Components of the Multinational Environment

All country has their different parameter policy Japan in one of them has democratic roles
country. It is incredible country compeer then other because there is not adequate of materials
and employee but Japan is a big industrializes country among the all nation. So Japan is number
one country among the world with its trade base country.

With so many organizations operating in a multinational environment today, it is easy to

assume that the increasing connection among countries, and the globalization of corporations,
would result in cultural differences disappearing or diminishing. Yet, on the contrary, as
economic borders come down, cultural barriers often go up, thus presenting new challenges and
opportunities in business.

There are some universal leadership principles that have been identified as being very
effective when employed specifically in a multinational environment. Interestingly enough, these
are biblical principles that global businesses inadvertently use to achieve success. Based on
Golemans (2000) research, effective leadership in a multinational environment can be achieved
by employing three primary leadership styles stated as:
Vision, mobilizing people toward change
Serving, by building emotional bonds

 Leading others to greatness, by developing people for future responsibility.

These principles have been described as climate drivers that have the most positive
impact on anorganization
The steps to achieving effective leadership in a multinational environment requires:
Serving the organization by adapting to the host culture
Establishing a corporate vision, but not abandoning your national culture
Leading people to greatness, with humility and patience.

If leaders who work within a multinational environment view these principles as an

integral part of the process, they will no doubt have a positive impact upon the organization.

On the basis of legacy of trend still extra influencing factor on latest trend of society, the
industrialized on the base the society is completely change. People trust on their work and all the
production is comes under the legal base.

All of the developed countries mostly focus on the free tread policy. So Japan also lubing
on this policy because its rapids development of industry and the power of production. So Japan
wants to focus on the foreign trade for making B.O.P surplus and make their economy condition
strong.

There are different multinational mechanisms which are discussed below:

Government rules and regulations:

Government always focuses new company. They promote the company with diverse
individuals channel. They give many support and legal discount for promotion of company.
They make many commissions for the support to developed industry. Providing discount on tax,
financial help and many sector they focus on new industry.

Foreign direct investment:

Japan focuses on the foreign investment because these types of investment help to earn
foreign money and help to promote financial sector. Japan wants the foreign investment in the
country for making job and surplus for foreign currency.

Industrial Policy

In 1950 Japan lunch a complete industry strategy for develop the country because at that
time Japan was totally ruined by World War II. Then Japan advance on the industry sector. This
policy shift investment, on the industry from the different sector as well as it focuses on the
foreign direct investment to develop the industry sector.

Reference:
Pearce, John A., and Richard B. Robinso. Strategic Management . New York : McGrawHill Irwin, 2011.