Chapter 8 Power Point

Chapter 8 Power Point - Chapter8 GlobalManagement Outline...

Info icon This preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 Global Management
Image of page 1

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

View Full Document Right Arrow Icon
1. The necessity of global trade and business 2. Trade barriers, protectionism, and trade  agreements 3. Some forms of global business 4. Cultural issues and challenges Outline
Image of page 2
Over 60 % of the revenue at both GE and P&G  are now derived internationally. Doing business internationally is no longer just  about cheap manufacturing. It is also about growth, opportunity, and emerging  consumer markets and a new global middle class. Global Business & Global Mgt.
Image of page 3

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

View Full Document Right Arrow Icon
Corporations that own businesses in two or more  countries. (recall eg. of Coca Cola India…) 1970: 7,000 MNC’s in the world. Most based in the  US and the UK Today: 56,448 MNC’s, and 71.5% are based in  other developed countries, 26.1% in developing  countries, and 3.1% in the US. Multinational Corporations  (MNC’s)
Image of page 4
Eg. Yum Brands in China: WSJ Article
Image of page 5

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

View Full Document Right Arrow Icon
   When a firm builds a new business or buys an  existing business in a foreign country. Direct Foreign Investment
Image of page 6
7 Direct Foreign Investment in the U.S. 
Image of page 7

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

View Full Document Right Arrow Icon
8 Direct Foreign Investment in other  countries 
Image of page 8
To protect local companies & workers from  foreign competition, governments use  trade  barriers  (or government-imposed regulations) Two types of trade barriers: Tariff : A direct tax on imported goods Nontariff barrier : Methods that increase the cost or  reduces the volume of imported goods Quotas, voluntary export restraints, government import  standards, governments subsidies, & customs  valuation/classification Currency valuation…in China, for eg?? 9 Trade barriers
Image of page 9

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

View Full Document Right Arrow Icon
Since 1948, the  General Agreement on Tariffs and  Trade (GATT)  established rules of trade for  countries to follow 124 countries agreed to adopt the GATT Reduce/eliminate tariffs Limit government subsidies (U.S. complaints about  China, for eg.) Establish protections for intellectual property (pirated  music, film, software…) GATT’s overall goal?  Encourage trade between  member countries. 10 Worldwide effort to reduce trade barriers  - GATT
Image of page 10
GATT made it easier and cheaper for  consumers in all countries to buy foreign  products.
Image of page 11

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

View Full Document Right Arrow Icon
Image of page 12
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