In one of my first blogs, I mention how many of us work as or with Global Leaders. This term describes many of today’s leaders: those who are assigned to work abroad and become expatriates, those who deal with bosses from another country, and when we ourselves are integrated within a diverse group of peers, even in a remote manner. Also when we live cultural changes through mergers or acquisitions.
Everyday more of us join the ranks of Global Leadership as our work, products or services enter new markets or business reach. Even our Social Media (plain social or business oriented) expands to many corners of the world. We all have some type of contact with other cultures. Let’s review some of these new interactions.
Globalization: It Matters
In my previous blog I highlight the Importance of Global Dexterity, and how individuals and organizations increasingly interact with people from diverse cultural backgrounds. By developing global dexterity, we can build stronger, more inclusive relationships and effectively navigate cross-cultural interactions.
Global Dexterity’s list of competences is growing ever so fast. The Global Leader should understand three areas which affect today’s trends and challenges in the business environment: political, economic and cultural.
Many businesses, be it big or small, be it service, construction, education, or commerce, or any industry, have connections that are global in nature. Successful businesses need to understand how this dynamic affects them. So many jobs around the world are dependent on international trade today.
Global leaders are connectors across many countries, across corporations, and even across governments (such as the diplomatic corps). They build the bridges between cultural, economic, social and political boundaries. They are continuously finding new ways to create value and utilizing their understanding of cultural and institutional nuances.
We all are connected to the Global business
One must think of the whole process, not only how culture differences affect the way business transactions are completed.
Equally important as the relationships are the opportunities and risks associated with politics and economics of global trade. Just as some examples, one must consider:
- Where is the product designed? Which is the target market? What would a new ideal market be?
- Where is the product manufactured? Where would be a better or cheaper place?
- How and where is the product distributed (supply chain)? How could efficiency be improved?
- Where is there access to new pool of resources (human and material)?
There are very few large businesses today who can say they are “100 percent American or Chinese, owned and operated.” It’s now a Global World. If something works in one country, not necessarily does it work all over the world. That simply does not apply.
Connecting through Global Trade policies
As the world continuously expands free trade, cooperation is increased between countries. They have created regional custom and trade agreements and unions to facilitate economic interdependence. The most important are:
- The World Trade Organization (WTO) grew out of the General Agreement on Tariffs and Trade (GATT). It oversees the implementation and administration of agreements
- The World Bank is an international financial institution that provides loans for capital programs to developing countries
- The International Monetary Fund (IMF), formed by 190 member countries. The IMF works to foster global growth and economic stability by providing policy, advice, and financing to its members
- Global Trade Policies: Agreements among countries to reach trade advantages. There are four common types of trade agreements: regional trade agreements, custom unions, common markets, and economic unions
Politics and Economics could be the most complex elements of knowledge for the Global Leader, not easy, nonetheless very important.
We all need to be Global Leaders
As those who follow my blog know, my Executive Intercultural Coaching is principally focused on the dimensions of Cultural Differences and their effect on global business. As described above, it is one of the 3 elements of global dexterity. It is a particularly important for leaders to understand Cultural differences, motivate and communicate their use.
In my following blogs I will be continue covering these differences based on researcher Geert Hofstede’s studies, as well as on the Globe project, a newer and more vast study.
