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Bimonthly Journal of International Business

Newsletter from Global Dynamics, Inc.
19 Wilkinson Road
Randolph, NJ 07869
info@global-dynamics.com

Volume 3, No. 1
January/February 2004

GlobalExchange™ is Global Dynamics, Inc's quarterly newsletter, designed to provide our readers with current news and information relevant to global executives. Browse the newsletter below or download a PDF of the newsletter.

Readers are encouraged to submit articles, article ideas, and any other newsletter suggestions. We will attempt to accommodate all requests in upcoming issues.


Topic List

Cultural Awareness


Cross-Cultural Awareness

SIETAR Presenter Contrasts Attitudes about Racism – At the recent Society for Intercultural Education, Training and Research (SIETAR) USA Conference in Austin, Texas, presenter Ilya Adler made the observation that in Latin America, although racism exists it is largely ignored, while class differences receive a lot of attention. He further noted that class differences are ignored in the United States while racism receives significant attention. How do you explain this apparent anomaly? Send your comments to Global Dynamics at globalexchange@global-dynamics.com with “comments” in the
subject line.

Copilots? – Recently Air France and KLM announced that the two companies would merge to create Europe’s largest airline under the banner name Air France-KLM. Each company will maintain its brands, hubs and networks. Fons Trompenaars, an international consultant and author who is half Dutch and half French, described the merger of the two national airlines as “really not easy” in an article appearing in
Expatica, an English language news and information source for expatriates working on the European continent. His advice to the two partners is “to become well aware of the cultural gaps in the first place, and then to move on to a phase where they build mutual respect.” For more information, visit www.expatica.com.

Understanding the Value of Cross-Cultural Education and Training – In today’s global business climate, cross-cultural education can make a difference, and its effectiveness can be linked to business results. John Schieman’s article in Mobility Magazine during the first quarter 2004 tells how, and demonstrates with a case study. For more information, contact John Schieman at jschieman@global-dynamics.com.

The Potential Hidden Costs of Offshore Operations – Outsourcing operations to developing countries such as India and China remains a hot topic in the global marketplace. There are several factors that contribute to this trend. But not all offshore outsourcing produces the expected return on investment. Aside from the cost saving attributed to wage differential, global managers increasingly find that cross-cultural issues significantly impact the bottom line. Sweetheart Cup Co. CIO John McGregor told InformationWeek that “the project struggled because of communication problems relation to cultural differences. There was an unwillingness to tell us that this isn’t going to work.” For more information, visit www.informationweek.com. Global Dynamics (GDI) is working with some of the leading outsourcing organizations to develop policies and practices for improved performance.

Cross-Cultural Training Case Study: Telstra – Recently the Australian Financial Review reported that Telstra, an Australian mobile phone, internet and wired telephone service provider, announced it would move 1500 jobs to India. Telstra expects to cut $957 million from the cost of running its existing information technology over the next three years. Jeff Smith, the company’s Chief Information Officer, employed training specialized in cross-cultural teaming to manage the transition. His message to Telstra employees indicated the company needs “to actively change the way we do business as we begin to work with global service providers and move to build and maintain intellectual property in-house.” His comments reflect a concern within the technology sector regarding intellectual property and knowledge transfer when moving operations offshore. For more information, visit www.afr.com.

Cultural Diversity Quiz – What country has the largest number of ethnic Japanese living outside of Japan? What country has the largest number of ethnic Italians living outside Italy? What country has the most people of African decent living outside Africa? The answer to all of these questions is the same country- the largest Portuguese-speaking country in the world: Brazil.


Working Globally

Low-cost Travel and Communications Creates Global Teams – Expatica recently ran a feature story on “commuter expats.” Based on inexpensive air travel and telecommunications, Europeans are increasingly living in one country and working in another. The article speculates that it is probably cheaper, easier and faster to travel from Barcelona to London than from London to Manchester. For more information, visit the Expatica website at www.expatica.com.

US Company Sued for Alleged Human Rights Violations Committed Overseas – In December, Unocal Corp. became the first U.S. company to reach the trial stage for alleged human-rights violations committed overseas under the federal Alien Tort Claims Act of 1792, which permits foreigners to sue one another in U.S. courts. The fundamental question is whether a U.S. parent company should be held accountable for the actions of its partners. This case could set a major precedent for all international joint
ventures.

Japanese Expats Expected to Top One Million by 2006 – Recently the Japanese Foreign Ministry reported that 874,000 Japanese lived overseas for more than three months in 2002. Since 2001, Japanese living in China has increased by 20 percent to 64,000. Over the same time period, Japanese living in North America grew by 1.4 percent to 352,000. The Ministry further indicated that 30.1 percent of expatriates left behind their families in 2002, compared to 16.2 percent in 2001. For more information, visit the International Herald Tribune website at www.ihr.com.

USA Patriot Act Impacts Inbound Travelers – The U.S. State Department (DOS) recently issued an advisory for persons entering the United States under the Visa Waiver Program, indicating that travelers must have a machine readable passport effective October 1, 2003 to comply with the USA Patriot Act of 2001. The Visa Waiver Program permits citizens from the twenty-six participating countries to enter the United States for general business or tourist purposes for a maximum of ninety days without needing a
visa. For more information, visit the DOS website at http://travel.state.gov/vwp.html.

SIETAR Participants Discuss Client-Consultant Relationship Best Practices – Recently Global Dynamics’ President, Neal R. Goodman, Ph.D., conducted a workshop at the SIETAR USA Conference in Austin, Texas regarding Best Practices in Consultant-Client Relationships. He asked the audience to identify what a client expects of a crosscultural consulting organization. Replies to the question “as a client, our ideal consultant will…” included:

• have an understanding of the problem;
• do a needs assessment;
• have an appropriate solution to offer;
• provide content that we can use independently;
• provide added value beyond that which they are contracted to provide;
• allow me to “leverage off of them” to help my colleagues better understand the needs;
• allow me to be a part of what they are presenting;
• make me look good!
• honor time parameters and schedule commitments;
• have an understanding of our corporate culture;
• not stay in “marketing mode”;
• not create a dependency relationship;
• challenge people to change and yet make it “safe” to do so;
• provide help for me to sell the content internally (HR has to sell it “up”);
• have a personal impact;
• follow up afterward;
• be willing to refer us elsewhere if they are not the appropriate person;
• be aware of, and honor, our budget constraints;
• be ethical!

Global Dynamics hopes its has met or exceeded its clients expectations in these areas.

U.S. Census Bureau Advocates Program to Count Expats in 2010 Census – Recently the U.S. Census Bureau published a notice in the Federal Register requesting an authorization from the Office of Management and Budget to conduct the 2004 Overseas Enumeration Test. The Census Bureau indicated that the program would provide information regarding the feasibility of counting U.S. citizens living overseas and their dependents as part of its 2010 Census data collection process. The census currently does not count Americans privately living and working overseas. The test will include overseas Americans living in France, Kuwait and Mexico. The Census Bureau intends to collect the data by distributing paper copies and posting electronic questionnaires on the Internet. For more information, view the Census Bureau’s initial announcement at
www.census.gov/Press-Release/www/2003/cb03cn03.html.


Global Dynamics in the News

Global Dynamics, Inc. (GDI) announced that it will introduce its redesigned, interactive website in the first quarter of 2004. The next issue of Global Exchange will provide additional information.

Convergys, the world’s largest outsourcing call center organization, recently licensed Global Dynamics’ Cultural Tendencies Model for distribution to its hundreds of offices around the world. For more information how your organization could license the Cultural Tendencies Model, contact John Schieman at jschieman@global-dynamics.com.

Johnson & Johnson agreed to offer Successful Electronic Communication in Global Business, a program developed by Global Dynamics, to its 100,000-plus employees around the world starting in 2004. For more information about the course, contact John Schieman at jschieman@global-dynamics.com.

Neal R. Goodman, Ph.D., President, made presentations in Austin, Texas at the Society for Intercultural Education, Training and Research (SIETAR) USA conference on Best Practices in Consultant Client Relationships. For more information about the presentation, contact Neal Goodman at ngoodman@global-dynamics.com.

John Schieman, Director of Global Programs and Marketing, recently made a major presentation on Developing Global Competence: A Knowledge Management Approach at the Virginia State Conference of the Society for Human Resource Management (SHRM).

Carol Cunningham, Senior Associate, delivered a keynote presentation on Efficient Intercultural Communications for the Woman’s Leadership Talent Group consisting of future leaders in the pharmaceutical industry.

Gordon Cucullu, Senior Associate, conducted a major workshop on Working in Asia for the global customer leadership team of a major pharmaceutical company whose customers include major global retailers such as Walmart and Carfour.


Global Marketplace

World Bank Releases Global Economic Forecast Report – Recently the World Bank released Global Economic Prospects 2004, an economic report prepared for the trade talks in Cancun, Mexico. The report projects 1.5 percent growth in the industrialized world and 4.0 percent growth in the developing world in 2003, but expects growth to recover to 2.5 percent and 4.6 percent in 2004, respectively. In late
October 2003, the U.S. Commerce Department reported that the gross domestic product grew at an annual rate of 8.2 percent in the third quarter. For more information, visit the World Bank website at www.worldbank.org and the U.S. Department of Commerce website at www.commerce.gov.

Survey Finds Increase in Offshore Outsourcing by Medical Industry – Recently InformationWeek, an online e-business magazine, reported that one third of health care and medical industry companies in the InformationWeek 500 index partnered with offshore application outsourcers in 2002. That figure is up from 13 percent in 2001. For more information, visit www.informationweek.com.

Changes in Japan Impact Drug Approvals – Impending Japanese government regulations in 2005 will make it more difficult to get approvals of new drugs. In response, Global Dynamics has seen a significant increase in the number of pharmaceutical organizations requiring Japanese-Western team building programs, including programs in the West focusing on working with the Japanese and programs in
Japan focusing on working with the West. Given the 2005 deadline and the numerous differences in culture and business practices, this will be a major challenge.

TradeShowAnalysis.com Issues SPAA™ Report on Telecom World 2003 – On December 1, 2003, TradeShowAnalysis.com, a division of Global Dynamics Inc., announced the availability of its Telecom 03 Show Performance Audit and Analysis (SPAA™) report evaluating which exhibits, marketing strategies and advertising campaigns were the most and least successful, and why. “The findings of the report are
used by the leading Telecom organizations to develop strategies and benchmarks for future shows,” said Neal R. Goodman, Ph.D., president of Global Dynamics. “The industry’s leaders utilize the SPAA™ to identify and learn from successes and failures at Telecom World and to identify the trends most critical to the telecom industry.” For more information, visit www.tradeshowanalysis.com or send an email to
TSA@global-dynamics.com.

 

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