The environment of international business has been going through a turbulent period of change that has greatly intensified. The rapid spread of the electronic age, especially in the area of communication, is encompassing every corner of the world in a trend toward a more homogenous world market and away from the heterogenous national and regional markets of the past. The old industrial technology offered scale economies and lower unit costs through longer production runs. The North American automobile industry offers a prime example of this phenomenon. For decades, it dominated both the North American and worldwide markets through mass production and low costs. The viability of fragmented and local manufacturing of the past and its associated relatively low investments have also changed. Managing a subsidiary has never been an isolated affair. The chapter also presents an overview of key concepts discussed in this book.