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globalization
1
Transcript
Globalization
By: Nagham, Jawad and Widad
Rise of global village and E-commerce
Competition
1.
2.
Transportation to communication
3.
The net, the web and the world
Global village
The global Economy
Global Market
Rise of Megamergers and Minifirms
Cross border firms
Mega mergers
Raythoen and United technologies Merger
- Expected to have nearly $74 billion
- Merger will define the future of aerospace and defense
Minifirms
Minifirms
- Small companies can get started more easily
- small companies can maneuver faster
International Management
Multinational corporations
Multinational organization
International management
International Managers
Managers
1.
Ethnocentric managers
2.
Poly-centric managers
3.
Geocentric managers
Companies Expanding internationally
Expand
Reasons to expand
Why?
1. Availability of supplies
2. New Markets
3. Lower Labor Costs
4. Access to Finance Capital
5. Avoidance of tariffs and import Quotas
How companies expand
How?
- Global Outsourcing
- importing, exporting and counter-trading
- Licensing and franchising
- Joint Ventures
- Wholly Owned subsidiaries
Barriers to international Trade
Trade Protectionism
- Tariffs
- Import Quotas
- Embargoes and sanctions
International
Trade
Organization promoting international Trade:
- World Trade Organization
- World Bank
- International Monetary fund
Organizations
The importance of understanding cultural differences
Dimensions
Hofstede's Cultural dimensions
- Individual VS collectivism
- Indulgence VS restraint
- Power Distance
- Uncertainty Avoidance
- Long term Orientation
- Masculinity VS femininity
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