The material in this chapter was aimed at sensitizing students to the intricacies and complexities of today's business environment, which is being shaped by important scientific and technological accomplishments. Six megatrends have had a particularly profound effect on the evolution of MNCs in recent years. Information technology has provided the tools needed to coordinate global operations. The liberalization of the monetary system has created opportunities for corporations to benefit from exchange rate fluctuations. The reduction of xenophobia has opened up new markets and permitted new alliances. The waxing of the service-driven economy has elevated knowledge to one of the most important export commodities. The increasing economic strength of the Pacific Basin has created a valuable new market. Finally, the exploration of space has opened up a new frontier for business.
In order to survive in this new environment, multinational corporations must rationalize and restructure, paring down and streamlining operations. These streamlined MNCs, each one doing what it knows best, can then effectively band together in a strategic alliance to tackle megaprojects. Such alliances have the added advantages of minimizing the effects of protectionist legislation and reducing the costs of R&D.
Managing these megacorporations will require a new, more forward-looking management style. The executive of the future will need to be a global strategist, a master of technology, a politician, and a motivator.
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