Global Management

Topics: European Union, International trade, Trade bloc Pages: 6 (1244 words) Published: April 10, 2014

An Assignment On
Global Management

Submitted To

Mr. Md. Mizanur Rahman
Associate Professor
Department of Management Studies
Faculty of Business studies
Jagannath University

Submitted By
Happy Roy
Serial no: 05
Section: A
Subject: Global Management
Subject Code: Mgt 5102
Department of management Studies
Faculty of Business studies
Jagannath University

Date of Submission
26 June, 2013

Jagannath University, Dhaka

Topics of the assignment

1. Concept of global management.
2. Globalization means share jobs and goods – explain it.
3. Three regional trade blocs.
4. Social responsibility of MNC.

1. Concept of global management

Global management refers to the way an organization manages its business internationally, including its sales, marketing, and hiring and finance practices.

As technology continues to connect the world, many organizations have taken advantage of the opportunity to conduct business globally. Global management combines knowledge of business, culture, history and social practices to help companies find their niches in the global business community and successfully work with other cultures.

Global management can usefully be considered from the perspective of the different functions of the organization: marketing, production, human resources, finance and other support activities.

As a global manager one shall not only need to understand business principles, but also need a firm grip of the local customs, professional life and regional policies of the countries that his/her company wants to partner with. Many companies also look for managers who speak multiple languages and have experience representing more than one country, as well as those who are willing to move from one location to another.

3. Three regional trade blocs

A trade bloc can be defined as a ‘preferential trade agreement’ (PTA) between a subset of countries, designed to significantly reduce or remove trade barriers within member countries. When a trade bloc comprises neighboring or geographically close countries, it is referred to as a ‘regional trade (or integration) agreement’. It is sometimes also referred to as a ‘natural’ trade bloc to underline that the preferential trade is between countries that have presumably low transport costs or trade intensively with one another.

The two principal characteristics of a trade bloc are that:
(1) It implies a reduction or elimination of barriers to trade, and (2) This trade liberalization is discriminatory, in the sense that it applies only to the member countries of the trade bloc, outside countries being discriminated against in their trade relations with trade bloc members.

In terms of their size and trade value, there are three major trade blocks and a larger number of blocks of regional importance.

The European Union (EU):
The European Union (EU) is a political and economic community of twenty-seven member states, located primarily in Europe. The EU comprises a single market created by a system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital. It maintains a common trade policy, agricultural and fisheries policies, and a regional development policy.

The EU was established as the European Economic Community in 1957 by the Treaty of Rome and has undergone many changes since, most notably in 1992 by the Maastricht Treaty. Since 1957 new accessions have raised the number of member states, and powers have expanded. As a result, the EU can be described as both a supranational and an intergovernmental body. 

The economy of the European Union (the largest in the world) combines the economies of 27 member states and is generating an estimated nominal GDP of US$16.6 trillion in 2007. It accounts for 31% of the world's total economic output. 

Fifteen member...
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