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& Company has grown to global prominence by providing expert consultingservices and garnering results for companies in a wide range of industries andgovernments.Today, McKinsey has a revenue of $6 billion and employs almost 17,000 peopleworldwide, with more than 9,000 at the director level. “The firm is among thelargest hirers of newly minted MBAsin the United States.”“America’s LargestPrivate Companies: #54 McKinsey & Co.,”Forbes, October 28, 2009, accessedFebruary 9, 2011,-companies-09_McKinsey-Co_IPPW.html(emphasis added). McKinsey’semployees come from around the world, speaking over 120 languages andrepresenting more than one hundred nationalities.What Does the Firm Do?As a management consultant firm, McKinsey is approached by its clients toanalyze and solve complex problems. Its industry expertise ranges from mediaand entertainment to the automotive industry, chemicals, and manufacturing.Chapter 6 International Monetary System296
Functional expertise includes all aspects of running a business, including,finance, technology, sales, marketing, risk, and operations. McKinsey has itsown Global Institute whose “independent investigations combine McKinsey’smicroeconomic understanding of companies and industries with the rigor ofleading macroeconomic thinking to derive perspectives on the global forcesshaping business, government, and society.”“McKinsey Global Institute,”McKinsey & Company, accessed February 9, 2011,mgi.The Global Institute is one of McKinsey’s paths to assisting governments andglobal institutions with complex economic and business issues. “Twenty yearsof McKinsey Global Institute research shows that the mix of sectors within aneconomy explains very little of the difference in a country’s GDP growth rate. Inother words, dynamism doesn’t turn on whether an economy has a largefinancial sector, or big manufacturers, or a semiconductor industry, but insteadon whether the sectors are competitive or not. Instead of picking winners andfunneling subsidies to them, countries must get the basics right. These includea solid rule of law, with patents and protections for intellectual property,enforceable contracts, and courts to resolve disputes; access to finance,particularly for startups; and an efficient physical and communicationsinfrastructure.”James Manyika, Susan Lund, and Byron Auguste, “From theAshes,”Newsweek, August 16, 2010, accessed February 9, 2011,-losing-them.html.Why Does the Firm Matter to International Business?This chapter discusses the international monetary system, the IMF and theWorld Bank. In learning about these critical parts of the global businessenvironment, you may find yourself wondering how exactly these institutionsand government-led monetary systems interact with the business world.