Novartis in Bolivia Expansion Project Essay

Understanding the political structure of a country is very important when trying to do business internationally. When multinational corporations plan to invest in a new country they must understand the political system and culture. Bolivia has faced political instability for over the past century. Since Evo Morales was elected as president, many changes have been made to protect some of the natural resources and mandate foreign investment. Morales’ political influence has played a large roll in the regulation of foreign investment and business. Since his inauguration, Morales has nationalized the hydrocarbon industry and the telecommunication industry. This has caused many companies to negotiate new contracts. Although Bolivia’s legal framework is open to foreign investment, many foreign companies and investors are affected by many of the inconsistent regulatory decisions. These issues often cause uncertainty with investors when deciding to invest. In addition the easily corrupted judicial system also causes a threat to many investors that decided to invest in Bolivia. Several problems that come up when investing in Bolivia result from the weak judicial system. Many of the property and contractual rights might be enforced, but the process can take a lot of time due to corruption and political influence. This also could be a potential threat to companies that want to expand into Bolivia. Political protests against the government are another issue that might affect foreign investors when attempting to do business in Bolivia. Many of these protest cause disruption to the transportation of goods. Overall the political environment of Bolivia could potentially cause issues when doing business; we might put ourselves at risk of losing major profits or even expropriation by the socialist form of government currently established in Bolivia. Economic Analysis Bolivia has struggled economically in the past thirty years but has reached stability. This is partially due to low population growth that has kept the labor supply limited. Another key factor to the economic struggle in Bolivia is due to the political and social conflicts within Bolivian society. Many changes have been implemented after the economic crisis in 1984-1985, where they suffered from extreme hyperinflation. The main focus of the government after the period of hyperinflation was to maintain price stability, create conditions for sustained growth, and alleviate poverty across the country. Currently Bolivia relies heavily on foreign assistance to finance developmental projects. Direct foreign investment has contributed much of the growth experienced in private investment in Bolivia. Bolivia’s primary sectors, Agriculture/Forestry and Mining, have created economical opportunities for Bolivia. Agriculture contributes to almost ten percent of Bolivia’s gross domestic product and almost half of their work force is employed in this industry. One of their most profitable products is coca in which they are currently the third largest cultivator. Mining has played a big part in Bolivia economic growth as well. Many local miners are employed by small-scaled operations throughout the country. Although Bolivia is known to have over 5. 4 million tons of lithium, much of the lithium deposits are not mined due to the disturbance of the country salt flats, which are a big feature of tourism. Currently the United States is one of Bolivia’s largest trading partners, importing $707 million dollars in 2010. There are no laws directly regulating competition but the government does have some regulation on the activities companies have. Bolivia has struggled economically but are now more efficient Social Analysis Many of the issues arising socially are result of the living conditions and political reform. Although much of the population is living in poverty, two-thirds of Bolivia’s population is active within the economy, either working for corporations or on a non-contractual basis. One issue that the majority of the population is dealing with is working qualifications. Many people growing up in Bolivia may only attend one year of schooling. Some of the difficult living conditions and political influences can create a hostile environment throughout the country. Protests against the government are a common issue that might affect foreign investors when attempting to do business in Bolivia. Many of these protest cause disruption to the transportation of goods and can effect business decisions. Violent and disruptive social protests occur often in some of the major cities that have affected companies. There have been cases where the major airports have been shut down for over twenty days due to protesting and social unrest. The government is attempting to increase citizen involvement in politics in order to help decrease some of the protest. Through many political and economical reformations, Bolivia has stabilized many of the past issues they were facing but is still a difficult place to do business, and through time it has deterred many international companies from entering the market. Country Risk Analysis and Globalization As mentioned before, Bolivia constitutes one of the least developed and poorest countries in Latin America and one of the most isolated countries in South America. Bolivia’s socialist leader, Evo Morales, was elected because of his involvement with the anti-globalization movement. He has reduced poverty within the country, redistributed wealth, and has nationalized a significant amount of the energy sector. He has promised to favor domestic consumption of natural gas over export. He has supported mainly by the poor majority who mostly reside in the western highlands. The population residing in the eastern areas and voters from the middle and high class who have most of the wealth, are concerned about his policies. Those in higher social classes are concerned with the neo-liberal global economy while many in the mestizo class support the opportunities that come from participating in the global economy. When it comes to the country’s globalization, Bolivians have a deep love for the natural richness of their country and are fighting to protect it. Bolivia is rich in nature and has many natural resources to offer. The nature’s conservation of the country is under pressure because of global interests, but it’s an opportunity for Bolivia that can be beneficial to them and help create more stability and less inequality among the country. Bolivia has the second largest reserves after Venezuela and looks like the perfect supplier for natural gas. But in 2005, a hydrocarbons law was passed by the government that imposed higher royalties and required foreign firms who were operating under risk-sharing contracts at the time, to surrender all production to the state energy company in exchange for a predetermined fee. The hydrocarbons sector has raised question as to whether Bolivia has the sector’s capacity or not to grow. Bolivia will continue to supply Brazil and Argentina with their natural gas but their long-term market potential is at risk. There are a number of factors that may reduce the growth of the industry; increased political risk, delays in infrastructure projects, and insufficient funds for production. The country needs private investment to increase production, but if they continue to pressure investors this is going to be very difficult. Bolivia has had problems with political instability in the past years, which has affected investments in the sector. They had a large fall in investments in exploration and production of about $63 million in 2006. It has had a downfall on the amounts of gas delivered to Argentina since the volume of production decreased in 2007. They had initially agreed that Bolivia would deliver 7. 7 million cubic meters per day per year to Argentina, but Bolivia was only delivering about half of that. Bolivia’s supply to Brazil was almost quadruple of the7. 7 mcm/d per year to Argentina, in turn, Bolivia asked Brazil for help. They are currently working on balancing and maintaining the gas deliveries to Argentina. Political instability in Bolivia has caused them to hinder the opportunity of exporting gas to Chile, to Mexico through liquefied natural gas facilities, and to the U. S. through a Peruvian or Chilean port. Even though Bolivia has faced political instability, they have never stopped its gas supplies to Argentina or Brazil. In consequence to the political instability, the lack of investment in the country has reduced much of the production volumes. The Bolivian government has improved its relationships with other governments regarding negotiations; they also have improved their relationship with Brazil after the gas industry nationalization. Contracts of new investments have been made to initiate more production giving a positive signal for the future gas supplies in the region promising the security of supply for Argentina and Brazil. Although government relations have improved, there is still a risk of markets not developing because of Bolivia’s internal political problems. But if the government avoids these political problems and a more consistent policy framework is made, the future looks promising for Bolivia. Bolivia, being an underdeveloped country, poses economic risks to other countries entering their market. Future growth of the country will be constrained by declining foreign investment and the country’s high debt. Bolivia has such high poverty rates, that growth probably won’t reach levels to sufficiently relieve the rates. President Morales opposes free market economic policies and instead supports state involvement in policy making and more government spending on health, education, and infrastructure. The government continues to negotiate for further debt relief of the country. According to the Natural Hot Spot study by the World Bank, Bolivia has the 32nd highest economic risk exposure to three or more hazards. It’s exposed to detrimental hazards due to the country’s geographic location as well as the vulnerability of its population and infrastructure. In the past, the country has experienced a series of emergencies caused by many natural disasters such as floods; hail storms, landslides, and mudslides. The levels of vulnerability in Bolivia have increased due to poverty factors and repeated natural disasters in the same regions. Industries and the general population are affected by these events since 49 percent of the population works in the service sector, 40 percent work in agriculture, and 12 percent in industry. Bolivia’s legal framework remains generally open to foreign investment. However, foreign firms may be affected by inconsistent regulatory decisions, unfavorable interpretations of laws, and a corrupted judicial system. The Investment Law provides for national treatment of foreign firms and guarantees the foreign firms their profits, the free exchange of currency, and the right to international arbitration in all sectors. Laws that govern activities having to do in the mining and hydrocarbon sectors authorize joint ventures, and association of services to state-owned corporations. The Hydrocarbon Laws, which was issued in May of 2005, required investors to adapt to new contracts within 180 days, forced production of hydrocarbons to release all hydrocarbons to the state, and forced an additional tax of 32 percent on revenues. The law also required that before exporting, companies sell their hydrocarbons and satisfy the domestic market at factitious prices set by the hydrocarbons regulator. Bolivia’s currency is freely convertible at Bolivian banks or exchange institutions. The official exchange rate is determined by the Central Bank who auction’s dollars daily; the bank offers a set amount of dollars and offers a minimum price. The Banking Law establishes regulations for foreign currency hedging and allows banks to have accounts in foreign currencies. There are no restrictions of any sort on transfers of currency. In 2007, the Central Bank established a one percent fee for any money transfer that is larger than one thousand U. S. dollars. Any hard-currency cash larger than ten thousand U. S. dollars must be authorized by the Central Bank and Ministry of Finance if it’s leaving or entering the country. Bolivia’s past has hindered the investment of foreign firms is their country. Through their political and economic instability the country has yet to fully flourish in the agricultural sector. Some low population growth as well as low life expectancy and a high rate of disease has constrained the labor supply and prevented industries from flourishing. Overall the country has been not too open to globalization due to the current political regime but we believe that they are going to start shifting in the future to more open market and less rigorous import policies to improve their economy. Novartis Overview of the Company  In 1996 Novartis was created, one of the biggest healthcare companies in the world. This multinational pharmaceutical company was formed after the merger of Sandoz and Ciba-Geigy. Novartis is not only a worldwide leader in pharmaceuticals but as well in vaccines and diagnostics, Sandoz, Alcon, animal health, and over the counter. Sandoz is the generic pharmaceutical division of Novartis. It is the second in net sales in 2010 with $8. 5 billion USD, behind pharmaceuticals at $30. 5 billion dollars. Sandoz offers affordable and high quality medicines to everyone. The Alcon division is the eye care division of Novartis. These products are to improve and protect eye vision. OTC or also know as over the counter, are products that Novartis makes that do not require prescription. These products are designed to prevent medical illness as well as treatment from the comfort of your home. Not only is Novartis for the benefit of human health but as well for animal health. With animal health products, Novartis helps treat and prevent diseases in pets around the world. Novartis global headquarters are located in Basel, Switzerland. Even though their headquarters are located in Basel they operate in over 140 countries. They don’t only make and provide products to both humans and animals but also have research facilities. The pharmaceutical research facilities headquarters aren’t located in Basel. The Novartis institute for biomedical researches is located in Cambridge, Massachusetts. These research facilities over the world are to innovate and improve medicines that will treat diseases and improve the health of humans and animals. With its research facilities all over the world Novartis is determined to finding vacancies and treatments for diseases in developing nations. Like every MNC Novartis has a mission statement. Discover new medicine and products for all of their patients is a crucial mission in all of Novartis. They don’t only want to discover new things to improve the life of patients but they want to expand their innovations. This MNC wants to improve human and animal life as much as possible. Novartis official statement states: â€Å"We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life. (www. Novartis. com) In 2000 Novartis listed its shares in the New York Stock Exchange market at 37. 24 a share. With it’s highest in 11 years being 64. 52. Novartis doesn’t only have shares in NYSE but also has shares in the SIX Swiss Exchange. In 1996 Novartis opened their shares in the Swiss market at 35. 06 a share. In 15 years in the Swiss exchange market Novartis shares were the highest 76. 80 a share in 2006. You can say Novartis has double their market value since they went public.

Absorption Costing vs. Variable (Direct) Costing

Absorption Costing vs. Variable (Direct) Costing Absorption cost systems are widely used to prepare financial accounts. These systems are designed to absorb all production costs (variable or fixed) into costs of units produced. Absorption costs techniques allow manufacturing costs to be traced and allocated into product costs. There are different types of absorption costing systems: job order costing, process costing, and ABC costing. In job order costing, costs are assigned to products in batches or lots, and the costs of each specific batch are traced separately using job order cost’ sheets. In process costing, products are produced in a continuous process and costs are systematically assigned to the product. In ABC costing, costs are assigned from cost centers to products. Because a unit’s cost in the absorption cost systems are made of variable and fixed costs, they can be very misleading. Absorption cost systems can incentive overproduction when the overhead rate is calculated based on units produced, and units produced is higher than units sold. In order to calculate this overhead cost, one should divide the total fixed cost by units produced and multiply the result by units sold. This overhead rate will be lower when more units are produced and when variable and fixed costs remain constant. In this process, fixed costs are being spread over more units, thus lowering unit’s cost. This technique allows profit to increase when production increases, and quantity of units produced is higher than quantity of units sold. In this case some of the fixed costs are divided by units and part of the total production (including its costs) is inventoried. The costs inventoried are not transferred to the income statement, thus increasing profits for that period, and misleading managers to overproduce. In some cases, managers do not understand how this costing process works. In the majority of the cases, they are only worried about increasing production and lowering units’ cost. Other managers that have their compensation linked to the period’s profit also feel motivated to overproduce, once profit increases as quantity produced increases. There are many ways to decrease the incentive of overproduction. The first one charges inventory holding costs against profits. In this process, inventory values are increased by the costs of capital plus warehousing costs. Managers that are evaluated based on residual income, tend to dislike this system; first, because it increases data processing complexity, and second, because it decreases residual income when there is an overproduction and an increase in inventory. This system does not eliminate completely the incentive to overproduce, but it makes overproduction less profitable to managers. The second technique that aims to reduce the incentive of overproduction is based on a strict policy against building inventories. This can be done through contracts stating that bonuses tied to net income will not be paid if inventories exceed a certain amount. A third method would be to base managers’ compensation on stock prices instead of accounting earnings. This method will inhibit managers’ actions that could damage the company’s profit maximization plan. However, in cases where the company has more than one plant, overproduction has a small effect on the value of the firm. This factor decreases the efficiency of stock-based compensation to eliminate or reduce overproduction incentive. The forth method consists of the implementation of just-in-time production systems. Because this process does not begin until a part or a total order is made by customers, it reduces inventory levels. In this system, the decision rights are made by demand-driven market orders. Here the production levels are determined by demand, not by managers. Just-in-time systems reduce inventories, thus reducing the incentive to overproduce. Companies can control managers’ incentive to overproduce by adopting variable costing systems. These systems write off all fixed manufacturing costs as a period cost, which will not allow profit increases with overproduction. In variable costing, product costs are made up only of variable costs. Fixed manufacturing costs are considered period costs and are written off. Variable costing and absorption costing differ from each other in the way that they treat fixed costs. Under variable costing, fixed manufacturing costs are written off as a period expense. As for absorption costing, fixed manufacturing costs are included as part of product costs. The advantages of variable costing are that the product’s cost does not change depending on volume change, and it reduces the incentive for overproduction. It is important to notice that when production and sales are equal, absorption costing and variable costing will have the same profit amount. Variable costing systems’ benefits might not exceed its total costs, a fact that contributes to the systems unpopularity.

Morality of Active Euthinasia Essay Example | Topics and Well Written Essays - 500 words

Morality of Active Euthinasia - Essay Example Active euthanasia is sometimes called mercy killing whereas the physicians end the patients’ life directly, such as by giving lethal injection. The passive one is delivered by ending any life sustaining treatment. The result of both cases is the same, the death of the patients. However, some can argue that the former is caused by the physician while the latter by the disease. The conventional doctrine is that there is such an important moral difference between the two that, although the latter is sometimes permissible, the former is always forbidden. (Rachels 78) In my opinion, the morality of active euthanasia actually depends on the situation. In some rare cases whereas the patient suffers extreme pain and has absolutely no hope of surviving, active euthanasia, although it is illegal, can be seen as an act of kindness. This mercy killing is, in some sense, even more compassionate than passive euthanasia, whereas the physicians forgo the life sustaining treatment and let the patient suffer to death. However, in most cases, active euthanasia is absolutely immoral. When there is a chance for the patients to recover, no matter how tiny the chance is, mercy killing is obviously not the act of compassion. Even if the patient voluntarily ask for it, as long as the chance to recover is there, active euthanasia is still morally wrong. The morality of active euthanasia in individual cases can depend on the situation. The morality in the policy level, however, cannot depend on the situation. The question whether it should be legalized or not should only be answered after considering carefully the potential consequences. If active euthanasia is legalized, it will definitely generate good and bad consequences. Whether the good ones outweigh the bad ones or the opposite should be the main concern to answer the question of legalization. Let’s deal with the good outcomes first. According to Dan W. Brock, if active euthanasia is legalized, it means

Group reflection paper Essay Example | Topics and Well Written Essays - 500 words

Group reflection paper - Essay Example Moreover, a member who does not work is quite noticeable in a small group so that every individual is forced to give some output in order avoid criticisms. In addition, quality work is more assured in a small group for similar reasons therefore, small group concepts are widely used in schools and other institutions. The first phase of decision emergence theory was quite obvious is the group of Cuisine Queens during which, there was quite a tension among us, not knowing much about each other. When we were getting acquainted with each member, there was a high degree of politeness and consideration, each wanting to show respect and hoping the same to be given by the other member of the group. The group had to make clear the goals and procedures of the activity to avoid misunderstanding among us. We agreed on our topic and we decided to work individually on the questionnaire before we continue with the interviews as a group. Questions were raised to clarify matters that seemed vague. Everyone seemed to be satisfied with the results of this stage because the process went on smoothly and we were able to make new friends. During the second phase, some conflicts sprouted because of individual differences. As the group was getting more acquainted and comfortable with each other, reservations were minimized and there were some who spoke their thoughts openly. There could have been no problem about this if all the members agreed on just one opinion but just like in every group, there were differing opinions that were presented. In addition, the attitudes of each member became more evident so that the group was able to choose on a leader who should be responsible in keeping the group on track. During the emergence stage, our group improved from arguing to being more focused on achieving goals. Some who earlier had strong oppositions turned to a compromised attitude in order to finish the task and perhaps for the reason that things have been made clear that one

Managing Diversity and Equal Opportunity Essay Example | Topics and Well Written Essays - 3000 words

Managing Diversity and Equal Opportunity - Essay Example Moreover, the discussion of this report would also reflect on identifying the amount of workers who meet obstacles in relation to developing their career that have been labelled ‘glass ceiling’ and ‘glass cliff’ within the United Kingdom (UK) business organisations. In order to provide relevant examples relating to the present demographic trends, the report would also render instances of real cases of the UK companies regarding their practice of managing diversity and equal opportunity within the organisation. Part 1: Ways in Which Current Demographic Trends Influence to Increase Workforce Diversity The incessant growth and development of demographic trends has been identified to enforce numerous challenges for the global organisations to manage diversity along with promoting equal opportunities. According to the concept of demographic trends, the notion has been identified to increase since the period of 1950s within the UK population. In this regard, the m ajor ways in relation to the current global demographic trends which augment workforce diversity can be characterised into different categories (Department for Business Innovation and Skills, 2013). A few of the major ways of demographic trends have been briefly highlighted in the following discussion. Internationalisation The rising pace of internationalisation has been viewed as one of the major factors, which influences the development of the current demographic trends within the UK. In relation to the present globalisation driven era, the rising internationalisation trends rapidly influence the organisations to focus on managing diversity and rendering equal opportunity to the workforce. The incessant development of the global business organisations has resulted in... The incessant growth and development of demographic trends has been identified to enforce numerous challenges for the global organisations to manage diversity along with promoting equal opportunities. According to the concept of demographic trends, the notion has been identified to increase since the period of 1950s within the UK population. In this regard, the major ways in relation to the current global demographic trends which augment workforce diversity can be characterised into different categories. A few of the major ways of demographic trends have been briefly highlighted in the following discussion. The rising pace of internationalisation has been viewed as one of the major factors, which influences the development of the current demographic trends within the UK. In relation to the present globalisation driven era, the rising internationalisation trends rapidly influence the organisations to focus on managing diversity and rendering equal opportunity to the workforce. The inc essant development of the global business organisations has resulted in compelling these corporations to extend business locations across the geographical boundaries (CIPD, 2013). Therefore, the organisations are not fully aware of the potential advantages and at times overlook the required competencies and knowledge to successfully obtain the foreign opportunities. In this regard, the diverse culture, language and racial differences often discourage the UK companies from accomplishing their overseas opportunities.

Global Tax Management Essay Example | Topics and Well Written Essays - 2500 words

Global Tax Management - Essay Example To absorb a reduction in the corporate tax rate, the US government will have to extend the corporate tax base and remove or scale down the corporate tax expenditures: accelerated depreciation, domestic manufacturing production deduction, and the research and development tax credit, that reduce capital costs, increase new investments, and encourage job creation. This will result in an increase on the cost of new investments and reduced wages and productivity. Therefore, America should not increase the corporate tax rate and should retain the territorial system, but also combine it with worldwide territory to ensure the government does not lose revenue. The biggest factor that determines Foreign Direct Investment in the country is GDP, a study of 46 countries established that there is a direct correlation between corporate tax rates and foreign direct investment. Countries with low corporate taxes attract more foreign investments compared to countries with higher rates. To increase profits, Multinational Enterprises (MNEs) invest in countries with favorable economic conditions and tax rates. Empirical evidence for Organization for Economic Co-operation and Development (OECD) countries shows the negative FDI inflows and increased taxation. There is increased lobbying for the Internal Revenue Code to be revised, for simplification of corporate and personal taxes. Globally there has been a shift towards the flat tax regime, where citizens and business are charged at a harmonized tax rate, with everybody paying an equal amount. Advocates of the flat system argue that there are many benefits that accrue from using this system, the system itself is very simple, with easy to comprehend tax codes, both the taxation authority and the taxpayer benefit. Governments primarily adopt the system, as an enticement to attract companies and the general citizenry to paying taxes. Because everyone will be paying

Reebok Co Assignment Example | Topics and Well Written Essays - 500 words

Reebok Co - Assignment Example The shoes of the company got popular not only in the athletic wear but also as casual wear. In 2009, Rebook recognised the changing trends and positioned itself as a premium sports brand which offers a lifestyle brand by focusing on fitness and training. Actually the heritage and roots of Reebok are associated with fitness/training therefore, by positioning the brand as a lifestyle shoe, Reebok not only fulfilled the changing needs of the consumers but it also developed a clear roadmap for its key businesses going forward (Khurana, 2010). What segments are they targeting today and why did they choose these segments? The change in positioning strategy from athletic shoe to lifestyle shoe helped Reebok to target various market segments. The company attracted the youth involved in cheerleading, gyms, and aerobics and average consumers (Womenreebok, 2011). Therefore, the major target market segments of Reebok are the youngsters involved in fitness and training activities of all kind beca use Reebok recognises fitness and training as a lifestyle of the youth.

Crimonology Essay Example | Topics and Well Written Essays - 750 words

Crimonology - Essay Example Biological influences on white collar crime are evident in sex differences between males and females. Sex of a person makes it possible to experience various life consequences. The belief that females, who are supposedly physically more weak, are mistreated more often is also inaccurate. Aside from rape, the only individual crime for which women are victimized more than men is robbery with contact. Men are twice as likely to be the victim of an assault or a robbery and 50 percent more likely to experience some crime of theft. Men are also the victims of strangers more than females (Friedrichs, 2006). Therefore, the idea that physically weaker people constantly fall prey to the criminal has no foundation in fact. Neither females nor older people are particularly prone to white collar crime. But, the lifestyles of these community groups may explain this fact better than their actual vulnerability to criminals. The advantage of this theory is that it explains roots of white collar crime , thus it does not take into account motivational factors and personal intentions of a criminal. Human biology and genetics are the two personal attributes most closely tied to antisocial behavior. Heredity and race are also related. ... ore frequently victims of white collar crime than others, while whites experience property crimes at higher rates than other ethnic and racial groups. For white collar crime, robbery accounts for the higher rate experienced by blacks (Friedrichs, 2006). It is still difficult to define the motivations of women when they commit their white-collar crimes at the workplace. But I am personally apt to think that if women have obtained such top positions at their companies - white-collar positions, they can hardly commit their crimes being motivated by poverty (according to economic marginalization thesis). Women rather try to cash in, in different ways, on their top-level positions. Thus, here opportunity thesis and sometimes, masculinity thesis can be more applicable in order to explain the motivation. As well, criminological theory states that opportunity is a more intense motivation for committing white-collar crimes. According to this theory, people who have achieved a lot on their liv es and have satisfied their needs as a result will need more goods to exchange with others, but not to use. Thus, this need for more possessions (or greed) can make people break the law and perpetrate crimes to receive what they want. Psychological predisposition may lead to antisocial inclinations and increase a possibility of criminal behavior patterns. The cultural ties associated with family income, race, and ethnicity also affect with whom one associates and the places of those associations. Housing, transportation, privacy, and leisure-time factors are related to income as well as to racial and ethnic segregation (Sutherland and Cressey 2001). To the extent that white collar crime varies according to place and event, individuals from different income levels and racial and ethnic

Falls Prevention in Australia Essay Example | Topics and Well Written Essays - 3250 words

Falls Prevention in Australia - Essay Example Unintentional falls are common risks mostly among elderly individuals who may experience non-fatal injuries from these falls. Fall-related injuries are common among these older adults, hip fractures being one of them. Mortality rates in relation to falls are also high in this age group, and death is even a major possibility among those 85 years and above (Currie, 2007). This is also the case in Australia where the common sufferers of falls belong to the above 65 age group (Department of Health and Ageing, 2012). Fall-related injuries mostly include hip fractures and wrist fractures. Some patients have also been known to suffer head injuries from their falls. The older the patient, the risk of death is also higher, especially among the above 85 years old age group (Department of Health and Ageing, 2012). The cost and health impact of these falls are also significant, sometimes leading to other health problems and issues (Currie, 2007). For the elderly individuals, the recovery period from their falls is usually longer. Due to prolonged healing, they may also develop pressure ulcers which can further delay the healing process (Currie, 2007). Falls management cost the government millions of dollars, with costs amounting to 170 million dollars for fall-related injuries. Moreover, the risk of re-injury or future falls is also an ever-persistent risk for patients (Currie, 2007). In effect, falls are a significant public health issue which needs to be addressed by health authorities. Throughout the years, various studies have been undertaken on the problem of falls and related injuries, including interventions to prevent and manage their occurrence. This study seeks to evaluate the clinical question: How significant is lighting in the prevention of falls among the elderly? This study shall first evaluate the literature on falls prevention, critically evaluating such literature and assessing their formal and structural validity and reliability. This review shall also d iscuss the search strategy applied in order to establish studies to be reviewed. Then, it will identify the critical assessment tool to be used to evaluate the data. A critical review of the validity of the study findings will also be discussed. Potential barriers and facilitators to the implementation and/or maintenance of the strategy shall then follow. This paper shall end with a conclusion which is based on the quality of the studies and relevance of the findings. Body There were six studies retrieved for this study, and most of them were quantitative studies. Five of the studies had a prospective experimental design. One study had a correlational design. All of the studies were quantitative studies, in other words, they are an empirical assessment of phenomena using numerical and statistical analysis and frameworks (Bruce, Pope, and Sanistreet, 2008). Five of the studies were prospective studies as they were carried out on respondents who would be recruited and who were to be s ubjected to various procedures and processes. Experimental studies are those which evaluate cause and effect relations among respondents which are studied under controlled settings (Bruce, et.al., 2008).

Research Methods in Education (Topic Question undecided) Essay

Research Methods in Education (Topic Question undecided) - Essay Example A quantitative study conducted on 415 students and 83 teachers in public schools in the US revealed that students and teachers in schools with uniform policies generally felt safer, had higher self-esteem and more positive attitudes toward school climate, than students and teachers in public schools where no uniform policies were in place (Wade & Stafford, 2003). A study conducted by Gottfredson and Gottfredson (2001) involving 848 school principals in the US indicate that one of the main activities that schools implement to improve student behaviour and academic outcomes is to improve school climate. Implementing mandatory school uniform policies have been a subject of much discussion with increasing interest in its relationship to improved school climate. It has been suggested that the mere implementation of a school uniform policy at the very least symbolizes a school’s commitment to school climate change and this perception alone improves student outlook and performance (Brunsma & Rockquemore, 1998). Brunsma and Rockquemore (2003) observe however that with all the interest in the link between school uniform policies and school climate and the importance of school climate to student behaviour, safety and academic achievement, research on the significance of school uniform is sorely lacking. Much of the research is purely theoretical or uses flawed methods. Therefore, more research is needed on the implications and effectiveness of mandatory school uniforms (Brunsma & Rockquemore, 2003). This proposed research will thus fill a gap in the literature by examining and analysing the extent to which a mandatory school uniform policy effects perceptions of school climate. It is anticipated that this research will provide empirical evidence of student and teachers’ perception of school uniform and its relationship to school climate and will identify areas for further

Branch of government Essay Example for Free

Branch of government Essay The executive branch is the most important government branch. The executive branch is the 3rd branch of government and with out it, the entire system would be backwards and out of order. The executive is the branch of a government charged with implementing, or executing, the law and running the day-to-day affairs of the government or state. The de facto most senior figure in an executive is referred to as the head of government. The executive may be referred to as the administration, in presidential systems, or simply as the government, in parliamentary systems. The Executive branch provides national security and without national security there would definetley be no order and protection in the nation. The executive branch makes the President the commander in chief, the executive branch also makes the president the economic leader. The president appoints cabinet members, the cabinet contains the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Attorney General (Justice Department), the Secretary of the Interior, The Secretary of Agriculture, the Secretary of Commerce, The, Secretary of Labor, The Secretary of Health and Human Services ,the Secretary of Homeland Security, the Secretary of Housing and Urban Development, the Secretary of Transportation, the Secretary of Education, the Secretary of Energy and, the Secretary of Veterans Affairs. The executive branch is the most important branch of government because without the cabinet and all the departments, the country would be in turmoil. If there were no laws to execute then the whole country would be out of order. If there was no executive branch there would be no running the functions of the state, managing the bureaucracy, and deciding how to enforce the law. The organizational structure of the executive branch will determine the relationship between the heads of state and government respectively. The Executive Branch also carries out the laws. In a presidential system the leader of the executive branch is at once the head of state and head of government. In a parliamentary system, a cabinet minister with the title of prime minister is head of government, while the head of state is a largely ceremonial monarch or president.

Influence of Money in Sports

Influence of Money in Sports There is too much money in sports. For many people around the world these are difficult times, many have lost their jobs, and others are fretting about losing them. Every day we see more companies go bankrupt and the whole world seems to be waiting for the crisis to end. Everyone in the world, except the sports industry, who are still wasting vast amounts of money on salaries, TV deals, agents, and advertisements. The world of sports is too influenced by money, and by means of reducing or even removing advertisements, decreasing the salaries of professional players, and lowering the price of tickets we can improve the spirit of competition, make sports more available to everyone, with the money saved improve the lives of people who are not as well off as the people in the western world. Sportsmen and women are people with talent that stretches far above a normal humans ability, and for this they should naturally be rewarded. However, as much as the worlds economy sways the salaries of professionals only seem to be increasing. In 2008 the highest paid athlete David Beckham earned more than 48 million (Freedman) in the 1970s when TV was not as influential to sport as it now is Pete Rose was able to negotiate a million per year contract (Gilis) This clearly shows that the salaries have boomed incredibly over a short period. The average gross income for a citizen of the USA in 2005 was forty two thousand US dollars(United States Average Salaries and Income). Do athletes need forty million to survive? The amounts of money that go into the players salary are not motivating them to strive for perfection. It only seems that more and more are doing it for the money in it, and this, ruins the healthy spirit of competition that makes sport so interesting to watch, and most imp ortantly to play. Above all the most ridiculous amounts of money are wasted on player transfers; can anyone really be worth over a hundred million? This trend is not confined to only the players and the teams, the agents for those players have also gotten major salary changes, â€Å"Mills estimates there were 50 or fewer agents when he started in 1967. He made $3,900 on his deal for Owens. Today there are about 1,000 agents certified by the NFL Players Association. Agents now are allowed to charge 3 percent. â€Å"A player gets a $10 million bonus, theres $300,000 for the agent,† he says.† (Looney) This is definitely a good indicator of where a countries interests lie; in most countries professional athletes earn more than triple the amount of a high ranking police officer, doctor, or teacher. Suppose instead of this high average pay people started paying athletes a much lower salary per year, lets say 200,000 $, and then reward them for good performances. This would r eally separate a good athlete from a bad athlete and on top of that would make more athletes really put in that extra effort knowing they will be rewarded. Fans are part of sports no matter how you look at it; they cheer, shout, sing, and show the immense passion that they feel for their team, they are the essence of sport. Unfortunately though they are becoming more restricted in their support because of the prices of tickets, the united kingdoms national football stadium cost a whopping 1.5 billion pounds (Egan) and in order to counter these huge expenses ticket prices are raised. However it doesnt seem fair that the hardcore supporters of those teams are not allowed to come to the matches because they cannot afford tickets. A true supporter will not mind standing in the rain for hours on end to watch a sports game on a muddy public pitch, because they do not care for the air-conditioned VIP boxes, a place they will probably never go to in their entire lives. Isnt that what sports are all about, the raw passion and talent, not the rich posh businessmen impressing future clients who do not care for the game at all? If one takes a moment to look at a professional football/soccer stadium, s/he would see a green piece of grass, seats, and advertisements, lots and lots of advertisements. It seems that there is no place that companies cant get their names on. They are plastered on players shirts, all around the stadium, they even have them on the camera and security staff. Above all the most money is spent on TV advertisements, General Motors spent 578 million dollars on TV advertisements during sports games (Thomas). Is this necessary? There seem to be fewer and fewer athletes who do it just for the joy of playing, or simply to please their fans. If we can remove all the sponsors and advertisements in the sports industry, then sure there wont be the magnificent stadiums and million dollar TV contracts, there will be pure, focused, talent focused environment. Moreover, with the removal of advertisements player salaries will probably get a drop which will lead to more players that are focused on goin g down in the record books not for million dollar contracts but because of their achievements.   Ã‚  Ã‚  Ã‚  Ã‚  Poverty is a huge world issue at the moment, many people are working hard voluntarily to help improve the standards of living in third world countries. If all the above measures are taken, there will be a huge sum of money left to spend. What better to spend it on than improving other less fortunate peoples lives. Oxfam a leading charity in the world spent 46 million dollars in 2008 (Charity Review Oxfam), thats almost the same as David Beckhams salary! If we cut all players salaries we would have billions of dollars to spend on emergency relief and long term charity projects. After all what seems a morally better way to spend money, giving it to the poor or giving the already rich athletes even more money? To conclude, sports have become too much about the money and less emphasis is put on player talent. Taking the above steps will ensure that sport stays competitive is available to all and is more pleasant to watch. On top of that the money that will be saved will go to charities that will improve the lives of others, although the economy of the rich countries will take a blow it might be restores when the LEDCs are improved by the charity and become more open to trade increasing economies globally. If all is performed this way, there arent many downsides. Works Cited Phil, Carman â€Å"Dont be greedy; Such a thing as too much money.† Advertiser, The (Adelaide)(n.d.):Newspaper Source. EBSCO. Web. 1 Dec. 2009. Looney, Douglas S. â€Å"Money makes world go round (in sports, too).† Christian Science Monitor15 Dec. 2000: 12.Newspaper Source. EBSCO. Web. 1 Dec. 2009. â€Å"EDITORIAL: Money game: There seems to be no end to the commercialization of big-money professional sports.† Journal-World (Lawrence, KS)26 July 2007:Newspaper Source. EBSCO. Web. 1 Dec. 2009. Selvig, David â€Å"It really is all about the loot: Commercialization of sports has become as American as apple pie over the last two decades. Nothing we can do about that now, obviously.† Jamestown Sun, The (ND)05 June 2009:Newspaper Source. EBSCO. Web. 1 Dec. 2009. Gilis, Charles. â€Å"American History 1970-1979.† Lonestar College. Lonestar College Kingwood, Aug. 2009. Web. 1 Dec. 2009. . â€Å"United States Average Salaries and Income.† International Average Salary Income Comparison. N.p., 2007. Web. 1 Dec. 2009. . Freedman, Jonah. â€Å"A crash-course in foreign-exchange rates.† Sports Illustrated 2008: n. pag. Web. 1 Dec. 2009. . Thomas, Katie. â€Å"As the Economy Worsens, Is There Money for Play?† New York Times. New York Times, 15 Nov. 2008. Web. 1 Dec. 2009. . â€Å"Charity Review Oxfam.† BBB. BBB, 2009. Web. 1 Dec. 2009. . Egan, Andrew. â€Å"Worlds Most Expensive Stadiums.† Forbes. Forbes, 6 Aug. 2008. Web. 1 Dec. 2009. .

Performance of the Bretton Wood System

Performance of the Bretton Wood System THE PERFORMANCE OF THE BRETTON WOOD SYSTEM This essay will assess the performance of the Bretton Wood system which was first established in 1944 by 730 delegates from all 44 Allied nations who gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, and began an international control of global monetary relations between nations. The essay will show that the system has been relatively successful and contributed towards the development of global free trade amongst nations and helped prevent the kind of economic disasters such as the Great Depression of the 1930s, which was felt to have been one of the causes of World War 11. However, the essay will also argue that criticism of the Bretton Woods as merely the vehicle for US hegemony over the international economy is also justified. The Bretton Woods System began in 1944 with the United Nations Monetary and Financial Conference, and established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD). In the new agreement on the monetary system, each country member must ensure the exchange rate of its currency is remained within a fixed value,in terms of gold and for the IMF to help support countries suffering temporary imbalances of payments (Markwell, 2006). The Bretton Woods agreement came near the end of a World War that had devastated the globe and many thought that the war itself was partly a result of the economic policies of the pre-war years. In the 1930s the United States preferred policies of isolationism that led them to demand repayment of Allied war debts from World War 1 and caused countries to independently set economic conditions for global trade that cause deflationary problems that aggravated the decline of world trade, led to mass unemployment and negatively affected the majority of the economies of the developed world. The most serious outcome was the decline in the international flow of capital and the retarding of development of international investment. The War left the main economies aware that peace could only be maintained if countries cooperated and efficiently managed the value and exchange rates of currencies. As Cordell Hull (US Secretary of State) argue if there was a freer system of trading where countries treated fairly and eased on trading regulations, they could all raise their living standards, therefore, economic development would be a peaceful competition, thus eliminating the economic dissatisfaction that breeds war (Hull, 1948, p.81) Keynesian economic theory was now the dominant foundation of most countries economic policy-making and this promoted a greater role for government in trade with national politics based on governments assuming a responsibility towards all their citizens. The War also left countries feeling a clear need for economic cooperation and peace to be maintained through trade and that trade to be structured by an international monetary system based on free markets (Markwell, 2006). However, it was the plan of Harry Dexter White from the US Treasury, rather than Keyness own plan that was the main framework for the Bretton system, and this showed from the outset that the dominant nation in the system would be the USA, leading to accusations that the Bretton system is little more than an economic vehicle for American hegemony (Strange, 1996) The first goal of the new approach to global trade was post-war reconstruction of the devastated economies of Europe and Asia. The Bretton Woods system, as the ‘first example of a fully negotiated monetary order intended to govern currency relations among sovereign states† (Cohen, 2009, p.1). However, the reality was that Europe and large parts of Asia were in virtual economic collapse due to the World War and the creation of the International Monetary Fund (IMF) needed to also be supported by an International Bank for Reconstruction and Development, now known as the World Bank (WB). The system was designed to regulate â€Å"the par value exchange rates and lend reserve currencies to nations with trade deficits† thus enabling them with international assistance to re-build their economies and later to help finance the poor or developing countries with their reconstruction projects (Stephey, 2008, p.1) If we examine how nations did recover from the War and the impressive development in the 1950s and 1960s of countries like Germany and Japan, then our assessment of this period of the Bretton Woods, aligned with the Marshal Plan for reconstruction, must agree that Bretton was a positive influence and relatively of some success. The Great Depression in the 1930s was due to the lack of a leading, dominant state to play a hegemonic role in the international economy. In Bretton Woods institutions the US dollar was the dominant currency and became the extension of American hegemony to the international economy (Stephey, 2008, p.2). However, as Susan Strange noted, any multilateral institution might become merely the â€Å"instruments of the structural strategy and foreign policy of the dominant state†, and for many critics of the IMF and the World Bank, the problem is the dominance through these institutions of the majority of the globes nations by a very few powerful nations led b y the US (Strange, 1996). The IMF is seen as a multilateral institution that lends money to governments to stabilize currencies and maintain order in international financial markets. However, its lending carries stringent loan conditions that many see as contributing to worsening conditions for the majority of citizens in the countries that are least able to compete with the economic might of developed countries (Strange, 1996). The IMF is supposed to focus on creating ‘a stable climate for international trade by harmonising its members monetary policies, and maintaining exchange stability (Bretton Woods Project, 2005). It can ‘provide temporary financial assistance to countries encountering difficulties with their balance of payments and it is based on consensual decision-making with the aim of ‘helping countries whose economies are under-developed or in crisis (Bretton Woods Project, 2005). However, to assess the success of this one has to evaluate the degree of ‘fairness in IMF/World Bank strategies and many critics, like Strange (1996) and Mazzei (2007) are highly critical of the true purpose of the Bretton Woods System. For example, Mazzei (2007) finds that it is the ‘poor countries that actually finance the World Bank and not the other way around (p.2). Mazzei notes how ‘that for 20 years poor countries have financed the World Bank, while it is rich countries that co ntribute only 1/4 of total fund and yet it is them who hold 3/4 of the votes (p.2). The first major point of concern for the global economy was in 1971 when the US used its power over the global economy through the Bretton Woods system to protect its own interests against those of the rest of the world. The United States unilaterally terminated convertibility of the dollar to gold. The US could now unilaterally control the global economy by insisting that the United States dollar became the sole backing of currencies and a reserve currency for all the member states (Strange, 1996, p.20). This actually led to the virtual collapse of the Bretton Woods System in the 1970s and plunged the world into economic decline while it fought to adjust to the changes brought about by US policies (Strange, 1996; Cohen, 2009, Calleo and Rowland, 1973). The US ended the tying of the Dollar to the Gold Standard and left it and other global currencies to float free. Keynes had originally planned that the world adopt a global currency but it was adoption in 1944 of Dexter Whites own pla n to make the dominant trading currency of the world the Dollar that had structured the future policies of the IMF/World Bank and allowed the US to have the power to dominate the globes trade. By the 1970s the US was coming under strong criticism for its unilateral control of global trading. French President Charles De Gaulle ‘claimed that the international monetary system allowed the United States to live beyond its means and forced the European surplus countries to finance Americas military empire overseas (Gavin, 2002, p.4). The Bretton Woods system was designed to separate monetary economic policies from power politics, and yet, by the 1970s it had become ‘highly politicized and required constant political intervention to keep the system functioning smoothly (Gavin, 2002, p.5). The faults of the Bretton Woods System were listed by Bordo (1991, p.20) as ‘the gold exchange standard, which placed the United States under threat of a convertibility crisis secondly the problems with the ‘adjustable peg, because, in the face of growing capital mobility, the costs of discrete changes in parities were deemed so high, the system evolved into a reluctant f ixed exchange rate system without any effective adjustment mechanism and finally that ‘U.S. monetary policy was inappropriate for a key currency. Thus, the Bretton Woods System collapsed in the 1970s but its basic institution of the IMF and subsequently the World Bank remain as the guiding bodies of the international economy. The World Banks task is lending to promote the growth of world trade and to finance the post-war reconstruction of European economies. It is a ‘multilateral institution that lends money to governments and government agencies for development projects. However, the Bank also imposes harsh conditions through Structural Adjustment Programs, forcing countries to adopt reforms, deregulate capital markets, promote privatisation of state enterprises, and downsize public programs for social welfare. This results in policies such as privatisation of utility suppliers, bringing in fees and privatisation of education and health services. For its critics the World Bank and IMF have become the contributors to the persistence of world poverty rather than vanguard for preventing it and represent not the interests of the global society but rather the interests of Wall Street and the United States Treasury Department (Strange 1996, Cohen, 2009, Markwell, 2006) In contrast, the supporters of the World Bank insist that the Bank is an institution in which the rich developed countries can serve to improve the global economy and the ‘capacity of countries to trade by lending money to war-ravaged and impoverished countries for reconstruction and development projects (www.imf.org). Thus, in assessing the success of the Bretton Woods System and its subsequent trading organisations such as the IMF and the World Bank, one can see a very different analysis depending on your political affiliation. Rather than separate power politics from global trading, the System has become directly linked to the fortunes and hegemony of the US. Its record in helping a devastated globe recover from the affects of World War 11 is very good and the global economy has grown over each decade. However, its critics still see it as chiefly dominated by the US and its allies and whilst it continues to support the growth of trade its image as a vehicle mainly for the US retards how well its future role in the global economy will be judged by the growing economic powers of countries like China and India. Reference: Bloch, F.L. (1977) The Origins of International Economic Disorder, Berkeley and Los Angeles: University of California Press Bordo Michael (1991)The Bretton Woods International Monetary System: An Historical Overview, Chicago press, US Bretton Woods Project,( 2005) What are the Bretton Woods Institutions, www.brettonwoodsproject.com Calleo, D.P. and Rowland, B.M. (1973) America and the World Political Economy, Bloomington, IN: Indiana University Press Cohen, Bernard (2009) Bretton Woods System, USA, Routledge Eichengreen, B. (1996) Globalizing Capital: A History of the International Monetary System, Princeton, NJ: Princeton University Gavin Francis (2002) ‘The Gold Battles Within the Cold War Diplomatic History, US. Hull, Cordell (1948). The Memoirs of Cordell Hull: vol. 1. New York: Macmillan. Keynes, John Maynard (2007) [1936]. The General Theory of Employment, Interest and Money. Basingstoke, Hampshire: Palgrave Macmillan Markwell Donald, (2006) John Maynard Keynes and International Relations: Economic Paths to War and Peace, Oxford University Press, Mazzei, Umberto (2007) The Temple of Capital is Cracking, Ventana Global , Spain Stephey M J (2008) A Brief History of the Bretton Woods System, Time Magazine, USA Strange, S. (1976) International Economic Relations of the Western World 1959-1971, Vol. 2: International Monetary Relations, London and New York: Oxford University Press Strange Susan (1996) The retreat of the State† : The Diffusion of Power in the World Economy UK, Cambridge Press Internet sources: M.J. Stephey, Bretton Woods System[ Brief paper],Time CNN, Tuesday, Oct. 21, 2008. Availbale from http://www.time.com/time/business/article/0,8599,1852254,00.html#ixzz0gvqYryL2 [accessed 23 March 2010] The World Bank[Web Document] Available online from: http://www.globalpolicy.org/social-and-economic-policy/the-three-sisters-and-other-institutions/the-world-bank.html [accessed 23 March 2010] What are the Bretton Woods Institutions? Published: Tuesday 23rd August 2005, last edited: Thursday 25th January 2007[online] available from: http://www.brettonwoodsproject.org/item.shtml?x=320747 [accessed 23 March 2010]

Battle of Iwo Jima :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Iwo Jima, Battle of, one of the most costly battles of the Pacific campaign of WWII, fought in February and March 1945 on the island of Iwo Jima. About 6800 U. S. personnel lost their lives in seizing the island from the Japanese; Japanese losses were estimated at more than 21,000. The capture of the island provided American air units with the first base inside the Japanese inner-defense system from which to attack the heart if industrial Japan with medium bombers escorted by fighters.   Ã‚  Ã‚  Ã‚  Ã‚  Before the actual invasion on February 19, the island was subjected to air and sea bombing for three months. In spite of the preinvasion attack, some Japanese were still firmly entrenched in underground fortifications in soft volcanic soil. The Marines secured the island after a month of the most severe fighting in their history. Mount Suribachi, the highest point on the island and an important defense position, was captured on February 23, 1945. The campaign was officially declared ended on March 16.  Ã‚  Ã‚  Ã‚  Ã‚  Iwo Jima, Battle of, one of the most costly battles of the Pacific campaign of WWII, fought in February and March 1945 on the island of Iwo Jima. About 6800 U. S. personnel lost their lives in seizing the island from the Japanese; Japanese losses were estimated at more than 21,000. The capture of the island provided American air units with the first base inside the Japanese inner-defense system from which to attack the heart if industrial Japan with medium bombers escorted by fighters.   Ã‚  Ã‚  Ã‚  Ã‚  Before the actual invasion on February 19, the island was subjected to air and sea bombing for three months.

How Media Influences Women Essay -- essays research papers

We, the American public are hit from every imaginable direction every waking moment of our lives by slick advertising agencies trying to coerce us into or tell us why we need to buy their products. Their products will make us happier or thinner, or prettier. The advertisers often use the picture of youth and vitality so that the public will associate that particular product or service with being young and beautiful. They do this because of course in our society youth and beauty are to be coveted. Everyone would like to be forever young and beautiful or for as long as they can anyway. So, everyone is trying to look younger or wants to look younger. The things that we can associate with youth are obvious. We see the picture of youth and beauty everywhere. Look in any magazine, Watch TV, see billboards, everywhere you turn we see young, beautiful people. Youth is synonymous with beauty so little wonder why when you read this bumper sticker â€Å"few women admit their age, few men act i t† a lot of women won’t divulge their age. To do so would be to admit they are perhaps older than they look or if we were to know their real age we might say something (hopefully to ourselves) like â€Å"jeez, she looks a lot older than that!†   Ã‚  Ã‚  Ã‚  Ã‚  The media is really the one at work that shapes a lot of our attitudes and beliefs. They might not necessarily be healthy attitudes and beliefs but they are the ones that have been shoved in front of our faces from the day we were born. Believe me, they know how powerful and influential they (the media) can be. The most disturbing thing to me about advertising is the ideal female body they use. It is absolutely tight, contained, bolted down. Being thin is not enough. Women need to be in shape as well. Obtaining that body becomes a matter of self-control. It illustrates to me that they are saying thin women are in control. They have mastered the discipline of dieting and exercise. It is the fat women who are not in control. Fat has become associated with laziness and lack of self-discipline. Of the statistics that I ran across while researching this topic said that eighty percent of girls between the ages of eight and twelve are on a diet. The number one wish of most women and girls is to loose weight. Media presents images that tell woman and girls that acceptance means being unnaturally thin. The average fashion model,... ...than among males. The ideals of female beauty have not always been inbodied in the figure of most of today’s â€Å"super models† whose bodies resemble that of a young boy, not a woman. Figures like that of Marilyn Monroe, which today are considered fat, were the ideals of the time thirty years ago. It seems difficult to dispute that the attainment of the slender ideal is very painful for many women. in light of the statistics given earlier (only five percent of women can achieve the ideal fashion model form), it is an impossible task for women to pursue. Women develop a highly damaging relationship with food that does very little except limit their lives. Advertising has served as a disciplinary force in the lives of women. Advertisers create images that dictate cultural trends indicative of the time. The dominating image of the painfully thin woman in advertising remains the ideal for the American women. The grim truth is that attaining the slender body of today is not realistic for most women. Their bodies are not naturally shaped like those of twelve-year old boys. Eating disorders are on the rise, and the relationship women have with food is becoming an increasingly dangerous one.

Levi Strauss :: essays research papers

Loeb Strauss, whose name was later changed to Levi, was born on February 26, 1829, in Buttenheim Bavaria in Germany. He was born to his Jewish parents Hirsch Strauss and his second wife, Rebecca Haas Strauss. His father, was a dry goods peddler who traveled around the country selling dry goods. Hirsch Strauss had five other children Jacob, Jonas, Louis, Rosla and Mathilde from his first wife, who had died several years earlier. Loeb and his older sister Fanny were the two children Hirsch had with his second wife. In 1845 Hirsch died of tuberculosis. After this, the already poor Strauss family became much poorer because there was no income. At this time two of Levi’s older brothers Jonas and Louis left for America. Two years later, Rebecca and the other children left on a boat for New York. When Levi got to New York, he was taught the ways of pedaling by his brothers, who had already started a dry goods business called J. Strauss Brother & Co. In 1848 Levi moved to Louisville, Kentucky, where he sold goods from his brother's store. In 1853 he returned to New York upon hearing gold had been discovered in California. He persuaded his two brothers to provide him with a supply of silk, cloth, and a few luxury items, which he planned to sell in San Francisco. He also took a supply of canvas, which he intended to use to make tents, and wagon covers to sell to prospectors who were crossing the continent. In January of 1853 Levi became a United States citizen, and by March of the same year he arrived in San Francisco, by the time he landed, Levi had sold all his goods to passengers on the ship except for the canvas. When Levi Strauss got to San Francisco, he opened up a dry goods store under his own name representing his family’s New York firm. The name of his firm was "Levi Strauss." At this time the companies main products were the dry goods shipped to it from New York, but this was about to change. While here, a local miner asked if he sold pants. Levi, being a keen business man, decided to make pants from the rolls of canvas originally brought over to make tents, Levi’s were born. When Levi ran out of canvas, his brothers sent him a new fabric called denim.

Culture and Its Importance

Journal of Management Development Emerald Article: Do Cultural Differences Make a Business Difference? : Contextual Factors Affecting Cross-cultural Relationship Success Rosabeth Moss Kanter, Richard Ian Corn Article information: To cite this document: Rosabeth Moss Kanter, Richard Ian Corn, (1994),†Do Cultural Differences Make a Business Difference? : Contextual Factors Affecting Cross-cultural Relationship Success†, Journal of Management Development, Vol. 13 Iss: 2 pp. 5 – 23 Permanent link to this document: http://dx. oi. org/10. 1108/02621719410050219 Downloaded on: 26-10-2012 References: This document contains references to 30 other documents Citations: This document has been cited by 26 other documents To copy this document: [email  protected] com This document has been downloaded 3632 times since 2005. * Users who downloaded this Article also downloaded: * Rosabeth Moss Kanter, (2004),†The challenges of leadership: Interview with Rosabeth Moss Kanter †, Strategic Direction, Vol. 0 Iss: 6 pp. 7 – 10 http://dx. doi. org/10. 1108/02580540410533190 Rosabeth Moss Kanter, 1997†³Strategies for success in the new global economy: An interview with Rosabeth Moss Kanter†, Strategy & Leadership, Vol. 25 Iss: 6 pp. 20 – 26 http://dx. doi. org/10. 1108/eb054603 Martin E. Smith, (2003),†Changing an organisation's culture: correlates of success and failure†, Leadership & Organization Development Journal, Vol. 24 Iss: 5 pp. 249 – 261 http://dx. doi. org/10. 108/01437730310485752 Access to this document was granted through an Emerald subscription provided by UNIVERSITY OF GREENWICH For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www. emeraldinsight. com/authors for more information. About Em erald www. emeraldinsight. om With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. Related content and download information correct at time of download. Do Cultural Differences Make a Busines s Difference? Contextual Factors Affecting Cros s-cultural Relationship Succes s Rosabeth Moss Kanter and Richard Ian Corn Harvard Business School, Boston, Massachusetts, U S A I think Turks are Turks, and they are very different from Canadians, or North Americans or Brits or whatever. But when I went to Turkey, I was dealing with some Turks who had been dealing with Canadians for 10-15 years; they understood us and had adapted to our ways.Yes, they were still Turks, but they knew what Canadians expected. And they knew Canadians very well, so they forgave us when we made faux pas, they understood that we like Christmas Day off. They were patient and gave us a year to understand them. Cultural Differences 5 Canadian executive, describing experiences in his company’s joint venture in Turkey Of course, initially there were apprehensions about being bought by foreigners. Foreigners to us is anyone outside the local community.American executive, describing his company’s acquisition by a British company In Search of Cultural Differences As economies globalize and organizations increasingly form cross-border relationships, there is a resurgence of interest in the management problems caused by national cultural differences – in values, ideologies, organizational assumptions, work practices, and behavioural styles – spawning research reminiscent of national character studies following the Second World War.Recent findings about the cultural propensities of major countries appear robust, replicated in surveys of the values of managers[1-3], as well as used to explain institutional patterns within countries[4]. Such findings are often consistent with stereotypes evoked by managers to explain others and themselves. Cultural generalizations roll easily off the tongues of people in our studies. For example: several Europeans predicted problems Volvo and Renault could have in combining Volvo’s Swedish egalitarianism with Renault’s French hierarchy.A German executive working in a French-American alliance commented that Germans and Americans had more values in common than either did with the French, invoking this as an Important contributions to the case studies and interviews for this paper by Kalman Applbaum, Pamela Yatsko, Madelyn Yucht, Paul Myers, Clau dia de Dominicis, Tom Hughes, Liska Ouellette, Saba Hapte-Selassie and Thuy Tranthi are gratefully acknowledged, as is the support of the Division of Research of the Harvard Business School. Copyright 1993 by R. M. Kanter and R. I. Corn. Used by permission. Journal of Management Development, Vol. 13 No. 2, 1994 pp. 5-23. MCB University Press, 0262-1711 Journal of Management Development 13,2 6 explanation for why an American sent to London to lead the integration team was viewed as incompetent by the French partner for failing to make authoritative decisions[5]. Furthermore, people often assume cultural heterogeneity creates tensions for organizations.Managers, even within a single country, often prefer homogeneity to heterogeneity, because shared experiences and culture are a basis for trust[6]. Yet, while national cultural differences clearly exist at some level of generality, it is more difficult to specify how the presence of such differences affects organizational and managerial effectiveness. Evidence and observations in a range of situations raise questions about the usefulness of the â€Å"cultural differences† approach for managers. For example: ?When people of different national cultures interact, they can be remarkably adaptable, as in the Japanese history of borrowing practices from other countries[7]. And even though it is supposedly more difficult for managers to operate outside their home culture, multinational companies have long succeeded even when expatriate managers make mistakes. Many industrial firms have operated successfully in foreign countries while showing insensitivity towards local values or treating host-country personnel less well than home-country personnel[8]. Technical orientation can override national orientation. There is evidence that similar educational experiences – e. g. for managers or technical professionals – erase ideological differences; those within the same profession tend to espouse similar val ues regardless of nationality[9,10]. At Inmarsat, an international satellite consortium owned by companies from over 60 countries and staffed at its London headquarters by 55 nationalities, differences between functions were a greater source of conflict than differences between nationalities.Although stereotypes abounded (â€Å"Spaniards are often late†; â€Å"Indians like to talk†), engineers who shared a technical orientation quickly adjusted to each other’s foibles – easily enough that a training programme on cross-cultural management was poorly attended[11]. ? Tensions between organizations which seem to be caused by cultural differences often turn out, on closer examination, to have more significant structural causes. A Scottish construction company had difficulty in its first international partnership with a French company.The failure was widely explained by employees as caused by differences between a â€Å"beer culture† and a â€Å"wine cu lture†. Its next partnership with a Dutch company was more effective, supposedly because of the greater compatibility with the Dutch. But in the first partnership, the companies set up many â€Å"dealbusters†[12], from letting lawyers negotiate for executives, to ignoring assumptions about future business strategy. In the second case, they learned from their mistakes and changed the way they worked with their partner. National cultures had little to do with failure in the first instance and success in the second. Cultural value issues – and issues of â€Å"difference† in general – are more apparent at early stages of relationships than later, before people came to know each other more holistically. And outsiders of any kind, even from the next neighbourhood, can seem different. But once people get to know each other beyond first impressions, relationship dynamics are often determined by power rather than culture. Resistance to the new American chief executive of a British retailer was resistance to change, not to culture differences.National culture issues were simply one more piece of learning as he moved from outsider to insider; they did not affect his ability to do his work of managing a fast and successful turnaround[13]. ? Central country value tendencies are often reported at a very high level of generality, as on average over large populations themselves far from homogeneous. Thus, they fail to apply to many groups and individuals within those countries. There are strong individual, regional, and ethnic differences within countries that are masked by the attempt to find country patterns.For example, an American who had served in Japan during the Second World War liked the docile women he saw there. He decided to marry a Japanese woman, only to discover after the marriage that she came from the one part of Japan that encouraged assertive, dominant women. And not only are there individual as well as ethnic differences wi thin countries, but individuals themselves derive their behaviour from many influences and can hold multiple identities. The chairman of Matra Hachette in Paris calls himself â€Å"a Gascon, a Frenchman, and a European†. Finally, group cultural tendencies are always more apparent from outside than inside the group. Indeed, people often only become aware of their own value or culture in contrast to someone perceived as an outsider[6]. The British writer George Orwell observed that national identity and cultural similarity is salient only for those returning from abroad or when the country is threatened; otherwise, people hold firmly to their individuality and are more aware of differences among those within the same nation.For these reasons, then, we wondered about the circumstances under which cross-cultural interaction would affect business performance. The Foreign Acquisitions Study To learn more about managerial issues provoked by cultural differences, we looked for situat ions in which cross-cultural interactions might produce organizational tensions. Kanter’s studies of international strategic alliances and joint ventures, reported in a series of Harvard case studies and articles[14], had uncovered a large number of strains between cross-border partners, but most of Cultural Differences 7Journal of Management Development 13,2 8 these involved strategic, organizational, political, or financial issues. But perhaps that was because the relationship between venture or alliance partners is assumed to be one of relative equality and independence; each partner retains its own cultural identity as well as control over its own operations, co-operating with the other for limited purposes while insulating core activities from the relationship. We looked for another test in the realm of foreign acquisitions, in which cultural differences would perhaps play a greater role.Foreign acquisitions of US companies increased over the last decade. In 1990, 446 su ch deals, valued at $46. 2 billion, were completed, compared with only 126 deals valued at $4. 6 billion in 1982. Foreign acquisitions of US companies accounted for 28. 1 per cent of the total value of merger and acquisition activity involving at least one company in 1990, compared with only 7. 6 per cent in 1982[15]. This acquisition situation, we proposed, would heighten American managers’ awareness of their own culture and its contrast to the acquirer’s culture, as they merged operations or shifted control over decisions.Since American companies were more accustomed to acquiring foreign operations than being acquired, the â€Å"reversal of roles† experienced when being acquired would perhaps exaggerate tensions enough to bring cultural issues to the surface. Therefore, we developed a pilot project with eight companies. T he Companies Approximately 75 interviews with senior and middle managers were conducted by Harvard Business School teams in 1992 and 1993 at eight mid-sized New England-based American companies which had been acquired by foreign companies in the period between mid-1987 and 1990 (with one exception acquired in 1984).All companies had enough experience with the foreign parent to provide time for cross-cultural contact to occur and any problems to surface; but the acquisition was also recent enough for managers to have fresh memories. The circumstances surrounding the acquisitions differed in some respects. One was a strictly arms-length financial investment in which a well-known sporting goods manufacturer was acquired by a Venezuelan financial group as its only US holding in a leveraged buyout from investors who had acquired it two years earlier; as long as profits were high, there was minimal contact with the parent.In two other cases, there was a history of relationships between the foreign parent and the acquired company prior to the acquisition: a familyowned retailer had developed a business partnership with a large r but also family-owned British chain four years before the acquisition as part of a succession plan; and a metals manufacturer had formed a number of joint ventures with a Japanese conglomerate beginning seven years before the acquisition, turning to its Japanese partner as a defensive tactic against a hostile takeover threat.Other acquisitions also stemmed from financial distress: an armaments manufacturer was bought by a British conglomerate after the US company faltered under a sequence of four different American owners; an abrasives manufacturer was bought by a French company as a â€Å"white knight† in a takeover battle with a British company; and a US retailer was sold to a Japanese retailer when it no longer fit its US manufacturing company parent’s strategy. In many of the cases, then, foreign acquirers were sought by the US companies to solve a problem.Two of the companies, given the pseudonyms Metalfab and Hydrotech, were observed by the second author in par ticular depth. Both were engineeringoriented manufacturing companies with operations primarily in the US and annual sales between $100 and $200 million. Both were previously owned by financially-troubled US parents whose core business was in a different industry, and both were bought by well-respected, internationally-experienced companies in the same industry.Corn conducted 30 interviews at Metalfab, a manufacturer of fabricated metal products acquired about five years earlier by Fabritek, pseudonym for a Swedish manufacturer in the same business. He also conducted 21 interviews at Hydrotech, a designer and manufacturer of hydraulic systems acquired about three years earlier by Gruetzi, pseudonym for a German-Swiss manufacturer of industrial energy systems.But while Metalfab was acquired by a company of similar size and was operating at a pretax profit, Hydrotech’s new parent was much larger and more diversified geographically and technologically, and Hydrotech was accumulat ing significant losses. Cultural Differences 9 Overview of the Findings The interviews at all eight companies focused on the history of the companies’ relationships, their business situations and business strategies, the amount and kind of cross-cultural contact between managers, difficulties and how they had been resolved, and any organizational changes which had come about as a result of the merger.We expected cultural differences to play a prominent role in the dynamics of the integration, especially because so many questions probed these issues specifically – from asking for characterizations of â€Å"typical† American and parent country managers to comparing managerial styles in concrete situations. (The study was thus â€Å"biased† towards finding cultural differences and tensions because of them. ) We expected many difficulties to arise, necessitating many organizational changes, and we expected American companies to resist learning from their fore ign company parents.We also expected some combinations to be more volatile than others, such as the Japanese-American interactions, either because of prejudice or because of values and style differences. We found, instead, that nationality-based culture was one of the less significant variables affecting the integration of the companies and their organizational effectiveness. We found that relatively few issues or problems arose which could be labelled â€Å"cultural†, even though managers were able to identify style differences easily that fit common cultural patterns.We also found that very few measures were taken to facilitate cultural integration. Only a moderate number of difficulties were encountered or organizational changes Journal of Management Development 13,2 10 necessitated, and US companies learned from their foreign parents. Furthermore, there was no discernable pattern of cultural compatibility; all nationalities worked well with their American acquisitions. In general, mergers and acquisitions create significant stress on organizational members, as separate organizational cultures and strategies are blended, ven within one country[12]. Differences in national cultures are assumed to add another layer of complexity to the merger process. But our findings suggest that contextual factors play the dominant role in determining the smoothness of the integration, the success of the relationship, and whether or not cultural differences become problematic. These findings lead us to conclude that the significance of cultural differences between employees or managers of different nationalities has been overstated.Cultural values or national differences are used as a convenient explanation for other problems, both interpersonal and organizational, such as a failure to respect people, group power and politics, resentment at subordination, poor strategic fit, limited organizational communication, or the absence of problem-solving forums. Such differen ces are invoked as explanations for the uncomfortable behaviour of others when people have limited contact or knowledge of the context behind the behaviour.Culture versus Context as an Explanatory Factor Most interviewees were able to identify a number of ways in which they differed â€Å"culturally† from their foreign colleagues in values, interpersonal style, and organizational approach. Many of these â€Å"fit† the position of countries on dimensions Hofstede[1] identified, especially power distance and individualism/ collectivism. The first difference issue mentioned, however, was an objective one: Language problems. A majority of Americans found the difficulty in overcoming language differences with all but the British acquirers to be the biggest â€Å"negative† surprise of their respective mergers.One American at Metalfab stated that â€Å"during initial meetings, we assumed that when we spoke English to the Swedes and they nodded their heads, they unders tood what we were saying. Now we realize the nods only meant that they heard the words†. Employees at Metalfab and Hydrotech also recalled meetings in which their foreign colleagues would agree to adopt some new procedure, â€Å"only to go right back to doing things the same old way as soon as they left the meeting†. American employees noted cultural differences in decision-making styles.Many argued that their foreign parents’ management team took a longer-term view. Americans at Hydrotech and Metalfab routinely expressed frustration with the unwillingness of German-Swiss and Swedish managers to make decisions without a great deal of analysis. Europeans noted the American reputation for fast, less thoughtful decisions. A British manager involved in the armaments company acquisition said, â€Å"Unlike American companies which manage by quarterly numbers, we at UK headquarters base our strategy and business policies on long-term positioning†.American intervi ewees also identified a number of differences in interpersonal style between themselves and their foreign colleagues which they attributed to national culture. The Swiss were described as â€Å"very orderly and efficient†, the Swedes were universally described as being very serious. British managers were described as less emotional, less community-oriented, more deliberate, and much less likely to â€Å"shoot from the hip† than Americans. Europeans were described by nearly all American employees as being more formal, less open and outgoing, and slower to form friendships than are Americans.Japanese managers were described as very courteous and polite. Several Metalfab employees stated that the Swedes were much more likely to argue with each other publicly than were Americans. One American official recalled that in the early days of the merger, he and an American colleague would stare at each other in board meetings while the Swedes argued among themselves. The American manager claimed that his American colleagues would have been much more likely to discuss such differences privately.The Swedes were also described as having less respect for authority and greater willingness to confront their superiors publicly than are Americans – signs of low power distance in Hofstede’s terms. Other employees stated that Swedish managers are not as â€Å"results-oriented† as Americans when it comes to running meetings, ending meetings without a resolution or an understanding of the next steps. Swedes were described by several American employees as very critical, both of themselves and others.One American manager stated that â€Å"Americans are taught that it is more constructive to give pats on the back than to focus entirely on shortcomings as the Swedes are inclined to do†. In short, most of those interviewed found differences between themselves and their foreign colleagues to be clearly identifiable and immediately noticeable follo wing their respective mergers. Employees attributed a majority of these differences to national culture. But a closer analysis of these responses reveals a tendency for employees to attribute to culture differences which are more situationally-driven.For example, several employees stated the Swedes were unwilling or incapable of adjusting their planning and forecasting assumptions in light of changes in the environment, that the Swedes were more determined than are Americans, to meet old budget targets. This may reflect the fact that as parent, the Swedes and German-Swiss have the ultimate responsibility for financial results. Similarly, slower decision making may reflect the fact that the Swedish parent involves more people in the decision-making process than does its American subsidiary.Of course, the use of greater participation may itself reflect differences in values between Americans and Swedes, but it may also reflect differences in the organizational culture of parent and su bsidiary or in country-specific industry practices. Senior managers generally had more direct contact with the foreign parent and thus more contextual information. They were much more likely to identify differences in business context that explained apparent differences in â€Å"cultural values†. Senior executives at the American retailer acquired by a British company attributed differences in management practices to differences inCultural Differences 11 Journal of Management Development 13,2 12 business environments in the US and UK. For example, the British company appeared to be less interested in people and more interested in facilities. But this was because its operating expenses tended to be weighted more towards rent than to labour, because British supermarkets were typically located in expensive urban areas, whereas in the US supermarkets were generally found outside the commercial core of the city, and US chains had unions which drove up labour costs.There was also a tendency for American employees to attribute interpersonal difficulties with foreign colleagues to cultural differences without recognizing that Americans act in much the same way. There are recent public examples of American board meetings interrupted by public bickering. The popularity of the view that committees rarely accomplish anything similarly attests to the fact that Europeans are not the only ones who have difficulty establishing clear agendas in their meetings.Finally, in the US, American employees frequently complain about superiors who rarely hand out constructive criticism. In sum, Americans were routinely able to identify a number of differences between themselves and their foreign colleagues, but the attribution of these differences to nationality often seemed to be misdirected. Additionally, in many cases, these differences are more suggestive of perception than of reality. Perhaps it was more convenient to attribute differences to culture than to context because o f the popularity of national character stereotypes.The role of national stereotypes was made clear in contrasting what American managers said about their own foreign acquirers (whom they knew well) compared with other nationalities (which they knew less well). An American senior executive at the sporting goods manufacturer had highly positive things to say about his Venezuelan parent, calling Venezuelans â€Å"lovable, amiable, showing a high degree of concern for people†. In contrast, he said, â€Å"The companies you do not want to have take you over are the Germans and the Japanese. They feel they know how to do it better and just come in and take over†.But the companies in our study acquired by Japanese and German-Swiss parents reported just the opposite – that the Japanese, for example, were eager to learn from the American companies they acquired. In short, the greater the experience with managers from another country, the less reliance on negative stereoty pes. Furthermore, while many interviewees were able to identify behavioural style differences between American managers and their foreign parents, they also spoke of cultural compatibilities in values, business strategies, and organizational approach. Such similarities overrode style differences.Both retailers in the pilot study, for example, spoke of the common concerns and philosophies they shared with their foreign parent – one Japanese, one British. Finally, just because people could point to differences, that did not mean that the differences had operational consequences. Interviewees were asked to assess the extent to which cross-cultural differences created difficulties in the relationship between parent and subsidiary. Interestingly, many employees felt that although differences exist between their cultures, such differences did not create significant problems for employees.This finding cuts to the heart of this study’s central question: if cultural differences between a parent and subsidiary do not necessarily lead to significant inter-organizational conflict, what factors moderate the relationship between cultural heterogeneity and organizational conflict? Why do American employees of foreign companies feel that cultural differences between their own firm and their foreign parent have not been particularly problematic? Here, our findings suggest that a number of contextual factors act as mediators in determining whether or not these differences will be problematic.Contextual Factors as Key Determinants of Cros s-cultural Relationship Succes s Six factors emerged in the pilot study that accounted for the ease with which the merger was implemented and the relatively few difficulties attributed to national cultural differences: (1) the desirability of the relationship, especially in contrast to recent experiences of the acquired companies; (2) business compatibility between the two companies, especially in terms of industry and organizatio n; (3) the willingness of the acquirer to invest in the continued performance of the acquiree and to allow operational autonomy while performance improved; (4) mutual respect and communication based on that respect; (5) business success; and (6) the passage of time. Cultural Differences 13 Relationship Desirability The first issue sets the stage for whether the relationship begins with a positive orientation. When people are in distress, poorly-treated in previous relationships, have had positive experiences with their foreign rescuer, and play a role in initiating relationship discussions, they are much more likely to view the relationship as desirable and work hard to accommodate to any differences in cultural style so that the relationship succeeds. First, almost all of the companies in the pilot study were acquired by foreigners after a period of financial distress.A Hydrotech employee said, â€Å"Everyone here was aware of the firm’s financial problems at the time of th e acquisition. News of the purchase was viewed favourably. Gruetzi kept our doors from being padlocked. Everyone recognized that without Gruetzi, Hydrotech might not have made it†. While Metalfab did not have Hydrotech’s financial problems at the time of its acquisition, its employees took comfort from Fabritek’s strong financial condition at the time of the takeover. The abrasives company was rescued by its French acquirer as a â€Å"white knight in a takeover battle†. In all these cases, people were thus more likely to view their Journal of Management Development 13,2 14 acquirers as saviours than villains. Cultural problems were therefore not problematic.When asked to describe their initial reaction to the acquisitions, interviewees in several companies began with a description of how difficult life had been under its former parent. Several foreign parents in our study therefore compared favourably with each subsidiary’s former US parents. Hydrot ech and Metalfab’s former parents had neither understood the business of its subsidiary nor shown any desire to invest in their subsidiary’s long-term growth. The armaments company had four recent owners, several of whom stripped corporate assets and art collections, an experience one manager referred to as being â€Å"raped†. Under new owners who cared about them, employees were therefore more inclined to tolerate and adapt to cultural differences.In other cases, national differences were not a problem because the US and non-US companies had spent several years getting to know each other through joint ventures. The British retailer and the Japanese conglomerate had long worked closely with the American companies they eventually bought. Nearly every respondent at Metalfab and Hydrotech spoke with high regard for their parent’s technical expertise, manufacturing skill, knowledge of the international marketplace, and reputation for quality. As one employee commented, â€Å"Our concerns about the takeover were quickly put to rest. After all, Gruetzi was not an unknown quantity. They were an industry leader and we had worked with them on several projects in the past†.In contrast, respondents who were less familiar with the operations of their acquirer appear to have been the most concerned and apprehensive about the news of the merger when it was first announced. As one employee recalled, â€Å"At first I was sickened by the announcement, but when I saw Fabritek’s product line and the obvious potential for synergy, I became extremely excited†. Several respondents also mentioned that if the acquirer had a reputation for dismantling its acquisitions, they would have been far less sanguine about the takeover and the possibilities for success. Reputation was based not only on past direct experience but also on assumptions about how â€Å"companies like that† behaved. One Metalfab employee claimed that compared wi th other countries, â€Å"the Swedes are just like us†.The conventional wisdom at Metalfab was that Scandinavian firms had a history of keeping their acquisitions intact. Finally, the ability to choose made a difference. In several cases, the companies themselves initiated the search for a foreign partner. The element of surprise that creates anxiety and uncertainty was missing. A Hydrotech employee stated: â€Å"We wanted to be sold; I viewed the announcement as a real positive – someone wanted to buy us! † Business Compatibility Organizational similarities were more important to most companies than national cultural differences. At the time of their respective mergers, employees of Metalfab, Hydrotech, and both retailers in the study took immediate comfort rom the fact that their new acquirers were in the same industry as they, especially the retailer sold by an American manufacturer to a Japanese retailer. As one Hydrotech employee stated: â€Å"Our former p arent showed no commitment to, or interest in, our business. Now, there is a much better fit†. Another employee stated: â€Å"Everyone was initially apprehensive about the takeover but at least we were bought by a company which understands and cares about our business. This turned our initial apprehension into excitement†. Along similar lines, Metalfab employees reacted very favourably to the news that â€Å"a metal company was purchasing a metal company†.Organizational similarity meant that employees could feel that they play important roles in carrying out their parent’s strategy and believe that their parent values their contribution. As one Hydrotech employee stated: â€Å"Despite the fact that Gruetzi is a much larger company than our former parent was, it is easier to see how we fit into their plans†. Thus, at both Hydrotech and Metalfab, the benefits of the merger were transparent to employees. As one manager stated, â€Å"This was an easy a nnouncement to make; the merger spoke for itself†. Employees at Hydrotech and Metalfab felt that sharing a common technical orientation with their parent allowed both rganizations to more easily overcome national differences. Several employees emphasized what a pleasure it was to work with a parent organization that understands the business they are in. As one engineer stated, â€Å"our two firms are like twins that were separated at birth†. Employees at both Hydrotech and Metalfab also feel that their parents’ expertise and credibility in the industry has made it easier to accept them in the role of acquirer. One Metalfab employee’s comment captured the attitude of the firm’s employees towards foreign ownership when he claimed: â€Å"It doesn’t bother me in the least that our parent is a foreign company because we speak the same language, Metal! A majority of those interviewed concluded that they would now prefer being taken over by a forei gn company in the same business than by an American firm in a different industry. Cultural Differences 15 Investment without Interference Of all the actions taken by a foreign partner, none seems to have a more positive impact on morale and on attitudes towards foreigners than a foreign owner’s decision to invest capital in its subsidiaries. Fabritek spent $11 to 12 million upgrading the production facilities of its US subsidiary during each of the first two years following the acquisition and has invested an additional $6 to 8 million annually ever since.Gruetzi has similarly invested in new equipment for Hydrotech’s Ohio production facility. To most American employees, such investment demonstrated that its new parent was committed to the company’s long-term health. When investment was accompanied by operational autonomy, the relationship was viewed very favourably and cross-cultural tensions minimized. In three cases – sporting goods manufacturer acquir ed by a Venezuelan company and both the retailer and the manufacturer acquired by Japanese companies – feeling lack of cultural tensions was a function of the Journal of Management Development 13,2 16 minimal interference of the foreign company in its new US operations. â€Å"They et us do what we are good at†, said an executive at the sporting goods firm, â€Å"which is make money†. Employees at Hydrotech and Metalfab were surprised by the extent to which their parents allowed them to manage their own operations. As one Hydrotech employee stated: â€Å"Things have turned out much better than I originally expected. Gruetzi has not overmanaged us, they kept our management team intact, and we have not been forced to spend a lot of our time defending ourselves†. Metalfab employees were similarly pleased that their parent has allowed the firm to retain day-to-day control: â€Å"While our parent provides us with suggestions, they have allowed us to run the sh ow here†.We argue that American employees are less likely to view cultural heterogeneity as a problem when foreign management allows such autonomy along with adding resources. It should be pointed out that complete autonomy was not welcomed by all employees; a minority of employees (those dissatisfied with their firm’s policies) mentioned that they would be happier if the parent took a more active role in managing its subsidiary. At least one Hydrotech engineer wished that Gruetzi would force the company to standardize its designs and acquire better tools for its engineers to work with. At Metalfab, several employees expressed disappointment that its parent had not prevented the company from moving operations to Mexico.Furthermore, that high degrees of autonomy have possibly slowed down the speed with which the merged organizations develop a common culture. Several Metalfab employees reported that it has been difficult to â€Å"pull our two families together and get th e message out to customers that we are one firm†. Still, for the Americans autonomy generally meant that they did not feel foreigners were imposing â€Å"foreign ways† on them, which made them more tolerant of differences rather than resistant to them. Open Communication and Mutual Respect Nearly all interviewees agreed that open communication and showing mutual respect are critical to developing trust and ensuring a successful partnership.One retailer, for example, felt that its new Japanese parent wanted to learn from American practice, which made them feel valued and made rapport with the Japanese easy to develop. Tensions occurred, in contrast, when foreign colleagues did not show respect for American technology and expertise. At Fabritek, Swedish engineers and marketing personnel initially viewed Metalfab’s traditional, composite products as inferior to their own, all-metal product, which required tighter engineering and manufacturing tolerances in order to ensure a perfect seal. As a result, Americans said that the Swedes saw themselves as â€Å"the real engineers† in the company. But note here that the tensions were caused by technical differences, not cultural ones. ) Similarly, Hydrotech engineers described their German-Swiss colleagues as very arrogant and protective about Gruetzi’s products; there was a feeling that Hydrotech engineers should not â€Å"tamper† with their parent’s designs. Employee sensitivity to possible cultural differences played a significant role in reducing outbreaks of cross-cultural tension. One Hydrotech employee reasoned that cultural clashes had been avoided mainly because employees had been so concerned that such tensions could occur that they put more effort into trying to understand one another.Similar concerns led executives at Fabritek and Metalfab to schedule frequent meetings with each other soon after the merger; these meetings improved understanding and lessened tens ion between the two firms. Ironically, one senior American official recalled that he had rarely met with executives from the firm’s former US parent â€Å"even though they were located right down the road from the company†. Though formal cross-cultural training programmes were rare, open communication helped build relationships. Sensitivity to cultural differences and willingness to deal with problems directly minimized organizational tension. Cultural Differences 17 Business Success Nothing succeeds like success. People are willing to overlook cultural differences in relationships which bring clear benefits.But unsuccessful ventures produce squabbling even among people who are culturally similar. Creating opportunities for joint success between parent and subsidiary promotes acceptance of cross-cultural differences and creates support for the relationship. Several months before Hydrotech’s acquisition by Gruetzi, a company project had â€Å"gone sour† du e to a technical malfunction. After the merger, Hydrotech used Gruetzi’s technology to solve the problem. For the many employees who had suffered through the project’s difficulties, this single act sold the virtue of the partnership. Another Hydrotech employee stated: â€Å"We had not realized how quickly Gruetzi’s technology could be put to use.In only one year, our department was able to bid on two projects and win a $45 million contract†. Nothing could possibly send a more positive message about the benefits of partnership than winning business because of it. Ongoing financial performance affects the quality and nature of communications between parent and subsidiary, and thus plays a role in determining whether or not cultural differences are viewed as problematic. If success reduces tensions, deteriorating performance increases them. Employees noted that travel budgets came under increasing pressure during periods of poor performance, and thus, fewer meetings take place between American and foreign employees.In difficult times, communication between parent and subsidiary may deteriorate as employees in each organization focus on their own problems. Finally, poor performance leads to frustration, fingerpointing, and reduced trust. One Hydrotech manager noticed that as Gruetzi has encountered more financial difficulties, they became increasingly demanding of Hydrotech and focused more on the company’s short-term operating results than in the past. The Pas sage of Time Does time heal all wounds? Time, at least, reduces anxieties and replaces stereotypes with a more varied view of other people. The levels of cross-cultural Journal of Management Development 13,2 18 tension vary as a function of the stage in the relationship-building process.Anxieties at Hydrotech and Metalfab were highest during the days immediately following the announcement of each takeover. This initial anxiety declined as the merger entered a transition ph ase in which management showed reluctance to create conflict. Employees of both subsidiaries also reacted positively to foreign management’s willingness to discuss issues and listen to their concerns at that time. According to one employee, â€Å"these meetings made us feel good about the changes and made us realize how alike our philosophies were†. But during the transition phase, employees also underestimated the degree of cultural heterogeneity and the potential for conflict to erupt.As management began to focus on more substantive issues and the amount of communications between American and foreign employees grew, a new realization set in that the cultural differences between the two firms were greater than initially realized, which required more awareness and sensitivity to avoid conflict. It appears likely then, that employee perceptions of cross-cultural tension are affected by the passage of time and by the merger process itself. One might also expect that empl oyee attitudes towards cultural heterogeneity will change as Americans and foreign employees work together and become more familiar with each others’ customs and values. Mistrust is always more likely at early stages of relationships.People at Hydrotech and Metalfab felt their new foreign parents were particularly guarded in discussing their technology during the first months together. As one employee mentioned: â€Å"It was like playing poker during the first year. You always got an answer to your question but the question was answered as narrowly as possible – even when, by withholding information, the answer was misleading†. But another engineer recognized the significance of sharing technology noting that â€Å"when our parent provides us with technology, they are giving us their life’s work†. T he Negative Side of Cross-cultural Interaction: T hreat and Prejudice Positive views of the relationship between US company and foreign parent predomin ated, but they were not universal in the companies studied.Top management and those with the greatest day-to-day contact were most likely to be favourable. Those at lower ranks anxious about the implications for their careers were more likely to express negative views, including prejudice and resentment, reacting the most nationalistically to the news of a foreign takeover. One American reported how â€Å"sick† he was over the fact that â€Å"this country is gradually being sold off to foreigners†. Some higher level managers commented that they would have been more comfortable if their acquirer had been American, but this preference did not seem to affect the relationship. A manager at the armaments company reported: â€Å"We would rather have been bought by a US company.There is an element of national pride, especially in our industry. We are very patriotic. There is no one in the company that would say we are a British firm. We all wear and buy ‘made in USAâ⠂¬â„¢ products†. Still, nationalist sentiments did not prevent this manager from declaring the relationship a success and identifying very few crosscultural problems. The most significant factor in determining employee reactions to acquisition was self-interest: how the change would affect their own standing in the firm. Virtually all interviewees reacted to news of the acquisition with the same question: â€Å"How will this impact on my career in this organization? †.Those employees who were most likely to suffer a loss of prestige or power, or who had reason to feel threatened by the mergers were most likely to react unfavourably to it. However, the fact that the vast majority of employees in both companies did not react in this way attests to just how apparent the benefits of these mergers were to most employees. Therefore threat could work both ways; if the foreign company improved performance, jobs would be saved. A manager at the armaments company observed,  "The community and employees understand there are differences between us and the British. But for them, having good jobs is more valuable. When corporate survival is at stake, people cannot afford to have culture become an issue†.Attitudes were shaped by symbolic acts taken by the foreign parents as much as by more substantive actions. One Metalfab employee recalled the day that Fabritek’s president arranged to have group photographs taken of all employees in the US so that they could be shown to people back in Sweden. â€Å"Fabritek immediately impressed me as a very people-oriented company†. The Attribution of Organizational Problems to National Culture Our findings suggest, then, that contextual factors act to either fan the flames of intergroup conflict and cross-cultural polarization or encourage organizational members to accept these differences. In the pilot study, organizational and technical compatibilities overwhelm cultural differences.Cultural differe nces thus seem to be a residual category to which people attribute problems in the absence of a supportive context. Cultural differences do not automatically cause tensions. But when tensions do arise – often due to situational factors such as lack of communication or poor performance – people blame many of the organizational difficulties they encounter on cultural heterogeneity – on the presence of others who seem different – rather than to the context within which these problems took place. This view is consistent with Chris Argyris’s perspective on defensive routines in organizations[16]. Why do people blame culture for problems and scribe differences between their own behaviour and that of their foreign colleagues to dispositional factors (the kind of people they are) rather than to situational factors (the organizational context)? First, cultural heterogeneity presents a conspicuous target for employees to point at when looking for an explanat ion for their problems. Such differences are readily apparent in early stages of contact between people who differ in a visible way, such as race, gender, or language, especially when there are only a few â€Å"tokens† such as expatriate managers among many â€Å"locals†[6]. Pre- Cultural Differences 19 Journal of Management Development 13,2 20 onceived notions and prejudices which employees bring into the evaluative process increase the likelihood that people will attribute behaviour to nationality. In-group favouritism is evoked in situations of cross-cultural contact. Research has shown that people want to favour members of their own group (the in-group) over others. Motivational theorists hold that self-esteem is enhanced if people value their own group and devalue other groups[17,18]. Such favouritism leads to a set of cognitive biases which reinforce the distinction between in-group and out-group members. People expect in-group members to display more desirable a nd fewer undesirable behaviours than out-group members[19].As a result, people are more likely to infer negative dispositions from undesirable and out-group behaviours than from undesirable in-group behaviours, and are less likely to infer positive dispositions from desirable outgroup behaviours than from desirable in-group behaviours[20-23]. Furthermore, people tend to remember behaviour which is congruent with their expectations over behaviour which is inconsistent with their views[24,25]. Thus, memories reinforce in-group favouritism as well. In-group biases are especially likely to form when individuals identify strongly with their group and when in-group members view other groups as a threat[17]. During an acquisition process, employees who work for, and identify with their company for many years suddenly find that another firm, with its own culture vision, values, and ways of doing things is responsible for their future.Cross-border mergers offer a particularly favourable envi ronment for such biases to develop because group membership is clearly defined by national as well as organizational boundaries. At both Hydrotech and Metalfab, in-group favouritism and cognitive biases may have been the driving forces behind the tendency among Americans to attribute wrongfully â€Å"bad news† to their foreign parent (i. e. out-group members). In one case, Hydrotech management had frozen salaries and extended the required working week from 40 to 44 hours after the merger in an effort to â€Å"impress Gruetzi by showing a willingness to make a few difficult decisions†. Many Hydrotech junior employees attributed this unpopular policy to Gruetzi’s management.Ironically, according to one middlelevel manager, when Gruetzi found out about these changes, they gave Hydrotech’s president one month to reverse the policy. In another example, soon after Metalfab announced plans to transfer some of its manufacturing operations to Mexico, rumours began circulating on the factory floor that the Swedes were behind the decision. When senior management in the US found out about the rumours, the company’s president called a meeting with all employees and took full responsibility for the decision. But many blue-collar workers continued to blame the Swedes for this unpopular move. They also attributed the decision to downsize the American workforce to the company’s foreign parent.A second explanation for why cultural differences are inappropriately invoked is called the â€Å"fundamental attribution error†[26] – a tendency to attribute one’s own behaviour to the situation but others’ behaviour to their â€Å"character†. People attribute negative behaviour of foreign colleagues to their nationality or culture (dispositional factors) rather than to situational or contextual factors which are operating behind the scenes[27]. For example, Metalfab interviewees initially viewed their Swedish c olleagues as fractious (i. e. â€Å"the Swedes are a stubborn people†) before it occurred to them that language problems had caused many early misunderstandings.They attributed the fact that their Swedish colleagues were more engineering oriented and less marketing oriented to national biases (â€Å"Swedes design bulldozers for the kind of work a garden shovel could do†) rather than to differences in product features and to the requirements of the European market. For example, rigid engineering standards for Fabritek’s all-metal products required engineers in Sweden to play a more central role in the parent’s operations, whereas the competitiveness of the US market demanded that marketing personnel play a more critical role in US decision making. But those who had more direct contact with the foreign parent, such as senior managers, also had more contextual information and were less likely to make the â€Å"fundamental attribution error†.If in-grou p biases and the fundamental attribution error are behind the tendency to view cultural heterogeneity as problematic, what steps might management take to promote inter-organizational co-operation in cross-border mergers? Our findings suggest that actions which make the relationship desirable, reduce uncertainty, show respect for the other group, create communication channels, and ensure business success will encourage employees to identify with their foreign colleagues and view the company as one organization. Creating an atmosphere of mutual respect, promoting open communication, investing in the future, maximizing opportunities to experience joint success, and taking steps to familiarize employees with their counterpart’s products and markets reduce the likelihood that cultural differences will be viewed as a source of organizational tension.Conclusion These pilot study findings are only suggestive, of course. We have a small number of cases from one region. While none of t hem can yet be called a longterm success, they have survived a period of integration during which other companies which perhaps did experience debilitating cultural problems could have called off the marriage. We could be looking only at the â€Å"winners† that managed cultural differences well. Indeed, those companies experiencing problems were more likely to turn down our request to participate in the pilot study. But if tilted towards successes, then this research points to some of the circumstances that contribute to successful cross-cultural relationships.And since we â€Å"biased† the interviews towards identification of cultural differences and cultural tensions, the relative absence of tension gives additional weight to our argument that contextual and situational factors, such as technical fit, business performance, and abundant communication, are more significant determinants of relationship effectiveness. Cultural Differences 21 Journal of Management Develop ment 13,2 22 Employees at each of the companies studied were able to identify a number of cultural differences between their own organization and that of their parent. Nevertheless, few employees viewed cultural heterogeneity as a significant source of tension in their firm. Such findings lend support to the notion that national cultural differences do not necessarily increase the amount of tension between organizations or make partnerships among companies from different countries untenable.This article proposes that there are a number of factors which help to determine how employees react to foreign ownership. It calls into question the assumption that the larger the social distance or cultural gap between the national cultures of two merged organizations, the greater will be the potential for strain in the relationship between employees. The findings from our pilot study suggest contextual factors are extremely important mediators in crosscultural relationships. These factors infl uence how cultural differences are interpreted and whether they are viewed by employees as problematic. Indeed, they may even determine whether â€Å"cultural differences† are identified at all. References 1. Hofstede, G. Cultures and Organization, McGraw-Hill, New York, NY, 1991. 2. Kanter, R. M. , â€Å"Transcending Business Boundaries: 12,000 World Managers View Change†, Harvard Business Review, Vol. 69, May-June 1991. 3. Hampden-Turner, C. , â€Å"The Boundaries of Business: Commentaries from the Experts†, Harvard Business Review, Vol. 69, September-October 1991. 4. Lodge, G. C. and Vogel, E. F. (Eds), Ideology and National Competitiveness: An Analysis of Nine Countries, Harvard Business School Press, Boston, MA, 1987. 5. Kanter, R. M. , Applbaum, K. and Yatsko, P. , FCB and Publicis ( A ): Forming the Alliance, Harvard Business School Case Records, Boston, MA, 1993. 6. Kanter, R. M. Men and Women of the Corporation, Basic Books, New York, NY, 1977. 7. Westn ey, E. , Imitation and Innovation: T he Transfer of Western Organizational Patterns to Meiji, Japan, Harvard University Press, Cambridge, MA, 1987. 8. Starbuck, W. H. , â€Å"Learning by Knowledge-intensive Firms†, Journal of M anagement Studies, Vol. 29 No. 6, 1992, pp. 713-40. 9. Haire, M. , Ghiselli, E. E. and Porter, L. W. , Managerial T hinking, Wiley, New York, NY, 1966. 10. Wuthnow, R. and Shrum, W. , â€Å"Knowledge Workers as a ‘New Class’: Structural and Ideological Convergence among Professional-Technical Workers and Managers†, Work and Occupations, Vol. 10, 1983, pp. 471-87. 11. Myers, P. and Kanter, R. M. Inmarsat 1991 , Harvard Business School Case Records, Boston, MA, 1992. 12. Kanter, R. M. , When Giants Lea r n to Dance: M aster ing the Challenges of S trategy, Management, and Careers in the 1990s, Simon and Schuster, New York, NY, 1989. 13. Kanter, R. M. and Gabriel, L. , BhS ( A ): Opening Boundaries, Harvard Business School Case Records , Boston, MA, 1992. 14. Kanter, R. M. , â€Å"Competing on Relationships: How Companies Build Collaborative Advantage†, Harvard Business Review, May-June 1994. 15. M& A Almanac, Vol. 26 No. 6, 1992, p. 54. 16. Argyris, C. , Overcoming Organizational Defenses: Facilitating Organizational Learning, Allyn & Bacon, Boston, MA, 1990. 17. Tajfel, H. and Turner, J. C. â€Å"An Integrative Theory of Intergroup Conflict†, in Austin, W. S. and Worchel, S. (Eds), T he S ocial Psychology of Intergroup Relations , Brooks/Cole, Monterey, CA, 1979, pp. 33-47. 18. Turner, J. C. , Rediscovering the Social Group: A S elf-categorization T heory, Blackwell, Oxford, 1987. 19. Howard, J. W. and Rothbart, M. , â€Å"Social Categorization and Memory for In-group and Outgroup Behavior, Jour nal of Personal ity and S ocial Psychology , Vol. 38 No. 2, 1980, pp. 301-10. 20. Taylor, D. M. and Jaggi, V. , â€Å"Ethnocentrism and Causal Attribution in a South Indian Context†, Journal of Cros s Cultural Psychology, Vol. 5 No. 2, 1974, pp. 162-71. 21. Allen, V. L. and Wilder, D. A. â€Å"Categorization, Belief Similarity, and Intergroup Discrimination†, Jour nal of Personal ity and S ocial Psychology , Vol. 32 No. 6, 1975, pp. 971-7. 22. Allen, V. L. and Wilder, D. A. , â€Å"Group Categorization and Attribution of Belief Similarity†, Small Group Behavior, Vol. 10 No. 1, 1979, pp. 73-80. 23. Pettigrew, T. F. , â€Å"The Ultimate Attribution Error: Extending Allport’s Cognitive Analysis of Prejudice†, Personality and Social Psychology Bulletin, Vol. 5 No. 4, 1979, pp. 461-76. 24. Hastie, R. and Kumar, P. A. , â€Å"Person Memory: Personality Traits as Organizing Principles in Memory for Behavior†, Journal of Personality and Social Psychology, Vol. 37 No. 1, 1979, pp. 25-38. 25. Srull, T. D. Lichtenstein, M. and Rothbart, M. , â€Å"Associative Storage and Retrieval Processes in Person Memory†, Jour nal of E xper imental Psychology: L ea r ning, M emor y and Cognition, Vol. 11 No. 2, 1985, pp. 316-45. 26. Ross, L. , â€Å"The Intuitive Psychologist and His Shortcomings: Distortions in the Attribution Process†, in Berkowitz, L. (Ed. ), Advances in Experimental Social Psychology, Vol. 10, Academic Press, New York, NY, 1977, pp. 173-220. 27. Jones, E. E. and Nisbett, R. E. , â€Å"The Actor and the Observer: Divergent Perceptions of the Causes of Behavior†, in Jones, E. E. , Kanouse, D. E. , Kelley, H. H. , Nisbett, R. E. , Valins, S. and Weiner, B. Eds), Perceiving the Causes of Behavior , General Learning Press, Morristown, NJ, 1971, pp. 79-94. Further Reading Locksley, A. , Ortiz, V. and Hepburn, C. , â€Å"Social Categorization and Discriminatory Behavior: Extinguishing the Minimal Intergroup Discrimination Effect†, Journal of Personality and Social Psychology, Vol. 39 No. 5, 1980, pp. 773-83. Maass, A. , Salvi, D. , Arcuri, L. and Semin, G. , â€Å"Language Use in Intergroup Contexts: T he Linguistic Intergroup Bias†, Journal of Personality and Social Psychology, Vol. 57 No. 6, 1989, pp. 981-93. Tajfel, H. , â€Å"Social Psychology of Intergroup Relations†, Annual Review of Psychology, Annual Reviews, Stanford, CA, 1982, pp. 1-39. Cultural Differences 23