# International Management

## Introduction


### Learning Outcomes

After reading this chapter, you should be able to answer these questions:
1. Why is it important to understand and appreciate the importance of international management in today’s world?
2. What is culture, and how can culture be understood through Hofstede’s cultural framework?
3. How are regions of the world categorized using the GLOBE framework, and how does this categorization enhance understanding of cross-cultural leadership?
4. Why is an understanding of cultural stereotyping important, and what can students do to prepare for cultural stereotyping by looking at social institutions?
5. What steps can you undertake to be better prepared for cross-cultural assignments?
6. What are the main strategies that companies can use to go international?
7. Why might it be necessary for a company to go international, and how might it accomplish this goal?
The above example shows that Domino’s has successfully managed global challenges to become successful internationally. For many business leaders over the past few decades, the business world was becoming “flat” because barriers to trade were slowly disappearing. The expectation was that soon global companies would operate unconstrained by national borders. However, recent trends suggest that the business world is now seeing a barrage of protectionism and nationalism as many countries and their leaders emphasize the negatives of globalization. Consider that the U.K. is currently experiencing the Brexit negotiations and a potential exit from the European Union. The European Union has provided the means to the U.K. to freely trade with a number of other European countries without hindrance. At the same time, rhetoric about policies and practices to protect local industries against global competition and to protect local jobs is increasing. But does this mean globalization is dead? Far from it—experts have analyzed recent trade data and shown that globalization is actually strengthening. The DHL Global Connected Index, which tracks the flow of capital, information, trade, and human resources, indicates that the degree of globalization continues to rise. This finding suggests that any serious management scholar will need to be aware of the importance of international management and the need to be able to adapt practices to ensure that management of global operations goes smoothly.
No company is immune to the forces of globalization. Whether you run a small company based in Wisconsin or manage a Fortune 500 company, you are affected by global forces. You may compete with firms from China or India, have coworkers from Egypt, Brazil, or Germany, or have to negotiate with someone from Russia. This chapter will prepare you for the complexities of international management by discussing some of the crucial issues faced by managers of international companies today. The chapter begins by discussing some of the key factors in making the business world global today and why an understanding of international management is so critical. The chapter then explores the importance of national cultures because cross-cultural conflicts can make an international business difficult to navigate and manage. By understanding the countries and the cultures they find themselves in, international managers can better prepare to deal with such differences, including appropriate preparation for cross-cultural assignments, preferred leadership styles around the world, and the potential for stereotyping.
The chapter concludes with coverage about the various approaches to taking a company international, the advantages and disadvantages of each approach, and the types of business strategies available to companies in the international arena.