International Business Management
Lecturer: Àngels Dasí
Degree in International Business
Year 2019/2020
Summary of all 7 topics
Universitat de Valencia / University of Valencia
Facultat d’Economia / Faculty of Economics
,Inhoudsopgave
Topic 1. The Global Business Environment 3
Topic 2. Strategic Management in a Global Context 10
Topic 3. The Decision of Entry to International Markets 20
Topic 4. Strategy and Organization of the MNC 33
Topic 5. Foreign Subsidiary Management 47
Topic 6. Culture and Human Resources in International Management 53
Topic 7. Spanish multinational companies and Emerging countries MNC 67
,Topic 1. The Global Business Environment
Globalization is a complex social and economic phenomenon which implies a shift toward
greater integration and interdependence among economies of different countries.
Indicators of growing globalization are the intensification of international flows of people,
services, technology, knowledge, capitals, information, etc.
Globalization can be analysed...
... at a global scale
... at a country scale
... at an industry scale
... at a company scale
1. Globalization at global sclae
Globalization at a global scale implies greater worldwide convergence of variables and
economic dimensions, such as consumer tastes, standardization of products, economic
policies and players, institutional organisations, global centres, etc.
More globalization → less importance of local issues
The issue of size → there may be small although truly global companies
2. Globalization at a country scale
Globalization at a country scale implies that specific countries have different degrees of
integration into the global economy
Measuring the degree of globalization of specific countries
• Foreign trade flow: X+M as% of GDP
• Foreign Direct Investment (FDI): outflows or inflows as % of GDP
However, is it enough with these macroeconomic data?
3. Globalization at an industry scale
Globalization at an industry scale implies that there is a great interdependence of
competitive positions of companies in a particular industry across countries.
Key role of industry concentration
• Global industries are dominated in all markets by the same groups of companies, which
compete on a worldwide basis (e.g. Airbus + Boeing = 90% of global market share)
High levels of intra-industry and intra-company trade
, 4. Globalization at a company scale
Globalization at a company scale implies that the company has extended its presence to all
significant markets of the world, creates value in many countries and co-ordinates constant
knowledge, capital and product flows among its inter-related subsidiaries.
• Global dispersion of assets (including employees), sales and capital.
• A company in a global industry... is always a global company?
• A company in a non-global industry... is always local?
How do we measure it?
It takes into account where the company is selling its products- services and how much it is
selling in each of the regions
Regions: USA/ Europe/Asia
Home-region oriented: at least 50% of sales in its home region
Bi-regional: at least 20% of sales in each of the two regions, but less than 50% in one of
them.
Host- region oriented: more than del 50% of sales are in a region different from the home
region
Global: At least 20% of sales in each of the three regions but less that 50% in one of them.
Lecturer: Àngels Dasí
Degree in International Business
Year 2019/2020
Summary of all 7 topics
Universitat de Valencia / University of Valencia
Facultat d’Economia / Faculty of Economics
,Inhoudsopgave
Topic 1. The Global Business Environment 3
Topic 2. Strategic Management in a Global Context 10
Topic 3. The Decision of Entry to International Markets 20
Topic 4. Strategy and Organization of the MNC 33
Topic 5. Foreign Subsidiary Management 47
Topic 6. Culture and Human Resources in International Management 53
Topic 7. Spanish multinational companies and Emerging countries MNC 67
,Topic 1. The Global Business Environment
Globalization is a complex social and economic phenomenon which implies a shift toward
greater integration and interdependence among economies of different countries.
Indicators of growing globalization are the intensification of international flows of people,
services, technology, knowledge, capitals, information, etc.
Globalization can be analysed...
... at a global scale
... at a country scale
... at an industry scale
... at a company scale
1. Globalization at global sclae
Globalization at a global scale implies greater worldwide convergence of variables and
economic dimensions, such as consumer tastes, standardization of products, economic
policies and players, institutional organisations, global centres, etc.
More globalization → less importance of local issues
The issue of size → there may be small although truly global companies
2. Globalization at a country scale
Globalization at a country scale implies that specific countries have different degrees of
integration into the global economy
Measuring the degree of globalization of specific countries
• Foreign trade flow: X+M as% of GDP
• Foreign Direct Investment (FDI): outflows or inflows as % of GDP
However, is it enough with these macroeconomic data?
3. Globalization at an industry scale
Globalization at an industry scale implies that there is a great interdependence of
competitive positions of companies in a particular industry across countries.
Key role of industry concentration
• Global industries are dominated in all markets by the same groups of companies, which
compete on a worldwide basis (e.g. Airbus + Boeing = 90% of global market share)
High levels of intra-industry and intra-company trade
, 4. Globalization at a company scale
Globalization at a company scale implies that the company has extended its presence to all
significant markets of the world, creates value in many countries and co-ordinates constant
knowledge, capital and product flows among its inter-related subsidiaries.
• Global dispersion of assets (including employees), sales and capital.
• A company in a global industry... is always a global company?
• A company in a non-global industry... is always local?
How do we measure it?
It takes into account where the company is selling its products- services and how much it is
selling in each of the regions
Regions: USA/ Europe/Asia
Home-region oriented: at least 50% of sales in its home region
Bi-regional: at least 20% of sales in each of the two regions, but less than 50% in one of
them.
Host- region oriented: more than del 50% of sales are in a region different from the home
region
Global: At least 20% of sales in each of the three regions but less that 50% in one of them.
