24-01-2013, 03:34 PM
MULTINATIONAL MANAGEMENT IN A CHANGING WORLD
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MULTINATIONAL MANAGEMENT
The formulation of strategies and the design of management systems to take advantage of international opportunities and respond to international threats
THE MULTINATIONAL COMPANY
Any company that engages in business functions beyond its domestic borders
Includes both large and small companies
GLOBALIZATION
The worldwide trend of businesses expanding beyond their domestic boundaries
SEVEN KEY FORCES ARE GLOBALIZING THE WORLD ECONOMY
1. Disintegrating borders
2. Growing cross-border trade and investment
3. The rise of global products and global customers
4. Privatizations
5. New competitors in the world market
6. The rise of global standards of quality and production
7. The Internet and information technology
BORDERS ARE FALLING
Free trade areas and the world trade organization
By 2000, the number of regional trade agreements reached 139, more than double the number existing in 1992
SELL ANYWHERE, LOCATE ANYWHERE
World trade growth: average of 6.5% per year 1990 to 2000
Nearly half of the over $5 trillion in world trade is among the European union, the U.S., and Japan -- the TRIAD
CONCLUSIONS
Multinational management and the multinational company
Forces that drive globalization
Key characteristics of successful multinational managers
The strategic approach to multinational management