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Multinational enterprise (MNE)
Defined as one that has operating subsidiareies, branches, or affilates located in foreign countries.
ownership dispersed internationally.. so they have a global perspective rather than any single country.
Define global business and its three goals to reaching it
- The socieal science of managing people to organize maintain and grow the collective productivity toward accomplishing productive goals, typically to generate profit and value for its owner and stakeholders.
- 1.and open marketplace
- 2.high quality strategic managment
- 3. acces to capital
Capital in Capitalism
The ability of an enterprise to reach out and obtain resources from outside of the firm to pursue the firms vision and creae the value and create the values for all the key stakeholders in the interprise itself, and subsequently for the community and society of which it is an integral element.
justinfying international trade in a model world assumed to enjoy free trade, perfect competition, no uncertainty, costless infor, and no government interference.. -adam smith
Every country should specialize in the prodution of that good it was uniquely suited for.
David ricardo- each country controlled the production of one of the two products and both coutries would then benefit by specializing completely in one product and trading for the other.
5 categories of strategic drive in become mulinational.
- 1.Market seekers
- 2.Raw material seekers
- 3.Production efficiency seekers
- 4. Knowledge seekers
- 5. Political safety seekers
Produce in foreign markets to satisfy local demand or to export to markets other than their home market
Raw material seekers
Extract raw materials wherever they can be found, either for export or for further processing and sale in the country in which they are found--host coutry
Production efficiencey seekers
produce in countires where one or more of the fators of production are underpriced relative to their productivity
operate in other countries to gain access to technology or managerial expertise
Political Safety seekers
Acquire or establish new operations in countries that are considered unlikely to expropriate or interfere with private enterprises
Designed to enhange the growth and profitability of the firm itself.
are designed to deny growth and profitability to the firm's competitors.
The globalization process
the structural and managerial changes and challenges experienced by a firm as it moves its operations from domestic to global.
the growth in the influence and self-enrichment of organizational insiders
the rist of an individual security
The rist of the market in genreal
the study of how shareholders can motivate managment to accept the presiptions of the SWM shareholders wealth maximization.
how long it takes the firms actions, its investments, and operations to result in earnings.
focuses on longterm shareholder wealth maximization