Introduction

Abstract

For centuries, the business environment of a great number of managers was shaped by only local market demands, local distribution, and domestic sales. Consequently, formulating the company’s strategy, organizing decision-making processes, and implementing control systems originated from a managerial scope that did not cross the national borders of their countries. However, as a result of globalization processes, today’s business environment increasingly becomes the whole world or at least the sum total of the environments of every nation in which the manager’s company operates. This simultaneous presence of worldwide business and the specific environment of every nation in which the multinational company operates determine the complexity of a manager’s contemporary business environment. Globalization processes force managers to scan the market from a global perspective and to develop a thorough understanding of where worldwide business is heading. At the same time, managers need to be aware of business developments within specific countries. These local market demands, as with differences in customer needs, distribution channels, market structures, and host governments, force managers to also be responsive to national business developments.