Managing in Global Environment

The Legal Political Environment 6
North American Free Trade Agreement (NAFTA) 7
Trade Alliances: Promise or Pitfall 7
The Sociocultural Environment 8
Social Values 8
Other Culture Characteristics 8
Getting Started Internationally 10
Multinational Corporations 12
Managing in a Global Environment 12
Managing Cross-Culturally 13
Global Learning 13
Vocabulary 14
A Borderless World
Today’s companies compete in a borderless world. Procter & Gamble sales in Southeast Asia are only 3 percent of its worldwide sales, but those numbers are increasing. The demand for steel in China, India, and Brazil together is expected to grow 10 percent annually in the coming years – three times the U.S. rate, providing opportunities for companies such as Nucor and North Star Steel. For online companies, too, going global is a key to growth. The reality of today’s borderless companies also means consumers can no longer tell from which country they’re buying. Corporations can participate in the international arena on a variety of levels, and the process of globalization typically passes through four distinct stages:
1. In the domestic stage, market potential is limited to the home country, withal production and marketing facilities located at home.
2. In the international stage, exports increase, and the company usually adopts a multidomestic approach, probably using an international division to deal with the marketing of products in several countries individually.
3. in the multinational stage, the company has marketing and production facilities located in many countries, with more than one-third of its sales outside the home country.
4. The global (stateless) stage of corporate international development transcends any single home country. These corporations operate in true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost. At this stage, ownership, control, and top management tend to be dispersed among several nationalities.
The International Business Environmental
International management – is the management of business operations conducted in more than one country....

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