New Balance Athletic Shoe, Indonesia, and Globalization...

With the constant quest for greater profitability, American companies are reaching further and further around the globe for opportunity. Factories are being built in third world countries, and sales efforts continue to increase in the world’s fastest growing economies like China and Brazil. Consumer products corporations, especially, are seeking out the cheapest and most efficient method of production, and many are beginning to look to Indonesia for answers. According to the Indonesian Footwear Association, â€Å"sports footwear produced in Indonesia is expected to soar roughly 25 percent to $1.6 billion since 2007,† (Abelson 1). One of the American companies leading the global initiative, New Balance Athletic Shoe Inc., alone expects to†¦show more content†¦One of the most prominent disparities between Western and Southeast Asian culture is religion, specifically in relation to medical practices. When westerners look at the often spiritual and religious e astern medical remedies, they tend to dismiss such practices as solely superstition and ignorance (Landes 12). When developing employee benefits at the Tangerang plant, New Balance senior management must keep in mind that most of their workforce will not comply with Western medical practices. In the book The Lexus and the Olive Tree, Thomas Friedman explains that â€Å"globalization [has] the potential to destroy the environment and uproot cltures at a pace never seen before in human history,† (Friedman 23). New Balance must be careful to not dilute the culture of its Indonesian employees. For instance, not only would it be both a waste of time and money to hire on onsite medical professional, but it would also show substantial ignorance of company management. In addition to differences in religion, ancient Asian culture also conditioned its people to view authority in a different way than citizens in the United States. People of the ordinary class in Asian nations hist orically devoted their lives to enhancing the pleasure of their ruler and their leadership ideals valued obedience rather thanShow MoreRelatedGlobal Marketplace Essay1118 Words   |  5 PagesGLOBAL MARKETPLACE According to Giddens, Globalization is an economic phenomenon which refers to the fact that â€Å"we all increasingly live in one world, so that individuals, groups, and nations become more interdependent† (Giddens, 457). Among the many economic factors driving globalization, the role of transnational corporations is particularly important. Giddens defines transnational corporations as â€Å"companies that produce goods or market services in more than one country† (Giddens, 461)Read MorePromise and Perils of Globalization - Nike7879 Words   |  32 Pages1 The Promise and Perils of Globalization: The Case of Nike1 Richard M. Locke Alvin J. 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