International management is the process of applying MANAGEMENT concepts and techniques in a multinational, multicultural environment. Large, medium, and small firms are seeing increasingly more of their overall revenue coming from overseas markets. International management is changing rapidly, due in part to the fact that managers are increasing their contact with other countries as foreign INVESTMENT and trade are increasing and TRADE BARRIERS among countries continue to fall. Businesses are also depending more on international markets for larger percentages of their total revenues. Managers face challenges and problems in the economic, political, legal, technological, and cultural areas of doing business in a global environment. A lack of ECONOMIC GROWTH in some countries makes it difficult for MULTINATIONAL CORPORATIONs to continue to do business there. Elements that contribute to the economic RISK of doing business globally include trade barriers, weak savings, inadequate INFRASTRUCTURE, and unavailable or unskilled labor force. Governments can mismanage their country’s economy, or it can be hurt by global factors such as an increase in INTEREST RATES worldwide. A country’s political environment is very complex and can change rapidly; international managers must therefore be aware of the impact of both the existing situation and political changes on their business. Foreign firms doing business in a country can be harmed when its leaders interfere in their operations, taking over ASSETS, practicing policies and regulations that adversely affect foreign investors, and allowing political upheaval to disrupt foreign business. With such risks, government leaders at home may not encourage international trade and investment. Legal issues affecting international management include determining which country’s laws will govern expatriates, how INTELLECTUAL PROPERTY is protected, and how disputes are resolved. Managers must be aware of INTERNATIONAL LAW and extensions of home-country law, in addition to learning the host-country laws and regulations with which they must comply, including those relating to foreign investment, labor, and EMPLOYMENT. Other legal challenges include corrupt foreign governments, restrictive foreign bureaucracies, inefficient government controls, and PRIVATIZATION of state-run companies. International managers face challenges in a rapidly changing technological environment. Increasing numbers of people now have access to the INTERNET and can obtain information more quickly than ever before. Security issues and E-COMMERCE pose additional challenges. Technology affects the number and nature of employees in international firms and also makes work more portable. Advances in telecommunications offer EMERGING MARKETS new opportunities to engage in international transactions. The world’s many cultural differences also affect managing in the international arena, and therefore it is vital for international managers to have an understanding of the impact of culture on behavior. Culture can affect managers’ attitudes, business-government relations, how people think and behave, employees’ work values and attitudes, and the local practices. Managers must be aware that different approaches may be necessary, depending on the country where business is being transacted. The success of the company and its employees depends on a thorough understanding of both the cultural differences and the similarities between the home and host countries. Managing HUMAN RESOURCES across cultures is another challenge in international management. Processes for selecting, training, motivating, monitoring, and compensating foreign employees will differ by country. Specific approaches to labor relations in the international arena will also vary from country to country.