The international company Flashcards
an international company is
a company that operates in more than one country
=> export, import
=> invest
=> collaborative agreement (licencing agreements, management contracts, long-term contractual arrangements)
Companies with foreign direct investments may be referred to as:
- multinational corporations (MNCs)
- multinational enterprises (MNEs)
- transnational companies (TNCs)
Board of directors
Chairman and Non-executive Directors CEO, CFO, COO, etc. – Executive Committee
Globalisation
Deepening relationships and wider interdependence among
people from different countries and parts of the world;
* Uniformization of Tastes and Behaviour of the Consumer ;
* The Digital Economy ;
* Decrease of Transportation and Telecommunications Costs;
* Development of Global Financial Markets
Globalization Enabling Factors
- Technological advances and global value-chains
- Increased competitive pressures
- Changes in political situations and Government policies
- Expansion of cross-national cooperation
- Consumer preferences
How Globalization Shapes Today’s Business Strategies
- Globalization of corporate strategies
- Networks of production
- World sourcing
- Global Marketing
- Inter-firm coorporation
=> TO CAPTURE SCALE ECONOMIES:
(in production, marketing, r&D, logistics, sourcing)
The MNE strategy - tastes and consumer behaviour / global brand positioning with local adaptation
“Think global, act local”
the Digital Economy – information, technology, and the world-wide-web – ability / desire to access global market immediately
“Born-global companies”
Increasing work teams diversity
“Work diversity”
advances in transportation and communication
“Increased business connectivity”
access to global network of financing and banking
“Global Financial Markets”
Advantages of Globalisation
- FDI (Technology transfer => higher productivity and growth)
- Job creation in host countries
- Technological innovation
- Economies of scale
- Development of weaker economies
Disadvantages of Gloablisation
- Threats to national sovereignty
- Environmental stress
- Growing income inequality and personal stress
Factors impacting the future of globalization
- Behavior of national governments
- Attitudes of consumers
- Mindset of executives and key stakeholders
- Economics of business globalization and supply chain management
- Emergence of Political and Trade conflicts
