This document discusses globalization and multi-national enterprises. It covers reasons for the spread of MNEs, global issues they face, different staffing models, the importance of partnerships and adapting to host countries, and emerging economies like China, India, and Brazil that are important for foreign direct investment. The geocentric staffing model of hiring the best qualified people regardless of nationality is recommended.

1. Either- Geocentric , Polycentric, or Ethnocentric
Geocentric Approach, and why?

2. Thesis
 Changes Brought on by Globalization
 Reasons For Spread of Multi-National Enterprises
 Global Issues,
 Corporate, and Labor Laws
 Cross-Cultural Differences
 Staffing Subsidiaries

3. Global Trade
 Trade Barriers
 Free Trade Agreements
 International Markets
 Establishing New Markets
 Effect on Multi-National Enterprises Hiring Practices
 Outsourcing
 (Hill, 2009) (CIO, 2011)

4. Examples of American Multi-
National Enterprises
 Coca-Cola
 PepsiCo
 Google
 McDonalds
 Wal-Mart
 Exxon-Mobile

5. Successful Subsidiaries
 Partner with host country builds strong relationships
 Adapt to host country tastes and preferences
 Main employer of host country nationals,
 Utilizes both parent country expatriate, and third
country nationals as appropriate to staff subsidiaries.
 (Hill, 2009)

6. Staffing Models
 Ethnocentric Model- Utilizes Parent Country expatriate
mangers over Host Country Nations.
 Polycentric Model- Utilizes Host Nationals to manage
subsidiaries, uses parent country nationals to staff
management position on the corporate level
 Geocentric Model- Uses the best qualified personnel to
manage subsidiaries, and staff corporate management,
regardless of country or nationality they hale from.
 (Hill, 2009) (HBR, 2011)

7. Use of Global Information
Technology
 Business Plan Strategies
 Marketing and Promotion, and Advertizing Strategies
 Develop and program hardware, and software systems
and applications centered around business and
marketing strategies.
 Constructs and Utilizes Web-Sites to advertise job
opening within the MNE and subsidiaries.
 CBS Business Network, 2011) (O’Brien & Marakas,
2009)

8. International Human Resource
Management Issues.
 Issues transcend local and Global boundaries. Are not
isolated.
 Ethical conflicts different labor relations laws, and
regulations. Poor working conditions and environments.
 Fair employee treatment, wages, benefits, and leave.
 Limited on addressing these issues from the stand point of
organized labor unions.
 International Labor Relations and Organization for
Economic Cooperation and Development are resources.
 (Hill, 2009)

9. ISO 9000
 Passed by the European Union to address quality of
goods and services. Efficient and timely responses to
host country concerns, preferences and tastes.
 Production logistics- Response to manufacturing
processes and customer demand and supply issues.
 (Hill, 2009)

10. Emerging Economies
 China- Second leading economy behind the U.S., just
surpassed Japan.
 India- Leading regional economy. Strong developing
nation, building strong industrial base. Technologically
strong.
 Brazil- Leading regional economy in South America.
Strong economy, low inflation. Many natural resources.
Developing infrastructure. Great place for direct foreign
investment.
 (Hill, 2009) ( Money Morning, 2010),

11. Foreign Multi-Enterprises
 Toyota- Based out of Tokyo, Japan
 Largest automaker in the World.
 World-wide subsidiaries, manufacturing, and dealerships.
 Large employer of host country nationals within all levels
of management.
 (Hill, 2009) (Money Morning, 2010)

12. Reorganization of MNE’s
 General Motors was the largest automaker in the world
until being overtaken by Toyota.
 Was the largest MNE in the World at one time. Has been
overtaken by Exxon-Mobile as the World largest.
 Filed for Chapter 11 bankruptcy in 2009, do to declining
auto sales, and unfunded health and pension liabilities.
 Received loans from the U.S. Government to strengthen
financial base during development of reorganization plan.
Sold off some of their domestic and foreign assets.
 (White House, 2009) (CNN Money, 2010)

13. Conclusion
 Globalization has changed the way business is
conducted.
 Called for new business strategies.
 Partnerships with Host Countries.
 Fair and Ethical Human Resource Management
 Hiring personnel based upon a Geocentric Model.