ABSTRACT
Multinational corporations (MNCs) are considered the main driving force of globalization. The economic power of these hierarchically and centralistically structured organizations exceeds by far that of many nations. Palmisano calls for a structural appreciation of cultural diversity that is much more than just rhetorically valuing cultural diversity, which is what MNCs are currently doing. This chapter discusses specific intercultural situations that can give a glimpse of everyday life in culturally diverse MNCs. In modern economic theory, culture has never been considered an important factor in explaining man's actions. When in 1992 Japan's economic miracle abruptly ended as the asset price bubble burst, the glory of Japanese management ideas was over and American management ideas regained popularity. Cultural diversity has two sides. One comprises potential benefits such as increased creativity, better adaptability to global markets, improved productivity and profitability, and more talent availability. Intercultural problems will remain an ongoing issue for some time.
