Global_Management

Global_Management - 1 Chapter 8 Global Management...

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Unformatted text preview: 3/27/2008 1 Chapter 8 Global Management Presenters: Reagan McNutt Derik Lopez Chelsea Harvey Liat Anav Cara Forrest MGT 3303.254 Professor Brad Fregger Presented March 4 th Reagan McNutt Derik Lopez Cara Forrest Chelsea Harvey Liat Anav Team ZAIN- ןיז Overview • Global Business, Trade Rules, and Trade Agreements • Consistency or Adaptation? 3 • Forms for Global Business • Finding the Best Business Climate • Becoming Aware of Cultural Differences • Preparing for an International Assignment 3 3/27/2008 2 MTV International • In early 1990’s MTV went international – India • Revenues are low, costs are high, and competition is intense. 4 • MTV makes 10’s of thousands of dollars for 30 second commercials in the U.S. but only $175 to $250 per commercial in developing markets. • Where should MTV International expand and how can it expand successfully? 4 Global Business, Trade Rules, and Trade Agreements • Presented by: Reagan McNutt and Cara Forrest 5 What is Global Business? • Global Business- the buying and selling of goods and services by people from different countries. E l b i thi t W M t f Chi 6 • Example: buying something at Wal-Mart from China. 6 3/27/2008 3 The Impact of Global Business • Multinational Corporations- corporations that own business in two or more countries. 7 • In 1970, more than half the world's 7,000 multinational corporations were headquartered in the U.S or UK. • Today, there are 61,582 multinational corporations and only 5.3% are based in the U.S. 7 The Impact of Global Business • Direct Foreign investment- a method of investment in which a company builds a new 8 business or buys and existing business in a foreign country. • Example: Gerdau SA, a Brazilian steelmaker, made a direct foreign investment by purchasing U.S steel companies. Now 4 th largest steel maker in the U.S. 8 The Impact of Global Business • U.S companies also make large direct foreign in other countries. 9 • Example: Anheuser- Bush paid $700 million for Harbin Brewery Group in China • Overall direct foreign investment is $1 Trillion per year. 9 3/27/2008 4 Trade Barriers • Trade barriers- government imposed regulations that increase the cost and restrict the number of imported goods 10 imported goods. • U.S government imposes a 93% duty on fireworks imported from china, effectively doubling their price. • French government requires that 40% of all TV shows be French and 60% be European. • By establishing these restrictions and taxes the government are engaging in protectionism. 10 Trade Barriers • Protectionism- a government's use of trade barriers to shield domestic companies and their workers from foreign competition....
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Global_Management - 1 Chapter 8 Global Management...

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