Globalization and offshore sourcing strategies

Globalization changes the world's cultures, and socio-cultural differences between nations sometimes are an impediment to globalization because of the values and cultural differences held by different cultures. . As globalization continues, more and more ethnic employees with different cultural expectations and paradigms will be hired by American companies. In fact, cultural diversity is one of the key elements in allowing companies to grow globally, to expand into new markets, and to reflect the nature of the demographics of their specific market. This being the case, it is also important that companies not bend so far to the left that it appears that there are policies that favor one group over another. With respect, for instance, to Disney Theme Parks, for instance, cultural differences in diet (some cultures do not allow beef to be served), days of the week (most cultures are not 365/7 day of work), work ethic, dress code, mixing of genders, etc. can impact the entertainment model and expectations of what a Disney experience is. Thus, language barriers, customs, and the ability to understand certain ways of management would definitely be different in a foreign country (Simons, 2007).

Part 2- There are several dimensions to this question, and most reflect on the type of work done and benefits received by an employee working in a foreign country, ostensibly with a different standard of living. This can go both ways; in some EU countries, for instance, more vacation and more health benefits are expected; while in other countries, the minimum wage and standard of living are so drastic that an American wage seems a princely sum. Purchasing power is another issue; it might cost 30% of one's wages to purchase housing in France, while in Mexico that is only 13%. The contractual dollars, type of work, and wage/benefit scale should be set up to reward talent and yet not be so egregious that it is immoral. It is also true that there is a very real psychological and cultural shock to keeping U.S. employees in other countries -- and what those individuals must give up. So, if a manager at a factory in, say Uzbekistan makes $100,000 U.S., has provided living arrangements, and the worker only makes the equivalent of $500 per anum, one has to ask what that worker can purchase for $500 and if it is well beyond the normal wage a person might receive in that country. When the morality comes into play is with identical jobs being done, and the American worker receiving 10-100 times more for the exact same work; clearly a case that might need to be adjusted in some manner (Oak, 2009).