PowerPoint PresentationThe Global EnvironmentU.S. Trading Partners Based on Total Imports and Exports (YTD, Nov 2012)International Trade AlliancesStrategies for entering the International ArenaMarket Entry StrategiesSlide 7Key Factors in International EnvironmentInternational Business EnvironmentThe Sociocultural Environment4.2 Four Stages of GlobalizationMultinational CorporationsManagement Philosophies of MNC’sThe Changing International LandscapeManaging in a Global Managing in a Global EnvironmentEnvironmentChapter 4Chapter 4The Global EnvironmentThe global economy is dominated by countries in three regions: North America, Western Europe & AsiaOther developing countries and regions represent important areas for economic growth 6-2U.S. Trading Partners Based on Total Imports and Exports (YTD, Nov 2012)International Trade AlliancesGeneral Agreement on Tariff and Trade (GATT)World Trade Organization (WTO)European UnionNorth American Free Trade Agreement (NAFTA)4Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.Strategies for entering the International ArenaMarket Entry Strategies1. Exporting2. Global Outsourcing3. Licensing & FranchisingMarket Entry Strategies4. Direct InvestingJoint VenturesWholly Owned Affiliate/SubsidiariesGreenfield venture8International Business EnvironmentEconomic EnvironmentEconomic Development Economic InterdependenceLegal-Political EnvironmentPolitical RiskPolitical InstabilitySociocultural EnvironmentHofstede’s Value DimensionsGLOBE Project Value DimensionsCommunication Differences9The Sociocultural EnvironmentThe values and behaviors that govern U.S. business do not always translate–Social Values (e.g., Hofstede)–Communication Differences–Other Cultural Characteristics→Language→Religion→Social organization→Education→Attitudes10Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.11Multinational CorporationsGlobal , stateless, or transnational corporationsCharacteristics:Management Philosophies of MNC’sEthnocentric companiesPolycentric companiesGeocentric companiesThe Changing International