Got a quick nap in before class today. That’s a good thing. Didn’t get enough sleep last night.Chapter 1 today, then a quiz, then chapter 2 and maybe 3.
International Management process
- Applying management concepts and techniques in a multinational environment
- Adapting management practices to different economic, political, and cultural practices
There are all sorts of theories and concepts in management. The trick is applying them to actual workforces. This isn’t always straightforward with local workplaces. When dealing with international businesses and employees, adaptation will have to be made.
A multinational corporation is distinguished by having operations in multiple countries, international sales, and managers from multiple nationalities.
Globalization is the process of integration among countries around the world with a vision of a single market entity.
Internationalization is the process of a business crossing national and cultural barriers.
Assorted organizations and treaties exist to regulate trade regionally and locally. The World Trade Organization operates globally. In the western hemisphere, we have the North American Free Trade Agreement (NAFTA), the U.S. – Central American Free Trade Agreement, and the Free Trade Agreement of the Americas. Europe has the European Union. Asia has the Association of Southeast Asian Nations.
Power in the global economy is shifting as more economies integrate together and new markets emerge.
Foreign direct investment in property/plant/equipment in foreign countries is growing healthily.
Over half of world trade is accounted for by the U.S.A., Germany, Japan, and the U.K.
Three types of economies:
- Market Economy – competitive business environment. Generally good for business. Does not mean unrestricted, but generally businesses can operate freely within the law.
- Command Economy – Government maintains significant control over businesses, possibly including mandating certain levels of production, strict price controls, government-established monopolies, and so forth. Bad for businesses that are unable to exert control over the government.
- Mixed economy – Some combination of the above styles. Often a country in transition from command to market economy.