TAILIEUCHUNG - Lecture Exploring management (Fifth Edition): Chapter 16 - Schermerhorn

Chapter 16 - Globalization and international business. After reading this chapter, you should be able to answer the following questions: Discuss ways that globalization affects international business, understand what global corporations are and how they work. | Chapter 16 Globalization and International Business Exploring Management Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-1 Chapter 16 The International Labour Organization reports there are 215 million child laborers worldwide; 115 million of them work in hazardous conditions. Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-2 2 Learning Objectives Chapter 16 Discuss ways that globalization affects international business () Understand what global corporations are and how they work () Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-3 3 GLOBALIZATION Takeaway - Answers to come Globalization increases interdependence of the world’s economies. Globalization creates international business opportunities. Global sourcing is a common international business activity. Export/import, licensing, and franchising are market entry forms of international business. Joint ventures and wholly owned subsidiaries are direct investment forms of international business. International business is complicated by different legal and political systems. International businesses deal with regional economic alliances Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-4 GLOBALIZATION World Economies Global economy Resources, markets and competition are worldwide in scope Globalization Process of growing interdependence of global economies Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-5 5 GLOBALIZATION World Economies Insourcing Domestic jobs are created by foreign employers Outsourcing Jobs are shifted to foreign locations to take advantage of lower wages, infrastructure, educated workforce or government support Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 16-6 6

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