After reading this chapter, you should be able to answer the following questions: Discuss ways that globalization affects international business, understand what global corporations are and how they work.
Trang 1Globalization and
International Business
Trang 2• How does globalization affect international business?
• What are global corporations and how do they work?
Trang 3• Globalization involves the growing
interdependence of the world’s economies
• Globalization creates a variety of
international business opportunities
• International business is done by global
sourcing, import/export, licensing and
Trang 7International Opportunities
Trang 8International Opportunities
Trang 9Legal and Political Issues
• International business is complicated by different legal and political systems
– Health and safety
– Equal employment
– Sexual harassment
– Incorporation and ownership
– Foreign currency exchange
– Intellectual property
Trang 10Legal and Political Issues
Trang 11Legal and Political Issues
• World Trade Organization
– Global institution to promote free trade and open markets around the world
– Membership of around 153 countries
– Most Favored Nation status
– www.wto.org
Trang 12Global Corporations
• Global corporations or MNCs do
substantial business in many countries
• The actions of global corporations can be controversial at home and abroad
• Managers of global corporations face a variety of ethical challenges
Trang 15Issues
Trang 16Ethical Challenges
• Corruption
– Illegal practices
• Foreign Corrupt Practices Act
– U.S legal standards apply to companies when operating in foreign countries
– Prevents
business favors
Trang 18Planning and Controlling Challenges
• Currency Risk
Trang 19Planning and Controlling
Challenges
• Political risk
– Risk of loss because of political instability in foreign country
• Political risk analysis
– Forecasts how political events may impact foreign investments
• Currency risk
– Possible loss because of
fluctuating exchange rates
Trang 20Organizing Challenges
Trang 21Leading Challenges
• Global managers
– Competent in working in different cultures