Managing in the Global Arena 5 Copyright 2014

OBJECTIVES 1. An understanding of international management and its importance to modern managers 2. An understanding of what constitutes a multinational corporation 3. Insights concerning the risk involved in investing in international operations 4. Insights into those who work in multinational corporations Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -2

OBJECTIVES 5. Knowledge about managing multinational corporations 6. Knowledge about managing multinational organizations versus transnational ones 7. An understanding of how ethics and the preparation of expatriates relate to managing internationally Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -3

Managing Across the Globe: Why? • Most U. S. Companies See Opportunities • Population in Other Countries is Exploding Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -4

Fundamentals of International Management • Globalization Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing

Fundamentals of International Management Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice

Categorizing Organizations by International Involvement • Domestic Organizations • International Organizations • Multinational Organizations Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -9

Categorizing Organizations by International Involvement Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as

Categorizing Organizations by International Involvement • Defining the MNC • Complexities of Managing the

Categorizing Organizations by International Involvement • Risk and the MNC • The Workforce of

Categorizing Organizations by International Involvement • The Workforce of MNCs – Types of Organization Members – Workforce Adjustments – Adjusting to a New Culture – Repatriation Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -15

Management Functions and Multinational Corporations • Planning in Multicultural Corporations – Components of International Plans – Imports/Exports – License Agreements – Direct Investing – Joint Ventures Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -16

Management Functions and Multinational Corporations • Planning in Multicultural Corporations (continued) – Planning and International Market Agreements – The European Union (EU) – North American Free Trade Agreement (NAFTA) – Asian-Pacific Economic Cooperation (APEC) Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -17

Management Functions and Multinational Corporations Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as

Management Functions and Multinational Corporations • Organizing Multicultural Corporations – Organization Structure – Selection of Managers – Managerial Attitudes Toward Foreign Operations – Advantages and Disadvantages of Management Attitude Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -20

Management Functions and Multinational Corporations • Influencing People in Multicultural Corporations – Culture – Hofstede’s Ideas for Describing Culture Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -22

Management Functions and Multinational Corporations • Controlling Multicultural Corporations – Special Difficulties – Improving Organizations Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -23

Management Functions and Multinational Corporations • Transnational Organizations – (Global organization) Copyright©© 2014 2012

International Management: Special Issues • Maintaining Ethics in International Management – Respecting core human rights – Respecting local traditions – Determining right from wrong by examining content Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -25

International Management: Special Issues • Preparing Expatriates for Foreign Assignments – Cultural profiles – Cultural adaptation – Logistical information – Application Copyright©© 2014 2012 Pearson. Education, Inc. Copyright Publishing as Prentice Hall 5 -26