Chapter 3 Managing in a Global Environment Essay

1358 Words Sep 18th, 2013 6 Pages
Chapter 3- Managing in a Global Environment Notes * Today’s companies and managers operate in a borderless world that provides both risks and opportunities * Globalization- Refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries * The most globalized countries according to one ranking are Belgium, Austria, the Netherlands, Switzerland, and Swden * Managers can move their companies into the international arena on a variety of levels, and organizations can be thought of a passing through four distinct stages as they become increasingly global. 1. The four stages are Domestic, International, Multinational, and Global * Two major alternatives for …show more content…
* The basic management functions are the same in either a domestic or an international subsidiary, but managers will experience greater difficulties and risk when performing these function internationally. * International management- means the management of business operations conducted in more than one country * When operating on an international basis, it is important for managers to give considerable thought to economic, legal-political, and sociocultural factors * Countries vary widely in terms of economic development and are classified as either develop countries or less developed countries (LDCs) * Infrastructure- refers to a country’s physical facilities such as highways, utilities, and airport that support economic activities * The United States recently fell out of first place on ranking of global competitiveness * Managers who want to expand operations into another country evaluate the availability of raw materials and the market demand for their company’s products and services * As recent financial crises in the United States and Europe show, countries are economically interconnected, and financials problems in one area of the world can rapidly spread around the globe. * International business managers can expect their companies to be affected periodically by economic problems that cross geographical boundaries. * Complicated legal and political forces can create huge risk for international managers and

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