Management tenth edition

Stephen P. Robbins Mary Coulter

Chapter
Managing in a
4 Global
Environment
4–1
Different Types of International
Organizations
• Multinational Corporation (MNC)
 Maintains operations in multiple countries.
• Multidomestic Corporation
 Is an MNC that decentralizes management and other
decisions to the local country.
• Global Company
 Is an MNC that centralizes its management and other
decisions in the home country.

4–2
Different Types of International
Organizations (cont’d)

• Transnational Corporation (Borderless

Organization)
 Is an MNC that has eliminated structural divisions that
impose artificial geographic barriers and is organized
along business lines that reflect a geocentric attitude.

4–3
 Economics
• Economics is a social science concerned with the production,

distribution, and consumption of goods and services.

• It studies how individuals, businesses, governments, and nations

make choices on allocating resources to satisfy their wants and

needs, trying to determine how these groups should organize and

coordinate efforts to achieve maximum output.

4–4
 Micro-Economics

• Microeconomics is a branch of economics that studies the

behaviour of individuals and firms in making decisions regarding

the allocation of scarce resources and the interactions among

these individuals and firms

4–5
 Macro-Economics

• Macroeconomics is the branch of economics that studies the

behavior and performance of an economy as a whole. It focuses

on the aggregate changes in the economy such as

unemployment, growth rate, gross domestic product and inflation.

4–6
The Economic Environment
• Economic Systems
 Free market economy
 An economy in which resources are primarily owned and
controlled by the private sector.
 Planned economy
 An economy in which all economic decisions are planned by
a central government.
• Monetary and Financial Factors
 Currency exchange rates
 Inflation rates
 Diverse tax policies

4–7
Global Management in Today’s
World
• Challenges
 Openness associated with globalization
 Significant cultural differences
 Adjusting leadership styles and management
approaches
• Risks
 Loss of investments in unstable countries
 Increased terrorism
 Economic interdependence

4–8