What’s Your Global Perspective?
Parochialism
Is viewing the world solely through its own eyes and perspectives.
Is not recognizing that others have different ways of living and working.
Is a significant obstacle for managers working in a global business world.
Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is better than theirs” to foreign cultures.
Adopting a Global Perspective
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.
Regional Trading Agreements
The European Union (EU)
A unified economic and trade entity
Austria, Italy, Belgium, Latvia, Bulgaria, Lithuania, Croatia, Luxembourg, Cyprus, Malta, Czech Republic, Netherlands, Denmark, Poland, Estonia, Portugal, Finland, Romania, France, Slovakia, Germany, Slovenia, Greece, Spain, Hungary, Sweden, Ireland, United Kingdom.
Economic and monetary union (Euro)
North American Free Trade Agreement (NAFTA)
Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees)
The World Trade Organization (WTO)
- Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995.
- Functions as the only global organization dealing with the rules of trade among nations.
- Has 164 member nations
- Monitors and promotes world trade
Other Forms of Globalization
Strategic Alliances
Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities.
Joint Venture
A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
Foreign Subsidiary
Directly investing in a foreign country by setting up a separate and independent production facility or office.
Managing in A Global Environment
The Legal Environment
--Stability or instability of legal and political systems
- Legal procedures are established and followed
- Fair and honest elections held on a regular basis
Differences in the laws of various nations
- Effects on business activities
- Effects on delivery of products and services
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