The document summarizes key concepts from the book "Managing Across Borders: The Transnational Solution" by Bartlett and Ghoshal. It discusses their definition of a multinational corporation and international firm. It also describes their advocacy for a transnational model of management that balances local responsiveness with global integration through differentiated yet coordinated subsidiaries, and the flow of people, knowledge, and resources across borders.

1. IM 0.1

2. Assessment Exam One 20% Short Presentation 10% Long Presentation 20% Exam Two 20% Project 30%

3. Bartlett and Ghoshal MNC as a company that : makes substantial investment in foreign countries ; actively manages operations in foreign countries ; and regards them as strategic and integral to the organization.

4. Traditional motivations to invest abroad

5. Spatial Clusters in the World Economy 5

6. Spatial Clusters in the World Economy 6 First noticed in Silicon Valley in the United States, in what is now known as the Third Italy, in Southern Germany, and in East Asia Much productive knowledge cannot be codified into explicit forms Rather, communicated via a highly social process of face-to-face interaction over a relatively long period of time Consequently, innovation and learning is a spatially-located, social and collective process among a group of firms

7. Spatial Clusters in the World Economy 7

8. Spatial Clusters in the World Economy 8

9. Cluster exists within a milieu 9

10. A Value Chain Within a Spatial Cluster 10

11. Spatial Clusters and Milieus 11

12. Spatial Clusters and Milieus 12 Also it is possible that a MNE can tap into selected foreign clusters and milieus In the local milieu where the (MNE) controls full-fledged operations Can be characterized as an insider Linked to other firms in both formal and informal networks Typically maintains close linkages to local research and education facilities, governmental bodies, etc. Provide channels for rapid dissemination of knowledge and information Provide a basis for co-operation leading to a continuous stream of improvements

13. Spatial Clusters and Milieus 13

14. Multinational Management: The Local-Global Paradox 14 Ownership advantages offset the extra costs of doing business internationally

15. Multinational Management: The Local-Global Paradox 15 As a firm globalizes its production system it must decide upon Locationof the components of the multinational value network Coordinationamong these components Summarize some issues raised in book Managing Across Borders: The Transnational Solution by Bartlett and Ghoshal (2002) A recurring theme relating to a creative tension between the local and the global—local-global paradox

16. Strategic challenges faced by MNEs 16

17. Bartlett and Ghoshal2002: “Multinational” Firm 17

18. Bartlett and Ghoshal (2002): Global Firm 18

19. Bartlett and Ghoshal (2002): International Firm 19

20. Bartlett and Ghoshal (2002) 20 Argue in favor of a transnational model of global management

21. Bartlett and Ghoshal (2002) 21 Argue in favor of a transnational model of global management A “flexible centralization/coordination” or an “integrated network” Role of subsidiaries is differentiated throughout the multinational value network, differing among countries One subsidiary might only be involved in sales, while another is involved in R&D Coordination of the multinational value network is achieved using multiple methods Flows of goods are coordinated through centralization Flows of resources are coordinated through formalization Flows of information are coordinated through socialization Bartlett and Ghoshal advocate the rotation of personel throughout the network Disparate elements of the MNE are tied together in a coherent mission through the use of vision and innovative human resource development policies

22. Bartlett and Ghoshal (2002) 22 Argue in favor of a transnational model of global management A “flexible centralization/coordination” or an “integrated network” Role of subsidiaries is differentiated throughout the multinational value network, differing among countries One subsidiary might only be involved in sales, while another is involved in R&D Coordination of the multinational value network is achieved using multiple methods Flows of goods are coordinated through centralization Flows of resources are coordinated through formalization Flows of information are coordinated through socialization Bartlett and Ghoshal advocate the rotation of personel throughout the network Disparate elements of the MNE are tied together in a coherent mission through the use of vision and innovative human resource development policies

23. Bartlett and Ghoshal (2002) 23 Argue in favor of a transnational model of global management A “flexible centralization/coordination” or an “integrated network” Role of subsidiaries is differentiated throughout the multinational value network, differing among countries One subsidiary might only be involved in sales, while another is involved in R&D Coordination of the multinational value network is achieved using multiple methods Flows of goods are coordinated through centralization Flows of resources are coordinated through formalization Flows of information are coordinated through socialization Bartlett and Ghoshal advocate the rotation of personel throughout the network Disparate elements of the MNE are tied together in a coherent mission through the use of vision and innovative human resource development policies

24. Examples of Multi-Home-Based MNEs 24