Chapter 3 Managing in a Global Environment Essay

1358 Words Nov 19th, 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…

More about Chapter 3 Managing in a Global Environment Essay