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Exhibit 1.9: Top 25 Emerging Market Economies

Exhibit 1.9: Top 25 Emerging Market Economies

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New Competitors are

Emerging

•• Global

Global trade

trade has

has two

two important

important effects

effects inin developing

developing

new

new competitors:

competitors:

•• When

When developing

developing countries

countries are

are used

used as

as low-wage

low-wage

platforms

platforms for

for high-tech

high-tech assembly,

assembly, multinationals

multinationals

facilitate

facilitate the

the transfer

transfer ofof technology.

technology.

•• Aggressive

Aggressive multinationals

multinationals are

are also

also expanding

expanding

beyond

beyond their

their own

own borders.

borders.



Copyright© 2005 South-Western/Thomson Learning All rights reserved



The Rise of Global Standards

•• Companies

Companies can

can make

make one

one or

or only

only aa few

few versions

versions ofof

product

product for

for the

the world

world market.

market.

•• This

This isis cheaper

cheaper than

than making

making different

different versions

versions for

for

different

different countries.

countries.

•• Drive

Drive toto develop

develop common

common standards

standards toto save

save money.

money.



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Global Standards

•• Consistency

Consistency inin quality

quality also

also an

an important

important requirement

requirement ofof

doing

doing business

business inin many

many countries.

countries.

•• International

International organization

organization for

for standardization

standardization (ISO)

(ISO) inin

Geneva,

Geneva, Switzerland

Switzerland

Developed

Developed aa set

set ofof technical

technical standards

standards (ISO

(ISO

9001:2000

9001:2000 series).

series).



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Next Generation of

Multinational Managers:

Characteristics

••

••

••

••

••



Global

Global mindset

mindset

Ability

Ability toto work

work with

with people

people from

from diverse

diverse backgrounds

backgrounds

Long-range

Long-range perspective

perspective

Ability

Ability toto manage

manage change

change and

and transition

transition

Ability

Ability toto create

create systems

systems for

for learning

learning and

and changing

changing

organizations

organizations



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Next Generation of

Multinational Managers:

Characteristics

••

••

••

••



Talent

Talent toto motivate

motivate all

all employees

employees toto achieve

achieve excellence

excellence

Accomplished

Accomplished negotiation

negotiation skills

skills

Willingness

Willingness toto seek

seek overseas

overseas assignments

assignments

Understanding

Understanding ofof national

national cultures

cultures



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Multinational Management: A

Strategic Approach

•• Considers

Considers how

how managers

managers formulate

formulate and

and implement

implement

strategies

strategies toto compete

compete successfully

successfully inin the

the global

global

economy.

economy.

•• Strategies

Strategies are

are the

the maneuvers

maneuvers or

or activities

activities used

used toto

increase

increase and

and sustain

sustain organizational

organizational performance.

performance.

•• Multinational

Multinational strategies

strategies must

must include

include maneuvers

maneuvers that

that

deal

deal with

with operating

operating inin more

more than

than one

one country

country and

and

culture.

culture.

Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 1.9: Top 25 Emerging Market Economies

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