Overview
Highlighting important issues
- Providing Contrasting or Supportive Views of Authors
- Presenting any tabular or graphic information germane to subject
- Pointing to discussion or thought questions
Historical Factors
- Growth of European Business
- The emergence of the USA
- Japan
- The SE Asia ‘Tiger’ economies
- China
- The transition economies of East and Central Europe
- Trading blocs, coalitions and institutions
The National Composition of the Largest Multinationals
| Of the Top 260 in 1973 | Of the Top 500 in 1997 | |
| United States | 126 (48.4%) | 162 (32.4%) |
| Japan | 9 (3.5%) | 126 (25.2%) |
| Britain | 49 (18.8%) | 34 (6.8%) |
| France | 19 (7.3%) | 42 (8.4%) |
| Germany | 21 (8.1%) | 41 (8.3%) |
The Importance of International Management
- Increasing international trade - doubled in financial terms over last decade and sixteen fold since 1950. (Economist , 8th. November 1997)
- Complex and changing international business environment.
- Management education issues (Kwok and Arpan 1994, Kwok, Arpan and Folks 1994)
Some Factors Affecting the Role of International Managers
- Universal principles of management may be unreliable
- Technological and sociological perspectives
- Cross-cultural aspects
- Expatriate deployment
- Managing change
International Management - Selected Issues
- Globalization of Markets
- International Sourcing
- International Collaboration
- Development of economic groups and new market economies
- International SCM
- Managing People Across Borders
International Management
- A global mindset
- The ability to work with diverse people
- A long range perspective
- The ability to manager change and transition
- The ability to create systems for a learning and changing organizations
- The talent to motivate all employees to achieve excellence
- Accomplished negotiation skills
- A willingness to seek and succeed in overseas assignments
- An understanding of national cultures
A Strategic Approach to International Management
The strategic approach to international management considers how managers formulate and implement strategies to compete successfully in the global economy
International Classifications
- Global
- Multidomestic
- Transnational
- International
The Changing Pattern of World Output and Trade
| Country | Share of World Output 1963 | Share of World Output 1996 | Share of World Exports 1997 |
| United States | 40.3% | 20.8% | 12.6% |
| Japan | 5.5% | 8.3% | 7.76% |
| Germany | 9.7% | 4.8% | 9.9% |
| France | 6.3% | 3.5% | 5.46% |
| United Kingdom | 6.5% | 3.2% | 4.95% |
| Italy | 3.4% | 3.2% | 4.76% |
| Canada | 3 % | 1.7% | 3.81% |
| China | NA | 11.3% | 2.85% |
| S. Korea | NA | 1.7% | 2.45% |
Globalization
The shift towards a more integrated and interdependent world economy.
Two components:
- The globalization of markets.
- The globalization of production.
Globalization - Pro
- Lower prices for goods and services.
- Economic growth stimulation.
- Increase in consumer income.
- Creates jobs.
- Countries specialize in production of goods and services that are produced most efficiently.
International vs Domestic Business
- Countries are different.
- Range of problems are wider and more complex.
- Government intervention in trade and investment creates problems.
- International investment is impacted by different currencies.
STRATEGIES OF HOT ASIAN COMPETITORS
- Professionalizing management
- Remaining entrepreneurial
- Focusing on core business
- Responding to global markets
- Building strategic partnerships
Conclusion
- The international world of business
- Multinational management and the multinational company
- Forces that drive globalization
- Key characteristics of multinational managers
- The internationalization debate
- The strategic approach to multinational management