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Managing in a Global Environment : 

©Prentice Hall, 2001 Chapter 2 1 Managing in a Global Environment

Chapter Objectives : 

©Prentice Hall, 2001 Chapter 2 2 Chapter Objectives Explain why companies expand abroad Discuss strategies for expanding abroad Learn factors that affect overseas expansion Review international business and the four management functions Discover how globalization affects business management

Slide 3: 

©Prentice Hall, 2001 Chapter 2 3 Why Do Companies Go Abroad? Increase Sales Improve Quality Reduce Costs

Slide 4: 

©Prentice Hall, 2001 Chapter 2 4

International Business Terms : 

©Prentice Hall, 2001 Chapter 2 5 International Business Terms International Business International Management International Trade Multinational Corporation Global Corporation

The Economic Environment : 

©Prentice Hall, 2001 Chapter 2 6 Economic System Exchange Rates Economic Development The Economic Environment

Slide 7: 

©Prentice Hall, 2001 Chapter 2 7 Free Trade Area Economic Integration and Free Trade Customs Union Common Market

Examples of Economic Integration : 

©Prentice Hall, 2001 Chapter 2 8 Examples of Economic Integration European Union Association of Southeast Asian Nations Asia Pacific Economic Cooperation North American Free Trade Agreement

Slide 9: 

©Prentice Hall, 2001 Chapter 2 9 The Political and Legal Environment Trade Barriers Tariffs Quotas Subsidies Political Risks Legal Systems

Slide 10: 

©Prentice Hall, 2001 Chapter 2 10 Values Language Customs The Socio-Cultural Environment

Slide 11: 

©Prentice Hall, 2001 Chapter 2 11 The Technological Environment Suitable Technology Economic Conditions Social Conditions Willingness and Ability

Slide 12: 

©Prentice Hall, 2001 Chapter 2 12 The Business Team and the Global Economy Marketing Staffing Production

The Global Manager : 

©Prentice Hall, 2001 Chapter 2 13 The Global Manager Ethnocentric Regiocentric Polycentric Home Market Orientation Individual Foreign Markets Integrated Worldwide Marketing

Success Factors for International Managers : 

©Prentice Hall, 2001 Chapter 2 14 Success Factors for International Managers Cross-cultural sensitivity Business knowledge Courage Motivates others Personal integrity Insight Commitment to success Takes risks Uses feedback Culturally adventurous Willing to learn Open to criticism Seeks feedback Maintains flexibility

International Management : 

©Prentice Hall, 2001 Chapter 2 15 International Management