The Risk of Failure to a Critical Degree

To send an email to a Japanese colleague with whom you may wish to collaborate on a potential business deal, you should begin by addressing the individual warmly and openly by their first name. This immediately closes the cultural gap. Then, use the last name followed by the term 'sama' or 'Formal version of Mr.' to address your email. Use clear text with utmost formality and avoid making assumptions for context. The Japanese are accustomed to informal communication from other countries, but it is still important to adapt to their customs.

Module: Global Influences (BUS 3010F)
Individual Reflection Paper: 3,000 words with presentation
Opening:
Why is globalization good? – Your opinion
For example:
Globalization is good because it provides the world with more efficient markets,
increases competition leading to better goods, generates wealth in all parts of the
world and builds and stabilizes security. Globalization is steadily growing as
technology allows individuals within each country to communicate with people
previously out of reach.
The world is becoming increasingly interconnected as governments work together to
solve global problems. The globalization process has made markets more efficient
as businesses and organizations have had to relearn how to create a good or offer a
service in the most efficient manner in order to make a profit.
The increased competition is another benefit of globalization. With new producers
appearing frequently, there are more people and businesses competing for a share
of the global economy. This leads to competitive markets that offer higher quality of
goods as well as more affordable prices.
Another benefit of globalization is the change it offers to people in poorer countries. It
gives these people a chance, though perhaps not nearly as great as the chance
people have in wealthier nations, to sell goods and to make a profit leading to
greater wealth distribution. Globalization also protects the world as countries
depending on one another for their economy stability are less likely to attack one
another.

Answer all 7 questions:
Q1: Do you agree with the “Hyper Globalist” claim that the world is borderless. Give
three (3) reasons to support your answer if yes or no. (15 marks) - 450 words
For Example:
Yes agreed, to the hyper globalist’s view is of a more interconnected world today,
due to improvements in technology. What happens to one part of the world could be
made known in quick time.
Cross-over of culture is more evident because of globalization from affluent /
sophisticated markets to developing once.........pl include referencing of research
materials.(450 words).

Q2: What are some of the features of ASEAN regional grouping and their
implications to members? (15 marks) – 450 words
For example:
Co-operations in: Political –Security, Economic & Soci0-Cultural Community
attended by the head of state...With particular emphasis on:XXXX during the 2016
ASEAN Summit held in Laos..please include referencing from research materials..
(450 words). Cover during Session #5
ASEAN SUMMIT HELD SEPT 2016 IN LAOS (29th)
(Ref: http://asean.org/chairmans-statement-of-the-28th-and-29th-asean-
summits/)
-Feature 1: We were pleased to note that in 2015, ASEAN received 108.9 million
international visitors, an increase of 7.3% from 2014. We welcomed the ASEAN
Tourism Strategic Plan (ATSP) 2016-2025 with a vision for ASEAN as a quality
tourism destination by 2025, offering a unique, diverse ASEAN experience, and
committed to responsible, sustainable, inclusive and balanced tourism development,
so as to contribute significantly to the socio-economic well-being of ASEAN people.
-Implications to members: Increase spending by incoming tourist by: STPB as S’pore
is also an attractive country to consider when coming to Asia. All the international
standard activities / events ie: Night F1 race in Sept etc........
-Feature 2: We reaffirmed our shared commitment to maintaining and promoting
peace, security and stability in the region, as well as to the peaceful resolution of
disputes, including full respect for legal and diplomatic processes, without resorting
to the threat or use of force..........
-Implications to members: Increased regional measures with S’pore being the site of:
Interpol shows our / S’pore commitment to handle terror in a concerted effort. Thus
S’pore being a safer location for worldwide corporate investment and for leisure.......
-Feature 3: ASEAN Community Vision 2025 and the United Nations 2030 Agenda for
Sustainable Development.

-Implications to members: This is to show that S’pore is an affluent country and also
is doing her part in the “Green Movement” as in prevention of pollution and saving
the world from global warming. Do as your neighbours do....(all other companies in
that sector)....
-Feature 4: Counter Terrorism...Mentioned under security and stability...
-Implications to members: .....
-Feature 5: Drug trafficking...
-Implications to members: The Misuse of Drugs Act is a drug control law in
Singapore, The statute's penal provisions are draconian by most nations' standards,
providing for long terms of imprisonment, caning, and capital punishment.
-Feature 6: Money Laundering....
- Implications to members: SINGAPORE — Singapore takes the possibility of being
used as a conduit for money laundering and terrorist financing activities “very
seriously”, and the Monetary Authority of Singapore (MAS) will not hesitate to take
action against financial institutions whose anti-money-laundering controls are found
to be lacking, Minister for National Development Lawrence Wong said in Parliament
yesterday.

MAS announced in May it had ordered BSI to shut down its operations here, citing
serious breaches of anti-money-laundering rules, and had referred the names of six
BSI staff — including its former CEO and Deputy CEO — to the public prosecutor to
evaluate if they have committed any criminal offences.
Emphasising Singapore’s firm stance against illicit financing activities, Mr Wong
yesterday reiterated the recent measures taken to strengthen Singapore’s regime
against money laundering, including criminalising the laundering of serious tax
offences; enhancing MAS’ notices and guidelines in line with evolving international
standards; and stepping up inspections of financial institutions.
Projecting S’pore as a clean and vibrant financial hub .
-Feature 7: Cyber security.....
- Implications to members:
-Feature 8: ASEAN –ICT Masterplan 2020...Co-ordinating effort of ASEAN members
for info-Communication Technology.
- Implications to members: ICT cutting –edge development is a must in S’pore
infrastructure development and doing it together will attract investor companies to
the entire region for all sectors..

Q3: What is your understanding of the BREXIT? And express your views of the exit.
(20 marks) – 600 words
For example:
There were unhappiness with the Brits when they were part of the EU, other
then :Germany and Luxembourg that is doing well the other member states are not
doing well and Britain do not want to be drag down by them.., thus a people’s
referendum / vote was called with around a 4% win to leave....., it’s unclear
somewhat to the further of BREXIT ..please include referencing from research
materials..(600 words).
An approach:
-In short there are more gains socially ?....W3..after researching on social gains ..is
that they have all economic implications..Looks likes the freedom of not following
ideas & policies of the EU made Brits feel better socially and not
economically...emotions over logic..
(Ref: https://www.theguardian.com/society/2016/jun/14/brexit-nhs-health-social-care-
disabled-people-eu-referendum)..
(+)The FPH lists other advantages too. “Health and safety at work
legislation is basically European; likewise legislation ensuring
the safety of food, medicinal products and medical devices. The
social chapter mandates generous maternity and paternity leave,
guaranteed holidays, the 48-hour working time directive; equal
rights for part-time workers and protection against unfair
dismissal. All are powerful social determinants of health from
which UK citizens have benefited.
(-)The Faculty of Public Health also points out how EU
membership has brought benefits such as cleaner air and water
and pan-European joint working on threats to health that cross
national borders, such as antibiotic resistance and combating
pandemics.
-The European convention on human rights, given statutory force
in the Human Rights Act (HRA), has played an increasingly
important part in social care.

-Big lose economically.....W3
(-) Brexit could free up up to £8bn extra a year to spend on the
NHS (Health Services)..
(-)Its own analysis concludes that a post-Brexit economic slump
could force the government to cut the Department of Health’s
budget by £10.5bn – the equivalent of every hospital in England
having to shed 1,000 nurses and 155 doctors.
(-)Britain would also no longer have any influence over the
European Medicines Agency, the regulator that approves drugs
for use within the EU. Medical research could be hit too, because
Britain currently gains disproportionately from current funding
streams.
(-)An estimated 6% of jobs in the sector are filled by EU
migrants. That may not sound much, but the vast size of the
social care workforce means that this figure equates to 80,000
people in England alone. Free movement of labour across the EU
is “very helpful” to social care employers, says Martin Green,
chief executive of Care England, which represents leading care
providers.
Could they be replaced by workers from the rest of the world?
Green says: “Given that one of the planks of the Brexit campaign
is to reduce immigration, I think it highly unlikely that they
would relax controls on people entering the country to be part of
the care workforce.”
-Insert PDF copy:
The consequences of Brexit for UK
trade and living standards By The

London School of Economics &
Political Science:
-The European Union (EU) is the UK’s largest trade partner. Around a half of the UK’s trade
is with the EU. EU membership reduces trade costs between the UK and the EU.
This makes goods and services cheaper for UK consumers and allows UK businesses to
export more.
-All EU countries lose income after Brexit.
-The optimistic scenario: assumes that in a post-Brexit world, the UK’s trade relations with
the EU are similar to those currently enjoyed by Norway. As a member of the European
Economic Area (EEA), Norway has a free trade agreement with the EU, which means that
there are no tariffs on trade between Norway and the EU. Norway is also a member of the
European single market and adopts policies and regulations designed to reduce non-tariff
barriers within the single market.
But Norway is not a member of the EU’s customs union, so it faces some non-tariff barriers
that do not apply to EU members such as rules of origin requirements and anti-dumping
duties. Campos et al (2015) find that Norway’s productivity growth has been harmed by not
fully participating in the EU’s market integration programmes.
-In the pessimistic scenario: we assume that the UK is not successful in negotiating a new
trade agreement with the EU and, therefore, that trade between the UK and the EU following
Brexit is governed by World Trade Organisation (WTO) rules. This implies larger increases
in trade costs than the optimistic scenario because most favoured nation (MFN) tariffs2 are
imposed on UK-EU trade and because the WTO has made less progress on reducing
nontariff barriers than the EU.
Example: For the Foreign Financial sector with offices in the UK are moving out to
where???
Brexit: leading banks set to pull out of UK early
next year
(Ref: https://www.theguardian.com/politics/2016/oct/22/leading-banks-set-to-pull-out-
of-brexit-uk).
-Britain’s biggest banks are preparing to relocate out of the UK in the
first few months of 2017 amid growing fears over the impending Brexit
negotiations, while smaller banks are making plans to get out before
Christmas.
-“Most international banks now have project teams working out which
operations they need to move to ensure they can continue serving

customers, the date by which this must happen, and how best to do it,”
he says.
“Their hands are quivering over the relocate button. Many smaller banks
plan to start relocations before Christmas; bigger banks are expected to
start in the first quarter of next year.”
-It has been reported that Goldman Sachs is among those drawing up
plans to transfer around 2,000 of its employees to a rival European city,
should the UK lose its passporting rights.
-The industry body TheCityUk has claimed that up to 70,000 financial jobs
could be lost if Britain leaves the EU without a new, credible relationship
in place for the City of London.
Logic / Truth table: (Scale of 5 or 10 points)
Legend: 1= V.Bad.
2= Bad.
3= Average / Moderate.
4=Good.
5=Execellent.
Criterion for
Consideration:
S’pore Hong Kong Shanghai
1. Govt’s
policies to
foreign
banks.
2. Ease of
doing
business
ranking in
relations
to :The
World Bank
3. Financial
infrastructur
e:
4. Cost of
Living.
5.???
Total: 24 (First choice for
Relocation)
21 (Second choice) 20

Q4: The corporate support for Green Initiatives is driven as much by the potential to
sell new products and technologies as it is about saving planet. The key drivers for
Green Initiatives are - corporate image, competitive differentiation, cost saving and
compliance with government regulations.
What are your personal feelings about the green movement? (10 marks) – 300
words
For example:
Although, the green initiatives must be contributed by larger/ powerful countries in
order to get greater impact. But as long in principle everyone perform their part of
environmental conservation. Whether a country is big or small like :Singapore will
benefit generations to come. For example the “Saving Gaia” campaign by :Media
Corporation of Singapore (MCS)……..pl include referencing from research
materials..(300 words)
- This initiative serves to create the awareness of saving mother earth,
encouraging more people to be environmentally conscious.
Today, this initiative has grown into a month-long multiplatform and
multi-faceted campaign which has become synonymous with
environmental awareness and going green.
-In operating your own business, determining your “return on investment”
is always top of mind when making decisions. One big decision for your
company is whether to implement green initiatives, and that includes
everything from reducing energy consumption to wasting less paper.
-When considering the decision to “go green,” look at both the short and long
term results of green initiatives and, chances are, you’ll discover a number of
benefits.
Those benefits go well beyond feeling good about helping the environment.
They also directly impact your business, both in terms of reducing your
operational costs, as well as streamlining your processes by making them more
efficient.

-Those with manufacturing plants might find the most savings come from
altering their waste disposal plans, but this can be difficult to change if they
handle multiple chemicals every day, which often require strict and limited
disposal options.
On the other hand, a business like a restaurant may optimize their cost savings
by sourcing ingredients locally, which can not only help the environment, but
also maximize efficiency. After all, it’s more efficient to get ingredients from a
local market rather than placing orders and waiting for food deliveries.
Conclusion:
-Responsible government promoting the green campaign to every sector of business
creating an affluent society ....evidence of develop countries status...

Q5: Is culture an important factor for globalization. Why? (10 marks) – 300 words
..please include referencing from research materials
For Example:
-Culture is : “ways of living” values, ideas, attitudes, and symbols that shape human
behaviour, is learned, not innate.
-defines the boundaries between different groups.
-Has both a pervasive & changing influence on each national market environment.
-It will definitely be more advantageous to know their cultures well inorder to work
together.
-Use either one cross-cultural measurement / theory ( Geert Hoffstedt or Edward.
T .Hall)
Gert Hofstede Dimensions)
1.-Power Distance Index (PDI) focuses on the degree of equality, or inequality,
between people in the country's society. A High Power Distance ranking ( say :60%)
indicates that inequalities of power and wealth have been allowed to grow within the
society. These societies are more likely to follow a caste system that does not allow
significant upward mobility of its citizens.
A Low Power Distance ranking (say:30%) indicates the society de-emphasizes the
differences between citizen's power and wealth. In these societies equality and
opportunity for everyone is stressed.
2.- Individualism (IDV) focuses on the degree the society reinforces individual or
collective, achievement and interpersonal relationships. A High Individualism ranking
indicates that individuality and individual rights are paramount within the society.
Individuals in these societies may tend to form a larger number of looser
relationships.
A Low Individualism ranking typifies societies of a more collectivist nature with close
ties between individuals.
These cultures reinforce extended families and collectives where everyone takes
responsibility for fellow members of their group.

3. -Masculinity (MAS) focuses on the degree the society reinforces, or does not
reinforce,
the traditional masculine work role model of male achievement, control, and power.
A High Masculinity ranking indicates the country experiences a high degree of
gender differentiation. In these cultures, males dominate a significant portion of the
society and power structure, with females being controlled by male domination. A
Low Masculinity ranking indicates the country has a low level of differentiation and
discrimination between genders. In these cultures, females are treated equally to
males in all aspects of the society.
4. - Uncertainty Avoidance Index (UAI) focuses on the level of tolerance for
uncertainty and ambiguity within the society - i.e. unstructured situations. A High
Uncertainty Avoidance ranking indicates the country has a low tolerance for
uncertainty and ambiguity. This creates a rule-oriented society that institutes laws,
rules, regulations, and controls in order to reduce the amount of uncertainty. A Low
Uncertainty Avoidance ranking indicates the country has less concern about
ambiguity and uncertainty and has more tolerance for a variety of opinions. This is
reflected in a society that is less rule-oriented, more readily accepts change, and
takes more and greater risks.
5. -Time / Long-Term Orientation (LTO) focuses on the degree the society
embraces, or does not embrace, long-term devotion to traditional, forward
thinking values. High Long-Term Orientation ranking indicates the country
prescribes to the values of long-term commitments and respect for tradition.
-This is thought to support a strong work ethic where long-term rewards are
expected as a result of today's hard work. However, business may take longer
to develop in this society, particularly for an "outsider". A Low Long-Term
Orientation ranking indicates the country does not reinforce the concept of
long-term, traditional orientation. In this culture, change can occur more
rapidly as long-term traditions and commitments do not become impediments
to change.

Edward.T Hall:
1.High context Information:
-In a high-context culture, there are many contextual elements that help people
to understand the rules. As a result, much is taken for granted.
-This can be very confusing for person who does not understand the
'unwritten rules' of the culture.
Low context
-In a low-context culture, very little is taken for granted. Whilst this means that
more explanation is needed, it also means there is less chance of
misunderstanding particularly when visitors are present.
2. Space:....Insert Hidden Dimensions Video...American,
Japanese ,German..and French....
3.Time: Monochronic: Do one thing at a time..
& Polychronic: Can do many things at one go...

Advantages of Knowing Cultural differences in International Business:
Why Culture is Important in International Business
Guest Author:
Denise L. Hummel – Universal Consensus
https://internationalhrforum.com/2009/06/08/why-culture-is-important-in-
international-business/
Doing business on a global basis requires a good
understanding of different cultures. What works in your
country might not work well in another, and could even be
interpreted as an insult!
Consider the following basic questions:
Q1: When George Bush gave Chinese Premier Li Peng a gift of
cowboy boots embroidered with the American and Chinese flags,
was it an appropriate gift?
Answer1:
1. Yes, a thoughtful sentiment and a keepsake appropriate to the
occasion
2. No, a significant miss on the part of administration protocol experts
3. Yes, a good choice, if only he had known the Premier’s correct shoe
size.
Answer: 2.
Unfortunately, in China, the soles of the feet are considered to be the
lowliest part of the body and gifts of footwear, no less embossed with the
nations’ respective flag, was a significant miss on the part of
administration protocol experts.
Q2: When formalizing a deal in the Middle East, it is imperative to:
1. Determine that the contract is iron clad with strict attention to
jurisdictional issues of international law to secure a just outcome
should there be conflict.
2. Solidify the interpersonal trust relationship as this rapport is critical
both during the deal and if conflict develops

3. Retain legal counsel in the country in which the business
undertakings will primarily take place and ensure that this attorney
has a golfing relationship with most members of the judiciary.
Answer: 2.
When doing business in the Middle East, the surest indicator of a
successful business relationship has very little to do with the content of
the contract or the extent to which the language will hold up in court.
Court systems in many of these countries move slowly with inconsistent
results, and your business counterparts in many Middle Eastern
countries do not put their faith in the legal system to determine the
outcome of a conflict.
Absolutely essential to the success of the deal is the interpersonal
rapport and relationship established during the negotiation stage and at
every point thereafter. Failure to understand and cultivate this aspect of
the deal increases the risk of failure to a critical degree.
Q3: In sending an email to a Japanese colleague with whom may
wish to collaborate on a potential business deal, you would be
most successful if you:
1. Begin the email by addressing the individual warmly and openly, by
his first name, immediately closing the cultural gap.
2. Always use Mr. , Miss or Mrs. followed by the last name of the
individual, followed by an embracing and forthright interaction.
3. Use the last name, followed by the term “sama / Formal version of
Mr” to address your email, followed by clear text set forth with the
utmost formality.
Answer: 3.
The risk of email is that it lacks certain social contextual cues such as
body language, eye contact and intonation and can therefore create
misunderstandings.
There is also no way to see the demeanor or reaction of your counterpart
and adjust your communication strategy to compensate for a
misunderstanding once it is created.

When in doubt, it is always safer to err on the side of greater formality
and deference.
The Japanese have become accustomed to making allowances for
informal communication from other countries, but you will proceed with
more credibility if you make a sincere effort to adapt to their customs.
The use of the term “san / Mr” and, for those in a position of high
authority, “sama / formal version of Mr” is honorific.
Use the last name, followed by the honorific term, followed by extreme
clarity and formality in the text, with as few assumptions for context as
possible.
Summary
The cultural nuances that affect international business obviously go far
beyond the ability to greet your international colleague or choose the
correct gift.
Issues related to the culture’s time orientation, whether it is an
individualist or collectivist society, space orientation, and power
distance, not to mention conflict assumptions and non-verbal
communication all affect understanding your colleague across the table,
as well as your chances of being understood.
Preparation by a trained expert related to these issues not only assures
that unnecessary blunders will be avoided, it brings to each of us a
personal knowledge that deepens our understanding of others, thereby
promoting acceptance, understanding, and on the level of international
relations, peace and prosperity.

Q6: “Dirty money” obtained through drug trafficking, gambling, and other illicit
activities use offshore financial centers to escape the same thing as respectable
“clean capital” As senator what sort of regulations do you support? (10marks).Cover
Session #7
For example:
..please include referencing from research materials..(300 words).
-Small part of Q2 Feature 6 of ASEAN 2016.
- MAS’s policies: MAS Sets Up Dedicated Departments to Combat Money
Laundering and Strengthen Enforcement
Singapore, 13 June 2016… (Ref:
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2016/MAS-Sets-Up-
Dedicated-Departments-to-Combat-Money-Laundering-and-Strengthen-
Enforcement.aspx)
-The Monetary Authority of Singapore (MAS) announced that it would set up
dedicated departments to combat money laundering and strengthen enforcement
respectively. The changes will take effect on 1 August 2016.
-Anti-Money Laundering (AML)
Like all major international financial and business centres,
Singapore’s financial sector faces the risk of being used as a conduit
for money laundering and terrorist financing activities. While MAS has
in place a robust regime to protect the integrity of Singapore’s
financial system, the increasing complexities of transnational flows
necessitates heightened supervisory focus on combatting money
laundering and other illicit financing activities.
-Enforcement

-With a financial sector that comprises more than 1,500 financial
institutions of varying sizes and systemic importance, it is not possible
to prevent regulatory breaches and misconduct even with intrusive
supervision. A strong enforcement capability is necessary to conduct
rigorous investigations of suspected violations and misdemeanours
and to take swift actions to establish culpability and punish as
appropriate the institutions or individuals who have breached MAS’
regulations.
-MAS will centralise and strengthen its enforcement functions under a
new Enforcement Department. The new department will continue to
jointly investigate with the Commercial Affairs Department capital
markets misconduct offences. In addition, the new department will be
responsible for enforcement actions arising from regulatory breaches
of MAS’ banking, insurance and capital markets regulations.
- Mr Ravi Menon, Managing Director of MAS, said, "As our financial
centre grows in scale, sophistication, and connectivity, so does the
risk of criminal elements abusing our financial system. We will
strengthen our supervision of financial institutions’ controls to combat
money laundering and illicit financing. And we will enhance our
enforcement capability to deter poor controls or criminal behaviour in
the industry. MAS is resolved to ensure that Singapore remains a
clean and trusted financial centre.”
-Something like CPE for PEI…..
***

-Swiss Banks policies:
-The Swiss Financial Market Supervisory Authority (FINMA) is a public law institution
that supervises most banking-related activities as well assecurities
markets and investment funds.[25] Regulatory authority is derived from the Swiss
Financial Market Supervision Act (FINMASA) and Article 98 of the Swiss Federal
Constitution.
-On the 27th of May 2015, Switzerland signed an agreement with the EU that will
align Swiss bank practices with those of EU countries, and in effect will end the
special secrecy that EU-resident clients of Swiss banks had enjoyed in the past.
Under the agreement, both Switzerland and EU countries will automatically
exchange information on the financial accounts of each other's residents from 2018.
-
-Proposal Recommendations:
-P1: To have quarterly meeting on suspected status of a list of clients of bank’s in
Switzerland.
-P2:
-P3:

Q7: Compare and contrast two countries and see how their international policy has
changed the future of their country. (ie: North Korea and any other country). (20
marks). Cover Session #8..
For example:
..please include referencing from research materials..(600 words).
==============================================================