{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MGMT 4070 Chapter 1 Study Guide

MGMT 4070 Chapter 1 Study Guide - NOTES 26 Jan 2008...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
NOTES 26 Jan 2008 International Operations: Management A. Globalism – Assessing the Environment Definition: The term Globalism or Globalization generally refers to global competition characterized by networks that bind countries, institutions and people. It is further characterized as competition in an increasingly borderless world. Global companies are becoming less tied to specific locations and their operations and allies are spreading around the world as they source and coordinate resources and activities wherever needed. Companies that desire to remain competitive will have to develop a cadre of experienced international managers. Benefits of Globalization: 1. Access to markets 2. Access of talent 3. Access to raw materials 4. Cost reduction Gayle Warwick Fine Linens: - Process control - High margins - Pilot runs for quality control Global strategies must include an assessment of the following environments: 1) Political 2) Economic 3) Legal 4) Technological 1) Political Risk: Any governmental action or politically motivated event that adversely affects the long-run profitability or value of a firms business Managers must understand the ethnic and religious composition of the host country in order to anticipate situations of political and general instability. Nationalism: the forced sale of the MNCs assets to local buyers with some compensation to the firm. Expropriation: when a local government seizes the foreign –owned assets of the MNC, providing inadequate compensation, if any at all
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Managing Political Risk: - Avoidance: a company’s choice to suspend or never establish operations in a country.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern