© prentice hall, 2005 1 - 1. © prentice hall, 2005 1 - 2 1.an understanding of international...


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

5.Knowledge about managing multinational corporations

6.Knowledge about managing multinational organizations versus transnational organizations

7.An understanding of how ethics and the preparation of expatriates relate to managing internationally

ObjectivesObjectivesObjectivesObjectives


Managing Across the Globe:Why?Managing Across the Globe:Why?Managing Across the Globe:Why?Managing Across the Globe:Why?Great opportunities in the international marketplace today

U.S. population growth slow but steady

Other countries having population explosions

Strong profit potential has serious risk

Some challenges are:Cultural differences

Different technology levels

Laws and political systems


Fundamentals of International ManagementFundamentals of International ManagementFundamentals of International ManagementFundamentals of International Management


Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement


Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementDomestic Organizations

International Organizations

Multinational Organizations:The Multinational Corporation

Defining the Multinational Corporation


Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementComplexities of Managing the Multinational Corporation

1. Within different national sovereignties

2. Under widely disparate economic conditions

3. Among people living within different value systems and institutions

4. In places experiencing the industrial revolution at different times

5. Often over greater geographical distance

6. In national markets varying greatly in population and area


Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementRisk and the Multinational Corporation

1. Reduce or eliminate high transportation costs2. Allow participation in the rapid expansion of a market abroad3. Provide foreign technical, design, and marketing skills4. Earn higher profits

The Workforce of Multinational CorporationsTypes of Organization Members Found in Multinational Corporations

Expatriates Host-Country Nationals Third-Country Nationals

Workforce AdjustmentsAdjusting to a New CultureRepatriation


Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsPlanning in Multinational Corporations

Plans for multinational organizations could include:1. Establishing a new sales force in a foreign country2. Developing new manufacturing plants in other countries3. Financing international expansion4. Determining which countries are most suitable

Components of International Plans Imports/ExportsLicense AgreementsDirect InvestingJoint Ventures

Planning and International Market AgreementsThe European Union (EU)North American Free Trade Agreement (NAFTA)Asian-Pacific Economic Cooperation (APEC)


Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational Corporations


Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsOrganizing Multinational Corporations

Organization StructureSelection of Managers

Managerial Attitudes Toward Foreign OperationsAdvantages and Disadvantages of Each Management Attitude

Influencing People in Multinational CorporationsCulture

1. Acquire a working knowledge of the languages2. Understand the attitudes of people3. Understand the needs that motivate people

Controlling Multinational CorporationsSpecial DifficultiesImproving Communication

Transnational Organizations


International Management: Special IssuesInternational Management: Special IssuesInternational Management: Special IssuesInternational Management: Special IssuesMaintaining Ethics in International Management

Respecting Core Human RightsRespecting Local TraditionsDetermining Right from Wrong by Examining Context

Preparing Expatriates for Foreign Assignments Culture profiles Cultural adaptation Logistical information Application


QuestionsQuestions

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