1Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Chapter 7

Global Management

Managing Effectively4th Edition

Chuck Williams

2Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

What Is Global Business?

Global Business

11

Multinational Corporation

Direct Foreign Investment

3Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Trade Barriers

Nontariff Barriers

Nontariff Barriers

TariffTariff

1.21.2

4Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Trade Agreements

Regional Trading Zones

Regional Trading Zones

General Agreementon Tariffs and Trade

General Agreementon Tariffs and Trade

1.31.3

5Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Consistency or Adaptation?

GlobalConsistency

GlobalConsistency

Local Adaptation

Local Adaptation

22

6Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Exporting

Advantages

3.13.1

Disadvantages

7Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Licensing

3.23.2

Advantages

Disadvantages

8Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Franchising

3.23.2

Advantages

Disadvantages

9Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Joint Ventures

3.33.3

Advantages

Disadvantages

10Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Wholly Owned Affiliates (Build or Buy)

AdvantagesAdvantages

DisadvantagesDisadvantages

3.43.4

11Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Global New Ventures

3.53.5

12Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Growing Markets• Purchasing Power

–

• Degree of Global Competition–

• Qualitative factors– –

• Quantitative factors– – – –

4.14.1

13Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Minimizing Political Risk

• Political uncertainty–

• Policy uncertainty–

• Strategies– – –

4.34.3

14Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Becoming Aware of Cultural Differences

National Culture

55

Cultural Dimensions• Power distance

• Individualism

• Masculinity and femininity

• Uncertainty avoidance

• Short-term/long-term orientation

15Chapter 7Copyright ©2009 by Cengage Learning Inc. All rights reserved

Language and Cross-Cultural Training

Documentary TrainingDocumentary Training

Cultural SimulationCultural Simulation

Field ExperiencesField Experiences

6.16.1

Adaptability ScreeningAdaptability Screening

Crosscultural TrainingCrosscultural Training