International Management
CHAPTER 1 – GLOBALIZATION AND INTERNATIONAL LINKAGES
A. INTRODUCTION
1. International Management
Defined as: the process of applying management concepts and techniques in a multinational environment and adapting management to different economic, political and cultural environments
2. Multinational Corporation (MNC) i. Has operations in more than one country ii. Has int’l sales iii. Has managers and owners of various nationalities
B. GLOBALIZATION AND INTERNATIONALIZATION 1. Globalization
i. Defined as: The process of social, political, economic, cultural and technological integration among countries.
ii. Made easier due to advances in a. Technology (especially communications) b. Transportation methods c. Travel iii. Is facing increasing criticism from various groups e.g. protests at summits for WTO, FTAA, IMF, etc.
iv. Benefits of Globalization include a. Lower prices b. Access to wider variety of goods and services c. Access to better technology d. Access to better jobs v. Drawbacks to Globalization include
a. Loss of jobs to overseas markets (due to offshoring – companies moving their operations overseas) b. Increased trade deficits c. Increased impact on the environment d. Potential adverse changes in culture
2. Global and Regional Integration i. World Trade Organization
a. Finalized in 1994 as a result of the URUGUAY ROUND
NOTE: Uruguay Round was a series of trade negotiations of the General Agreements on Tariffs and Trade (GATT) b. Developed to oversee and regulate world trade
c. Rounds of talks were plagued by protests ii. Examples of Regional Trading Blocs
Many trading blocs exist in global economies. Many others are being formed. Some of the more important ones include, a. North American Free Trade Agreement (NAFTA)
A free trade area (U.S., Canada, Mexico) b. Central
A. INTRODUCTION
1. International Management
Defined as: the process of applying management concepts and techniques in a multinational environment and adapting management to different economic, political and cultural environments
2. Multinational Corporation (MNC) i. Has operations in more than one country ii. Has int’l sales iii. Has managers and owners of various nationalities
B. GLOBALIZATION AND INTERNATIONALIZATION 1. Globalization
i. Defined as: The process of social, political, economic, cultural and technological integration among countries.
ii. Made easier due to advances in a. Technology (especially communications) b. Transportation methods c. Travel iii. Is facing increasing criticism from various groups e.g. protests at summits for WTO, FTAA, IMF, etc.
iv. Benefits of Globalization include a. Lower prices b. Access to wider variety of goods and services c. Access to better technology d. Access to better jobs v. Drawbacks to Globalization include
a. Loss of jobs to overseas markets (due to offshoring – companies moving their operations overseas) b. Increased trade deficits c. Increased impact on the environment d. Potential adverse changes in culture
2. Global and Regional Integration i. World Trade Organization
a. Finalized in 1994 as a result of the URUGUAY ROUND
NOTE: Uruguay Round was a series of trade negotiations of the General Agreements on Tariffs and Trade (GATT) b. Developed to oversee and regulate world trade
c. Rounds of talks were plagued by protests ii. Examples of Regional Trading Blocs
Many trading blocs exist in global economies. Many others are being formed. Some of the more important ones include, a. North American Free Trade Agreement (NAFTA)
A free trade area (U.S., Canada, Mexico) b. Central