Cbarom - Lesson 4
Cbarom - Lesson 4
Cbarom - Lesson 4
Chapter 4
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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.
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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.
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Other Global Perspectives
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Understanding the Global
Environment – Trading Alliances
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European Union Map
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Trading Alliances (cont.)
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Trading Allowances (cont.)
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ASEAN Map
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Global Trade Mechanisms
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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.
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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.
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How Organizations Go Global
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Going Global (cont.)
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Going Global (cont.)
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Exhibit 3-3
How Organizations Go Global
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Managing in a Global
Environment
• The Political/Legal Environment
– U.S. managers are accustomed to a stable
legal and political system
– Managers must stay informed of the specific
laws in countries where they do business
– Some countries have risky political climates
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The Economic Environment
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The Cultural Environment
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Global Management in Today’s
World
• The Challenge of Openness
– The increased threat of terrorism by a truly
global terror network
– Economic interdependence of trading
countries
– intense underlying and fundamental cultural
differences— differences that encompass
traditions, history, religious beliefs, and deep-
seated values.
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Global Management in Today’s
World
• Cultural Intelligence - cultural awareness
and sensitivity skills.
• Global Mind-Set - attributes that allow a
leader to be effective in cross-cultural
environments.
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Review Learning Outcome 3.1
• Contrast ethnocentric, polycentric, and
geocentric attitudes toward global business
– Parochialism - viewing the world solely
through your own eyes and perspectives
– Polycentric attitude - 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
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Review Learning Outcome 3.2
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Review Learning Outcome 3.2 (cont.)
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Review Learning Outcome 3.3
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Review Learning Outcome 3.3 (cont.)
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Review Learning Outcome 3.3 (cont.)
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Review Learning Outcome 3.3 (cont.)
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Review Learning Outcome 3.4
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Review Learning Outcome 3.4 (cont.)
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QUIZ NEXT MEETING
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