Global business is the buying and selling of goods and services among different countries. A domestic business conducts business in only one country. A multinational corporation (MNC) has ownership in operations in two or more countries. The MNC can have partial or full ownership of the operations—a separate independent business facility (factories or offices) in another country. Partial ownership comes commonly though buying stock in a foreign company or through a strategic alliance.
The foreign company is commonly referred to as a foreign subsidiary or affiliate; in essence, a subsidiary is a company owned and controlled by another company, making up a combined company, called the holding or parent company. There is also a transnational company, a type of MNC that eliminates artificial geographical barriers without having a real single national headquarters. Foreign trade is about conducting business with other countries, so managers need to understand trade barriers.
Overall, foreign trade benefits business and countries, but it does create losers as well as winners, and it can also hurt. Managers need to understand these four foreign trade barriers and how to use them at home and to help prevent them from being used against them in other countries.
Diversity refers to the variety of people with different group identities within the same workplace. Diversity and work aren’t separate because we tend to judge the nature of workers by the gender, race, and other diversity of the people who do the work. Workplace diversity includes both employees and customers. Diversity and affirmative action are sometimes thought to be the same—but they aren’t. Inclusion is a practice of ensuring that all employees feel they belong as valued members of the organization.
An inclusive value system creates a sense of belonging: a feeling of being respected, being valued for who you are; feeling a level of supportive energy and commitment from others so that everyone can do their best work. To be inclusive, we all need to empathize with everyone—put ourselves in their shoes and try to understand where they are coming from and accept them for who they are rather than reject them or try to make them into who we want them to be—just like us.