Managing Global Environment
MANAGING GLOBAL ENVIRONMENT (continuation)
The World Trade Organization (WTO) * Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. * Functions as the only global organization dealing with the rules of trade among nations. * Has 145 member nations. * Monitors and promotes world trade.
Different Types of Global Organizations * Multinational Corporation (MNC) * A firm which maintains operations in multiple countries but manages the operations from a base in the home country. * Transnational Corporation (TNC) * A firm that maintains operations in several countries but decentralizes management to the local country. * Borderless Organization * A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines.
How Organizations Go Global * Three Stages of Globalization * Stage I * Exporting products for sale overseas and importing products from overseas to sell in the home country. * Stage II * Committing to directly sell home-country products in overseas markets or contracting for products to be manufactured overseas and sold in the home country. * Stage III * Licensing manufacturing and franchising services to foreign firms to use the brand name, technology, or product specifications developed by the firm.
How Organizations Go Global
Other Forms of Globalization * Strategic Alliances * Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. * Joint Venture * A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
Managing in A Global Environment * The Legal Environment * Stability or instability of legal and political systems * Legal
The World Trade Organization (WTO) * Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. * Functions as the only global organization dealing with the rules of trade among nations. * Has 145 member nations. * Monitors and promotes world trade.
Different Types of Global Organizations * Multinational Corporation (MNC) * A firm which maintains operations in multiple countries but manages the operations from a base in the home country. * Transnational Corporation (TNC) * A firm that maintains operations in several countries but decentralizes management to the local country. * Borderless Organization * A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines.
How Organizations Go Global * Three Stages of Globalization * Stage I * Exporting products for sale overseas and importing products from overseas to sell in the home country. * Stage II * Committing to directly sell home-country products in overseas markets or contracting for products to be manufactured overseas and sold in the home country. * Stage III * Licensing manufacturing and franchising services to foreign firms to use the brand name, technology, or product specifications developed by the firm.
How Organizations Go Global
Other Forms of Globalization * Strategic Alliances * Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. * Joint Venture * A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
Managing in A Global Environment * The Legal Environment * Stability or instability of legal and political systems * Legal