Global context of management

   Nature of globalization

1. Intergration
2. open market economy
3. modem communication and transportation
4. international operations
5. formation of multiple unit
6. Advanced technology 

Forms of Globalization

1. economic globalization
2. political  globalization
3. cultural  globalization
4. environmental  globalization

Methods of Globalization

1. exporting
2. licensing and franchising
3. direct investment
4. joint venture
5. mergers and acquisitions 
6. management contract 
7. strategic alliance 
8. assembly operation     

Changing global business scenario

1. globalized production
2. global outsourcing
3. move towards service sectors 
4. global corporations
5. global competition
6. rapid technological  development

Effect of Globalization
   Positive effects

1. maximizes productivity
2. develops living standard
3. transfer of capital and technology
4. increase in employment
5. elimination of trade barriers
6. promote international co-operation
7. support for industrialzation

Negative effects

1. displacement of local industries
2. creates threats to social and cultural value
3. economic exploitation
4. deterioration of national sovereighty
5. unequal distribution of income
6. initiates monopoly power
7. increases competition

Characteristics of Multinational company

1. large scale operation
2. advanced technology
3. international opration
4. efficient management
5. ownership and control 
6. productive organization
7. monopolistic market

Advantage of Multinational company

1. huge capacity and modern technology
2. mass and qualitative products
3. efficient management
4. minimum cost of production
5. research and development
6. employment  opportunities
7. maximize government revenue
8. maintain balance in trade
9. international cooperation 

Disadvantage

1. displacement of local industries
2. outflow of capital
3. economic exploitation
4. consumer exploitation
5. inequality to staff
6. influence in politics
7. social inequality 

Management Problems of Major Idustries in nepal

1. policy related problems
2. demand related  problems
3. human resource problems
4. capital and technological problems
5. infrastructural problems
6. labor union problems
7. raw material problems
8. lack of mutual trust
9. security problems