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eeds of customers for many products and services are growing more similar ? ., McDonald’s, Boeing, Toyota. ? Global customers search the world for their supplies without regard for national boundaries. Privatization ? Sale of governmentowned businesses to private investors, ? usually through stock or direct sale to other panies. ? Two types of privatization contribute to the global economy – the developed world and the developing world. Privatization Types ? The Developed Countries ? Use privatization to make formerly governmentcontrolled enterprises more petitive in the global economy. ? The Developing Countries ? Use privatization to jumpstart their economies or to speed the transition from a munist to a capitalist system. New Competitors ? Free market reforms are creating a potential group of new petitors. ? Korean, Russian, Taiwanese, and Mexican panies are all emerging. ? Chinese panies are also on the move. Exhibit : Top 25 Emerging Market Economies New Competitors are Emerging ? Global trade has two important effects in developing new petitors: ? When developing countries are used as lowwage platforms for hightech assembly, multinationals facilitate the transfer of technology. ? Aggressive multinationals are also expanding beyond their own borders. The Rise of Global Standards ? Companies can make 1 or only a few versions of product for the world market. ? This is cheaper than making different versions for different countries. ? Drive to develop mon standards to save money. Global Standards ? Consistency in quality also an important requirement of doing business in many countries. ? International anization for standardization (ISO) in Geneva, Switzerland ? Developed a set of technical standards (ISO 9001:2023 series). Next Generation of Multinational Managers: Characteristics ? Global mindset ? Ability to work with people from diverse backgrounds ? Longrange perspective ? Ability to manage change and transition ? Ability to create systems for learning and changing anizations Next Generation of Multinational Managers: Characteristics ? Talent to motivate all employees to achieve excellence ? Acplished negotiation skills ? Willingness to seek overseas assignments ? Understanding of national cultures Multinational Management: A Strategic Approach ? Considers how managers formulate and implement strategies to pete successfully in the global economy. ? Strategies are the maneuvers or activities used to increase and sustain anizational performance. ? Multinational strategies must include maneuvers that deal with operating in more than one country and culture. Trends Shaping Future Business Environment ? Blurring of industry boundaries ? Flexibility matters more than size ? Focusing on niche ? Hyperpetition ? Emphasis on innovation and the learning anization Conclusion ? Chapter provides key background information to support study of multinational management ? Chapter also provides the foundation to understand the latest challenges and practices of multinational management ? Field is dynamic and learning never stops