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1、International Management,Chapter 06,Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Learning Objectives,LO1 Describe how the world economy is becoming more integrated than ever before LO2 Discuss what integration of the global economy means for individuals co
2、mpanies and their managers LO3 Define the strategies organizations use to compete in the global marketplace LO4 Compare the various entry modes organizations use to enter overseas markets,6-2,Learning Objectives (cont.),LO5 Explain how companies can approach the task of staffing overseas operations
3、LO6 Summarize the skills and knowledge managers need to manage globally. LO7 Identify ways in which cultural differences across countries influence management,6-3,The Global Environment,The global economy is dominated by countries in three regions: North America, Western Europe, and Asia.,Other deve
4、loping countries and regions represent important areas for economic growth,6-4,The Global Economy,6-5,Figure 6.1,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 effecti
5、vely.,6-6,U.S. Trading Partners Based on Total Imports and Exports,Figure 6.2,6-7,Question,What economic pact that combined the economies of the United States, Canada, and Mexico? HAFTA NAFTA EU South American FTA,6-8,The Americas,North American Free Trade Agreement (NAFTA) An economic pact that com
6、bined the economies of the United States, Canada, and Mexico into one of the worlds largest trading bloc,6-9,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
7、the worlds largest economies Companies are finding their home markets under attack from foreign competitors,6-10,Growing Proportion of Goods Being Exported,6-11,Figure 6.3,Consequences of a Global Economy,Opportunities are greater Environment is more complex and competitive,6-12,Relative Growth in W
8、orld Merchandise Trade,Figure 6.4,6-13,The Role of Outsourcing 外购(指从外国供应商等处获得货物或服务),Outsourcing Contracting with an outside provider to produce one or more of an organizations goods or services.,Offshoring Moving work to other countries.,6-14,Factors to Consider for Offshoring,What is the competitiv
9、e 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?,6-15,Organizational Models,6-16,Figure 6.5,Choosing a Global Strategy,International model composed of a companys overseas subsidiaries and
10、 characterized by greater control by the parent company over the research function and local product and marketing strategies than in the multinational model.,6-17,Choosing a Global Strategy,Multinational model consists of the subsidiaries in each country in which a company does business, with ultim
11、ate control exercised by the parent company.,6-18,Choosing a Global Strategy,Global model consisting of a companys overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations,6-19,Choosing a Global Strategy,
12、Transnational model characterized by centralizing certain functions in locations that best achieve cost economies basing other functions in the companys national subsidiaries to facilitate greater local responsiveness fostering communication among subsidiaries to permit transfer of technological exp
13、ertise and skills.,6-20,Comparison of Entry Modes,6-21,Table 6.2,Entry Mode,Advantages of exporting: Provides scale economies by avoiding the costs of manufacturing in other countries Consistent with a pure global strategy,6-22,Entry Mode,International licensing an arrangement by which a licensee in
14、 another country buys the rights to manufacture a companys product in its own country for a negotiated商议 fee (typically典型的, royalty payments on the number of units sold),6-23,Entry Mode,Franchising the company sells limited rights to use its brand name to franchisees in return for a lump-sum payment
15、 and a share of the franchisees profits.,6-24,Entry Mode,Joint ventures benefit a company through:the local partners knowledge of the host countrys competitive conditions, culture, language, political systems, and business systems the sharing of development costs and/or risks with the local partner.
16、,6-25,Managing across Borders,Expatriates Parent-company nationals who are sent to work at a foreign subsidiary,6-26,Managing across Borders,Host-country nationals Natives of the country where an overseas subsidiary is located,Third-country nationals Natives of a country other than the home country
17、or the host country of an overseas subsidiary.,6-27,Skills of the Global Manager,15% of all employee transfers are to international locations Failure rate ranges from 20%-70% Failure rate the number of expatriate managers of an overseas operation who come home early Communication is key to reducing the failure rate,