Globalism, Culture and Business Environment

In contemporary globalization, companies need to be entrepreneurial, innovative, creative, and dynamic since the life cycle of products is shortening and competition is stiffening; hence companies need to increase investment in research and development (R&D) to remain competitive or even just to survive. Global sourcing and evolving markets demand that companies become proactive in their business approaches. Considering all these changes and challenges facing business organizations, this chapter focuses on how Latin American companies cope with globalization, cultural differences and diverse business environments. The authors start with a discussion on culture, globalization, and business performance of Latin American companies, followed by solutions to their shortcomings, and conclusions. A case study of business performance in Brazil and Mexico will be presented at the end of the chapter. The authors believe there is enough reason why foreign businessmen and women should seriously consider the Latin American option when making their business decisions. The authors hope this chapter will convince them that, without a shadow of doubt, cultural differences can be understood and overcome for the benefit of everyone. Undertanding Latin American culture could be a winning strategy for foreign investors in Latin American markets.