1. Write a summary of the preface “Distinguishing Characteristics of the MNE” including a bulleted list of the main components”
After reading the preface: “Distinguishing characteristic of the MNE”, one can conclude that: The multinational enterprise is distinctive because it differs from the domestic companies in 3 main contexts: social, political and economic environment. The domestic firm works in a stable atmosphere where norms, regulations, customer preferences, etc, are usually set. While the MNE faces much more difficulties and pressure due to diversity of its multiple host countries. Features that differentiate MNE from national companies:
* Sovereignty. Unlike the domestic corporations, the multinational enterprises deal with political risk; as a result of the operations in different legal frameworks among countries.
* Competitive strategy. It’s easier for domestic parties than global enterprises, to compete within the context of a single market. Since, local firms can react against competition without incurring extra cost, resources allocation or complex logistical coordination -like MNE might incur.
* Currency. Global enterprises need to estimate performance in continuous changing currency values, which sometimes incur economic risks. On the other hand, the purely domestic company deals only with the local currency.
2. Write a summary of the preface “The Management Challenge” including a bulleted list of the main components.”
The author tends to focus on the analysis of international business from the management level perspective. In addition, this paragraph shows how the book explains with many resources (such as videos, follow up cases, and real-world scenarios) the manager performance, skills and behavior in the global enterprises. Also, the writer focuses on the core organizational approach that management is required to build such as:
* The entrepreneurial process
* Integrating learning process