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Prentice Hall, 2005

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Objectives
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
Prentice Hall, 2005

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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

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Fundamentals of International Management

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Categorizing Organizations by International Involvement

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Categorizing Organizations by International Involvement


Domestic

Organizations Organizations Organizations:The Multinational Corporation

International Multinational

Defining

the Multinational Corporation

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Categorizing Organizations by International Involvement

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Categorizing Organizations by International Involvement

Prentice Hall, 2005

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Categorizing Organizations by International Involvement

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Categorizing Organizations by International Involvement

Prentice Hall, 2005

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Categorizing Organizations by International Involvement


Complexities

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

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Categorizing Organizations by International Involvement

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Categorizing Organizations by International Involvement


Risk

and the Multinational Corporation

1. Reduce or eliminate high transportation costs 2. Allow participation in the rapid expansion of a market abroad 3. Provide foreign technical, design, and marketing skills 4. Earn higher profits
The

Workforce of Multinational Corporations


of Organization Members Found in Multinational Corporations

Types

Expatriates Host-Country Nationals Third-Country Nationals


Workforce

Adjustments

Adjusting to a New Culture Repatriation


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Management Functions and Multinational Corporations


Planning

in Multinational Corporations

Plans for multinational organizations could include:


1. Establishing a new sales force in a foreign country 2. Developing new manufacturing plants in other countries 3. Financing international expansion 4. Determining which countries are most suitable
Components

of International Plans

Imports/Exports License Agreements Direct Investing Joint Ventures


Planning

and International Market Agreements

The European Union (EU) North American Free Trade Agreement (NAFTA) Asian-Pacific Economic Cooperation (APEC)
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Management Functions and Multinational Corporations

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Management Functions and Multinational Corporations

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Management Functions and Multinational Corporations


Organizing

Multinational Corporations

Organization

Structure Selection of Managers


Managerial Attitudes Toward Foreign Operations Advantages and Disadvantages of Each Management Attitude
Influencing
Culture

People in Multinational Corporations

1. Acquire a working knowledge of the languages 2. Understand the attitudes of people 3. Understand the needs that motivate people
Controlling
Special

Multinational Corporations

Difficulties Improving Communication


Transnational
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Organizations
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Management Functions and Multinational Corporations

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International Management: Special Issues


Maintaining

Ethics in International Management

Respecting

Core Human Rights Respecting Local Traditions Determining Right from Wrong by Examining Context
Preparing
Culture

Expatriates for Foreign Assignments

profiles Cultural adaptation Logistical information Application

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Questions
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