With globalization, there has been changes in all systems. Also in entrepreneurial practices. Are t he has someone who can testify of new managerial practices experienced in his country? Mention also the period?
Yes, it helps both. More players come into the market due to the rise in demand and freer flow of resources goods and services; especially those players who can operate efficiently enter the fray. And, those who cannot get forced to go out. So, consumers get better quality with lowest possible prices.
MNCs are very often the innovators and leaders in many fields, especially in the less developed countries, where they play a role of managerial and strategic benchmarks. So, this is quite natural, that we can observe a variety of spillovers in the host country environment, including the entrepreneurship area.
Do you look for any specific examples? Any practices that are being mimicked?
Are management practices beneficial to contractors and consumers in a globalized economy?
Yes and no. There is an obvious tension between management and labor since the purpose of being in business is to make a profit for shareholders, and the purpose of workers is to make a decent living, so the two do not always work fr the mutual benefit of management and workers. In a globalized economy many organizations use local contractors to conduct business in foreign lands because of the economy of scale in using local talent, and the potential for higher profits.
Local talent understands local customs, laws, etc., and is therefore a useful liaison between the organization, governmental and local authorities, and workers. However, the whole purpose of using contractors is to minimize the costs of producing goods and services, and maximizing profits; therefore, management practices involve seeking out the lowest production costs wherever they can be located. This translates into lower priced goods for consumers (especially in developed countries) but the same goods are often out of reach for the workers who make them, due to the very poor wages paid to these workers. So, on the one hand, consumers in developed or developing countries benefit, contractors benefit, but consumers in underdeveloped countries do not benefit at all. The reasons are myriad and they are too extensive to list for this post; however, a lot has to do with the entrepreneurial practices of the head organizations and the contractors that they hire.
Entrepreneurial Practices
Globalization has given rise to many entrepreneurs who rush to capitalize on the cheap labor and reduced trade barriers. For example, it is very common for celebrities to design clothing lines and manufacture them in underdeveloped countries. In America, many large corporations outsource to underdeveloped countries and pay the workers, through the contractors, less than subsistence wages, and prevent these workers from joining or forming unions – something that they generally cannot get away with in America (although unionism is under fierce attack in America at this time).
Abuses by contractors have been widely reported as a quick google of the topic will reveal. Most recently, spectacular fires or building collapses in Bangladesh have made headlines in America, and revealed the practices of contractors. They routinely lock workers in, prevent them from leaving the factories, and have them working under very unsafe conditions. They pay them below subsistence wages (see link below) and when these things are exposed, the organization can pretend that they are not at fault because they hired contractors to ensure that their goods are produced under international law that guarantees workers rights, etc. So, on the whole, globalization has benefited the developed nations, but placed the citizens of underdeveloped nations in economic slavery.
Links:
Recent accounts of such fires and working conditions can be viewed here:
http://www.huffingtonpost.com/news/walmart-bangladesh-factory-fire/
http://www.theguardian.com/world/2013/dec/08/bangladesh-factory-fires-fashion-latest-crisis
http://www.americanprogress.org/issues/labor/report/2013/07/11/69255/global-wage-trends-for-apparel-workers-2001-2011/
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