comfort zone and work hard to learn how to impress in the local context you’re in.
The second piece of advice is to get to know your boss. Not all foreign bosses are the same. That
should be obvious, but it is something people often overlook in a foreign culture because they are
blinded by the most obvious difference — national culture — when the reality is that many other
differences matter as well. For example, regional culture can play an important role in determining
your boss’s expectations. What impresses in Manhattan may not necessarily impress in Sioux
City, Iowa. Industry culture matters as well. What impresses at Morgan Stanley might not
necessarily impress at Facebook or Caterpillar, or at that small advertising agency down the road.
Finally, personal experience also matters a great deal in determining a boss’s expectations.
Imagine two American bosses: one, a “local” who grew up in the United States, speaks only
English, and who has spent his entire career working for American companies; and the second,
a “cosmopolitan,” who lived and worked for a decade in Asia, and possesses a strong working
knowledge of Mandarin. Do you think these two would necessarily have the same expectations
of a foreign-born worker trying to impress?
When impressing a foreign boss, the devil is in the details. Don’t underestimate cultural
differences, but also don’t be blinded by them. Consult with colleagues, find a cultural mentor,
and do your own careful observations. In short, customize to your context, and your work will pay
dividends in any cultural environment.
Page 79
Preparing for a Career in International Business
No matter where your career takes you, you will not be able to avoid the reality and reach of
international business. We are all involved in it. Some readers may want to venture more seriously
into this exciting arena. The career opportunities are exciting and challenging but taking the best
advantage of them requires some early planning. Here are some hints.
Plan Your Undergraduate Education
Many colleges and universities offer strong majors in international business, and this course of
study can be good preparation for a global career. In planning your education, remember the
following:
• Develop real expertise in one of the basic areas of business. Most companies will hire you as
much for your skill and knowledge in accounting, finance, information systems, marketing, or
management as for your background in the study of international business. Take courses in both
areas.
• Develop your knowledge of international politics, economics, and culture. Take liberal arts
courses that focus on parts of the world that especially interest you. Courses in history,
government, and the social sciences offer a wealth of knowledge about other nations and cultures
that is relevant to success in international business.
• Develop foreign-language skills. If you studied a language in high school, keep up with it. Improve
your reading or conversational skills. Or start a new language in college. Recall that your
competition in the global marketplace is not just other Americans, but also individuals from
countries, such as Belgium, where everyone is fluent in at least two (and usually three) languages.
Lack of foreign-language skills often proves to be a disadvantage for many Americans in
international business.
Get Some Direct Experience
Take advantage of study-abroad opportunities, whether offered on your campus or by another

college. There are literally hundreds of such opportunities, and your interest in international
business will be received much more seriously if you have spent some time abroad. (As a bonus,
you will probably find it an enjoyable, horizon-expanding experience, as well.)
Interact with People from Other Cultures
Finally, whenever you can, learn about the habits and traits of other cultures, and practice
interacting with the people to whom they belong. Go to the trouble to meet international students
on your campus and get to know them. Learn about their cultures and values and tell them about
yours. You may initially be uncomfortable or confused in such intercultural exchanges, but you
will find them great learning experiences. By picking up on the details, you will avoid embarrassing
mistakes later and even earn the approval of acquaintances from abroad.
Whether you are committed to a career in global business, curious about the international scene,
or simply a consumer of worldwide products and services, you cannot avoid the effects of
globalization. Granted, the experience can be frustrating, maybe even troubling at times. More
often, however, it is likely to be stimulating and full of opportunities.
Page 80
A. Essential Tips for Landing a Job Overseas
1. Develop a Job-Search Strategy
The first thing you need to do is develop an overall job-search strategy. It is imperative that you
develop a plan for finding employment because if you do not, your job-search experience will
likely lead to frustrations and missed opportunities.
In terms of the types of companies, determine whether you are interested in public or private
firms; domestic, foreign, or international (global) firms. You should also consider what type of
corporate culture you are seeking.
Tracking down job leads involves developing a strategy for how much you will use the various
job-search tools:
• Networking (with members of professional organizations, alumni, former supervisors and co-
workers, family, friends, etc.)
• Cold-Calling (direct mail campaign to selected companies)
• Corporate Websites (using company career centers of selected firms to search for openings)
• Job Sites (including general job sites and international job sites)
• Foreign Newspapers and Trade Journals
• Recruiters (both by discipline and by geographic location)
• Government Sources (including governmental agencies, embassies, trade offices)
• International Job Fairs
2. Determine What Jobs You Want to Pursue Overseas
One of the biggest problems we see with inexperienced jobseekers is having no real focus in their
job-search. They know they want an "international" job that involves travel, excitement, and
foreign cultures, but have no real sense of job titles or requirements. Where to begin?
If you know the job you are seeking, skip to the next section.
• First, go back and examine why you are interested in an overseas job.
• Second, review the college courses you have completed and develop a list of skills you've
mastered.
• Third, assess your accomplishments from various work and volunteer experiences.
Fourth, analyze the results of the first three steps and see if you can develop a profile of the types
of jobs that interest you and that you are qualified for. Be specific.
3. Research Potential Jobs, Companies, and Countries
In this step, consider building a spreadsheet that contains all the information you need to know,
including job titles, skills and experience required, company name and location, and citizenship
or work eligibility requirements. Focus your efforts on domestic and foreign companies as well as
Page 81
global conglomerates. Realize that one of the best methods of securing an international position
is first working for a company in your native country -- and building your reputation and skills --
before seeking a transfer to a branch office or division in a different country.
4. Develop/Polish/Acquire Key Job/Language Skills
Once you have completed your research, you should have a clear understanding of whether you
have all the skills you need for the jobs you seek. Studies show that the three key items global
employers desire from jobseekers are: technical knowledge in your field, cross-cultural
adaptability and language fluency skills, and prior work experience. If you feel you are weak or
lacking in a certain area, now is the time to get the education/training you need.
If you are still in school, see if your college or university offers the coursework you need;
otherwise, consider colleges in your local area or distance-education programs. You can find
more in our College Planning Resources section.
5. Prepare Job-Search Correspondence
As with any kind of job search, your job-search correspondence is critically important; perhaps
even more so because of the regional differences in resumes and curriculum vitas (CV).
First, your cover letter. Remember the key rules of any cover letter:
• Address the letter to a named individual (the hiring manager ideally)

• Write an enticing and attention-grabbing first paragraph explaining why you are writing
• Relate how your mix of skills, accomplishments, and education matches the employer's needs
• End the letter proactively by asking for an interview
6. Build and Use Your Network of Contacts -- Locally and Internationally
While networking is important for job-hunting in your home country, it is crucial in the global job-
search. Take advantage of all networking sources, especially college alumni and professional
organizations. People in your network can not only help you by alerting you to job leads, but can
also help you with developing additional contacts, understanding the economics and culture of
the country where they reside, and other key background information that may be helpful in your
job-search.
7. Prepare for the Global Job Interview
Most of your initial job (screening) interviews will probably be conducted in a non-personal
medium e.g. email, telephone, or video conferencing. You need to prepare not only for dealing
with these specific types of interviewing methods, but also be confident in your language skills.
While you need to be prepared for the challenges you face with these interviews -- showing
enthusiasm and confidence -- stay focused on the point that if these companies were not willing
to do unconventional interviews, you wouldn't have much of a chance for a global job.
As with any job interview, the key for your success is preparation and practice. Whatever the
medium of the interview, you still need to articulate how your unique mix of accomplishments,
skills, and education make you an ideal candidate for the position... and you still need to show
your knowledge of the company as well as ask questions.
Page 82
Resources that can help you prepare:
• Job Interview Tutorial

• Job Interview Questions Database with Practice Interviews
• Phone Interview Etiquette Can Propel You to the Next Step in the Hiring Process
8. Follow-Up All Job Leads
It is essential -- for your job-search success -- to make the effort to follow-up ALL job leads... do
not let any potential jobs slip through your hands. Make phone calls and send e-mails to all your
prospective employers and inquire about the status of the job openings. You must be a bit more
assertive in your follow-up but be careful of sounding too aggressive. Again, know the culture of
the country. And be sure to send thank-you notes after all interviews and other contacts.
Finally, remember that it is better to err on the side of seeming too aggressive in your follow-up
then to not follow-up at all.
9. Consider Obtaining a Graduate Degree
Consider attending graduate school -- either a top-ranked school in your home country or a
graduate school in the country/region where you want to work. Whether it is an MBA with a
specialty in international business or a graduate degree in international affairs, be sure to do your
homework on the best programs to fit your needs and goals.
10. Contemplate Going/Moving Abroad
In job-hunting, nothing beats meeting with prospective employers face-to-face. If you have the
resources, consider traveling or moving to the country or region where you want to work. Once
there, meet with potential employers and consider volunteering, interning, or other work
alternatives while you continue to search for that ideal position.
B. Preparing for Working abroad and Moving Abroad
So, you have decided to work abroad and are now in the planning stages of your big move.
Congratulations! Working and living abroad is always an enriching experience and you have a lot
to look forward to. But, before you book your plane ticket and pack your bags, there are quite a
few things you will need to prepare for before you can head out on your adventure.
1. Find the right work abroad program
If you haven’t lined up a job yet, the most important task is finding the right work abroad
program for you. There are opportunities in so many different fields. You could get a working
holiday visa, teach abroad, become an au pair, work on farms, or apply for more traditional jobs.
Allow yourself enough time for this process, so you can find the perfect fit and complete all your
applications.
2. Research your destination
This might go without saying, but before moving to work abroad, take some time to research your
destination. This research will help you every step of the way, as being well informed will help you
Page 83
to be more relaxed during the rest of the process. Find out about the culture, customs of your
future home and learn some interesting facts.
Good old travel guidebooks are a great start to get an overview. You could also talk to people you
know who have spent time in your chosen country, as the first-hand experience is invaluable.
3. Save up a “Buffer Fund” for when you arrive
One of the best parts of moving abroad to work is that you are essentially getting paid to travel.
However, this does not mean you do not need to save up before your move. It is important to
save up a “Buffer Fund” to help you out during the first few months.
There are always costs involved with moving abroad. In addition to travel costs, you will likely
need to pay for at least one month’s rent and a security deposit upfront. You might also have to
buy a few things that your new house is lacking in, such as furniture. In many jobs, you may also
have to wait a month or more for your first paycheck to arrive. Therefore, make sure you find out
when you will get paid and save up enough to bridge the gap. Of course, there are always ways
to be savvy with the money you do have, to make it stretch further.
4. Look for housing
This might not be relevant to everyone, as some work abroad programs offer housing as part of
the package. But if you must find your own accommodation, make sure you have got at least a
few nights booked in a hotel when you arrive so that you can take your time to go apartment
hunting.
5. Make a bucket list
While everyone has different reasons for wanting to move and work abroad, travel is usually a
major one. You’ll be wanting to explore your new home country and city as much as possible and
it can be really helpful to make a list of all the places you want to visit, the food you want to try
and the activities you’d like to experience. That way, you will avoid leaving everything to the end
of your stay and then scrambling to find the time to sightsee.
6. Take care of business at home
Unfortunately, moving abroad is not quite as straightforward as packing your flip flops and jumping
on a plane. Besides preparing for your new destination, you will also need to take care of business
in your home country.
Make sure you understand the bureaucratic processes involved in moving. Do you need to de-
register? Should you notify your embassy (some countries recommend this)? Do you need to
notify your bank or insurance company? Depending on whether you are subletting or giving up
your house or apartment, make sure you take care of utility bills. Do you need to store or sell your
car and cancel or downgrade your car insurance?
Also, do not forget about those pesky smaller costs, like subscriptions and gym memberships.
These can be easily cancelled, but you can easily find yourself in trouble if, for example, you close
your bank account without cancelling direct deposits and standing orders first. You should also
arrange to reroute your mail to family or friends or use a mail forwarding service to take care of
this for you.
Page 84
7. Storage or selling
This comes down to how much stuff you own and whether you are keeping your property or
planning to take everything with you. A move abroad is a great time to go through all your
belongings and downsize. Decluttering is incredibly freeing, and you will be thankful to have fewer
things to worry about. Long-term storage is available in nearly all cities and is quite affordable.
8. Packing
You might think that packing is one of the last tasks you would need to worry about, but a lack of
preparation can easily lead to a lot of headaches and panic packing before your big move. Make
sure you plan what you want to take with you, how much luggage you will travel with and consider
mailing a box or two of your things in advance so you don’t have to worry about checking multiple
suitcases. The general rule when packing for any trip, no matter whether long-term or for a
weekend, is to lay out everything you want to bring and then halve it. If you are not moving to an
extremely remote corner of the planet, you can probably buy almost anything you need, or forgot,
in your new home. One exception to this rule is prescription medicines.
9. Prepare for culture shock
No matter how well prepared you are before your trip, moving to a foreign country always means
experiencing a bit of a culture shock. After the initial excitement has worn off, you’ll likely start
feeling how different everything is and maybe even get a little homesick.
It is completely normal, and you should not feel bad about it or let this discourage you. Many
people change their minds and move home because they are not prepared for this. But, if you
know this is just part of the process, you can get through it and enjoy your adventure again.
Try to keep exploring and enjoy yourself as much as possible. Go on weekend trips, meet other
expats at meetups and tick items off your bucket list.
10. Learn a bit of the language
If you move to a country where you do not speak the language, it’s a great idea to get a head start
before you leave home. Try to at least learn the basics and consider taking a crash course to
make you feel more comfortable when you arrive. Speaking a bit of the language already is
another great way to prevent culture shock.
Assessment:
Answer the following questions. Write your answer in one sheet of yellow pad paper.
1. What are other rewards of working abroad aside from financial benefits.
2. What are the disadvantages of working abroad?
Page 85
WEEK 18 - FINAL EXAMINATION
Instruction: Please answer each questions; briefly and concise. 10pts. Each Maximum of 2
page short bond paper.
1. What are the different areas of cooperation and it’s implication to the economies of the
ASEAN member countries?
2. What are the opportunities and challenges brought by ASEAN integration?
3. Cite at least two (2) Business Etiquette from around the world whom you admire the most
and why?
4. Do you consider working abroad? Why?
5. What are the things you need to prepare to land a job in abroad?
Page 86
Course Grading System
Class standing 70%
• Quizzes
• Attendance
• Recitation
• Projects/Assignment/Seatwork/Special Report
Midterm / Final Exam 30%
100%
Midterm Grade + Final Term Grade = FINAL GRADE
GOD BLESS YOU AND KEEP SAFE ALWAYS!
Page 87
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Polytechnic University of the Philippines

College of Business Administration

MA. LOLITA V. ABECIA, MBE

JULIUS C. SABANDO, MBA

Welcome to the International Studies in Business course. The International Studies in

Questions, suggestions, comments and feedback matter. The teacher/adviser may be

INTERNATIONAL STUDIES IN BUSINESS

BUMA 20063 – INTERNATIONAL STUDIES IN BUSINESS

At the end of the course, the student should be able to:

1. Describe the aspects of international business and its operations;

6. Familiarize with Asian cultures that makes profitable business internationally;

7. Explore international career opportunities for Administrative Professionals;

At the end of the lessons, students should be able to:

As a state university, the Polytechnic University of the Philippines believes that:

Strategic Objective: 8-Point Agenda

1. Pursuing Academic Excellence through Disciplinal Integrity

BSOA JOB TARGETS LOCAL AND INTERNATIONAL

INTERNATIONAL JOB TARGETS

1. Entry Level Jobs 1. Court Reporter

• Clerk/Encoder • Canada C$43,895

Week 2: COURSE OVERVIEW

At the end of the lessons, student should be able to:

1. Describe organizations doing international business

Definition: International Business

To conduct business overseas, multinational companies need to bridge separate

"International business" is also defined as the study of the internationalization process of

Among modern economic theories of multinationals and foreign direct investment

Aspects of international business

An international businesses strategy, organization, and/or functional decisions categorize it as:

A multi-domestic company with independent subsidiaries that act as domestic firms; or

Global operations with integrated subsidiaries; or a combination of the two.

The Challenges and Considerations of International Business

International Business Aspects (Features)

Large scale Operations

The international markets lack homogeneity on account of differences in climate, language,

Dominated by developed countries and MNCs:

International business is dominated by developed countries and their multinational corporations

Beneficial to Participating Countries:

International Business increase competition in domestic markets and introduces new

Science and Technology:

The Removal of Trade Barriers and the Development of Trading of:

Different Politics and Different Currencies:

“International business also increases

Benefits of international business

WHY STUDY INTERNATIONAL BUSINESS?

Importance of studying international business

The international business standards focus on the following:

Importance of Language and cultural studies

• Having the ability to directly communicate with employees and customers

As a future administrative professional, is there a need to continuously update yourself

Week 3: DEVELOPMENT OF INTERNATIONAL BUSINESS

At the end of the lessons, students should be able to:

1. Discuss the developments of international business

2.1 The growth of international business

Factors that influence the growth of international business

1. Saturation of Domestic Markets

2. Opportunities in Foreign Markets

3. Availability of Low Cost Labor

7. Reduction of Trade Barriers

8. Development of communications and Technology