Cultural Management in Global Economy

Cultures are saturated form of values that communally shared in some society. It was early described that in one country may be more the one cultures and in one culture there may be more than one countries. After Adam Smith Absolute Advantage for free trade internationally presented, world is becoming more global village. Businesses are now going out of the borders, people are intercommunicating beyond the cultures and that leads to cultural clashes. Religious values that shape ethics of any society are also intermixing. For purposes of synergy and efficiency, organizations often engage in cross-unit transfers of business practices that reflect their core competencies and superior knowledge and those they believe to be a source of competitive advantage. Internal transfers of practices are important for all types of organizations, but they are critical for multinational corporations (MNCs), for a primary advantage that a multinational firm brings to foreign markets is its superior knowledge, which can be utilized in its subsidiaries worldwide. In global environment organization need to make some ethical code of conducts and in this scenario WTO's arguments are very much valid. First, loyal to own ethical and cultural values that what is they have already in their practice. Second, give respect to the host country. Then finally make decisions according to the context.