981 chap04 biz final
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Lecture 04
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Multinationals and the Global Environment of
Business
© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
McGraw-Hill/IrwinIntroduction to Business
Chapter Four
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Chapter 4Multinationals and the
Global Environment of Business
1. The role of multinational companies in global
production and trade & its impacts.
2. How multinationals are affected by the
political systems to pursue free trade and
reduce or abolish(廢止 ) tariff barriers.
3. The nature of the specific forces in the global
environment and challenges.
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Chapter 4Multinationals and the
Global Environment of Business
4. The nature of the general forces in
competing industries or countries.
5. Main challenges in managing global business
commerce and business occupations, and
organizing method.
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Chapter 4Multinationals and the
Global Environment of Business
Multinational companies
•Are operating in a global environment
and conditions such as opportunities
and threats that affect the
multinational company’s profitability
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Chapter 4Multinationals and the
Global Environment of Business
Significance of Multinationals•In business commerce, multinationals control the giant production and distribution of products that handle the majority of world trade
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Chapter 4Multinationals and the
Global Environment of Business
Capitalism
Capitalism as a business system
(private ownership of the means of
production and distribution)
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Chapter 4Multinationals and the
Global Environment of Business
Totalitarian (集權國家 )
overnment
One person, usually a dictator, or
party exercises absolute control
over all business and social
activity
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Chapter 4Multinationals and the
Global Environment of Business
CommunismNot only totalitarian but all property is owned by the state (no property rights) or government and distribution is totally controlled by the state
跨國貿亦無思想與社會制度之分
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Chapter 4Multinationals and the
Global Environment of Business
Free trade agreements
( FTA)Established by countries to reduce or eliminate
price barriers to and are designed to increase
the flow of products among countries
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Chapter 4Multinationals and the
Global Environment of Business
Tariffs
Taxes on imported products that
raises the price and may make them
uncompetitive with the local product
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Chapter 4Multinationals and the
Global Environment of Business
Free Trade Zones The establishment of free trade areas creates an
opportunity for global manufacturing companies as it minimizes the cost and barriers to trade
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Chapter 4Multinationals and the
Global Environment of Business
Global EnvironmentYou may want to think of the global environment as a worldwide marketplace and as the set of forces surrounding you that determine the ability to obtain productive resources of land, labor, capital, and enterprise
Demographic人口統計
Sociocultural (社會文化的 )
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Chapter 4Multinationals and the
Global Environment of Business
Global Environment Every product goes through three stages:
Input Conversion Output In the process of making and selling of goods and
services Evaluate the Peace Corps video and relate to the
global environment of business
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Chapter 4Multinationals and the
Global Environment of Business
Forces in the Global Environment The specific forces directly affect the company’s
business model while general forces affect all multinationals
Specific forces are directly related to profitability and are suppliers, distributors, competitors, and customers
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Chapter 4Multinationals and the
Global Environment of Business
Forces in the Global Environment Customers and competitors are also specific forces and
both affect the company’s market share or that portion of a product sold in a market by one company
Company Shares
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Chapter 4Multinationals and the
Global Environment of Business
Forces in the Global Environment General forces in the global environment affect
multinationals access to resources and determine worldwide demand and include, economic, socio-cultural, demographic, and legal forces
Evaluate the PWE and productivity of Mexican brewery workers in a multicultural organization
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Chapter 4Multinationals and the
Global Environment of Business
Forces in the Global Environment These forces are general because they affect all
multinationals and their suppliers, distributors and customers
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Chapter 4Multinationals and the
Global Environment of Business
Global outsourcing Of suppliers is not only a very controversial issue as it
is the process by which companies purchase supplies, labor or raw materials throughout the world
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Chapter 4Multinationals and the
Global Environment of Business
Global outsourcing An intermediary such as a agent, broker, or
wholesaler is a company that distributes or supplies a product to another company
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Chapter 4Multinationals and the
Global Environment of Business
Challenges of global commerce Building a global competitive advantage, integration
of the Internet into the business models
Profiting from
Global Expansion
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Chapter 4Multinationals and the
Global Environment of Business
Challenges of global commerce Managing ethically Incorporating the differing cultures into global
planning and organizingEvaluate a multinational organization of your
choice and describe their global environment
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Chapter 4Multinationals and the
Global Environment of Business
Globalization Has led to the development of a diverse supply of IT
workers in both Europe and Asia as these workers are linked through the Internet as a part of the global workforce