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International Business Midterm

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International Business Midterm

Page 1 of 91
CHAPTER 1

MULTINATIONAL MANAGEMENT IN A CHANGING WORLD

Learning Objectives

1. Define multinational management
2. Understand the characteristics of a multinational company 3. Understand the nature of the global economy and the key forces that drive globalization 4. Know the basic classification of the world’s economies

5. Be able to identify the characteristics of the next generation of multinational managers

Introduction

6. Businesses of all sizes, whether from the old or new economy, increasingly see the entire world as a source of business opportunities 7. Why?
• World is becoming one connected economy
• Any company from any country can become a competitor • The internet crosses national boundaries – the click of a mouse allows even the smallest of businesses to go global immediately • Companies can no longer afford the luxury of assuming that success in their home market equates to long-term profitability □ An integrated global economy is not without its challenges and threats • Terrorism, wars, SARS, and effects of recessions on interlinked economies represent threats to multinational companies 8. With companies increasingly looking at global rather than domestic markets, managers of the next century will have little to choice but to be multinational in outlook and strategies • Consequently, all students of business should have at least a basic background in multinational management 9. Multinational management is the formulation of strategies and the design of management systems that successfully take advantage of international opportunities and respond to international threats 10. To provide basic background in multinational management, this book introduces students to the latest information on how managers throughout the world respond to the challenges of globalization 11. The book also provides you with insights into the real world of multinational management through • Preview Cases in Point – show you...