#14 International Management

#14 International Management - I nter national Management...

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Unformatted text preview: I nter national Management SM299 J. Robb Dixon Based on Lectur es Developed by F. Ryckebosch and P.Ar nold Globalization is taking place National economies merging at accelerated pace EU NAFTA CAFTA? FTAA? Barriers to trade being removed fast Tariffs taxes and regulations Foreign direct investment State owned monopolies disappearing Corporatization Geographical immobility is diminishing Geographical immobility is a situation where resources do not freely move from one location to another. It is particularly a problem with labor as people are often reluctant to relocate for work, and it may therefore be a cause of unemployment. Globalization In Theory: Intensity of competition increases Boeing/Lockheed now Boeing/Airbus GE Lighting/Sylvania now GE/Philips/Siemens Countries develop advantages in certain goods Cars? Computers? Wine? Oil? Agreements on Rules of trade and investment GATT, WTO, NAFTA, EU Movement of people : migration Immigration issues Prosperity of citizens increases All citizens? Companies globalize to Expand revenues Broader consumer base Larger product variety Reduce costs Economies of scale Labor and material cost advantages Cost avoidance Increase profits Corporate Globalization Challenges Business strategy/tactic adaptation required Market access alternatives Need for global / regional competitiveness Product customization HR practices Culture adaptation Logistics Political Environmental Social Technological factor impact (PEST) Globalization forces companies to Learn about foreign markets Learn how to manage people in foreign environments Learn to manage foreign subsidiaries So What? - Managerial Implications Affecting day-to-day choices Affecting strategic choices Accounting / Finance Need for GAAP adjustments to Income Statements Different Expense treatment Impact of inflationary environments Pricing Impact of devaluation Pricing Balance sheet exposure Taxation Operations Management Inventory management JIT Distribution Logistics Production Greenfield / Brownfield Capital vs. labor Quality Export vs. local Human Resources Transfer of Corporate Culture Hiring / firing practices Compensation and benefits Unions and Political parties Environmental changes Marketing Marketing mix adaptation Product modification Placement strategy Pricing strategy Promotional strategy Adaptation of segmentation and targeting Strategy Market access Technology transfer and protection Manufacturing Proximity to customer Low cost sourcing Export implications Government policies Trade Rules of Origin Tariffs, Taxes and Non-Tariff barriers Incentives A global trade framework supports the development of country advantages Political Factors Affecting Trade and Development...
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#14 International Management - I nter national Management...

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