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    Chapter 3

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    Safitri Eka Lestari
    The document discusses global business perspectives including ethnocentric, polycentric, and geocentric attitudes. It also outlines important regional trading alliances like the EU, NAFTA, and ASEAN as well as global trade mechanisms such as the WTO and IMF. Finally, the document examines the political, economic, and cultural environments organizations face when operating internationally.

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    Chapter 3

    Uploaded by

    Safitri Eka Lestari
    34 views9 pages
    The document discusses global business perspectives including ethnocentric, polycentric, and geocentric attitudes. It also outlines important regional trading alliances like the EU, NAFTA, and ASEAN as well as global trade mechanisms such as the WTO and IMF. Finally, the document examines the political, economic, and cultural environments organizations face when operating internationally.

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    The document discusses global business perspectives including ethnocentric, polycentric, and geocentric attitudes. It also outlines important regional trading alliances like the EU, NAFTA, and ASEAN as well as global trade mechanisms such as the WTO and IMF. Finally, the document examines the political, economic, and cultural environments organizations face when operating internationally.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    34 views9 pages

    Chapter 3

    Uploaded by

    Safitri Eka Lestari
    The document discusses global business perspectives including ethnocentric, polycentric, and geocentric attitudes. It also outlines important regional trading alliances like the EU, NAFTA, and ASEAN as well as global trade mechanisms such as the WTO and IMF. Finally, the document examines the political, economic, and cultural environments organizations face when operating internationally.

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    © All Rights Reserved
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    You are on page 1of 9

    Slide 2

    • Contrast ethnocentric, polycentric, and geocentric attitudes toward global business

    • Discuss the importance of regional trading alliances and global trade mechanisms

    • Describe the structures and techniques organizations use as they go international

    • Explain the relevance of the political/legal, economic, and cultural environments to global
    business

    Slide 3

    What’s Your Global Perspective?

    • Parochialism - viewing the world solely through your own perspectives, leading to an
    inability to recognize differences between people.

    • Ethnocentric Attitude - the parochialistic belief that the best work approaches and practices
    are those of the home country.

    Slide 4

    More Global Perspectives

    • Polycentric Attitude - the view that the managers in the host country know the best work
    approaches and practices for running their business.

    • Geocentric Attitude - a world-oriented view that focuses on using the best approaches and
    people from around the globe.

    Slide 5

    Trading Alliances

    • European Union (EU) - a union of 27 European nations created as a unified economic and
    trade entity

    • Euro - a single common European currency

    Slide 6

    Exhibit 3-1: European Union Map


    Slide 7

    Trading Alliances (cont.)

    • Nations (ASEAN) - a trading alliance of 10 Southeast Asian nations.

    • North American Free Trade Agreement (NAFTA) - an agreement among the Mexican,
    Canadian, and U.S. governments in which certain barriers to trade have been eliminated.

    Slide 8

    Exhibit 3-1: ASEAN Map


    Slide 9

    Global Trade Mechanisms

    • World Trade Organization (WTO) - a global organization of 153 countries that deals with
    the rules of trade among nations.

    • International Monetary Fund (IMF) - an organization of 185 countries that promotes


    international monetary cooperation and provides advice, loans, and technical assistance.

    Slide 10

    Global Trade Mechanisms (cont.)

    • World Bank Group - a group of five closely associated institutions that provides financial and
    technical assistance to developing countries.

    • Organization for Economic Cooperation and Development (OECD) - an international


    economic organization that helps its 30 member countries achieve sustainable economic
    growth and employment.

    Slide 11

    Types of International Organizations

    • Multinational Corporation (MNC) - a broad term that refers to any and all types of
    international companies that maintain operations in multiple countries.
    • Multidomestic Corporation - an MNC that decentralizes management and other decisions to
    the local country.

    Slide 12

    Types of International Organizations (cont.)

    • Global Company - an MNC that centralizes management and other decisions in the home
    country.

    • Transnational or Borderless Organization - an MNC in which artificial geographical barriers


    are eliminated.

    Slide 13

    How Do Organizations Go Global?

    • Global Sourcing - purchasing materials or labor from around the world wherever it is
    cheapest.

    • Exporting - making products domestically and selling them abroad.

    Slide 14

    Going Global (cont.)

    • Importing - acquiring products made abroad and selling them domestically.

    • Licensing - an organization gives another organization the right to make or sell its products
    using its technology or product specifications.

    • Franchising - an organization gives another organization the right to use its name and
    operating methods.

    Slide 15

    Going Global (cont.)

    • Strategic Alliance - a partnership between an organization and one or more foreign


    company partner(s) in which both share resources and knowledge in developing new
    products or building production facilities.

    • Joint Venture - a specific type of strategic alliance in which the partners agree to form a
    separate, independent organization for some business purpose.

    Slide 16

    Going Global (cont.)


    • Foreign Subsidiary - directly investing in a foreign country by setting up a separate and
    independent production facility or office.

    Slide 17

    Exhibit 3-3: How Organizations Go Global

    Slide 18

    The Economic Environment

    • Free Market Economy - an economic system in which resources are primarily owned and
    controlled by the private sector.

    • Planned Economy - an economic system in which economic decisions are planned by a


    central government.

    Slide 19

    The Cultural Environment

    • National Culture - the values and attitudes shared by individuals from a specific country that
    shape their behavior and beliefs about what is important.

    • Global Leadership and Organizational Behavior Effectiveness (GLOBE) program - a research


    program that studies cross-cultural leadership behaviors.

    Slide 20

    Exhibit 3-4: What Are Americans Like?


    Slide 21

    Exhibit 3-5: Hofstede’s Five Dimensions of National Culture


    Slide 22

    Exhibit 3-6: Globe Highlights

    Slide 23

    Contemporary Issues

    • Cultural Intelligence - cultural awareness and sensitivity skills.

    • Global Mind-Set - attributes that allow a leader to be effective in cross-cultural


    environments.

    Slide 24

    Exhibit 3-7: A Global Mindset


    Slide 25

    Terms to Know

    • Parochialism

    • Ethnocentric attitude

    • Polycentric attitude

    • Geocentric attitude

    • European Union (EU)

    • Euro

    • North American Free Trade Agreement (NAFTA)

    • Association of Southeast Asian Nations (ASEAN)

    • World Trade Organization (WTO)

    • International Monetary Fund (IMF)

    • World Bank Group

    • Organization for Economic Cooperation and Development (OECD)

    • Multinational corporation (MNC)

    • Multidomestic corporation

    • Global company

    • Transnational or borderless organization

    • Global sourcing

    • Exporting
    • Importing

    • Licensing

    Slide 26

    Terms to Know (cont)

    • Franchising

    • Strategic alliance

    • Joint venture

    • Foreign subsidiary

    • Free market economy

    • Planned economy

    • National culture

    • Global Leadership and Organizational Behavior Effectiveness (GLOBE) program

    • Cultural intelligence

    • Global mind-set

    Slide 27

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