国际金融PRESENTATION.ppt

* * The two macro factors underlie the trend towards greater globalization: First, the decline in the barriers to free flow of goods, services, and capital Second, technological change in communications, information processing, and transportation technologies. * International trade occurs when a firm exports goods or services to consumers in another country. Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. After World War II, advanced industrial nations of the West committed themselves to removing barriers to the free flow of goods, services, and capital between nations. * * * This slide offers a definition for globalization; it highlights that globalization affects two primary areas. * This slide offers a definition for globalization; it highlights that globalization affects two primary areas. * * A multinational enterprise is any business that has productive activities in two or more countries. Expect the growth of new multinational enterprises (any business that has productive activities in two or more countries) from the worlds developing nations. The number of mini-multinationals (small and medium-sized companies) is on the rise. * Ethnocentric Approach – This implies that management style, knowledge, evaluation criteria and managers in the home country are thought to be superior to those of the host country. Polycentric Approach – This recognizes differences between countries and believes that local nationals are in the best position to understand and deal with the country’s specific factor. HRM in MNC cont. HRM in MNC cont. The World’s Largest MNCs The affiliates of MNEs must be responsive to a number of important environmental forces MNC characteristics MNE draws on a common pool of resources (Affiliates are all from same company and the assets are not available to outsides) MNC characteristics MNE links together the affiliates and business partners with a common strategic