BU491 Chapter Notes - Chapter 1: Walmart
Document Summary
Operating internationally presents managers with many new opportunities. It is a requirement that an mne have substantial direct investment in foreign countries, not just the trading relationships of an import-export business. Requires that they be engaged in the active management of these offshore assets rather than simply holding them in a passive investment portfolio. What really differentiates the mne is that it creates an internal organization to carry our key cross-border tasks and transactions internally, rather than depending on trade through the external markets. Some examples of mnes include apple, bp, honda, mcdonalds. Few sectors of the economy and few firms not even those that are purely domestic in their operations are free of this pervasive influence. Despite the 2008-2009 economic crisis international production is expanding, with sales, employment, and assets of foreign affiliates all increasing. The importance of developing and transition economies is rising.