SUMMARY
In a world where globalization is imposing itself more and more each time, two concepts are important to discuss:
CONVERGENCE: As the countries liberalize their markets, develop institutions, adopt modern technology, and achieve industrialization, the strategic business behaviorwould become similar because people will embrace common values with regard to economic activity and work‐related behavior
DIVERGENCE: Globalizationis not about convergence to best practice, but rather about leveraging differences in an increasingly borderless world to gain differentiated positions and advantages
Mention some positive and negative outputs of an homogenization of international business management strategies (Convergence) and of the differentiation (divergence school).
Positive:
- Connection between nations, more space for international business and more opportunities for countries: underdeveloped and developed
- As it also strenghtens the relationship between nations, this is not only good in terms of commerce but it also mainains good relationships and world peace.
Negative:
- Everytime the world will be more alike, globalization is rapidly changing costumes and different things that are significant of each country.
- There is less autonomy for countries, as the world is moving closely together everytime there is no opportunity for countries to act individually because they would be left behind.
References:
Admin. Hands on World. http://familybuildersusa.org/wp-content/uploads/2010/09/Hands-on-World.jpg. September 10, 2010.
Admin. Hands on World. http://familybuildersusa.org/wp-content/uploads/2010/09/Hands-on-World.jpg. September 10, 2010.