Global Business Environments MNI 3701 Revision Slides (Part Four)

Contents Basic overview of Chapters 11– 13 of the prescribed book. Conclusion.

Chapter 11: Global manufacturing, technology, logistics and supply chain Discuss the following: Operations Management; Strategic decisions by top management; Effective and efficient production; Main motives for internationalisation; Manufacturing compatibility; Manufacturing configuration; Implications of a global manufacturing strategy.

Chapter 11 (contd.) Global manufacturing location decision.(product, country and technological factors); Location factors for site selection: offshore, source, server, contributor, outpost and lead factory. Managing a global supply chain. Supplier networks (local and foreign sourcing) Outsourcing including vertical integration.

Chapter 11 (contd.) Advantages of buying components or products from an external entity. Aspects of outsourcing; Explain the eight basic steps of global sourcing; Inventory management, foreign trade zones, transportation, supply chain technology, global service operations.

Chapter 12: Global financial management and disclosure Activities, scope and goals od multinational financial management; Goal of multinational financial management; Global money management – minimising cash balances, centralising depositories, reducing transaction costs, optimising the use of internal funds, positioning funds optimally, transfer pricing, multilateral netting, tax havens, fronting loans.

Chapter 12 (contd.) Foreign exchange rates : translation, transaction and economic exposure; Strategies and tactics for managing foreign exchange rate risk; How can MNE’s manage foreign exchange risk; International investment; Capital budgeting (parent and project cash flows, adjusting for risk, approaches to risk adjustment, applications)

Chapter 12 (contd.) International financing decisions: sourcing of funds, financial structure and cost of capital. Financing international trade: relationships, trade dilemma, import/export financing, typical international transactions. Financial disclosure.

Chapter 13: Business in emerging markets: The case of Africa Africa’s economic performance; Africa’s sociopolitical and institutional performance; The impact of technology; Africa in the global economy; African development; The business environment in Africa; Why and how to do business in Africa?

Conclusion Remember to take your South African ID or passport !! Read the exam questions carefully. The exam is not impossible to pass, just stay focused. Good luck with your exam preparations!!