Next Generation of Multinational Manager

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  • Topic: Globalization, International trade, World Trade Organization
  • Pages : 8 (2119 words )
  • Download(s) : 703
  • Published : April 21, 2008
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Characteristics of Next Generation Multinational Managers

-How can one develop those characteristics through education and experience?-
A GLOBAL WORLD3
THE END OF THE WORLD BARRIER3
A RISE TOWARD A MULTINATIONAL MODEL OF COMPANY5
NEXT GENERATION OF MULTINATIONAL MANAGER7
CULTURE AS A BARRIER TO COMMUNICATION7
ESC ROUEN SKILLS VS CROSS CULTURAL CONSULTANT SKILLS9
Cross cultural consultant skills9
The program10
CONCLUSION12
SOURCES13

A Global World

Globalization was the result of planning by economists, business interests, and politicians who recognized the costs associated with protectionism and declining international economic integration. Their work led to the Bretton Woods conference and the founding of several international institutions intended to oversee the renewed processes of globalization, promoting growth and managing adverse consequences. These were the International Bank for Reconstruction and Development (the World Bank) and the International Monetary Fund. It has been facilitated by advances in technology which have reduced the costs of trade, and trade negotiation rounds, originally under the auspices of GATT, which led to a series of agreements to remove restrictions on free trade.

The end of the world barrier

Since World War II, barriers to international trade have been considerably lowered through international agreements - General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO), for which GATT is the foundation, has included: •Promotion of free trade:

oReduction or elimination of tariffs; construction of free trade zones with small or no tariffs

oReduced transportation costs, especially from development of containerization for ocean shipping.

oReduction or elimination of capital controls

oReduction, elimination, or harmonization of subsidies for local businesses

Restriction of free trade:

oHarmonization of intellectual property laws across the majority of states, with more restrictions.

oSupranational recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the United States)

The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO), to mediate trade disputes and set up a uniform platform of trading. Other bi- and multilateral trade agreements, including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade. Several key trends drive the globalisation of the economy, and force business to become more and more multinational to survive and prosper. In a certain way to survive one day all the companies have to go abroad for improving the competition

A Rise toward a Multinational model of company

Multinational Company is broadly defined as any company that engages in business functions beyond its domestic borders. This definition includes all types of companies, large, small, that engage in International business. Usually companies which are use as references are Multinational Corporation; it’s the most common model, and the largest type of multinational company. The capital of a multinational corporation is owned publicly through stocks. As the list shows, the largest corporations are in the petroleum industry, the other major parts of the other corporations are automotive companies and big consumers of the oil industry. It’s easy to link this result with constant increase of the oil barrel today. However Wal-Mart is the first one and the only retailer among the top ten companies.

The global companies are located anywhere in the world and are not confined to European or US cities, the recent entry of both Beijing and Seoul in the list also provide some evidence of the increased importance of Asia in global trade. To reinforce the idea...
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