Chapter 6:

*The Global Enviroment:


-Other developing countries and regions represent important areas for economic growth.
-The global economy is dominated by countries in three regions: North America, Western Europe, and Asia.

The Global Economy:

*European Unification:
-Europe is integrating economically to form the biggest market in the world.
-Certain structural issues within Europe need to be corrected for the EU to function effectively.

*U.S. Trading Partners Based on Total Imports and Exports:

*Consequences of a Global Economy:
-Expansion of international trade.
-Foreign direct investment (FDI) is playing an ever-increasing role in the global economy.
-Imports are penetrating deeper into the world’s largest economies.
-Companies are finding their home markets under attack from foreign competitors.

*Things to Consider for Off-shoring:
-What is the competitive advantage of the products they offer?
-Is the business in its early stages?
-Can production savings be achieved locally?
-Can the entire supply chain be improved?

*Organizational Models:

Comparison of Entry Mode:


Managing Across Borders:
 *Expatriates
-Parent-company nationals who are sent to work at a foreign subsidiary.

Identifying International Executives:

How to prevent failing on a global assignment:

 Understanding Cultural Issues:
*Ethnocentrism
-The tendency to judge others by the standards of one’s group or culture, which are seen as superior.
*Culture shock
-The disorientation and stress associated with being in a foreign environment.
*Power distance.
-The extent to which a society accepts the fact that power in organizations is distributed unequally.
*Individualism/collectivism
-The extent to which people act on their own or as a part of a group.
*Uncertainty avoidance
-The extent to which people in a society feel threatened by uncertain and ambiguous situations.
*Masculinity/femininity
-The extent to which a society values quantity of life over quality of life.