1. © Prentice Hall, 2005 1 - 1

2. © Prentice Hall, 2005 1 - 2 1.An understanding of international management and its importance to modern managers 2.An understanding of what constitutes a multinational corporation 3.Insights concerning the risk involved in investing in international operations 4.Insights into those who work in multinational corporations 5.Knowledge about managing multinational corporations 6.Knowledge about managing multinational organizations versus transnational organizations 7.An understanding of how ethics and the preparation of expatriates relate to managing internationallyObjectivesObjectives

3. © Prentice Hall, 2005 1 - 3 Managing Across the Globe:Why? Great opportunities in the international marketplace today U.S. population growth slow but steady Other countries having population explosions Strong profit potential has serious risk Some challenges are: Cultural differences Different technology levels Laws and political systems

4. © Prentice Hall, 2005 1 - 4 Fundamentals of International Management

5. © Prentice Hall, 2005 1 - 5 Categorizing Organizations by International Involvement

6. © Prentice Hall, 2005 1 - 6 Categorizing Organizations by International Involvement Domestic Organizations International Organizations Multinational Organizations:The Multinational Corporation Defining the Multinational Corporation

7. © Prentice Hall, 2005 1 - 7 Categorizing Organizations by International Involvement

8. © Prentice Hall, 2005 1 - 8 Categorizing Organizations by International Involvement

9. © Prentice Hall, 2005 1 - 9 Categorizing Organizations by International Involvement

10. © Prentice Hall, 2005 1 - 10 Categorizing Organizations by International Involvement

11. © Prentice Hall, 2005 1 - 11 Categorizing Organizations by International Involvement Complexities of Managing the Multinational Corporation 1. Within different national sovereignties 2. Under widely disparate economic conditions 3. Among people living within different value systems and institutions 4. In places experiencing the industrial revolution at different times 5. Often over greater geographical distance 6. In national markets varying greatly in population and area

12. © Prentice Hall, 2005 1 - 12 Categorizing Organizations by International Involvement

13. © Prentice Hall, 2005 1 - 13 Categorizing Organizations by International Involvement Risk and the Multinational Corporation 1. Reduce or eliminate high transportation costs 2. Allow participation in the rapid expansion of a market abroad 3. Provide foreign technical, design, and marketing skills 4. Earn higher profits The Workforce of Multinational Corporations Types of Organization Members Found in Multinational Corporations Expatriates Host-Country Nationals Third-Country Nationals Workforce Adjustments Adjusting to a New Culture Repatriation

14. © Prentice Hall, 2005 1 - 14 Management Functions and Multinational Corporations Planning in Multinational Corporations Plans for multinational organizations could include: 1. Establishing a new sales force in a foreign country 2. Developing new manufacturing plants in other countries 3. Financing international expansion 4. Determining which countries are most suitable Components of International Plans Imports/Exports License Agreements Direct Investing Joint Ventures Planning and International Market Agreements The European Union (EU) North American Free Trade Agreement (NAFTA) Asian-Pacific Economic Cooperation (APEC)

15. © Prentice Hall, 2005 1 - 15 Management Functions and Multinational Corporations

16. © Prentice Hall, 2005 1 - 16 Management Functions and Multinational Corporations

17. © Prentice Hall, 2005 1 - 17 Management Functions and Multinational Corporations Organizing Multinational Corporations Organization Structure Selection of Managers Managerial Attitudes Toward Foreign Operations Advantages and Disadvantages of Each Management Attitude Influencing People in Multinational Corporations Culture 1. Acquire a working knowledge of the languages 2. Understand the attitudes of people 3. Understand the needs that motivate people Controlling Multinational Corporations Special Difficulties Improving Communication Transnational Organizations

18. © Prentice Hall, 2005 1 - 18 Management Functions and Multinational Corporations

19. © Prentice Hall, 2005 1 - 19 International Management: Special Issues Maintaining Ethics in International Management Respecting Core Human Rights Respecting Local Traditions Determining Right from Wrong by Examining Context Preparing Expatriates for Foreign Assignments Culture profiles Cultural adaptation Logistical information Application

20. © Prentice Hall, 2005 1 - 20 Questions