MGNT 4670 Ch 1 GLOBALIZATION 2013

Smultinationalsandmini multinationals

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Unformatted text preview: of non­U.S. Multinational enterprises Rise of “mini” Multinationals WORLD ORDER Changes in political and economic orientations mean entry into new markets, such as: • Former Communist countries • Former dictator states in Latin America Results Summary: New Global Economy of the 21st Century Economy Relative decline of dominance of traditional industrialized countries Emergence of developing nations as players in world trade and investment Rise of non­U.S. multinationals and mini multinationals New markets opening up because of changes in political and economic orientation Globalization debate- Pro Globalization Lower prices for goods and services Economic growth stimulation Increase in consumer income Job Creation Specialization by countries in production of goods and services that they can produce most efficiently. Globalization debate- Con Globalization Destruction of manufacturing jobs in advanced countries Decline of wage rates of unskilled workers in advanced countries Move by companies to countries with fewer labor and environment regulations Loss of sovereignty to global institutions who police marketplace, e.g. WTO, IMF, World Bank, U.N. Globalization today Globalization What happens in one part of the world does impact the rest of the world Managing in the Global Marketplace Marketplace Managing an international business differs from managing a domestic business because • countries are different • the range of problems confronted in an international business is wider and the problems more complex than those in a domestic business • firms have to find ways to work within the limits imposed by government intervention in the international trade and investment system • international transactions involve converting money into different currencies...
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