Chapter 3

Globalization is the phenomenon of economic, social and cultural integration of geographic space on a world scale. It is characterized by the intensification of flows of capital, goods, people and information, provided by technical advances in communication and transport. Now considering globalization, it is yet another concept that needs no explanation. Globalization started as a trend a few decades ago, and it is now a reality. We find the same stores and brands all over the world, we communicate internationally and globally with a click and anywhere, we move with unparalleled ease and convenience and borders and differences have blurred and tend to blur each time. most. Naturally, each nation maintains its cultural identity, but the truth is that with labor migration and networking, we are making great strides towards global citizens, rather than citizens of a single nationality.

Globalization has a lot of influence on management because it not only opens new business opportunities but also encourages competition between companies. For example, for a handbag’s producer in the North of Italy it can be very important what happens to the markets in London or New York. At the same time, he will have to watch out for the actions of Chinese companies' competitors.

Thanks to globalization, managers can outsource processes to other parts of the world where production costs are lower. Sometimes this means that some people lose their jobs in one country so that others can get them in another, where they produce more, better and at lower costs. And this can be risky, as they can casually take advantage of cheaper labor and unfavorable working conditions. Globalization can also bring negative aspects and risks to organizations. As an example of this we have political risks and instabilities related to local and world policies.

Another extremely relevant point to be considered, when we talk about globalization, are the sociocultural challenges. Adapting your organization to operate in a certain market or for a certain group of workers who work for your team is a challenge.

A multicultural environment is extremely rich and interesting, but it can be a recipe for disaster if poorly managed. There are several points of view and experiences that can help to solve everyday problems, in addition to interesting and profitable intercultural coexistence. But we can find conflicts among these individuals and even rejection when practicing some activities within the organization. In addition, we may encounter communication difficulties when managers deal with people from the most different origins and backgrounds. We're not just talking about language, we're talking about body language, intonation and facial expressions that may sound different to people of different cultures.

With globalization and the technological advances of recent decades, relations between countries and their citizens have become closer. Furthermore, the economic and cultural context changed after the Cold War. Over time, economic blocs and military alliances emerged for various types of international agreements. The European Union, often mentioned in television news and publications, is an example. The economic blocs are, in short, a gathering of countries that come together for common goals, which can be economic, commercial, political and development. Basically, a model is sought in which both nations gain advantages by participating in the group and protecting themselves.