MANAGING GLOBAL ENVIRONMENT (continuation)
The World Trade Organization (WTO)
* Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. * Functions as the only global organization dealing with the rules of trade among nations. * Has 145 member nations.
* Monitors and promotes world trade.
Different Types of Global Organizations
* Multinational Corporation (MNC)
* A firm which maintains operations in multiple countries but manages the operations from a base in the home country. * Transnational Corporation (TNC)
* A firm that maintains operations in several countries but decentralizes management to the local country. * Borderless Organization
* A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines.
How Organizations Go Global
* Three Stages of Globalization
* Stage I
* Exporting products for sale overseas and importing products from overseas to sell in the home country. * Stage II
* Committing to directly sell home-country products in overseas markets or contracting for products to be manufactured overseas and sold in the home country. * Stage III
* Licensing manufacturing and franchising services to foreign firms to use the brand name, technology, or product specifications developed by the firm. How Organizations Go Global
Other Forms of Globalization
* Strategic Alliances
* Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. * Joint Venture
* A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
Managing in A Global Environment
* The Legal Environment
* Stability or instability of legal and political systems * Legal procedures...
Please join StudyMode to read the full document