International management chapter 1

International Management
involves applying management concepts and techniques in multinational environment and adapting management practices to different economic, political, and cultural environments
multinational corporation
-operations in more than one country
-international sales
-nationality mix of managers and owners
process of social, political, economic, cultural, and technological integration among countries around the world.
offshoring and outsourcing
Globalization is hastened by:
process by which companies undertake some activities at other locations instead of their countries of origin
subcontracting or contracting out of activities to external organizations that had previously been performed by the firm.
-lower prices
Benefits of Globalization:
world trade organization
Global agreements:
world trade organization
general agreement on tariffs and trade:
regional agreements:
north american free trade agreement, european union, free trade agreement of the americas, U.S. – central american free trade agreement, association of southeast asian nations
-US’s largeness trading partner
-most of the largest foreign-owned companies are totally or heavily US-owned
-legal and business environment is similar to that in US.
-strongest latin american economy
-very strong maquiladora industry
-trade with both Europe and Asia has increased
-now competitive with asia for the US market
south korea
-chaebols very large family-held conglomerates
-solid economy moderate growth and inflation low employment
-have a free trade agreement with US
-large population
-recent rend of locating software and high value-added services to this country boosting middle and upper class market for goods and services
-attractive to US and British investors
-well educated english speaking technologically sophisticated workers
– government is providing funds for economic development
the one country, 2 systems (communism/capitalism) balance is a delicate one to maintain,and foreign business are often caught in the middle
-ministry of international trade and industry
-vertically integrates industries
-holding provide assistance needed in providing goods and services to end users
-decade long recession in 1990s
-more competition from emerging economices