GMS 200 Lecture Notes - Lecture 3: Individualism, Ethnocentrism, Organizational Learning
2 Jul 2018
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Chapter 3: Global Dimensions of Management
Outline
● The international management challenges of globalization
● Forms and opportunities of international business
● Definition of multinational corporations
● Culture and its relationship with global diversity
● The transfer of management practices and learning across cultures
The International Management Challenges of Globalization
● Key concepts in the challenges of globalization: Global economy, Globalization,
International Management, Global Manager.
● Europe -- European Union (EU)
● The Americas -- NAFTA, FTAA
Asia & Pacific
● Africa -- SADC (Southern African Development Community), ECOWAS (Economic
Community of West African States)
Forms and opportunities of International Business
● Reasons for engaging in international business: profits, customers, suppliers, capital,
labour.
● Market entry strategies involve the sale of goods or services to foreign markets but do
not require expensive investments.
● Types of market entry strategies:
○ Global sourcing
○ Exporting
○ Importing
○ Licensing agreement
○ Franchising
● Direct investment strategies require major capital commitments but create rights of
ownership and control over foreign operations.
● Types of direct investment strategies:
○ Joint ventures
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○ Foreign subsidiaries
Common forms of international business - from market entry to direct investment strategies.
● Market entry strategies
○ Global sourcing
○ Exporting and Importing
○ Licensing and franchising
● Direct investment strategies
○ Joint ventures
○ Foreign subsidiaries
→ increasing involvement and control of foreign operations (from top to bottom)
● Criteria for choosing a joint venture partner:
○ Familiarity with your firm’s major business.
○ Strong local workforce.
○ Future expansion possibilities.
○ Strong local market for partner’s own products.
○ Good profit potential/
○ Sound financial standing.
● Complications in the global business environment:
○ Environment is complex, dynamic, and highly competitive.
○ Global business executives must deal with differences in the environment of
business in different countries.
○ World Trade Organization resolves trade and tariff disputes among countries.
○ Protectionism can complicate global trading relationships.
find more resources at oneclass.com
find more resources at oneclass.com
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GMS 200 Full Course Notes
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Document Summary
Culture and its relationship with global diversity. The transfer of management practices and learning across cultures. Key concepts in the challenges of globalization: global economy, globalization, Africa -- sadc (southern african development community), ecowas (economic. Reasons for engaging in international business: profits, customers, suppliers, capital, labour. Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments. Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations. Common forms of international business - from market entry to direct investment strategies. Increasing involvement and control of foreign operations (from top to bottom) Criteria for choosing a joint venture partner: Strong local market for partner"s own products. Environment is complex, dynamic, and highly competitive. Global business executives must deal with differences in the environment of business in different countries. World trade organization resolves trade and tariff disputes among countries.
