Exploring the External Environment of International Business: Legal, Political, Economic, , Slides of International Management

Download Exploring the External Environment of International Business: Legal, Political, Economic, and more Slides International Management in PDF only on Docsity! THE ENVIRONMENT OF IB docsity.com Domestic and International Business • Similarities- Objectives and Means • Objectives -Profit Motive • Means - The functional areas of Business (Production, Marketing, HRM processes) • Differences- External Environment, Scope of Operations, and Measurement of performance docsity.com Political Systems • Means of Integration in pluralistic society • The democratic/totalitarian continuum • Impact on management issues such as FDI, nationalization etc...... • Present day fragmentation of political entities and global business • Impact of geo-politics on MNCs docsity.com Economic Systems •System of allocating and controlling resources •Market System •Command Systems (Not very common these days) •Relationship between Political and Economic Systems •The reality of a mixed economic system • Impact of host country Macroeconomic and Institutional changes. docsity.com Globalization and Localization • Impact of environmental forces • Forces for Globalization and Localization • Regionalization and MNCs docsity.com Localization Forces • Differences in level of industrialization, political systems, history and national culture (Power distance, Uncertainty Avoidance, Individualism, and Masculinity) • Government and Political Objectives of Host Countries • Fear that MNCs are not only vehicles of development but also of elitist distinctions, and corrupting society (Chile) docsity.com Localization forces cont. • Differences in market structures • High Cost of Globalization • New technology that allows for flexible design docsity.com Impact of forces of localization and globalization • Different types of industry structures • Global (Auto, Computers, Finance) • Multinational (Insurance, Healthcare) • The need for Global efficiency, national responsiveness, and worldwide learning docsity.com