Chapter 4 - Chapter4

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Chapter 4 Ethnocentric attitude – the parochialistic belief that the best work approaches and practices are  those of the home country 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 Ethnocentric Polycentric Geocentric Orientation Home Country Host Country World Advantages -Simpler structure -More tightly  controlled -Extensive knowledge  of foreign market and  workplace -More support from  host government -Committed local  managers with high  morale -Focus understanding  of global issues -Balanced local and  global objectives -Best people and  work approaches  used regardless of  origin Disadvantages -More ineffective  management -Inflexibility -Social and political  backlash -Duplication of work -Reduced efficiency -Difficult to maintain  global objectives  because of intense  focus on local  traditions -Difficult to achieve -Managers must have  both local and global  knowledge European Union (EU)  – A union of 25 European nations created as a unified economic and  trade entity (Maastricht Treaty February 1992) in 2004 added 10 countries  - Euro – A single common European currency North American Free Trade Agreement (NAFTA)  – An agreement among the Mexican,  Canadian, and the U.S. governments in which barriers to trade have been eliminated (1994) Association of Southeast Asian Nations (ASEAN)
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This note was uploaded on 04/08/2010 for the course BUS mgmt340 taught by Professor Tompson during the Spring '10 term at University of Illinois, Urbana Champaign.

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Chapter 4 - Chapter4

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