Multiculturalism in business is applied by establishing enterprises in various regions and also integrating people from diverse cultures into the business work force. Before the existence of multiculturalism, people used to do business within the borders of their regions.
Communities were hostile to their neighbors hence people were limited from trading with people from other regions. This attitude changed when certain circumstances such as droughts forced communities to trade their possessions in exchange of food.
Today people have embraced each others culture because humans have realized that though we speak different languages and come from different communities, we depend on each other.
This idea was exhibited by European explorers when they toured Africa. They realized that Africa has great resources that could be used by the factories back at home and that are when they established their colonies to help them manage these resources (Fillion, 2009).
As time moved on businesses begun to be established beyond borders where the owners felt there were potential customers. But then multiculturalism in business world was enhanced by the establishment of international languages such as English and French because without a common language doing business in a foreign language would be difficult.
The entrepreneurs had to learn the local languages for them to be able to relate with foreigners; this is still one of the greater challenge for multinational managers. In addition to that the availability of skilled labor has been fostering multicultural enterprises. This is because foreign investors are saved from the hustle of importing skilled personnel from their countries (Fillion, 2009).
For instance, an organization that is setting up new offices in another country does not need to deploy employees from their mother country because there is adequate skilled labor in that nation. In fact there are so many people who are learned but they don’t have jobs hence the issue of laborers is no longer a problem.
Governments on the other hand have been requesting foreigners to invest in their countries and hence they have enacted policies that favor foreigners. In some countries a foreign investor can acquire the nationality of that country through investment. Governments have been supporting foreign investors because they know that foreigners will bring foreign currencies which will provide a source of foreign exchange.
When the business environment is favorable more foreigners are most likely to dash into that particular country and in return the currency of that nation will appreciate in value due to its high demand.
However, there exist unfavorable competition between local businesses and multinational corporations. Local companies feel that their markets are being invaded by foreign companies thus engaging in unhealthy marketing activities such as negative promotional messages about their rivals.
Moreover technology has also facilitated the development of multicultural businesses because communication takes very short time and thus it is very effective.
This is because when investors establish enterprises in a given nation they don’t remain there for the rest of their lives but rather move back to their home countries after assigning the management of their business to the local personnel, but they still keep in touch with the regional managers who update them frequently about the progress of their branches.
Due to technological advancement it is possible to communicate in real time thus investors are able to attend to issues that arise immediately (Bissoondath, 2002).
The internet has also contributed to multiculturalism in business. This is because the internet has converted communities into one global community. Additionally the internet serves as the platform where businesses can be based virtually.
For instance, goods and services are being sold over the internet where the customers can see the virtual products. However, technology and the internet have led to a digital divide, where cultures that cannot access the current technologies are left behind.
In this regard, greater concern should be placed on multinational enterprises because of the increasing competitiveness in the business. Multicultural businesses should be managed by team players because the success of any business depends on the corporation of the entire work force towards the business’s mission.
In addition a multicultural business should be operated by someone who is a fast learner because the faster one learns about a foreign environment the better it is for the business. Besides that the person should understand and appreciate the cultures of other people including those of his/her workmates.
Reference List
Fillion, R., 2009. Multicultural Dynamic and the Ends of History. Ottawa: University of Ottawa Press.
Bissoondath, N., 2002. Selling Illusions: The Myth of Multiculturalism, Toronto: Penguin.