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GLOBAL MANAGEMENT.

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Presentation on theme: "GLOBAL MANAGEMENT."— Presentation transcript:

1 GLOBAL MANAGEMENT

2 Globalization: The Collapse of Time & Distance
Global village and E-commerce the “shrinking” of time and space as air travel and the electronic media have made it much easier for the people of the globe to communicate with one another Total U.S. e-commerce sales are expected to top $136 B in 2007

3 One Big World Market: The Global Economy
the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets

4 One Big World Market: The Global Economy
Positive effects more markets for American exports Negative effects vast surplus funds from global investments flowed into U.S. that were invested badly in subprime mortgages

5 Major Trading Blocs Trading bloc
group of nations within a geographic region that have agreed to remove trade barriers with one another also known as an economic community

6 Major Trading Blocs NAFTA (1994) – U.S., Canada, Mexico
European Union (1957)– 27 trading partners in Europe APEC – group of 21 Pacific Rim countries Mercosur – trading bloc in Latin America CAFTA – Central America

7 Why Learn About International Management?

8 Why Companies Expand Internationally
Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6-8

9 How Companies Expand Internationally

10 Approaches to International Management
Multilocal Decentralized to HCN Collection of independently operating organizations Export Market Parent company maintains centralized control PCN Global approach Hybrid combination of multilocal and export HCN, PCN, TCN Tradeoff?

11 Why Do International Managers Fail?
Ethnocentric & Parochialism Polycentric managers Geocentric managers The Key success factor?

12 Cultural Variations Language High vs. Low Context Interpersonal space
Time orientation Monochronic time preference for doing one thing at a time Polychronic time preference for doing more than one thing at a time Religion Respect/formality Consensus seeking

13 HOFSTEDE’S DIMENSIONS
Individualism vs. Collectivism Power Distance Uncertainty Avoidance Masculinity vs. Femininity

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