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Diploma Thesis from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: 1,5 (A), International School of Management Dortmund (Private University), language: English, abstract: Introduction: Globalization in the 21st century Globalization has become one of the most discussed and controversial issues in the beginning of the 21st century. In terms of business, globalization is an opportunity to gain competitive advantage and market growth. Yet, what is associated with globalization? Why do many companies see themselves limited and sometimes even impotent trading globally and what are the critical success factors in global negotiations? According to the Future Commission of the Friedrich-Ebert-Stiftung globalization is “… a complex set of overlapping and interacting processes at a global level.” The Future Commission continued noting that “… globalization is in connection with the growing international interrelatedness of markets, economies and companies.” (Future Commission of the Friedrich-Ebert-Stiftung, 1998:56). Hence, globalization is a world wide ongoing interhuman relationship process on different levels. They include social, private and business aspects. In the case of business terms, it should not be forgotten that globalization is not merely an increase of imports and exports. It implies the application of the principle of free markets in an international context. This dissertation contains the sources and explanations of why international negotiation is important to sustain competitive. It shall allow the reader to get an insight of why western and eastern cultures are often clashing together and thus prospecting business deals are cancelled. Moreover, the dissertation provides the reader with a general solution to overcome barriers in negotiating with foreigners and how important it is to gain not only technical and cognitive but also cultural skills. Understanding and accepting the differences in values and beliefs is crucial to be a global player. By getting a precise idea of the theoretical part, the author will endow the reader with a case study of Hewlett Packard (HP) and how the founders William (Bill) Hewlett and David (Dave) Packard have started business in a garage with merely two employees. Gradually after 60 years HP became the world class leader in printing devices. Furthermore, the study is showing the importance of the present Chairman and Chief Executive Officer (CEO) Carly Fiorina who let HP into the 21st century. Carly Fiorina is considered to be the most powerful women in the United States of America (USA) (Hjelt, 2003:40-48)...