Beruflich Dokumente
Kultur Dokumente
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Chapter 1 Overview
Globalism The Political and Economic Environment The Legal Environment The Technological Environment
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What is Globalism?
The term globalism refers to global competition characterized by networks that bind countries, institutions, and people in an interdependent global economy.
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Other Regions
Central and Eastern Europe China Less Developed Countries (LDCs)
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giving preference to insiders How to deal effectively with multiple sets of national cultures, traditions, and customs within Europe.
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North America
The North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico has created a single market of 360 million consumers. The one America trading bloc has the potential for expansion in South America as trade liberalization among the Latin American countries progresses.
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Asia
Japan and the Four Tigers Singapore, Hong Kong, Taiwan, and South Korea provide most of the capital and expertise for Asias developing countries. In the 1980s and early 1990s, much of Asias economic power and competitive edge was attributed to Japans keiretsu and S.Koreas chaebol. Recent economic woes have slowed growth in the region.
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Other Regions
The Central and Eastern European bloc, where communism proved unworkable and crumbled, has created a new market of 430 million people. Impediments to business growth here are the lack of capitalist structure and systems to reproduce Western management practices easily. China has enjoyed recent success as an export powerhouse. Its GDP growth rate, though slowing, was the fastest in the world for several consecutive years.
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Workforce Diversity
The world labor force is undergoing considerable change as a result of
the increasing movement across borders of workers at all skill levels; (2) the rising average age of employees; and (3) the addition of great numbers of women to the workforce (particularly in developing countries), many with higher levels of education.
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Cu lt
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Culture Skills
Ethics
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What is Political Risk? Political risks are any governmental action or politically motivated event that could adversely affect the long-run profitability or value of a firm.
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Terrorism Risk
Terrorism is the use, or threat of use, of anxietyinducing violence for ideological or political purposes (Micklous). The increasing incidence of terrorism around the world concerns MNCs.
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Economic Risk
The economic risk incurred by a foreign corporation usually falls into one of two main categories: its subsidiary (or other investment) in a specific country may become unprofitable if the government abruptly changes its domestic monetary or fiscal policies or if the government decides to modify its foreigninvestment policies.
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Global E-Business
E-business is the integration of systems, processes, organizations, value chains and entire markets using Internet-based and related technologies and concepts. E-commerce refers directly to the marketing and sales process The Internet and e-business provide a number of uses and advantages in global business.
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Economic Environment Economic system Stage of development Economic stability GNP Intl financial standing Monetary/fiscal policies Foreign investment
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