International Management

1. Outsourcing

1.1. Subcontracting or contracting out of activities to external organizations that had previously been performed by the firm

2. Regional Agreements

2.1. North American Free Trade Agreement (NAFTA)

2.2. U.S.-Central American Free Trade Agreement (CAFTA)

2.3. European Union (EU)

2.4. Association of Southeast Asian Nations (ASEAN)

2.5. Free Trade Agreement of the Americas (FTAA)

3. Shifting landscape

3.1. Economic integration

3.1.1. Economic potential of emerging markets

3.1.2. BRIC countries (Brazil, Russia, India, and China) could be among the four most dominant economies by 2050

4. International Trade

4.1. experienced a decline, 2009

4.2. remains significant driver of economic growth and development

5. Foreign direct investment (FDI)

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

5.1.1. Growing at a healthy rate

5.1.2. although declined in 2009 due to global recession

6. Established Economies

6.1. North America

6.1.1. comprising United States, Canada, and Mexico

6.1.2. one of the largest trading blocs in the world with a significant combined purchasing power

6.2. European Union

6.3. Japan

7. Developing Economies on the Verge

7.1. South America

7.2. Middle East

7.3. Central Asia

7.4. Africa

8. Canada

8.1. U.S.'s largest trading partner

8.2. Legal and business environment in Canada is similar to that in U.S.

9. Ultimate objective

9.1. Eliminate all trade barriers

9.2. Emergence of the EU as an operational economic union

10. Apply management concepts and techniques in a multinational environment

10.1. Adapt management practices

11. Multinational corporation (MNC)

11.1. Operations in more than one country

11.2. International sales

11.3. Nationality mix of managers and owners

12. Globalization = Process of social, political, economic, cultural, and technological integration among countries around the world

12.1. Benefits

12.1.1. Wealth

12.1.2. Jobs

12.1.3. Technology

12.1.4. Lower price

12.2. Criticisms

12.2.1. off-shoring of business service jobs to lower-wage countries

12.2.2. growing trade deficits

12.2.3. slow wage growth

12.2.4. environmental and social impacts

13. Global Agreements

13.1. World Trade Organization (WTO)

13.2. General Agreement on Tariffs and Trade (GATT)

14. Offshoring

14.1. Process by which companies undertake some activities at offshore locations instead of their countries of origin

15. Global Economic Systems

15.1. Market Economy

15.2. Command Economy

15.3. Mixed Economy

16. Emerging Economies

16.1. Central and Eastern Europe

16.2. China

16.3. Other Emerging Markets of Asia

16.4. India

17. United States

17.1. Foreign MNC's find U.S. a lucrative expansion market

17.2. Foreign firms welcomed as investors in U.S. market

17.3. U.S. firms hold market dominance in many European markets; gaining market share in Asia

18. Mexico

18.1. Strongest Latin American economy

18.2. Very strong maquiladora industry

18.3. Trade with both Europe and Asia has increased

18.4. Now competitive with Asia for the U.S. market

19. Foreign MNCs trying to gain foothold in EU

19.1. Acquisitions

19.2. Alliances

19.3. Cooperative R&D efforts