1 / 21

Chapter 17

Exploring Management. Chapter 17. Globalization and International Business. Chapter 17. How does globalization affect international business? What are global corporations and how do they work?. 17.1 Globalization. Globalization involves the growing interdependence of the world’s economies

asabi
Download Presentation

Chapter 17

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Exploring Management Chapter 17 Globalization and International Business

  2. Chapter 17 • How does globalization affect international business? • What are global corporations and how do they work?

  3. 17.1Globalization • Globalization involves the growing interdependence of the world’s economies • Globalization creates a variety of international business opportunities • International business is done by global sourcing, import/export, licensing and franchising • Internal business is done by joint ventures and wholly owned subsidiaries • International business is complicated by different legal and political systems

  4. GLOBALIZATIONWorld Economies • Global economy • Resources, markets and competition are worldwide in scope • Globalization • Process of growing interdependence of global economies

  5. GLOBALIZATIONWorld Economies • Insourcing • Domestic jobs are created by foreign employers • Outsourcing • Jobs are shifted to foreign locations to take advantage of lower wages, infrastructure, educated workforce or government support

  6. GLOBALIZATIONInternational Opportunities • International Business • Conducts transaction across international boundaries • Reasons to “go international”

  7. GLOBALIZATIONInternational Opportunities

  8. GLOBALIZATIONInternational Opportunities

  9. GLOBALIZATIONLegal and Political Issues • International business is complicated by different legal and political systems • Health and safety • Equal employment • Sexual harassment • Incorporation and ownership • Foreign currency exchange • Intellectual property

  10. GLOBALIZATIONLegal and Political Issues • Tariffs • Taxes placed on imports • Protectionism • Tariffs, subsidies and other tactics that give advantages to domestic producers

  11. GLOBALIZATIONLegal and Political Issues • World Trade Organization • Global institution to promote free trade and open markets around the world • Membership of around 153 countries • Most Favored Nation status • www.wto.org

  12. 17.2Global Corporations • Global corporations or MNCs do substantial business in many countries • The actions of global corporations can be controversial at home and abroad • Managers of global corporations face a variety of ethical challenges

  13. 17.2 CONTINUEDGlobal Corporations • Planning and controlling are complicated in global corporations • Organizing can be difficult in global corporations • Leading is challenging in global corporations

  14. GLOBAL CORPORATIONSGlobal Corporations • Global corporations and also known as Multinational corporations (MNC) • Extensive foreign operations in more than one country • Transnational corporations • Operate without one national home

  15. GLOBAL CORPORATIONSIssues

  16. GLOBAL CORPORATIONSEthical Challenges • Corruption • Illegal practices • Foreign Corrupt Practices Act • U.S. legal standards apply to companies when operating in foreign countries • Prevents • Bribes, gifts to foreign officials in return for business favors

  17. GLOBAL CORPORATIONSEthical Challenges • Sweatshops • Employees work long hours in poor or unsafe conditions • Child labor • Full-time employment of children

  18. GLOBAL CORPORATIONSPlanning and Controlling Challenges • Currency Risk

  19. GLOBAL CORPORATIONSPlanning and Controlling Challenges • Political risk • Risk of loss because of political instability in foreign country • Political risk analysis • Forecasts how political events may impact foreign investments • Currency risk • Possible loss because of fluctuating exchange rates

  20. GLOBAL CORPORATIONSOrganizing Challenges

  21. GLOBAL CORPORATIONSLeading Challenges • Global managers • Competent in working in different cultures

More Related