International business has grown to be one of the most important features of the worlds economy. Learning to operate in a global economy is an important challenge facing many managers today. Businesses can be primarily domestic, international, multinational, or global in scope. Managers need to understand both the process of internationalization and how to manage within a given level of international activity.

To compete in the global economy, managers must understand its structure. Mature market economies and systems dominate the global economy today. North America, the European Union, and Pacific Asia are especially important. High-potential/high-growth economies in Eastern Europe, Latin America, the Peoples Republic of China, India, and Vietnam are increasingly important to managers. The oil-exporting economies in the Middle East are also important. The GATT and the WTO play critical roles in the evolution of the global economy.

Many of the challenges of management in a global context are unique issues associated with the international environmental context. These challenges reflect the economic, political/legal, and cultural environments of international management.

Basic issues of competing in a global economy vary according to whether the organization is an MNC, a medium-size organization, or a small organization. In addition, the basic managerial functions of planning and decision making, organizing, leading, and controlling must all be addressed in international organizations.