conducts business transactions for goods & services in only one country

conducts business transactions for goods & services across national boundaries

foundation of world trade

mechanism linking one country to another by moving:

raw materials

finished goods
specialized services

adapt to country differences

face a greater & complex range of problems

work within limits imposed by government intervention & global trading systems
require converting funds & being susceptible to fluctuations in currency rates

improvement in communications technology improvement in transportation services

liberalization of trade restrictions

development of support services

increased global competition

rise in democracy in the world

popular culture

English as an international language

Profits = profit potential Customers = new markets Suppliers = needed raw materials Capital = financial resources Labour = lower labour costs

trade barriers language barriers cultural barriers piracy differences in business procedures & standards lack of skilled labour

exchange of goods & services by different countries

measure of economic well-being based on the ability of people to buy the goods & services they desire

shift towards a more integrated & interdependent world economy

Globalization leads to growth & growth reduces poverty

--- Jagdish Bhagwati

planet is shrinking
outsourcing

anxiety created . . . transitions, layoffs, wage pressures

stronger need to:

invest in training & upgrading skills pursue job creation

country in which an international company is headquartered

Philips . . . The Netherlands BASF . . . Germany Nestle . . . Switzerland

Sony . . . Japan
Gillette . . . United States Michelin . . . France

Samsung . . . Korea
Proctor & Gamble . . . USA Canon . . . Japan Bayer . . . Germany Boeing . . . USA

foreign country in which an international company operates

someone who has left his/her home country to live or work abroad, either for a long period of time or permanently

 Confusion
state

of being anxious, uncomfortable and in need of information & advice

Small Victories
daily

interactions bring some successes and form an initial confidence in daily affairs

 Honeymoon
time

of wonderment, cultural immersion & infatuation

Irritation & Anger

time

when negatives may overtake positives & the new culture becomes a subject of criticism

Reality
when

a rebalance occurs, and one is able to enjoy the new culture while recognizing less desirable elements

cultural awareness & sensitivity

appreciation & respect for different lifestyles

high international awareness

desire to live & work abroad

active encouragement & support from family, friends & company

personal adaptability & flexibility

technical competence in ones job leadership ability & interpersonal skills

level of sensitivity experience with diverse backgrounds ability to view different perspectives ability to learn new languages not aggressive compromise peacekeeping

maintaining & developing of an organizations production or market interests across national borders with either local or expatriate staff

process of running a multinational business

body of skills, knowledge & understanding required to manage cross-cultural operations

preference of an employer to use its own workers, both at home & abroad

preference of employer to use natives of the host country to manage operations there, but home-country residents to manage home country

preference of an employer to hire only the best managers, regardless of their citizenship

preference of an employer to employ managers from a variety of countries in a region

recruitment, retention & utilization of global human resources