I spend some a fair amount of my post 6:00 p.m. leading programs and classes on various management and leadership topics, including international business.  I love the I-Biz classes in part, because for many participants, the classes are like opening the window shades to a big, fascinating, complex, sometimes frightening and always exciting global picture.

I continue my own I-Biz studies outside of the classroom as I pursue my avocation as a Management and Leadership Anthropologist.  In this case, my focus is on understanding how well prepared firms and managers are to enter and compete successfully on a global stage. My quick-take: for a good number, it’s important to focus on the basics.  (Translation: there’s a lot of learning required to reach a reasonable level of knowledge.)

While most of us have mastered the art and science of consuming products from around the globe, many firms and managers are well served to work on some fundamentals.

Is it Time for You to Cozy Up with Hofstede, the WTO and Your Elected Representatives?

Here’s a quick quiz (self-graded) for you to conduct a quick-check on your current global business knowledge.

  1. What determines the value of a currency? Why does one currency fluctuate in value versus another? What risks do we face from currency fluctuations? How do I protect myself from currency risks?
  2. What are the emerging Regional Trade Pacts and how might they impact your firm?
  3. What is the sovereign debt crisis in Europe and how might it impact the U.S.?
  4. What is the Doha Round (WTO), why is it important and why has it been underway for a decade
  5. In exploring new markets, how well do you understand key dimensions (versus your home market) of: short/long term orientation, power distance, uncertainty avoidance, aggression versus nurturing and group versus individual orientation?  (these are Hofstede’s cultural dimensions).
  6. How might you apply your understanding of Hofstede’s dimensions in your target markets?
  7. How can a simple but thorough P.E.S.T.E.L analysis help you and your team members better understand your target market?
  8. What options do you have for going global and what are the pros and cons for each?
  9. What potential ethical dilemmas will we be exposed to as we seek to diversify our manufacturing around the globe?
  10. How do we choose the right partners?

As citizens:

  1. Why are protectionist policies potentially lethal to firms and industries in the long-term?
  2. How do my elected officials support/inhibit global trade expansion through their voting and sponsorship activities?
  3. Should the government invest in infant industries or support emerging strategic industries with subsidies or other protectionist policies?
  4. Why is the government pushing China to allow the Yuan to float freely and reduce in value versus the dollar?

If you can confidently answer the above questions, great! Please remember to share the knowledge and help educate those less globally proficient than you.

If you can use a refresher or some good foundational knowledge, consider the ideas below.

Six Low-Cost Ideas to Jump-Start Better Global Awareness on Your Team:

1. Read more! If you and your team members don’t have good insight into and a current view on the above topics, it’s time to hit the books…or the magazines…or the websites. It’s remarkable what even regular, casual reading of the Financial Times, the Wall Street Journal, BusinessWeek and the Economist (and others) can do to boost your understanding of current events and help you better understand the complexities, risks and opportunities in today’s emerging world.

2. Talk about what you are reading. Create a reading club on global issues and meet regularly to discuss interesting articles “In the News.” This promotes not only reading, but the exchange of information and ideas.  Ensure a diversity of topics are covered, from current W.T.O. events to specific examples of companies expanding and succeeding or failing  outside of the U.S.

3. Apply the tools and then analyze the outcomes. Pick a market that is of interest to your firm and conduct a P.E.S.T.E.L. (Political, Economic, Social, Technological, Environmental and Legal) analysis of the target country. After gathering and sharing insights on this country, focus on analyzing what the information means to your potential business endeavor.

4. Leverage in-house expertise. If your firm has some cultural diversity, invite individuals from various cultures to talk to groups about life, customs and business in their home countries.

5. Invite others to share. Engage knowledgeable guest speakers and other business professionals to share their own experiences in global business.  Encourage the speakers to share more than stories of dramatic growth.  You want to hear about missteps, and lessons-learned to help accelerate your own learning curve.

6. Explore government’s role in your industry. Explore, summarize and share information on the political issues underlying global trade with your firm’s offerings. Are there protectionist policies here or abroad that directly impact your class of products?  How tuned in are your elected officials to your industry and what are they doing to help?   Are their regional trade pacts that might impact your firm’s competitiveness?

The Bottom-Line for Now:

As consumers, citizens and as business professionals, living in this modern world requires cultivating and maintaining an understanding of global business and cultural issues.  What happens in Bangalore, Beijing , Rio, the Middle East or Zurich now impacts what happens here on Main Street.

As citizens, we have to elect officials with global vision.  As business professionals, we have to understand both the risks and opportunities of this hyper-frenetic, interconnected and volatile environment.  As managers and leaders in firms, we have to choose strategies, build relationships with global partners and accelerate our learning as a means to continue minimizing risk and seizing opportunities.

It’s truly a best of times/worst of times situation in the world economy. There are unparalleled new market opportunities and heretofore unimaginable sources of risk and competition.  You need every edge you can get to succeed. Start with educating yourself and your team members on the rules and flow of this fast-changing game.