Reference is from our Prof's book.

1. MANAGEMENT
AND
GLOBALIZATIO
N
Prepared By: Group 4

2. In the Global Economy
resources, markets and
competition are worldwide in
scope.
It is also a time heavily
inflience by the forces of
globalization.

3. Rosabeth Moss Kanter

4. International Management-
involves managing operations
in more than one country.
Global Manager-
is culturally aware and
informed on international
affairs

5. WHY COMPANIES GO
INTERNATIONAL?
 International Business- conducts
commercial transactions across
national.
The reasons why businesses go
international include:
 Profits

6. *Customer *Suppliers *Labor
*Capital

7. Forms of International
Business
Global
Sourcing
Exporting
/Importin
g
Licensing
and
Franchisin
g

8. INTERNATIONAL BUSINESS
ENVIRONMENT
 The international business
environment is complex and dynamic
and highly competitive. International
managers must master the demands
of operating with worldwide
suppliers, distributors, customers and
competitors.

9. Regional Economic
Alliances

10.  There is more to limited brands than
it’s 4,000 plus it’s retail stores.
Standing behind the displays and the
fashion merchandise is a large
operation that depends on vast
worldwide networks of suppliers and
subcontractors for it’s products. But
it’s global reach must be well
managed and it’s ethical standards

11. The EUROPEAN
UNION is a political
and economic
alliance of European
countries.

12. Laws and legal structures
Differences in legal
environments among nations
create substantial international
business challenges.
Organizations are expected to
abide by the laws of the host.
Country in which they are

13. Example..
Executives of foreign-owned
companies must worry about
antitrust issues that prevent
competitors from regularly
talking to one another.

14.  They also must deal with a
variety of special laws regarding
occupational health and
safety, equal employment
opportunity, sexual
harassment, and other matters-all
constraints potentially different
from those they find at home.

15.  The more home and host country
laws differ, the more difficult and
complex it is or international
businesses to adapt to local ways. In
china ,for example Google, yahoo
and other firms have faced laws that
restrict internet usage for the
country’s citizens. they have also
faced controversies elsewhere in the

16.  Common legal problems in
international business involve
incorporation practices and business
ownership: negotiating and
implementing contract with foreign
parties; protecting
patents, trademarks, and copyrights;
and handling foreign exchange

17. Intellectual property
rights
 Problems with software piracy and copyrights
violations of cds and designer fashions are
well known. But general motors, long an
investor in china. Has had its own problems
there. The firm’s China joint venture
executives noticed that a new model from a
fast growing local competitor- cherry
automobile, partially owned by GM’s Chinese
partner-looked very similar to one of it’s cars.
GM claimed in local courts that its design was
copied. The competitor denied the charges
and plans to export its cars to the united
states.

18. When disputes between nations
relate to international trade, they
can end up before:
 WORLD TRADE ORGANIZATION
(WTO)- this is a global institution
established to promote free trade and
open markets around the world.
Some 140+ members of the WTO
agree to give one another most
favored nation status –the most
favorable treatment for imports and

19. Although members agree to ongoing
negotiations and the reduction of tariffs
and trade restrictions, trading
relationships are often difficult. When
the problem arise the WTO offers a
mechanism for monitoring international
trade and resolving disputes among
countries.

20. Protectionism
Is a call for tariffs and
favorable treatments to protect
domestic firms from foreign
competition.

21. Protectionism
 In the form of political calls for tariffs
and favorable treatments to help
protect domestic businesses from
foreign competition is a common
complication of international trade.
Government leaders such as the
president of the united states. Face
international trade while still

22. MULTINATIONAL
CORPORATIONS

23. Multinational
corporation is a
business with extensive
international operations
in more than one foreign
country

24. A typical MNC operates in
many countries but has
corporate headquarters in
one home or host country..
example: Microsoft, Apple
computer and Mc Donald’s
food chain.

25. Transnational
corporation
 They try to operate worldwide
without being identified with one
national home.
 Is an MNC that operates
worldwide on a borderless basis.

26. Pros and cons of
multinational corporations;
 The UN has reported that MNC
hold one-third of the world’s
productive assets and control
70% of world trade. At recent
count, 52 of the largest
economies in the world are MNC.

27.  furthermore, more than 90% of MNC
are based in the northern hemisphere.
While this may bring a sense of both
accomplishment and future
opportunity to business leaders. It can
also be very threatening to small and
less-developed countries and to their
domestic industries.

28. MNC host-
country
relationships:
what should go
rightMUTUAL
BENEFITS:
SHARED
OPPORTUNIT
IES WITH
POTENTIAL
FOR:
GROWTH
INCOME
LEARNING
DEVELOPME
NT
MNC host-country relationships:
what can go wrong
HOST COUNTRY
COMPLAINTS ABOUT
MNC’S
• EXCESSIVE
PROFITS
• ECONOMIS
DOMINATION
• INTERFERENCE
WITH
GOVERNMENT
• HIRE BEST LOCAL
TALENT
• LIMITED
TECHNOLOGY
TRANSFER
DISRESPECT FOR
LOCAL CUSTOMS
MNC
COMPLAINTS
ABOUT HOST
COUNTRIES
• PROFIT
LIMITATIONS
• OVERPRICED
RESOURCES
• EXPLOITATIVE
EXCHANGE
RESTRICTIONS
• FAILURE TO
UPHOLD
CONTRACTS

29. Host country issues
 The potential host-country benefit
of MNC’s include larger tax
bases. Increase employment
opportunities, technology
transfers, the introduction of new
industries and the development of
local resources.

30. Potential host –country
costs
Include complaints that mnc’s extract
excessive profits, dominate the local
economy,
interfere with the local government, do
not respect local customs and
laws, failed to help domestic firms
develop, hired the most talented of
local personnel, and do not transfer
their most advance technologies.

31. Home-country issues
 MNC may also encounter
difficulties in the home country
where their headquarters are
located. Even as many MNC’s try
to operate more globally. Home
country governments and citizens
still lend to identify them with
local and national interest.

32. Home-country criticisms of
MNC
 Include complaints about
transferring jobs out of the
country, shifting capital
investments abroad, and
engaging in corrupt practices in
foreign setting.

33. Ethical Issues
for
Multinational
Corporations

34. WHAT IS
ETHICS?
 Code of moral
principles that
set standards
of
conduct of
what
is good and
right.

35. What are multinational corporations?

36. Corruption
 Involves illegal practices for
further one’s business interests.

37. Sweatshops
 Employ workers at a very low
wages for long hours and in poor
working conditions.

38. Child Labor
 Is the full time employment of
children for work otherwise done by
adults.

39. Sustainable Development
 Meets the needs of the present
without hurting future
generations.

40. “Sustainable development is
development that delivers
basic environmental, social
and economic services to all
residents of a community
without threatening the viability
of the natural, built, and social
systems upon which the
delivery of these services
depends.”
ICLEI (1994)

41. Culture and
Global Diversity

42. Is a shared set of
beliefs, values and
patterns of behavior
common t6o a group of
people.
Culture

43. Is the confusion and
discomfort a person
experiences when in an
unfamiliar culture.

44. Ethnocentrism
 Is the tendency to consider one’s
culture as superior to others.

45. Cultural Intelligence
 Is the ability to accept and adapt
to new cultures.

46. Silent Languages
Of Culture

47. Low-context Cultures
Emphasize
communication via
spoken or written
words.

48. High-context cultures
Rely on non-verbal
and situational cues
as well as on spoken
or written words in
communication.

51. Monochronic Cultures
In here, people
tend to do one
thing at a time.

52. Polychronic Cultures
In here, time is
used to
accomplish
many things at

54. Proxemics
 Is how people use space to
communicate.

56. Management
Across
Cultures

57. The management process
planning, organizing, leading, and
controlling is as relevant to
international operations as to
domestic ones. yet as the
preceding
discussions of environment and
culture should suggest, just how
this functions
are applied may vary somewhat

58. Comparative
Management
Comparative management analyzes the
extent to which management principles are
applicable from one country to another.
Since the leader in the development of
management principles is the United
States, comparative management seeks to
determine the applicability of American
know-how to foreign locales.

59. Are Management Theories Universal?
Geert Hofstede, whose framework for understanding
national cultures was introduced earlier, believes the
answer is no. He worries that many theories are
ethnocentric and fail to take into account cultural
differences. Hofstede also points out that the motivation
theories of American scholars tend to value individual
performance. This is consistent with the high
individualism found in Anglo-American countries such as
the United States, Canada, and the United Kingdom.
Elsewhere, where values are more collectivist, the
theories may be less applicable. Even a common
value, such as the desire for increased humanization of
work, may lead in different management directions.

60. Global Organizational
Learning
Global organizational learning is a timely and
relevant theme. This point is evident in the following
words of kenichi ohmae, noted japanese
management consultant and author of The
Borderless World.
Companies can learn from one
another, particularly from other excellent
companies, both at home and abroad. The
industrialized world is becoming increasingly
homogenous in trems of customer needs and social
infrastucture, and only truly excellent companies

61. What are the international business
challenges of Globalization?
 Global managers are informed about international
developments, transnational, in outlook, competent in
working with people from different cultures, and always
aware of regional developments in changing world.
 The global economy is making the diverse countries of the
world increasingly interdependent regarding resource
supplies, product markets, and business competition.
 Market entry strategies of international business include
global sourcing, exporting/importing, and licensing.
 Direct investment strategies of international business
include joint ventures and wholly owned subsidiaries in
foreign countries.
 Global operations are influenced by important
environmental differences among the economic, legal
political, and educational systems of countries.

62. What are multinational corporations and what
do they do?
- A multinational corporation (MNC) is a business with
extensive operations in more than one foreign country.
-True MNCs are global firms with worldwide missions
and strategies that earn a substantial part of their
revenues abroad.
-MNCs offer potential benefits to host countries in
broader tax bases, new technologies, and employment
opportunities.
-MNCs can disadvantage host countries if they interfere
in local government, extract excessive profits, and
dominate the local economy.
-The Foreign Corrupt Practices Act Prohibits American

63. VALUES AND
NATIONAL
CULTURES

64. Five Cultural
Dimension
 Power Distance
 Uncertainty Avoidance
 Individualism collectivism
 Masculinity-Femininity
 Time orientation

65. Expatriate Effectiveness
Model
Big Five Personality Traits
Conscientiousness
Emotional stability
Agreeableness
Intellectance
Extraversion

66. Cultural insight from
project globe
9 Dimensions
• Power distance Institutional
collectivism
• Uncertainty avoidance In a group
collectivism
• Gender egalitarianism Assertiveness
• Future orientation Humane