1. LEE WAN FATT CEB070081 STAGE 1 STAGE 2 STAGE 3 EXPORT & IMPORT HIRING FOREIGN AGENTS/ BROKERS SENDING DOMESTIC EMPLOYEES ON REGULAR TRIP TO MEET FOREIGN COSTOMERS MAKES CONTRACT WITH FOREIGN FIRM TO PRODUCE THE ORGANIZATION’S PRODUCT 1.LICENSING 2.FRANCHISING 3.STRATEGIC ALLIANCES 4.JOINT VENTURES 5.FOREIGN SUBSIDIARY

2. LEE WAN FATT CEB070081 CHALLENGES WHEN MANAGING IN GLOBAL ENVIROMENT THE LEGAL-POLITICAL ENVIRONMENT -Political stability -Law & political system difference THE ECONOMIC ENVIRONMENT -Type of economy -Currency exchange rate -Inflation rates -Diverse tax policies THE CULTURAL ENVIRONMENT National culture is value & attitudes shared by individuals from a specific country that shape their behavior & beliefs about what is important. National culture has a greater affect than organization's culture. Getting information about a country’s cultural differences is very difficult.

3. LEE WAN FATT CEB070081 MNCTNCBorderless Organization OrientationHome countryHost countryGlobe ControlDomestic controlForeign employeeNo specific Decision makingHeadquarterForeign employeeNo specific Authority hierarchyCentralizationDecentralizationFlexible ExampleSONYNESTLEIBM MNC- Company that maintains significant operations in multiple countries but manages them from a base in the home country TNC- Company that maintains significant operations in more than one country which decentralizes management to the local country Borderless Organization- An organization in which articial geographical barriers are eliminated

4. LEE WAN FATT CEB070081 WHICH GLOBAL ATTITUDE DOES EACH OF THE GLOBAL ORGANIZATION TYPES REPRESENT? MNCs are Ethnocentric- the parochialistic belief that the best work approaches and practices are those of the home country TNCs are Polycentric- the view that the managers in the host country know the best work approaches and practices for running their business. Borderless organizations are Geocentric- a world-oriented views that focuses on using the best approaches and people from around the globe.