International Business- Globalized World

Added on -2020-02-18

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Running head: INTERNATIONAL BUSINESS International BusinessNature of the Student:Name of the University:Author note:
1INTERNATIONAL BUSINESSIn the globalized world of today, as more and more companies are operating beyond theconfines of the local market, the profitability of these companies is also increasing at a high pace.However, one of the major challenges as encountered by the multinational companies is theculture shock as experienced by the expatriate employees. As employees of one country are sentto a different country with different set of values and ideals, the employees most oftenexperience a sense of psychological disorientation, referred to as ‘culture shock’ (McFarlin &Sweeney, 2011). Although the entire process of culture shock is regarded as an essential part ofthe process of cultural adaptation in a new country, the impact of culture shock can be highlyundesirable for the employees and the company at large. First of all, cultural shock is a huge problem as it causes stress, anxiety anddisillusionment amongst the employees. As an employee goes to a foreign nation, that has acompletely different cultural outlook on every issue, the employee has hard time in socializingwith the people, making friends with the new co-workers and enjoying motivation at workplace.Most often, the employee who is not sufficiently trained in cultural background of the othercountry will miserably fail to comprehend the how differences in culture can affect the waybusiness is conducted abroad. Lack of appreciation of a new country, inability to form socialconnections as well as incapacity to adjust in a new place will inevitably end in employeeinefficiency (Martin, 2010). The employees in such circumstances tend to become highlyunproductive and inefficient, often more than willing to return to the native country. Thus, theemployee’s inability to complete the foreign assignment for which he was sent abroad, can proveto be a financial loss to the company, that has spent huge amount of money for sending theexpatriate abroad. It might be important to note here that most often people tend to focus onemployee disorientation, while speaking about culture shock. However, often the employee is

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