International Management and Global Business Essentials

1. Differences Between International and General Management

Management is the process of completing activities with and through other people.

International management is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts. International management is distinct from other forms of management in that knowledge and insights about global issues and specific cultures are a requisite for success.

2. What is an MNC?

It is a firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners.

3. Globalization vs. Internationalization

Globalization can be defined as the process of social, political, economic, cultural, and technological integration among countries around the world. Globalization is distinct from internationalization in that internationalization is the process of a business crossing national and cultural borders, while globalization is the vision of creating one world unit, a single market entity.

4. Example of Regional Integration

The United States, Canada, and Mexico make up the North American Free Trade Agreement (NAFTA), which in essence has removed all barriers to trade among these countries and created a huge North American market.

5. Emerging Markets

The BRIC nations: Brazil, Russia, India, and China.

6. The World Trade Organization (WTO)

It is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies.

7. What Does “Offshoring” Mean?

The process by which companies undertake some activities at offshore locations instead of in their countries of origin.

8. What is Foreign Direct Investment (FDI)?

Investment in property, plant, or equipment in another country.

9. Evolution of Global Economies

The evolution of global economies has resulted in three main systems:

• Market economies
• Command economies
• Mixed economies

10. Circumstances of a Market Economy

A market economy exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services, while the state simply supports competition and efficient practices.