BU398 Chapter Notes - Chapter 6: Airbus, Joint Venture, Factors Of Production
Document Summary
Chapter 6 designing organizations for the international. Environment: going international is becoming very important these days for large companies who sell in many countries and for small businesses who export through online business. Arguments against globalization: pollution, job loss, lower wages, poor working conditions, imposing western style capitalism on developing countries. Stages of international development: domestic, still focused on the domestic environment but starting to look at foreign investment opportunities and might want to increase economies of scale. International division: organized according to geographic interests, has its own hierarchy, usually start with international division then move to global product structure. Global geographic structure: divide the world into geographic regions each region then reports into the ceo, usually companies with maturity in the global market, find countries with low costs. It"s hard to pla(cid:374) o(cid:374) a glo(cid:271)al le(cid:448)el (cid:449)ith this stru(cid:272)ture (cid:271)e(cid:272)ause ea(cid:272)h division is strictly focused on its geographical region.
