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Chapter Summary

Essential skills for future managers:

1) Motivating employees.2) Merging economic and social objectives3) Achieving good relationships with peers and subordinates4) Designing effective organizational structures5) Utilizing self-control and commitment of employees

6) Evaluating the feasibility of technology advances.7) Establishing rapport with government agencies.

Entrepreneurs:Entrepreneurs are individuals who:

1) Conceive the idea for a new business venture, gather the necessary allfour type of resources to start the venture namely:

a) Human resourcesb) Financial resourcesc) Physical resources

d) Information resources2) Start the operations of the venture.3) Grow it to the point where more people are added to the organization,

and4) Usually bear the most personal and financial risk in beginning the

venture.

1. Today's political environment presents a myriad of challenges for MNCs. China isgoing through a transition as the old guard passes from the scene. The politicalsituation in Europe also continues to change. Russia is facing economic problemsand social upheaval, and the rest of Central and Eastern Europe has had varyingdegrees of success with their newfound freedom and continue to struggle withtheir past.

2. The current legal and regulatory environment is both complex and confusing.There are many different laws and regulations to which MNCs doing businessinternationally must conform, and each nation is unique. Also, MNCs must abideby the laws of their own country. For example, U.S. MNCs must obey the rules setdown by the Foreign Corrupt Practices Act. MNCs doing business in Japan and theEU face a wide range of bureaucratic rules and regulations that often are bothtime-wasting and inefficient.

3. The technological environment is changing quickly and is having a major impacton international business. This will continue in the future. For example, moneytransfers and exchanges are changing dramatically.Also, areas such as telecommunications offer developing countries newopportunities to leapfrog into the twenty-first century. New markets are being

created high-tech MNCs that are eager to provide telecommunications service.Technological developments also impact on both the nature and the structure ofemployment, shifting the industrial structure toward a more high-tech,knowledge-based economy. MNCs who understand and take advantage of thishigh-tech environment should prosper, but they also must keep up or ahead, tosurvive the highly competitive years ahead.

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