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The Future of Transnational Management

The Future of Transnational Management. An Evolving Global Role. Losses from Piracy of Intellectual Property. The international company loses sales in the copycat country itself as it is forced to compete against pirated products

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The Future of Transnational Management

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  1. The Future of Transnational Management An Evolving Global Role

  2. Losses from Piracy of Intellectual Property • The international company • loses sales in the copycat country itself as it is forced to compete against pirated products • loses sales in third countries where it has to compete against exported pirated products • suffers in its reputation as a producer of quality products and services because pirated products of inferior quality are often sold under the company’s brand name • may be prevented entry in a foreign market because a company in the foreign market may have established a dominant market share using the international company’s pirated technology or trademark

  3. Growing Issues To Be Faced: • Distrust of MNE’s • Growing gap between rich and poor • Wealth anticipated has not always occurred • 2.8/6.0 billion below poverty level and growing • MNE’s crowd out local enterprise • Over population of satellite zone above earth • Global Warming/Use of natural resources

  4. GLOBAL POVERTY • Half the world — nearly three billion people — live on less than two dollars a day. • The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined. • Nearly a billion people entered the 21st century unable to read a book or sign their names. • Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen. • 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, 270 million have no access to health services. 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).

  5. China, Japan and Korea comprise a relatively stable regional sector with a steady growth curve, and yet within the footprint of each country are large satellite markets that are almost completely isolated from adjacent ones. Any sharing of satellite assets and bandwidth across borders, such as the case with the recent MBSAT joint venture involving companies in Korea and Japan for example, represents an exception rather than the rule. India may soon fit this model as well.

  6. PUNAKHA, Bhutan - High in the Himalayas, above this peaceful valley where farmers till a patchwork of emerald-green fields, an icy lake fed by melting glaciers waits to become a "tsunami from the sky." The lake is swollen dangerously past normal levels, thanks to the global warming that is causing the glaciers to retreat at record speed. But no one knows when the tipping point will come and the lake can take no more, bursting its banks and sending torrents of water crashing into the valley below. Such floods from above have hit Punakha before, most recently in 1994, a calamity that killed about two dozen people and wiped out livelihoods and homes without warning. But scientists say a new flood could unleash more than twice as much water and be far more catastrophisidents. Punakha, a picturesque Buddhist kingdom, is not alone in having the threat of death and destruction hanging over their heads like an environmental sword of Damocles. Because of Earth's rising temperatures, at least 25 glacial lakes in Bhutan are at risk of overflowing and dumping their contents into the narrow valleys where much of the country's population lives. Like many poor countries, isolated Bhutan is paying for the environmental damage wrought by the developed world and the expanding economies of nations such as China and India, whose fossil-fuel consumption and greenhouse-gas emissions are pushing global temperatures relentlessly upward.

  7. WHAT SHOULD GLOBAL MANAGERS BE • RESPONSIBLE FOR? • WHO SHOULD GLOBAL MANAGERS BE • RESPONSIBLE TO? • HOW MUCH SHOULD BE SACRIFICED?

  8. FOUR MNE POSTURES EXPLOITIVE ADVANTAGE - VIEWS DIFFERENCES AS EXPLOITABLE OPPORTUNITIES TRANSACTIONAL -DOING THE DEALS, RESPECTING THE LAWS RESPONSIVE - MAKING A DIFFERENCE TRANSFORMATIVE - LEADING BROAD CHANGE

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