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Globalization and the Market for Teammates

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Author Info
Edward P. Lazear

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Abstract

The globalization of firms is explored at theoretical and empirical levels. The idea is that a global firm is a multi-cultural team. The existence of a global firm is somewhat puzzling. Combining workers who have different cultures, legal systems, and languages imposes costs on the firm that would not be present were all workers to conform to one standard. In order to offset the costs of cross-cultural dealing, there must be complementarities between the workers that are sufficiently important to overcome the costs. Disjoint and relevant skills create an environment where the gains from complementarities can be significant. It is also necessary that teammates be able to communicate with one another. The search for the best practice' is analyzed and empirical support from an examination of trading patterns is provided.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6579.

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Date of creation: May 1998
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Handle: RePEc:nbr:nberwo:6579

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  1. Kole, S.R. & MacDonald, G.M., 1997. "Economics, Demography and Communication," Papers 97-06, Rochester, Business - Financial Research and Policy Studies.
  2. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn. [Downloadable!] (restricted)
  3. Becker, Gary S & Landes, Elisabeth M & Michael, Robert T, 1977. "An Economic Analysis of Marital Instability," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1141-87, December. [Downloadable!] (restricted)
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  1. Dora L. Costa & Matthew E. Kahn, 2005. "Surviving Andersonville: The Benefits of Social Networks in POW Camps," NBER Working Papers 11825, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Egger, Hartmut & Grossmann, Volker, 2004. "Noncognitive Abilities and Within-Group Wage Inequality," IZA Discussion Papers 1024, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Stephan Veen & Uschi Backes-Gellner, 2008. "Betriebliche Altersstrukturen und Produktivitätseffekte," Working Papers 0078, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  4. GianMarco Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US cities," Econometric Society 2004 North American Summer Meetings 91, Econometric Society. [Downloadable!]
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  5. Zeynep Hansen & Hideo Owan & Jie Pan, 2006. "The Impact of Group Diversity on Performance and Knowledge Spillover -- An Experiment in a College Classroom," NBER Working Papers 12251, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Annekatrin Niebuhr, 2006. "Migration and Innovation - Does Cultural Diversity Matter for Regional R&D Activity?," ERSA conference papers ersa06p31, European Regional Science Association. [Downloadable!]
  7. Daniel S. Hamermesh & Sharon M. Oster, 1998. "Tools or Toys? The Impact of High Technology on Scholarly Productivity," NBER Working Papers 6761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Jonathan Leonard & David Levine, 2003. "Diversity, discrimination, and performance," Institute for Research on Labor and Employment, Working Paper Series 1029, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  9. Heather Antecol & Deborah Cobb-Clark, 2005. "Racial Harassment, Job Satisfaction and Intentions to Remain in the Military," IZA Discussion Papers 1636, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Brent Boning & Casey Ichniowski & Kathryn Shaw, 2001. "Opportunity Counts: Teams and the Effectiveness of Production Incentives," NBER Working Papers 8306, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Niebuhr, Annekatrin, 2006. "Migration and innovation : does cultural diversity matter for regional R&D activity?," IAB Discussion Paper 200614, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
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