INTERNATIONAL MANAGEMENT GLOBAL Business and People Management Professor H. Michael Boyd, Ph.D.

1. INTERNATIONAL MANAGEMENT GLOBAL Business and People Management Professor H. Michael Boyd, Ph.D.

2. International Management • International management involves • Applying management concepts and techniques in a multinational environment • Adapting management practices to different economic, political, and cultural contexts • Multinational corporation (MNC) • Operations in more than one country • International sales • Nationality mix among managers and owners

3. The World’s Top Nonfinancial TNCsRanked by Foreign Assets, 2012

4. The World’s Top Nonfinancial TNCs from Developing and Transitioning EconomiesRanked by Foreign Assets, 2011

5. Globalization and Internationalization • Globalization • Process of social, political, economic, cultural, and technological integration among countries around the world. • Hastened by • Offshoring • Process by which companies undertake some activities at offshore locations instead of in their countries of origin. • Outsourcing • Subcontracting or contracting out of activities to external locations instead of in their countries of origin

6. Globalization: Pros and Cons • Benefits of Globalization • Wealth • Jobs • Technology • Lower prices • Availability of goods • Criticisms of Globalization • Off-shoring of business service jobs to lower-wage countries • Growing trade deficits • Slow wage growth • Environmental and social impacts

7. Global and Regional Integration • Global Agreements • World Trade Organization (WTO) • General Agreement on Tariffs and Trade (GATT) • Regional Agreements • North American Free Trade Agreement (NAFTA) • U.S.-Central American Free Trade Agreement (CAFTA, CAFTA-DR) • European Union (EU) • Association of Southeast Asian Nations (ASEAN) • Trans-Pacific Partnership (TPP) • Free Trade Agreement of the Americas (FTAA)

8. International Economic Power in the Global Economy • Shifting landscape due to • Economic integration and rapid growth of emerging markets • Economic potential of emerging markets • BRIC countries (Brazil, Russia, India, and China) could be among the four most dominant economies by 2050 • N-11 (the next wave of emerging markets): Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam • African countries may follow.

9. The World’s Largest Economies 2009 and 2050 (Projected) Measured by GDP at Market Exchange Rates

10. The World’s Largest Economies 2009 and 2050 (Projected) Measured by GDP at Purchasing Power Parity

11. Changing Global Demographics: Developing Countries on the Rise Ranked by Size

12. Trends in Trade and International Investments • International Trade • In 2009 merchandise and commercial services exports declined • By 2014, FDI is estimated to reach $1.9 trillion, surpassing the all-time high set in 2007 • Foreign direct investment (FDI) • Investment in property, plant, or equipment in another country • Growing at healthy rate • Outpacing domestic growth in most countries • Declined in 2009 due to the global recession • Recent increases in merchandise exports and foreign direct investment

13. Foreign Direct Investment Inflows, by Region (in US$ billions)

14. Foreign Direct Investment Outflows, by Region (in US$ billions)

15. Global Economic Systems • Market economy • Command economy • Mixed economy

16. Economic Performance by Major World Region • Established Economies • North America • European Union • Japan • Emerging Economies • Central and Eastern Europe • China • Other Emerging Markets of Asia • India • Developing Economies on the Verge • South America • Middle East and Central Asia • Africa

17. Overview of the World Economic Outlook: Projections(percentage change, unless otherwise noted) continues

18. Overview of the World Economic Outlook: Projections(percentage change, unless otherwise noted)

19. World’s Most Competitive Nations, 2013

20. Market Potential Indicators Ranking for Emerging Markets, 2013