International Business - Chapter 5: The Global Environment

"International Business - Chapter 5: The Global Environment" describe the nature of international business, including its meaning, recent trends, the management of globalization, and competition in a global environment; discuss the structure of the global economy and how it affects international management;...
Nội dung trích xuất từ tài liệu:
International Business - Chapter 5: The Global Environment CHAPTER 5The GlobalEnvironment PowerPoint Presentation by Charlie CookCopyright © by Houghton Mifflin Company.All rights reserved. LearningObjectivesAfter studying this chapter, you should be able to: – Describe the nature of international business, including its meaning, recent trends, the management of globalization, and competition in a global environment. – Discuss the structure of the global economy and how it affects international management. – Identify and discuss the environmental challenges inherent in international management. – Describe the basic issues involved in competing in a global economy, including organization size and the management challenges in a global economy.Copyright © by Houghton MifflinCompany. All rights reserved. 5–2 ChapterOutline• The Nature of International • Environmental Challenges Business of International – The Meaning of International Management Business – The Economic Environment – Trends in International – The Political/Legal Business Environment – Managing the Process of – The Cultural Environment Globalization – Competing in a Global • Competing in a Global Environment Economy• The Structure of the Global – Globalization and Organizational Size Economy – Management Challenges in a – Mature Market Economies and Global Economy Systems – High Potential/High Growth EconomiesCopyright © by Houghton Mifflin – Other EconomiesCompany. All rights reserved. 5–3 LevelsofInternationalBusinessActivityLowest Level of International Activity Highest Domestic International Multinational Global business business business businessCopyright © by Houghton Mifflin Figure5.1Company. All rights reserved. 5–4 TheMeaningofInternationalBusiness• Domestic Business – acquires all of its resources and sells all of its products or services within a single country.• International Business – is primarily based in a single country yet acquires a meaningful share of its resources and/or revenues from other countries.• Multinational Business – transcends national boundaries and buys raw materials, borrows money, and manufactures and sells its products in a world-wide marketplace.• Global Business –Copyright © by Houghton Mifflin and is not committed to a transcends national boundaries single home country.Company. All rights reserved. 5–5 TrendsinInternationalBusiness• Economic Recovery – Industrialized nations in Europe and Asia have rebuilt their economic systems that were devastated in WWII.• Decreasing Isolation from Foreign Competition – U.S. consumer goods markets are open to overseas competitors.• Increasing Globalization of World Markets – Volume of international trade has increased more than 3,000% from 1960 to 2000.Copyright © by Houghton MifflinCompany. All rights reserved. 5–6 ManagingTheProcessof Globalization• Exporting – Making a product in the firm’s domestic market and selling it in another country.• Importing – Bringing a good, service, or capital into a home country from abroad. – Advantages are small cash outlay, little exchange risk, and no adaptation of product or service is necessary. – Disadvantages are tariffs and taxes imposed on cross-border goods, high transportation costs to/from distant markets, and governmental restrictions and regulations.Copyright © by Houghton MifflinCompany. All rights reserved. 5–7 ManagingTheProcessof Globalization(cont’d)• Licensing – Advantages are increased profitability from licensing without additional capital requirements, lower operational costs in foreign markets, and extended profitability from existing technologies. – Disadvantages are inflexibility in the licensing arrangement, loss of profits from licensee failure, and licensing possibly helps competitors learn to compete.• Strategic Alliance and Joint Ventures – Advantages are quick market entry, access to materials and technology, and reduced risk. – Disadvantage is that shared ownership limits control and profitability.Copyright © by Houghton MifflinCompany. All rights reserved. 5–8 ManagingThePro ...