跨国公司管理1

TNCs Management
Formulation of strategies and management systems to take advantage of international opportunities and respond to international threats
Globalization of Markets
“Merging of historically distinct and separate national markets into one huge global marketplace.”
The needs of customers for many products and services are growing more similar. And customers search the world for their supplies regardless of national boundaries.
Other measures of transnationality
The Internationalization Index (II) is the ratio of a TNC’s foreign affiliates to total affiliates
The Geographical Spread Index (GSI) , is calculated as the square root of the Internationalization Index multiplied by the number of host countries.
competition.
Should vary its practices country by country.
Must work within
government regulations.
Currency conversion
presents unique problems
Regional Econowk.baidu.comic Integration
CHAPTER 1
Globalization and Regional Economic Integration
INTRODUCTION
Transnational Corporation
an enterprise such as one “which controls assets, factories, mines, sales offices, and the like in two or more countries.”
In 1984
Our definition of TNCs
An enterprise has substantial direct investment in foreign countries and actively manages those operations and regards those operations as integral parts of the company both strategically and organizationally.
aircraft. • Financial assets such as U.S. Treasury bills and
Eurobonds.
Globalization of Production
“Global Products”
“The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (labor,energy, land and capital).”
Technological changes
Microprocessors and telecommunications The internet and world wide web Transportation technology
Implications for Production and Market Globalization
Level of Economic Integration
Free Trade Area Customs Union Common Market Economic Union Political Union
Economic Integration
Free Trade Area
All barriers to trade among members removed. Each country can determine own trade policies toward
TNCs in the global economy
1. The universe of TNCs is large, diverse and expanding.
2. Some TNCs are bigger than countries. 3. The largest TNCs remain
geographically concentrated in a few home countries.
The Transnationality Index is calculated as the average of the following three ratios: foreign assets to total assets, foreign sales to total sales and foreign employment to total employment.
Many firms offer a standardized product worldwide.
The Largest Global Markets
Not Consumer Goods But Industrial Goods and Materials
• Commodities such as aluminum, oil and wheat. • Industrial products such as microprocessors,
Companies move to countries with fewer labor and environment regulations
Loss of sovereignty
Effects on Managers
Globalization: Pros& Cons
Great opportunities for Managers now face a
Many much smaller firms are also getting into the global dispersal of production and design as well as giants such as Boeing.
To lower their overall cost structure and/or improve the quality or functionality of their product.
Global drivers
Two macro factors that underlie trend towards greater globalization
Decline in trade and investment barriers
Globalization of markets and production has been facilitated by reduction in trade barriers and removal of restrictions to foreign direct investment.
In 1973
an enterprise (a) comprising entities in two or more countries, regardless of the legal form and fields of activity of those entities, (b) which operates under a system of decision-making permitting coherent policies and a common strategy through one or more decisionmaking centers, (c) in which the entities are so linked, by ownership or otherwise, that one or more of them may be able to exercise a significant influence over the activities of the others, and, in particular, to share knowledge, resources, and responsibilities with others.
Globalization debate-Pro
Lower prices for goods and services Economic growth stimulation Increase in consumer income Creates jobs Countries specialize in production of goods and
managers.
more dynamic and exciting
Increased revenue
job due to global
opportunity through global sales.
Reduced costs by producing in ‘low cost’ countries.
Regional economic integration refers to the process whereby countries in a geographic region cooperate to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.
services that are produced most efficiently
Globalization debate-Con
Destroys manufacturing jobs in wealthy, advanced countries
Wage rates of unskilled workers in advanced countries declines
What is globalization?
The shift towards a more integrated and interdependent world economy Two components:
The globalization of markets The globalization of production
Transnationality Index
TNI
The degree of transnationality – a measure of the relative economic importance of foreign affiliates in total economic activity