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Unformatted text preview: arry the strategic-management process forward. THE GLOBAL CHALLENGE The global challenge faced by U.S. businesses is twofold: 1) how to gain and maintain exports to other nations and 2) how to defend domestic markets against imported goods. A. Multinational Corporations 1. MNCs face risks like expropriation of assets, currency losses through exchange rate fluctuations, unfavorable court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers. 2. Firms must due extensive environmental scanning to assess risks and opportunities prior to entering global markets. THE GLOBAL CHALLENGE B. Globalization 1. Globalization is the process of worldwide integration of strategy formulation, implementation, and evaluation activities. Strategic decisions are made based on their impact on global profitability of the firm, rather than on just domestic or other individual country considerations. 2. Globalization of industries is occurring for many reasons, includin...
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This document was uploaded on 02/19/2014.

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