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Globalization, GROUP 2, Stake holders and governance, CSR PYRAMID - Coggle…

- - - - Less risky and cheaper.
      - Chinese partner knows the market.
    - - iRobot gets less profit and control.
      - Partner might copy tech and become a competitor.
- - - - Most companies choose domestic expansion first due to fewer barriers and lower risks.
  - - - High-risk
        
        Joint ventures, wholly-owned subsidiaries
      - Low-risk
        
        Exporting, licensing
- - - - Investment in productive activities abroad
      - Conducted by MNEs
    - - Funding an R&D center abroad
      - Opening a sales office overseas
      - Building a production plant in another country
      - Acquiring a foreign company
  - - - Buying bonds
      - Buying stocks
      - Fixed deposits or bank accounts
  - - - Production
      - Sales and distribution
      - Procurement of raw materials/components
  - - - Operations across multiple countries
      - Investments in foreign productive capacity (FDI)
- - - - Logistics, Energy,Mining, Industry as the target sectors
- - - - World is getting smaller and more linked :globe_with_meridians:
  - - - Ship
      - Fly
        
        Easier and faster :zap:
      - Call
    - - reduce trade barier (taxes on important)
      - deals like GATT, WTO, NAFTA, EU made trade smoother
    - - Big companies
      - Invest in factories, office, and research around the world (FDI) 🔬
  - - - The growth of trade and investment 📈
    - - Similar growth happen but crashed due to trade wars
    - - Some countries (e.g US）started to raise trade barriers again🇺🇸
- - - - Neo liberal intellectual worldview
      - Reality of modern financial markets
  - - - Governments
      - Unions
      - Suppliers
      - Communities
      - Customers
      - General Public
    - - Bondholders
      - Employees
      - Shareholders
      - Board Members
      - Managers
  - - - WorldCom
      - Tyco
        
        Lessons :
        
        Ethical business produces wealth
        
        Unethical practices destroy it
        
        Managerial actions affect economy
        
        Stakeholder management is needed
      - Enron
    - - Real estate bubble burst
- - - - The Wealth of Nations
    - - The Modern Corporation
  - - - Threat of takeover pressures managers.
    - - Monitors and evaluates top management
    - - Use of stock options aligns interests
    - - Good performance boosts career opportunities
    - - Large shareholders actively monitor performance
    - - High debt limits wasteful spending
    - - Separate roles improve oversight
    - - Performance metrics drive accountability
  - - - Shareholder focus
      - 🇩🇪 Germany:
        
        🇫🇷 France:
        
        🇨🇳 China:
        
        State-directed capitalism
        
        Many state-owned enterprises
        
        Stakeholder model
- - - - CSR (Corporate Social Responsibility)
      - Sustainability goals
    - - Financial
      - Internal processes
  - - - Companies are part of business ecosystems, not just industries.
        
        Stakeholders: Suppliers, customers, governments, complementors
        
        Google, Apple, Amazon, Alibaba, Coursera
  - - - to block activist investors ( Netflix vs. Carl Icahn)
    - - Growth of Private Equity
    - - Cheap funding
    - - to give founders control over long-term vision