Chapter 3 Managing in a Global Environment

Chapter 3- Managing in a Global Environment Notes * Today’s companies and managers operate in a borderless world that provides both risks and opportunities * Globalization- Refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries * The most globalized countries according to one ranking are Belgium, Austria, the Netherlands, Switzerland, and Swden * Managers can move their companies into the international arena on a variety of levels, and organizations can be thought of a passing through four distinct stages as they become increasingly global. 1. The four stages are Domestic, International, Multinational, and Global * Two major alternatives for engaging in the international arena are to seek cheaper resources via outsourcing and to develop markets outside the home country * Global outsourcing- Sometime called offshoring, mean engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country * Market entry strategies- are various tactics managers use to enter foreign markets * Exporting- is a market entry strategy in which a company maintains production facilities within its home country and transfer products for sale in foreign countries * Countertrades- is one type of exporting, the barter of products for other products rather than the sale of products for currency. * Many companies are going straight to China or India as a first step into international business * Outsourcing is the most widespread involvement by foreign firms in these two countries * China is strong in manufacturing, whereas India is a major provider of services * Brazil, with its rapidly growing consumer market, is becoming a major player in the shifting international landscape * Rio de Janeiro’s being selected to host the 2016 Summer Olympics is an indication of its growing clout in the international