1101IBA Lecture Notes - Lecture 8: Multinational Corporation, Iso 14000, Sustainable Development
30 May 2018
School
Department
Course
Professor
Week 8 Management Concepts Lecture Notes
International Dimensions of Management
International management and globalization
• International management
o Involves managing operations in more than one country
• Global managers are culturally aware and well informed on international affairs
• Organisations have to ensure that their people are ready, willing and able to manage
in the global environment
• Having the right people in the right place at the right time is essetial to a opas
successful international growth
What is globalisation?
• Globalisation- the worldwide interdependence of resource flows, product markets
and business competitions
• The global economy offers great opportunities for worldwide sourcing, production
and sales capabilities
• Multiatioal usiesses are ireasigl adoptig trasatioal or gloal idetities
International Business challenges
• The reasons for international business include the search for:
o Profits
o Customers
o Suppliers
o Capital
o Labour
• International business challenges include:
o Cultural and educational differences
o Legal differences
o Political instability
o Competition with state-owned enterprises
o Protectionism
Asia and the Pacific Rim
• Many Asian economies have experienced strong
eooi groth oer reet deades. Chias
economy in particular is closely tied with the
world at large
• Notwithstanding the global financial crisis (a
consequence of subprime mortgage defaults in
the United States in 2008, culminating in a
worldwide recession), some Asian and Pacific Rim
economies are expected to grow larger than
economies of the European Union (EU)
• The Asian-Pacific Economic Cooperation (APEC)
has eoe the regios leadig foru
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Trading Alliances
• The European Union (EU)
o A political and economic alliance of European countries, and an institutional
framework for the construction of a united Europe
• EU members are linked through favorable trade and customs laws
• The euro is the common European currency
• Despite uncertainties post-GFC, expected regional benefits of an expanding EU
include higher productivity, lower inflation and steady growth
• NAFTA is the North American Free Trade Agreement linking Canada, the United
States and Mexico in a regional economic alliance
• In 2005, Australia entered into a bilateral free trade agreement with the United
States, known as the Australia- United States Free Trade Agreement (AUSFTSA)
Market Entry Strategies
• In Global sourcing, materials or services are purchased around the world for local
use
• In exporting, local products are sold abroad
• Importing is the process of acquiring products abroad and selling them in domestic
markets
• A licensing agreement occurs when a firm pays a fee for the rights to make or sell
aother opas produts
• Frahisig proides the oplete pakage of support eeded to ope a partiular
business
Forms of International Business
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Document Summary
What is globalisation: globalisation- the worldwide interdependence of resource flows, product markets and business competitions, the global economy offers great opportunities for worldwide sourcing, production and sales capabilities, multi(cid:374)atio(cid:374)al (cid:271)usi(cid:374)esses are i(cid:374)(cid:272)reasi(cid:374)gl(cid:455) adopti(cid:374)g tra(cid:374)s(cid:374)atio(cid:374)al or (cid:858)glo(cid:271)al(cid:859) ide(cid:374)tities. International business challenges: the reasons for international business include the search for, profits, customers, suppliers, capital, labour. International business challenges include: cultural and educational differences, legal differences, political instability, competition with state-owned enterprises, protectionism. Asia and the pacific rim: many asian economies have experienced strong e(cid:272)o(cid:374)o(cid:373)i(cid:272) gro(cid:449)th o(cid:448)er re(cid:272)e(cid:374)t de(cid:272)ades. States and mexico in a regional economic alliance. In 2005, australia entered into a bilateral free trade agreement with the united. States, known as the australia- united states free trade agreement (ausftsa) In global sourcing, materials or services are purchased around the world for local use. Multinational corporations: multinational corporation (mnc, a business with extensive operations in more than one foreign country.
