Chapter 2

• Exports of goods and services from the United States account for only 13.5 percent of U.S. gross domestic product, so the nation is still largely a domestic, continental economy
• As a percent of gross domestic product (GDP), exports comprise 45.6 percent of the German economy, 22.6 percent of the Chinese economy, and 187 percent of the Singapore economy
• Globalization


  A process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
• Global strategy


  Seeks to meet the needs of customers worldwide, with the highest value at the lowest cost
• It is no exaggeration that in any industry that is, or is rapidly becoming, global, the riskiest possible posture is to remain a domestic competitor
• Multinational firms/corporations (MNCs)


  Organizations that conduct business operations across national borders
• Multinational corporations (MNCs)


  • Face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers
  • Strategists in MNCs are often confronted with the need to be globally competitive and nationally responsive at the same time
  • Government and regulatory bodies are more closely monitoring foreign business practices
• The world's population speaks 6,909 distinct languages
• About 25 percent of the world's languages have fewer than a thousand remaining speakers
• By the year 2099, analysts estimate that roughly one half of the 6,909 languages listed by Ethnologue will disappear
• The average level of union membership across the whole of the European Union (EU), weighted by the numbers employed in the different member states, is 23 percent, compared to about 11 percent in the United States
• The four Nordic countries of Denmark, Sweden, Finland, and Norway have 67, 70, 74, and 52 percent, respectively, of all employees as members of labor unions
• Exports of goods and services from the United States account for only 13.5 percent of U.S. gross domestic product, so the nation is still largely a domestic, continental economy
• As a percent of gross domestic product (GDP), exports comprise 45.6 percent of the German economy, 22.6 percent of the Chinese economy, and 187 percent of the Singapore economy
• Globalization


  A process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
• Global strategy


  Seeks to meet the needs of customers worldwide, with the highest value at the lowest cost
• It is no exaggeration that in any industry that is, or is rapidly becoming, global, the riskiest possible posture is to remain a domestic competitor
• Multinational firms/corporations (MNCs)


  Organizations that conduct business operations across national borders
• The strategic-management process is conceptually the same for multinational firms as for purely domestic firms; however, the process is more complex for international firms as a result of more variables and relationships
• Strategists in MNCs are often confronted with the need to be globally competitive and nationally responsive at the same time
• The decision to expand operations into foreign markets—that is, to globalize—is one of the most important strategic decisions made by companies
• Recent research reveals that countries are attractive not only because of their own institutions but also as a function of their serving as a platform for entry into other regions
• The Summer Institute of Linguistics (SIL) International has compiled a catalogue of the world's languages, called the Ethnologue, which lists 6,909 distinct languages being spoken
• By the year 2099, analysts estimate that roughly one half of the 6,909 languages listed by Ethnologue will disappear
• The average level of union membership across the whole of the European Union (EU), weighted by the numbers employed in the different member states, is 23 percent, compared to about 11 percent in the United States
• The four Nordic countries of Denmark, Sweden, Finland, and Norway have 67, 70, 74, and 52 percent, respectively, of all employees as members of labor unions
• Exports of goods and services from the United States account for only 13.5 percent of U.S. gross domestic product, so the nation is still largely a domestic, continental economy
• As a percent of gross domestic product (GDP), exports comprise 45.6 percent of the German economy, 22.6 percent of the Chinese economy, and 187 percent of the Singapore economy
• Globalization


  A process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
• Global strategy


  Seeks to meet the needs of customers worldwide, with the highest value at the lowest cost
• It is no exaggeration that in any industry that is, or is rapidly becoming, global, the riskiest possible posture is to remain a domestic competitor
• Multinational firms/corporations (MNCs)


  Organizations that conduct business operations across national borders
• Multinational firms


  • More time and effort are required to identify and evaluate external trends and events
  • Strategy implementation can be more difficult because different cultures have different norms, values, and work ethics
  • Face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers
• Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations, participate in international trade fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish the risk of doing business in new markets
• The decision to expand operations into foreign markets—that is, to globalize—is one of the most important strategic decisions made by companies
• Recent research reveals that countries are attractive not only because of their own institutions but also as a function of their serving as a platform for entry into other regions
• The Summer Institute of Linguistics (SIL) International has compiled a catalogue of the world's languages, called the Ethnologue, which lists 6,909 distinct languages being spoken
• In Papua, New Guinea, 830 different languages are spoken by 3.9 million people, and in France, the Ethnologue cites 10 languages being spoken, including Picard, Gascon, Provençal, Allemannisch, Alsace, Breton, and French
• By the year 2099, analysts estimate that roughly one half of the 6,909 languages listed by Ethnologue will disappear. By 2115, researchers say there will be only 600 left on the planet
• The average level of union membership across the whole of the European Union (EU), weighted by the numbers employed in the different member states, is 23 percent, compared to about 11 percent in the United States