International Management Chapters 1 & 2

International Management
The process of developing strategies, designing and operating systems, and working with people around the world to (ensure sustained competitive advantage).
Globalization
global competition characterized by networks of international linkages that bind countries, institutions, and people in an interdependent global economy.
Globalization Risks
1. Severe income disparity
2. Chronic fiscal imbalances
Severe income disparity
The gap between two socioeconomic groups.
Chronic fiscal imbalances
Example of tsunami disrupting the supply chain of car parts to the US.
Moore’s Law
As we progress an exponential growth curve, we have to keep up with the technological growth.
Global Management
The process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage.
Challenges Managers
Face
Political and cultural differences
Global competition
Terrorism
Technology
Finding ways to balance social difference.
Top three countries experiencing globalization
China
India
Brazil
Challenges to Globalism
Backlash against capitalism and rekindling of nationalism.
Increased protectionism of high-demand resources.
A need to develop top managers with international understand and experience.
Increasing pressure and publicity for companies to consider the social responsibility of their actions.
The European Union “EU”
A unified market over 500 million people living in 27 nations.
Stability of the euro is in question and the ability of the “EU” to deal with the debt crisis of some members.
EU poses two challenges for global managers,
1. “Fortress” Europe
2. Dealing with multiple cultures within the unified marked.
Asia
China
India
ASEAN
South Asia Association of Regional Cooperation
Japan
Asian Tigers: Hong Kong, Singapora, South Korea, Taiwan
The Americas
North American Free Trade Agreement (NAFTA)
Brazil
MERCOSUR
Central America Free Trade Agreement (CAFTA)
Other Regions in the World
The Russian Federation
Middle East
The African Union–AU
South Africa
Less developed countries—LDC
World Trade Organization (WTO)
A formal structure for continued negotiations to reduce trade barriers and settling trade disputes.
International Labor Organization (ILO)
promote the convergence of how international activities should be conducted.