The Tony Fernandes School of Business UC-Cambodia

Course BUS201: Principles of Management

Instructor: Heng Serey Rathana, BA,BS,MA,MBA,MCE,Ph.d Candidate
Academic Year: 2021-2022

B U S 2 0 1 - A P R A C T I C A L I N T R O D U C T I O N

MANAGEMENT
THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA

Major Questions…
Phnom Penh , Cambodia

4.1 Globalization: The Collapse of Time and Distance

Major Question: What three important developments of globalization will probably affect me?
4.2 You and International Management
Major Question: Why learn about international management, and what characterizes the successful international
manager?
4.3 Why and How Companies Expand Internationally
Major Question: Why do companies expand internationally, and how do they do it?
4.4 The World of Free Trade: Regional Economic Cooperation and Competition
Major Question: What are barriers to free trade, what major organizations and trading blocs promote trade, and
how important are the BRICS countries?
4.5 The Importance of Understanding Cultural Differences
Major Question: What are the principal areas of cultural differences?

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 01

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

Globalization—the trend of the world economy toward becoming a more interdependent system.

1. The rise of the “global village” and

electronic commerce.
2. The world’s becoming one market
instead of many national ones.
3. The rise of both mega firms and
Internet-enabled mini firms worldwide.

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 02

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

The global village refers to the “shrinking” of time and space as air travel and the electronic media have made it easier for the people
around the globe to communicate with one another.

E-commerce, or electronic commerce, the buying and selling of products and services through computer networks.

The global economy refers to the increasing tendency of the economies of the world to interact with one another as one market instead of
many national markets.

1. Small companies can get started more easily. Because anyone can put goods or services on a website
and sell worldwide, this wipes out the former competitive advantages of distribution and scope that large
companies used to have.
2. Small companies can maneuver faster. Little companies can change direction faster, which gives them
an advantage in terms of time and distance over large companies.

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 03

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

2
Global mind-set, which combines
(1) an openness to and awareness of diversity across cultures and markets with
(2) a propensity and ability to see common patterns across countries and markets.
A multinational corporation, or multinational enterprise, is a business
firm with operations in several countries. Example: Apple….
You May Deal with Foreign Customers or Partners
A multinational organization is a nonprofit organization with
You May Deal with Foreign Employees or Suppliers
operations in several countries. Examples are the World Health
You May Work for a Foreign Firm / Organization, the International Red Cross…

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 04

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

Ethnocentric Managers—“We Know Best”

Ethnocentric managers believe that their native country, culture, language, and
behavior are superior to all others. Ethnocentrism might also be called
parochialism—that is, a narrow view in which people see things solely through
their own perspective.

Polycentric Managers—“They Know Best”

Polycentric managers take the view that native managers in the foreign offices
best understand native personnel and practices, and so the home office should
leave them alone

Geocentric Managers—“What’s Best Is What’s Effective,

Regardless of Origin”
Geocentric managers accept that there are differences and similarities between home and
foreign personnel and practices and that they should use whatever techniques are most
effective.

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 05

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

1. Availability of Supplies
2. New Markets
3. Lower Labor Costs
4. Access to Finance Capital
5. Avoidance of Tariffs and
Import Quotas

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 06

THE TONY FERNANDES SCHOOL OF BUSINESS
4
Free trade, the movement of goods and
services among nations without political or
economic obstruction.
1. Tariffs A tariff is a trade barrier in the
form of a customs duty, or tax, levied
mainly on imports.
2. Import Quotas An import quota is a
trade barrier in the form of a limit on the
numbers of a product that can be
imported.
3. Embargoes and Sanctions An embargo is
a complete ban or prohibition of trade of one
country with another. A sanction is the trade
prohibition on certain types of products,
services, or technology to another country
for specific reasons, including nuclear
nonproliferation and humanitarian purposes.
BUS201: PRINCIPLES OF MANAGEMENT
THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia
1. The World Trade Organization (WTO) Consisting of 164
member countries, the World Trade Organization (WTO) is
designed to monitor and enforce trade agreements.
2. The World Bank World Bank is to provide low-interest
loans to developing nations for improving transportation,
education, health, and telecommunications.
3. The International Monetary Fund International
Monetary Fund (IMF) is designed to assist in smoothing the
flow of money between nations.
A trading bloc, also known as an economic community, is a
group of nations within a geographical region that have
agreed to remove trade barriers with one another.
INTERNATIONAL PROGRAM 07
THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

5
Hofstede’s Model of Four Cultural Dimensions The GLOBE Project’s Nine Cultural Dimensions

The low-context culture, in which shared

meanings are primarily derived from written and
spoken words.
The high-context culture, in which people rely
heavily on situational cues for meaning when
communicating with others, relying on nonverbal
cues as to another person’s official position,
status, or family connections.

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 08

THE TONY FERNANDES SCHOOL OF BUSINESS THE UNIVERSITY OF CAMBODIA
Phnom Penh , Cambodia

1 HOMEWORK-04
QUESTIONS
Instruction: Please answer the questions below (The answer shall be written in A4_doc or pdf files_magin 2cm all sides_Time New Roman_Font 12_and 1.5 Spacing.

1. What are three important developments in globalization?

2. What are some positives and negatives of globalization?
3. What are the principal reasons for learning about international management?
4. How do ethnocentric, polycentric, and geocentric managers differ?
5. What are five reasons companies expand internationally, and what are five ways they go about doing this expansion?
6. What are some barriers to international trade?
7. Name the three principal organizations designed to facilitate international trade and describe what they do.
8. What are the principal major trading blocs, and what are the BRICS countries?
9. Define what’s meant by “culture” and describe some of the cultural dimensions studied by the Hofstede model and the GLOBE project.
10. Describe the six important cultural areas that international managers have to deal with in doing cross-border business.

BUS201: PRINCIPLES OF MANAGEMENT INTERNATIONAL PROGRAM 09