GLOBAL MANAGEMENT:
MANAGING ACROSS BORDERS
Week 3
Prepared by Management Department | www.unimedia.ac.id | man@unimedia.ac.id

Globalization: the collapse of time & distance
Process by which
the world economy is becoming
a single interdependent system
(Griffin)
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Globalization: as reflected in three important developments
The rise of both Megamergers & Minifirms
Worldwide
CROSS BORDER BUSINESS
#3
INTEGRATING
Giving positive & negative effects
ONE BIG WORLD
#2 EFFICIENCY &
MARKET: THE GLOBAL
EFFECTIVENESS
ECONOMY
From transportation to communication, the Net,
THE RISE OF THE
#1 the Web, & the World
“GLOBAL VILAGE” &
E-COMMERCE
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“THE WORLD IS SMALLER”
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USING THE WEB
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SCHWAB’S CHINESE-LANGUAGE WEB SITE

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“ ONE BIG WORLD MARKET ”
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MCDONALD’S IN JAPAN & CHINA
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CROSS BORDER BUSINESS: THE RISE OF ....
2. MINIFIRMS OPERATING WORLDWIDE
Small Companies Can Get Started More Easily
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PIXAR ANIMATION STUDIAS:
SMALL COMPANIES CAN MANEUVER FASTER
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?
WHY LEARN ABOUT INTERNATIONAL MANAGEMENT
oversee the conduct of operations
International managers
in, with organizations in foreign countries
or
multinational organizations
multinational corporations
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THE SITUATIONS THAT MANAGER MUST BE CONSIDER :
AMERICAN FIRM OUTSIDE INDONESIA
4. YOU MAY WORK FOR AN
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The Successful International Manager
GOECENTRIC
ETNOCENTRIC POLYENTRIC MANAGERS
MANAGERS MANAGERS “WHAT’S BEST IS WHAT
“WE KNOW BEST” “THEY KNOW BEST” EFFECTIVE, REGARDLESS OF
ORIGIN”
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WHY COMPANIES EXPAND INTERNATIONALLY :
1. AVAILABILITY OF SUPPLIES
2. NEW MARKETS
3. LOWER LABOR COSTS
4. ACCESS TO FINANCE CAPITAL
5. AVOIDANCE OF TARIFFS & IMPORT QUOTAS
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HOW COMPANIES EXPAND INTERNATIONALLY :
LICENSING &
GLOBAL FRANCISING
WHOLLY-OWNED
IMPORTING,
OUTSOURCING
SUBSIDIARIES
&
EXPORTING,
JOINT VENTURES
COUNTERTRADING
LOWEST RISK HIGHEST RISK
& INVESTMENT & INVESTMENT
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ECONOMIC DIFFERENCES:
ADJUSTING TO OTHER COUNTRIES’ ECONOMIES
2. COMMAND ECONOMY
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DEVELOPED VERSUS LESS-DEVELOPED COUNTRIES
Developed Countries
Less-Developed Countries
Infrastructure & Resources
Currency Exchange Rates
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FIRST WORLD OR THIRD WORLD?
UNITED COLORS OF BENETTON
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“OH, SAME OLD THING.”
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POLITICAL-LEGAL DIFFERENCES:
ADJUSTING TO OTHER COUNTRIES’S GOVERNMENTS & LAWS
DEMOCRATIC GOVERNMENTS
GOVERNMENTAL SYSTEMS
TOTALITARIAN GOVERNMENTS
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BARRIERS INTERNATIONAL TRADE
TO
1. TARIFFS
3. EMBARGOES
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Organizations Promoting International Trade
WORLD
… and many more
BANK
IMF
WTO
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NAFTA
EU
Mercosur
APEC

The Importance of National Culture
CULTURE....
shared set of beliefs, values, knowledge, and
the
patterns of behavior common to a group of people.
CULTURAL DIMENSIONS....
Low-Context Culture,
in which shared meanings are primarily derived from written and spoken words.
High-Context Culture,
in which people rely heavily on situational cues for meaning when communicating with others.
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HOFSTEDE’S DIMENSIONS OF NATIONAL CULTURE.
Source: Schermerhorn, Management, Figure 05-04

CULTURAL VARIATIONS :
OTHER
1. LANGUAGE
3. TIME ORIENTATION
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Nokia Office in Richmond, Canada
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Download : www.natriumz.wordpress.com
thank you
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