Chap001第一章.pptVIP

Part One: Environmental Foundation Chapter One: Worldwide Developments Objectives of the Chapter REVIEW current trends in international investment and trade EXAMINE the present economic status in the major regions of the global community ANALYZE some of the major developments and issues in various regions of the world Introduction International Management The process of applying management concepts and techniques in a multinational environment Multinational Corporation (MNC) Operates in more than one country Sells its products in international markets Managers and owners are of different nationalities Must learn to work effectively with people from different countries Small and medium-sized businesses are being affected by the trend toward internationalization Increasing Internationalization Regional Developments North American Free Trade Agreement (NAFTA) A free trade agreement between the U.S., Canada, and Mexico which has in essence removed all barriers to trade May expand to include Latin American countries European Union (EU) Consists of 27 (2010) countries Most trade barriers have been removed Euro is the common currency Pacific Rim Japan and China are the dominant economies Association of Southeast Asian Nations (ASEAN) International Investment and Trade Foreign direct investment (FDI) The amount invested in another country Approximately 80% of all international investments come from developed countries International trade has increased substantially over the last two decades Percentage of world trade accounted for by the three major trading blocs has remained fairly consistent Groups’ share of imports and exports remains in the range of 55 - 59 percent --MNCs buy domestic companies rather than trying to export products to that country Table 1-2 Top 10 trading Partners of the U.S.: 1999 Importing U.S. Exporting U.S. Rank Country/District Exports* Rank Country/District Imports* 1 Canada 166,600.0 1 Canada 198,711.1 2