It also allows the countries best suited for such activities to flourish. For example, China is proficient in manufacturing which allows the country to export far more goods than it imports. Developed nations such as Europe, Canada, America, and to a smaller extent, Japan demand these cheaper goods as they import more than they export. This trade allows both parties to subsequently flourish. China can sell its products to generate addition funding to expand its economy while Canada and Europe have access to low costs goods and services (Dessler, 2006). With the advent of globalization, Chinese manufactures are better equipped to expand overseas to expand their manufacturing competitive advantage. This expansion allows lower cost goods and services to reach otherwise inaccessible areas of the world, thus increasing their standard of living. A shirt that once cost $15 now only costs $5. Society benefits as more dollars can be allocated to discretionary funds further boosting economic activity and subsequent prosperity. These savings are a direct result of free trade among nations with strong competitive advantages relative to their peer nations (Schwartz, 2010).
Finally, my reading highlighted the implications of culture on organizations ability to profit. A major issue currently effecting culture, population, and demographics is that of wealth inequality (George, 2009). As the global economic downturn continues throughout the world, wealth disparity is increasing rapidly. This as indicated in the interview with Michael Gregory, impacts the service demanded by society. The median income for the average American household was roughly $51,000 in 2008. Now the median income is roughly $48,000. Canada, thankfully, has only experienced a mild decline in income. Many of those being interviewed site the economy as a reason for many of their businesses being in trouble. Tom Ruth for instance, has said in his video interview that security is a major concern for his association....
This creates problems as families are less apt to spend money are discretionary activities that form the basis of their culture. Holiday spending, for example has yet to reach its 2007 heights. Families are now more frugal and as a result, certain activities that define a particular culture are being eliminated or postponed. All of this is creating a wealth disparity throughout the world that has never been seen since the great depression. Record levels of debt and unemployment combined with lower wages only contributes to this phenomenon. Dave Collins, VP of Wilson Fuels, according to his video interview, has even taken his company into the convenient store business as a result of the economy. Occupy Wall Street in America, China's economic slowdown, and Japan's 20-year stagnant growth; have affected both the population and the subsequent culture of those nations.
In conclusion, the aspects of globalization, culture, income inequality, and the macroeconomic environment are future issues that connect with my readings. Many of the interviewees, irrespective of their company's size were experiencing these issues. Many of them have altered the course of their companies, how they hire personnel, or even changed their leadership roles altogether. Each category however, is relevant to the continued success of their business franchises.
References
1) Dessler, G. (2006). Expanding into China? What Foreign Employers Should Know About Human Resource Management in China Today. S.A.M. Advanced Management Journal, 71(4), 11-23. Retrieved March 1, 2012, from ABI/INFORM Global database.
2) Fiedler, Fred E. (1967). A theory of leadership effectiveness. McGraw-Hill: Harper and Row Publishers Inc.
3) Schwartz, J., & Liakopoulos, a.. (2010, May). Talent and work: Playing to your strengths. China Staff, 16(5), 22-28. Retrieved March 1, 2012, from ABI/INFORM Global.
4) George, P. (2009, may 14).…
