Chapter 4 Notes.pdf

Info icon This preview shows pages 1–3. Sign up to view the full content.

Chapter 4: Managing in a Global Environment What is Your Global Perspective? Monolingualism is one sign that a nation suffers from parochialism: Viewing the world solely through one’s own eyes and perspectives. Not recognizing that others have different ways of living and working. Ignoring others’ values and customs Rigidly applying an attitude of “ours is better than theirs” to foreign cultures Narrow and restricted attitude Three possible global attitudes: Ethnocentric attitude: Parochialistic belief that the best work approaches and practices are those of the home country. Belief that people in foreign countries do not have the needed skills, expertise, knowledge, or experience to make the best business decisions, as people in the home country do. Lack of trust in foreign employees with key decisions or technology. Polycentric attitude: The view that employees in the host country know the best work approaches and practices for running their business View every foreign operation as different and difficult to understand They are likely to let employees in the host country figure out how best to do things. Geocentric attitude: World-oriented view Focuses on using the best approaches and people from around the globe Global view Looking for the best approaches in people regardless of origin Requires: Eliminating parochial attitudes Developing an understanding of cross-cultural differences This is the type of approach successful managers will need in today’s global environment.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Understanding the Global Environment Global Trade today is shaped by 2 forces: 1. Regional Trading Alliances Global competition was once considered country against country. Now, global competition is shaped by regional trading agreements including: a. The European Union (EU): A unified economic and trade entity between 27 democratic European countries Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland and Sweden Primary motivation: reassert the region’s economic position against the US and Japan The barriers to ravel, employment, investment, and trade have been removed making the economic power represented by EU considerable. Half a billion people- 31% of the world’s total economic output Common currency : Euro (except Denmark, UK, and Sweden) b. The Council of Arab Economic Unity Established by Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Palestine, Somalia, Sudan, Tunisia, Syria, United Arab Emirates and Yemen in June 1957. The organization aims to achieve economic integration Advocates free movement of labor, capital, and services.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '16
  • International Trade, World Trade Organization, United Arab Emirates, Global Trade, Free trade area

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern