Chapter Fourteen: 14.1 HEADQUARTERS AND SUBSIDIARY

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Presentation transcript:

Chapter Fourteen: 14.1 HEADQUARTERS AND SUBSIDIARY INTRODUCTION RISK FOR THE MULTINATIONAL CONTROL IMPLICATIONS FOR THE MANAGER SUMMARY EXERCISE.

Chapter Fourteen: 14.2 INVESTMENTS ABROAD The company chooses between various contracts and agreements an agency or representation an international joint venture (IJV) merging with a local company a subsidiary, either from scratch or from an ongoing company that has been acquired.

Chapter Fourteen: 14.3 TYPES OF ENVIRONMENT RISKS include competitive risks economic risks political risks In addition, risks occur in technology culture the industry transferring competitive advantage.

Chapter Fourteen: 14.4 CONTROL Decisions have to be made about what sort of control is needed how the appropriate control is enforced The instruments for control from which the company selects include the structural relationship organizational culture budgets and other financial instruments technology staffing policy.

Chapter Fourteen: 14.5 MULTINATIONAL COMPANIES Bartlett and Ghoshal (1989) classified four models global multinational international transnational Griffin and Pustay (1999) classified three models multidomestic transnational.