跨国公司管理1

,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,CHAPTER 1,Globalization and Regional Economic Integration,1,INTRODUCTION,Transnational Corporation,an enterprise such as one “which controls assets, factories, mines, sales offices, and the like in two or more countries.”,In 1973,How has the United Nations defined the TNC?,2,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 decision-making 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,.,In 1984,How has the United Nations defined the TNC?,3,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.,4,TNCs Management,Formulation of strategies and management systems to take advantage of international opportunities and respond to international threats,5,TNCs in the global economy,The universe of TNCs is large, diverse and expanding.,Some TNCs are bigger than countries.,The largest TNCs remain geographically concentrated in a few home countries.,6,The degree of transnationality,a measure of the relative economic importance of foreign affiliates in total economic activity,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.,Transnationality Index,TNI,7,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.,8,What is globalization?,The shift towards a more integrated and interdependent world economy,Two components:,The globalization of markets,The globalization of production,9,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.,Many firms offer a standardized product worldwide.,10,The Largest Global Markets,Not Consumer Goods,But Industrial Goods and Materials,Commodities such as aluminum, oil and wheat.,Industrial products such as microprocessors, aircraft.,Financial assets such as U.S. Treasury bills and Eurobonds.,11,Globalization of Production,“,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).”,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 Products”,12,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.,Technological changes,Microprocessors and telecommunications,The internet and world wide web,Transportation technology,13,Implications for Production and Market Globalization,Production dispersed to economical locations due to transportation and communication advances.,New markets opened through WWW.,Jet aircraft move people and goods.,Global media creating a worldwide culture.,14,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 services that are produced most efficiently,15,Globalization debate-Con,Destroys manufacturing jobs in wealthy, advanced countries,Wage rates of unskilled workers in advanced countries declines,Companies move to countries with fewer labor and environment regulations,Loss of sovereignty,16,Effects on Managers,Globalization: Pros& Cons,Great,opportunities,for managers.,Increased revenue opportunity through global sales.,Reduced costs by producing in low cost countries.,Managers now face a more,dynamic and exciting job,due to global competition.,Should vary its practices country by country.,Must work within government regulations.,Currency conversion presents unique problems,17,Regional Economic Integration,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.,18,Level of Economic Integration,Free Trade Area,Customs Union,Common Market,Economic Union,Political Union,19,Economic Integration,Free Trade Area,All barriers to trade among members removed.,Each country can determine own trade policies toward nonmembers.,Customs Union,Eliminates barriers among members and has a common external trade policy.,Common Market,Allows factor of the production to move freely between members.,Economic Union,No barriers among members, common external policy, common monetary and fiscal policy, harmonized tax rates and common currency.,Political Union,Has a coordinating bureaucracy accountable to all citizens.,20,Case For,Regional Integration,an attempt to achieve economic gains from the free flow of trade and investment.,Their political weight would be enhanced in the world by grouping their economic.,It is easier to gain agreement among a limited number of neighboring countries.,21,Case Against Regional Integration,It is never without costs for the minority.,Loss of jobs,Environment degradation,Firms in developing countries have to compete against efficient firms from developed countries.,Concerns over national sovereignty often slow or stop integration attempt.,22,Trade creation and trade diversion,Trade creation,occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.,Trade diversion,occurs when low-cost external suppliers are replaced by high-cost suppliers within the free trade area.,Regional integration will not increase economic welfare if the,trade creation,effects in the free trade area are,outweighed by,the,trade diversion,effects.,23,Regional economic integration in Europe,Europe has two trade blocks,European Union,Seen as the emerging power with almost 27 members,European Free Trade Association,Has only four members,24,Evolution of the European Union,Product of two political factors:,Devastation of WWI and WWII and desire for peace,Desire for European nations to hold their own, politically and economically, on the world stage,1951 - European Coal and Steel Community.,1957- Treaty of Rome establishes the European Community,1994 - Treaty of Maastricht changes name to the European Union,25,Regional economic integration of the Americas,Regional economic integration is on the rise in the Americas,NAFTA,MERCOSUR,Plans for FTAA,26,NAFTA,Enforced in January, 1994,Over 10 year period: tariffs reduced (99% of goods traded),Removal of most barriers on cross border flow of services,Protection of intellectual property rights,Applies national environmental standards,Establishment of commission to police violations,Removal of restrictions on FDI except in certain sectors,Mexican railway and energy,US airline and radio communications,Canadian culture,27,ANCOM: Andean Pact,Bolivia, Colombia, Ecuador, Peru, Venezuela,Cartagana Agreement, 1969. Nearly failed.,Galpagos Declaration, 1990.,The establishment of a free trade area by 1992; a customs union by 1994; a common market by 1995.,Still has many political and economic problems.,28,The Mercosur,1988:,Argentina, Brazil.,1990: Paraguay, Uruguay,1995: Agreed to move toward a full customs union,.,Positive:,Trade quadrupled between 1990-1998.,The combined GDP grew at a rate of 3.5 between 1990-1996.,Roadblock:,Has significant,trade diversion,issues.,Economic problems, first in Brazil (1999), then in Argentina (2001) has put plans for the customs union on hold.,29,Regional trade blocs in Asia : ASEAN,Created in 1967,Objective to achieve free trade between member countries and achieve cooperation in their industrial,Brunei, Indonesia, Laos, Malaysia, the Philippines, Myanmar, Singapore, Thailand and Vietnam,Progress limited by Asian financial crisis of the 90,s,30,Asia Pacific Economic Cooperation,Founded in 1990 to increase multilateral cooperation.,the seed of potential FTA.,21 members.,50% of world,s GNP.,40% of global trade.,APEC “is in danger of shrinking into irrelevance as a serious forum.”,Regional trade blocs in Asia : APEC,31,Regional Trade Blocs in Africa,9,trade blocs on the continent.,Many countries are members of more than one group.,Progress has been slow.,Political turmoil.,Deep suspicion of free trade.,Less developed, less diversified economies need,“,protection,”,.,32,Impact on business,Opportunities:,Creation of single markets,Protected markets, now open,Lower costs doing business in single market,Threats:,Differences in culture and competitive practices make realizing economies of scale difficult,More price competition,Outside firms shut out of market,EU intervention in mergers and acquisitions,33,