GL GLOBA BAL L EN ENVI VIRO RONMENT NMENT Lecturer: Chandana - - PowerPoint PPT Presentation

MA MANAGING GING IN A A GL GLOBA BAL L EN ENVI VIRO RONMENT NMENT

Lecturer: Chandana Fonseka

Eventhough there are distinct geographical boundaries, there are no boundaries electronically among countries

“Time has come for managers to think globally”

GLOBALISATION

• Gl

Globa

• bali

lizat zation

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can be be defi efined ned as as the the gr growing wing int nterdependen ependences ces of

• f countr

countries worl rldwi

• wide. It refers to the extent to which the following are shared among countries:

– Cross border transactions in goods and services  International trade – Free international capital flows  Investment sharing – Social and cultural idea  Cultural sharing – Spread of technology  Techno transfer – Political corporations

20/6/2016 GDM M 401 PB: HDM 20/6/2016 GDM M 401 PB: HDM

Getting Started Internationally

• 1. Exporting
• 2. Outsourcing

Locally produced items are traded in overseas markets Work activities are done in overseas countries – use the advantage of cheap labour Ref Page 108

Getting Started Internationally

• 3. Licensing

One country uses certain resources such as technology, managerial skills, patents, etc. in another country (Franchising is a type of licensing) Ref Page 108

• 4. Direct investing

Factors Driving Globalization

Factors Driving Globalization  i.e. Inter-depending

 Development of Technology (e.g. transportation)  Improved communication  Political realignments (e.g. EU)  Specialization (E.g. Saudi oil)  Efficiency and lower costs  Choices (e.g. Cosmopolitanism consumers)