Witnessing the extraordinary multinational corporations’ (MNCs) growth and their pervasive effects on the world's economy, culture, society, and environment, many have queried their key to success. MNCs, who have always been playing an important role in globalization, soon appeared in the 16th century. The British East India Company, founded in 1600, and then the Dutch East India Company, founded in 1602, became the largest companies in the world for nearly 200 years. However, the era when MNCs heavily carried political purposes and could bring in armed forces to influence the local people’s lives was long gone. The culture is changing itself, and it has become so powerful that no other forces can directly go against. As a result, in order for MNCs to operate successfully in a foreign country today, they have to carefully consider the cultural differences and adapt themselves to the new cultural context. Not until the 19th and 20th centuries that this concept of cultural adaptability and cultural differences were taken seriously by MNCs. After the War World II, it came to the realization that invasions and wars were no longer a solution because they usually bring about more costs and damages to both sides, the winners and losers, rather than benefits. The second haft of the 19th century and the early 20th century was a period for economic invasions led by powerful and wealthy companies who came to poorer countries trying to influence the ways these people lived with their money. The second haft of the 19th century and the early 20th century was the golden age for MNCs to accumulate their capitals and resources and to prepare themselves for the whole new 21st century. During this time, MNCs gained some experience in operating business in different cultures, but in the 21th century, MNCs have had to take the concept of cultural adaptability to a whole new level. Nowadays, nations have become more and more interdependent on each other’s resources, labor forces, and knowledge, and economic invasions have become almost impossible. The 21st century is a period for international economic collaborations. As I have pointed above, culture has become a very powerful force, and if MNCs want to continue growing, it is all about economic collaborations. Although we cannot overlook the important role of MNCs in spreading these important elements- resources, labor forces, and knowledge- of economic development around the world, they have to pay more attention to cultural factors in order to continue growing in this changing 21st century.
Subject: Cultural Factors: Introduction (Part 1) 
Thu Apr 24, 2014 11:45 am
