5.1 Management and Globalization
Global Economy: The economy in which resources, markets and competition are worldwide in
scope.
Globalization: The growing interdependence among elements of the global economy.
World 3.0: Term coined by scholar Pankaj Ghemawat who believes that national identities
remain strong even as countries cooperate in the global economy.
Global Management: The management in businesses and organizations with interests in more
than one country.
(The success of global management firms depends greatly on global managers)
Global Managers: A manager who is culturally aware and informed on international affairs.
They must master the demands of operating with worldwide suppliers, distributors, customers
and competitors, they must also deal with unique local challenges.
International Businesses: A business that conducts for-profit transactions of goods and services
across national boundaries.
Benefits from International Business:
- Profits: Gain profits through expanded operations
- Customers: Enter new markets to gain new customers
- Suppliers: Get access to materials, products and services
- Labour: Get access to lower-cost, talented workers
- Capital: Tap into a larger pool of financial resources
- Risk: Spread assets among multiple countries
- Economic Development: A policy whereby a global firm does business in foreign
countries with the direct intention to help the local economy.
A development-focused approach to international business energizes a virtuous circle,
where all parties to the relationship keep getting stronger as they work with one
another.
Market-Entry Strategies to International Business:
- Global Sourcing: The process of purchasing materials/services from around the world for
local use. This requires an international division of labour in which activities are
performed in countries where they can be accomplished effectively at low cost.
Global Economy: The economy in which resources, markets and competition are worldwide in
scope.
Globalization: The growing interdependence among elements of the global economy.
World 3.0: Term coined by scholar Pankaj Ghemawat who believes that national identities
remain strong even as countries cooperate in the global economy.
Global Management: The management in businesses and organizations with interests in more
than one country.
(The success of global management firms depends greatly on global managers)
Global Managers: A manager who is culturally aware and informed on international affairs.
They must master the demands of operating with worldwide suppliers, distributors, customers
and competitors, they must also deal with unique local challenges.
International Businesses: A business that conducts for-profit transactions of goods and services
across national boundaries.
Benefits from International Business:
- Profits: Gain profits through expanded operations
- Customers: Enter new markets to gain new customers
- Suppliers: Get access to materials, products and services
- Labour: Get access to lower-cost, talented workers
- Capital: Tap into a larger pool of financial resources
- Risk: Spread assets among multiple countries
- Economic Development: A policy whereby a global firm does business in foreign
countries with the direct intention to help the local economy.
A development-focused approach to international business energizes a virtuous circle,
where all parties to the relationship keep getting stronger as they work with one
another.
Market-Entry Strategies to International Business:
- Global Sourcing: The process of purchasing materials/services from around the world for
local use. This requires an international division of labour in which activities are
performed in countries where they can be accomplished effectively at low cost.
