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Seminário Avançado Internacional Ambiente Internacional de Negócios em 2010-12 Prof. Dr. Ervin L. Black São Paulo – SP Abril de 2010
THE GLOBAL FINANCIAL CRISIS
CREDIT CRUNCH to DOWNTURN ,[object Object]
CREDIT CRUNCH to DOWNTURN ,[object Object]
CREDIT CRUNCH to DOWNTURN ,[object Object],[object Object]
Global Financial Crisis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Global Financial Crisis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Global Financial Crisis Recent Headlines ,[object Object],[object Object],[object Object]
Global Financial Crisis Recent Headlines ,[object Object],[object Object],[object Object]
Global Financial Crisis Recent Headlines ,[object Object],[object Object]
Global Financial Crisis Recent Headlines ,[object Object],[object Object]
Global Financial Crisis Recent Headlines ,[object Object],[object Object]
The Global Financial Crisis and Exchange Rates
 
 
 
Impact of the Global Financial Crisis on Sony ,[object Object],[object Object],[object Object],[object Object]
How Does Foreign Exchange Affect You? ,[object Object],[object Object],[object Object],[object Object]
How Does Foreign Exchange Affect Business? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Drives the Value of Currencies? ,[object Object],[object Object],[object Object],[object Object],[object Object]
WHAT WILL THE FUTURE BRING?
Important Meta-Competencies – Research on High Potential Executives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning Outcomes ,[object Object],[object Object],[object Object],[object Object]
Good Resources ,[object Object],[object Object],[object Object],[object Object],[object Object]
BRICs – Jim O’Neill of Goldman Sachs ,[object Object]
Key BRIC Ideas ,[object Object],[object Object],[object Object]
BRIC Ideas cont. ,[object Object],[object Object],[object Object],[object Object]
The World is Flat by Thomas L. Friedman – Release 3.0 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Ten Forces That Flattened the World ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ The World is Spiky”  The Atlantic Monthly , Richard Florida, October 2005 ,[object Object],[object Object],[object Object]
“ The World is Spiky”  The Atlantic Monthly , Richard Florida, October 2005 ,[object Object],[object Object],[object Object]
Distance Matters Cultural Distance Administrative Distance Geographic Distance Economic  Distance - Languages -Ethnicity -Religions -Social norms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distance Attribute Change in International Trade % Income level: GDP per capita (1% increase) +0.7 Economic size: GDP (1% increase) +0.8 Physical distance (1% increase) -1.1 Physical size (1% increase)* -0.2 Access to ocean* +50 Common border +80 Common language +200 Common regional trading bloc +330 Colony-colonizer relationship +900 Common colonizer +190 Common polity +300 Common currency +340
U.S. EXPORTS TO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
U.S. IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
GERMAN EXPORTS TO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
GERMAN IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BRAZIL EXPORTS TO ,[object Object],[object Object],[object Object],[object Object],[object Object]
BRAZIL IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
INDIA EXPORTS TO ,[object Object],[object Object],[object Object],[object Object]
INDIA IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object]
RUSSIA EXPORTS T0 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RUSSIA IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CHINA EXPORTS TO ,[object Object],[object Object],[object Object],[object Object],[object Object]
CHINA IMPORTS FROM ,[object Object],[object Object],[object Object],[object Object],[object Object]
TOP 10 in GDP  MILLIONS OF USD ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PPP GDP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
GNI PER CAPITA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Patterns of Internationalization Figure 1.7 1-16
Culture in International Business
Tell me… So, what is culture, anyway?
The things people say and do
Environment (Geographic & Technological) Cultural Values Institutions (Family, Church, School, Media, Government) Peers Person (individual values and behaviors)
Types of Behavior UNIVERSAL Eating CULTURAL Eating from your own plate PERSONAL Eating in front of the television
SO…Culture is… ,[object Object],[object Object],[object Object],[object Object],Composed of:  ,[object Object],[object Object],[object Object],That are:  By a group of people
Cultural Assumptions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Key Concepts from Hall & Hall ,[object Object],[object Object],[object Object],[object Object]
Issues Hierarchy ,[object Object],[object Object],[object Object],[object Object]
Why Does Culture Matter? “ Although misunderstandings are blameless artifacts of the way two very different systems work, accidents of culture are seldom understood for what they really are.” --Edward Hall
Hall’s “Context” Content (implicit) Information (explicit) Meaning High Context (Japan) Low Context (U.S.)
 
Contextual Background of Various Countries Swiss North American (US) French English (UK) Italian Latin American Arabian Spanish Japanese German Scandinavian Low Context Explicit High Context Explicit
Hofstede Power Distance ,[object Object],[object Object],Individualism vs. Collectivism ,[object Object],[object Object]
Hofstede Uncertainty Avoidance ,[object Object],[object Object],[object Object],[object Object],Future Orientation ,[object Object],[object Object],Masculinity/Femininity ,[object Object],[object Object],[object Object]
Hofstede’s Dimensions of National Culture Rank (out of 60) U.S. Germany Japan ,[object Object],1 15 22 ,[object Object],38 42 33 ,[object Object],42 29 7 ,[object Object],15 9 1 ,[object Object],Low Mid High
 
 
 
 
Structural Aspects of Language & Nonverbal Behaviors (“How” things are said) Cultures Bargaining Behaviors(per 30 minutes) USA JPN BRZ KOR GEP UK SPN MEX FCAN ECAN Structure Aspects “ No’s” 4.5 1.9 41.9 7.4 6.7 5.4 23.2 4.5 7.0 10.1 “ You’s” 54.1 31.5 90.4 34.2 39.7 54.8 73.3 56.3 72.4 64.4 Nonverbal Behaviors Silent Periods 1.7 2.5 0 0 0 2.5 0 1.1 0.2 2.9 Conversation-al Overl 5.1 6.2 14.3 22.0 20.8 5.3 28.0 10.6 24.0 17.0 Facial Gazing 10.0 3.9 15.6 9.9 10.2 9.0 13.7 14.7 18.8 10.4 Touching 0 0 4.7 0 0 0 0 0 0 0
The “What” of Communication Bargaining Behaviors USA JPN BRZ KOR GER UK SPN MEX FCAN ECAN Promise 8 7 3 4 7 11 11 7 8 6 Threat 4 4 2 2 3 3 2 1 3 0 Recommendation 4 7 5 1 5 6 4 8 5 4 Warning 1 2 1 0 1 1 1 2 5 0 Reward 2 1 2 3 4 5 3 1 1 3 Punishment 3 1 3 5 2 0 2 0 2 1 Normative appeals 2 4 1 3 1 1 1 1 3 1 Commitment 13 15 8 13 9 13 9 9 8 14 Self-disclosure 36 34 39 36 47 39 34 38 42 34 Question 20 20 22 21 11 15 17 27 19 26 Command 6 8 8 13 12 9 17 7 5 10
Culture and Negotiation Strategies High Low High Low Integrate “ Scripts” Induce to Follow Your “Script” Involve Mediator Follow Counterpart “ Script” Your Familiarity with Their Culture Their Familiarity with  Your Culture
Why does culture matter in marketing? The marketing mix ,[object Object],[object Object],[object Object],[object Object],[object Object],How to approach marketing (strategy) Influences macro environment for marketers (trade policy)
 
 
 
Hall’s Silent Languages ,[object Object],[object Object],[object Object],[object Object],[object Object]
Nine Nations of North America ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
CROSS-CULTURAL SENSITIVITIES ,[object Object],[object Object],[object Object],[object Object]
 
 
Industry Effect ,[object Object],[object Object],[object Object]
The Five Forces Model of Industry Structure 11-
Definitions ,[object Object],[object Object],[object Object]
Definition of a Global Industry ,[object Object]
Global Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
General Globalization Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
General Globalization Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
General Globalization Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
General Globalization Forces ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Inhibiting Globalization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A FRAMEWORK FOR ANALYSIS Pressures for Global Integration Low High High ,[object Object],[object Object],[object Object],[object Object],[object Object],Pressures for Local Differentiation
Global Strategy HQ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Extreme Global Value Chain Country Activities A B C D E F G H R & D Design Purch- asing Manu- facturing Marketing Selling Distrib- ution Service Design Purchasing Manu- facturing Etc.
THE GLOBAL STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Multi-Domestic Strategy HOLDING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Fully Multi-local Value Chain Country Activities A B C * * * * Z R & D Design Service Distrib- ution Selling Market-ing Manu- facturing Purch- asing R & D R & D R & D Design Design Design Purch- asing Purch- asing Purch- asing Manu- facturing Manu- facturing Manu- facturing Market-ing Market-ing Market-ing Selling Selling Selling Distrib- ution Distrib- ution Distrib- ution Service Service Service
THE MULTI-DOMESTIC APPROACH ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Global Integration - Local Differentiation High High Low Low Pressures for Global Integration ,[object Object],[object Object],[object Object],[object Object],Global Strategy Multi-domestic  Strategy
Pressures for Global Integration ,[object Object],[object Object],11-
Integration-Responsiveness (IR) Grid (I): Industry Types
Types Of Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],11-
Integration-Responsiveness (IR) Grid (II): Strategy Types
Performance Evaluation and Foreign Exchange Risk in Brazil:  The Case of Eastland Electronics
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Setting ,[object Object],[object Object],[object Object],[object Object]
Some “Real” History Daily Exchange Rates: U.S. Dollars per Brazilian Real
Question 1 ,[object Object],[object Object],[object Object]
Question 2 ,[object Object]
Question 2 ,[object Object]
Question 2 ,[object Object]
Question 2 ,[object Object]
Question 2 ,[object Object]
Question 3:   Why do you think some of these ten combinations are more widely used than others?  Exhibit 2  Exchange Rate Fluctuations and Management Control in UK-based MNCs
Question 4 ,[object Object],[object Object]
The Dilemma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Nature of Employment Contracts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principal-Agent Model Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
The Employment Contract  should … ,[object Object],[object Object],[object Object]
Sergio’s Stewardship  (in a “perfect world?”) ,[object Object],[object Object],[object Object],[object Object]
Principal-Agent Model    The Real World Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
Question 5 ,[object Object]
The Principle of Controllability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Antel and Demski, 1988, “The Controllability Principle in Responsibility Accounting,”  The Accounting Review  (October)
Current Practice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Demirag and De Fuentes, 1999, “Exchange Rate Fluctuations and Management Control in UK-Based MNCs: An Examination of the Theory and Practice,”  The European  Journal of Finance

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Apresentacao SAI - 2010

  • 1. Seminário Avançado Internacional Ambiente Internacional de Negócios em 2010-12 Prof. Dr. Ervin L. Black São Paulo – SP Abril de 2010
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.  
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. The Global Financial Crisis and Exchange Rates
  • 15.  
  • 16.  
  • 17.  
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. WHAT WILL THE FUTURE BRING?
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34. Distance Attribute Change in International Trade % Income level: GDP per capita (1% increase) +0.7 Economic size: GDP (1% increase) +0.8 Physical distance (1% increase) -1.1 Physical size (1% increase)* -0.2 Access to ocean* +50 Common border +80 Common language +200 Common regional trading bloc +330 Colony-colonizer relationship +900 Common colonizer +190 Common polity +300 Common currency +340
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49.
  • 52. Tell me… So, what is culture, anyway?
  • 53. The things people say and do
  • 54. Environment (Geographic & Technological) Cultural Values Institutions (Family, Church, School, Media, Government) Peers Person (individual values and behaviors)
  • 55. Types of Behavior UNIVERSAL Eating CULTURAL Eating from your own plate PERSONAL Eating in front of the television
  • 56.
  • 57.
  • 58.
  • 59.
  • 60. Why Does Culture Matter? “ Although misunderstandings are blameless artifacts of the way two very different systems work, accidents of culture are seldom understood for what they really are.” --Edward Hall
  • 61. Hall’s “Context” Content (implicit) Information (explicit) Meaning High Context (Japan) Low Context (U.S.)
  • 62.  
  • 63. Contextual Background of Various Countries Swiss North American (US) French English (UK) Italian Latin American Arabian Spanish Japanese German Scandinavian Low Context Explicit High Context Explicit
  • 64.
  • 65.
  • 66.
  • 67.  
  • 68.  
  • 69.  
  • 70.  
  • 71. Structural Aspects of Language & Nonverbal Behaviors (“How” things are said) Cultures Bargaining Behaviors(per 30 minutes) USA JPN BRZ KOR GEP UK SPN MEX FCAN ECAN Structure Aspects “ No’s” 4.5 1.9 41.9 7.4 6.7 5.4 23.2 4.5 7.0 10.1 “ You’s” 54.1 31.5 90.4 34.2 39.7 54.8 73.3 56.3 72.4 64.4 Nonverbal Behaviors Silent Periods 1.7 2.5 0 0 0 2.5 0 1.1 0.2 2.9 Conversation-al Overl 5.1 6.2 14.3 22.0 20.8 5.3 28.0 10.6 24.0 17.0 Facial Gazing 10.0 3.9 15.6 9.9 10.2 9.0 13.7 14.7 18.8 10.4 Touching 0 0 4.7 0 0 0 0 0 0 0
  • 72. The “What” of Communication Bargaining Behaviors USA JPN BRZ KOR GER UK SPN MEX FCAN ECAN Promise 8 7 3 4 7 11 11 7 8 6 Threat 4 4 2 2 3 3 2 1 3 0 Recommendation 4 7 5 1 5 6 4 8 5 4 Warning 1 2 1 0 1 1 1 2 5 0 Reward 2 1 2 3 4 5 3 1 1 3 Punishment 3 1 3 5 2 0 2 0 2 1 Normative appeals 2 4 1 3 1 1 1 1 3 1 Commitment 13 15 8 13 9 13 9 9 8 14 Self-disclosure 36 34 39 36 47 39 34 38 42 34 Question 20 20 22 21 11 15 17 27 19 26 Command 6 8 8 13 12 9 17 7 5 10
  • 73. Culture and Negotiation Strategies High Low High Low Integrate “ Scripts” Induce to Follow Your “Script” Involve Mediator Follow Counterpart “ Script” Your Familiarity with Their Culture Their Familiarity with Your Culture
  • 74.
  • 75.  
  • 76.  
  • 77.  
  • 78.
  • 79.
  • 80.  
  • 81.  
  • 82.
  • 83.  
  • 84.  
  • 85.
  • 86. The Five Forces Model of Industry Structure 11-
  • 87.
  • 88.
  • 89.
  • 90.  
  • 91.
  • 92.
  • 93.
  • 94.
  • 95.
  • 96.
  • 97.
  • 98. The Extreme Global Value Chain Country Activities A B C D E F G H R & D Design Purch- asing Manu- facturing Marketing Selling Distrib- ution Service Design Purchasing Manu- facturing Etc.
  • 99.
  • 100.
  • 101. The Fully Multi-local Value Chain Country Activities A B C * * * * Z R & D Design Service Distrib- ution Selling Market-ing Manu- facturing Purch- asing R & D R & D R & D Design Design Design Purch- asing Purch- asing Purch- asing Manu- facturing Manu- facturing Manu- facturing Market-ing Market-ing Market-ing Selling Selling Selling Distrib- ution Distrib- ution Distrib- ution Service Service Service
  • 102.
  • 103.
  • 104.
  • 105. Integration-Responsiveness (IR) Grid (I): Industry Types
  • 106.
  • 107. Integration-Responsiveness (IR) Grid (II): Strategy Types
  • 108. Performance Evaluation and Foreign Exchange Risk in Brazil: The Case of Eastland Electronics
  • 109.
  • 110.
  • 111.
  • 112.
  • 113. Some “Real” History Daily Exchange Rates: U.S. Dollars per Brazilian Real
  • 114.
  • 115.
  • 116.
  • 117.
  • 118.
  • 119.
  • 120. Question 3: Why do you think some of these ten combinations are more widely used than others? Exhibit 2 Exchange Rate Fluctuations and Management Control in UK-based MNCs
  • 121.
  • 122.
  • 123.
  • 124. Principal-Agent Model Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
  • 125.
  • 126.
  • 127. Principal-Agent Model  The Real World Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
  • 128.
  • 129.
  • 130.

Editor's Notes

  1. Netherlands 11.8%, France 8.5%, Belgium 7.2%, China 5.9%, UK 5.7%, Italy 5.6%, US 5.3%, Austria 4.3%
  2. US 17.8%, Argentina 8.5%, China 6.1%, Netherlands 4.2%, Germany 4.1% (2006)
  3. US 16.2%, Argentina 8.8%, China 8.7%, Germany 7.1%, Nigeria 4.3%, Japan 4.2% (2006)
  4. US 17%, UAE 8.3%, China 7.7%, UK 4.3% (2006)
  5. China 8.7%, US 6%, Germany 4.7%, Singapore 4.6% (2006)
  6. Netherlands 12.3%, Italy 8.6%, Germany 8.4%, China 5.4%, Ukraine 5.1%, Turkey 4.9%, Switzerland 4.1% (2006)
  7. Germany 13.9%, China 9.7%, Ukraine 7%, Japan 5.9%, South Korea 5.1%, US 4.8%, France 4.4%, Italy 4.3% (2006)
  8. US 21%, Hong Kong 16%, Japan 9.5%, South Korea 4.6%, Germany 4.2% (2006)
  9. Japan 14.6%, South Korea 11.3%, Taiwan 10.9%, US 7.5%, Germany 4.8% (2006)
  10. Atlas Method – World Bank 2006
  11. 20 20 17
  12. 3 3 3
  13. 4 4 4