This chapter’s objectives are to: Understand how managers organize international businesses, explain the challenges and opportunities of working with cultural differences, understand the legal requirements for respecting workforce diversity, recognize and explain the implications of changing workforce demographics. | Chapter 5 Diversity in a Global Environment Understand how managers organize international businesses Explain the challenges and opportunities of working with cultural differences Understand the legal requirements for respecting workforce diversity Recognize and explain the implications of changing workforce demographics Interpret the dimensions of diversity as a management strategy to increase innovation, creativity, and performance Learning Objectives To achieve results in today’s global economy, managers must understand international business practices, including international trade rules, agreements, and legal requirements Managers must understand culture Managing in a Global Economy (p. 118) Global organizations (p. 119) Global company – organization with operations in multiple countries and its senior management decision making centrally located in one country Multi-domestic company – organization with operations in multiple countries and its senior management decision making . | Chapter 5 Diversity in a Global Environment Understand how managers organize international businesses Explain the challenges and opportunities of working with cultural differences Understand the legal requirements for respecting workforce diversity Recognize and explain the implications of changing workforce demographics Interpret the dimensions of diversity as a management strategy to increase innovation, creativity, and performance Learning Objectives To achieve results in today’s global economy, managers must understand international business practices, including international trade rules, agreements, and legal requirements Managers must understand culture Managing in a Global Economy (p. 118) Global organizations (p. 119) Global company – organization with operations in multiple countries and its senior management decision making centrally located in one country Multi-domestic company – organization with operations in multiple countries and its senior management decision making distributed across the countries in which it operates Importing – process of acquiring products and services from another country Exporting – process of creating products in one country and selling them in another Managing in a Global Economy (cont.) Strategic partnerships (p. 119) Agreement between two or more organizations to share complementary resources to develop and sell products and services Direct foreign investment Buying existing or building new businesses in other countries World Trade Organization (WTO) Organization responsible for global trade rules between countries Managing in a Global Economy (cont.) Regional trade zones (p. 119) Zones established through trade agreements among several countries in which trade barriers are reduced or eliminated for member countries North American Free Trade Agreement (NAFTA) - involves Canada, Mexico, and the United States European Union – political and economic union of 27 European countries that share a common currency Association of .
