Professional Documents
Culture Documents
4 Global Management
4 Global Management
4 Global Management
MANAGEMENT
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LEARNING OBJECTIVES
1. Contrast ethnocentric, polycentric, and geocentric attitudes
toward global business.
• Develop your skill at collaborating in cross-cultural settings.
2. Discuss the importance of regional trading alliances and global
trade mechanisms.
3. Describe the structures and techniques organizations use as
they go international.
4. Explain the relevance of the political/legal, economic, and
cultural environments to global business.
• Know how to culturally aware.
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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
• 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.
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UNDERSTANDING THE GLOBAL
ENVIRONMENT – TRADING ALLIANCES
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EXHIBIT 4-1
EUROPEAN UNION MAP
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TRADING ALLIANCES (CONT.)
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TRADING ALLOWANCES (CONT.)
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EXHIBIT 4-2 ASEAN MAP
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GLOBAL TRADE MECHANISMS
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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.
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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.)
• 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.
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GOING GLOBAL (CONT.)
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GOING GLOBAL (CONT.)
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EXHIBIT 4-4
HOW ORGANIZATIONS GO GLOBAL
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MANAGING IN A GLOBAL ENVIRONMENT
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THE ECONOMIC ENVIRONMENT
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THE CULTURAL ENVIRONMENT
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EXHIBIT 4-5
WHAT ARE AMERICANS LIKE?
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EXHIBIT 4-6
HOFSTEDE’S FIVE DIMENSIONS OF NATIONAL
CULTURE
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GLOBAL MANAGEMENT IN TODAY’S
WORLD
• Global Leadership and Organizational
Behavior Effectiveness (GLOBE)
program – a research program that studies
cross-cultural leadership behaviors.
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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 (CONT.)
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EXHIBIT 4-7
A GLOBAL MIND-SET
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REVIEW LEARNING OBJECTIVE 4.1
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 OBJECTIVE 4.2
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REVIEW LEARNING OBJECTIVE 4.2
(CONT.)
- World Trade Organization (WTO) monitors and promotes
trade relationships.
- The International Monetary Fund (IMF) and the World Bank
Group provide monetary support.
- The Organization for Economic Cooperation and
Development assists its member countries with financial
support.
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REVIEW LEARNING OBJECTIVE 4.3
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REVIEW LEARNING OBJECTIVE 4.3 (CONT.)
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REVIEW LEARNING OBJECTIVE 4.3 (CONT.)
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REVIEW LEARNING OBJECTIVE 4.3 (CONT.)
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REVIEW LEARNING OBJECTIVE 4.4
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REVIEW LEARNING OBJECTIVE 4.4 (CONT.)
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