THE INCREASING IMPORTANCE OF INTERCULTURAL COMMUNICATIOS

MARKETS GO GLOBAL

• Many companies expand beyond their borders
• Home-grown companies are getting controlled by global enterprises
• E.g., 7-eleven is now a subsidiary of Seven-Eleven Japan
• Acquisitions, mergers, alliances and buyouts result in multinational companies
• Necessary to adapt to foreign cultures

MAJOR TRENDS FUEL GLOBALIZATION

• Domestic markets shrinking
• Favorable trade agreements
• New middle-class consumers in emerging nations
• Transportation advancements
• Sophisticated information and communication technologies

FAVORABLE TRADE AGREEMENTS

• General Agreement on Tariffs and Trade
• North American Free Trade Agreement
• Free trade among US, Canada and Mexico
• US has 12 free trade agreement with 18 countries
• Promotes trade globally

EMERGING MIDDLE CLASS

• In formerly considered developing countries
• Once cheap labor, now promising markets
• Brazil, Russia, India, China
• Less suspicion towards foreign investment
• Accepting free trade

ADVANCEMENT IN TRANSPORTATION AND LOGISTICS

• Carrying produce to other continents overnight
• Once seasonal, now available year-around
• Senders can monitor their shipments better
• Foreign grown vegetables and fruits available

DEVELOPMENT OF INFORMATION AND COMMUNICATION TECHNOLOGIES

• Most important factor fueling globalization
• Internet, wireless networks, smartphones,
• Mobile electronic devices
• Geographic location becomes irrelevant
• Access records, programs, colleagues from anywhere

INCREASINGLY DIVERSE DOMESTIC WORKFORCE

• People from many cultures moving to other countries
• Most popular destinations: USA, Canada
• Expexted growth for next 40 years is 50%
• Immigrants have higher fertility rates
• Societies are getting reshaped

INCREASINGLY DIVERSE DOMESTIC WORKFORCE

• Multiethnic neighborhoods, multinational companies
• International workforce
• Conflict and resentment due to losing power and privilage