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Chapter 3

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11 views20 pages

Chapter 3

Uploaded by

XEON
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MANAGING IN A

GLOBAL ENVIRONMENT
Parochialism
 Viewing the world solely through one’s
own eyes and perspectives
3 Types of attitudes
 Ethnocentric – best work practices are
of home country.
 Polycentric---host country know the best
work approaches

 Geocentric----focuses on best
approaches and people from around the
globe
Regional Trade Alliances

 European Union EU
 NAFTA
 ASEAN
Global Trade
Mechanisms
 WTO
 IMF
 WORLD BANK
 OECD
 Multinational corporation [MNC] is
any type of international company
that maintains operations in
multiple countries.
TYPES OF INTERNATIOANAL
ORGANIZATIONS
 Multidomestic corporation-- decentralization of
management and other decisions to local
country.

 Global company—centralization of
management and other decisions to home
country.
 Transnational or borderless organization---
artificial geographical barriers are eliminated.
How organizations go
international
 Global sourcing—purchasing from around
the world at cheapest
 Exporting---making domestically and
selling them abroad.
 Importing—acquiring products made
abroad and selling them domestically.
 Licensing—an organization gives another
organization the right to make or sell its
product using its technology or product
specifications
 Franchising— an organization gives another
organization the right to use its name and
operating methods.
 Strategic alliance—partnership between an
organization and a foreign company partner in
which both share resources and knowledge in
developing new products or building
production facilities
 Joint venture
 Foreign subsidiary
Module 3-3
Managing in global environment

 Political/legal environment
 Economic environment
 Culture environment
Economic environment
 Free market economy
An economic system in which resources
are owned and controlled by the private
sector
 Planned economy

System in which decisions are planned


by a central government
Cultural Environment

 HOFSTEDE’S FRAMEWORK
 THE GLOBE FRAMEWORK
9 Dimensions of GLOBE
 Power distance
 Uncertainty avoidance
 Assertiveness
 Humane orientation
 Future orientation
 Institutional collectivism
 Gender differentiation
 In-group collectivism
 Performance orientation
CHALLENGES IN A GLOBAL
WORKPLACE

 Differences in work experience, pay levels,


and communication
 Managing cultural differences in work-family
relationships.
Suggestion for managers to
manage global workplace

 Cultural intelligence
 Global mind-set
Cultural intelligence
 It encompasses three main dimensions;
1. Culture as a concept—how cultures vary
and how hey affect behavior.
2. Mindfulness--- the ability to pay attention to
signals and reactions in different cross-
cultural situations.
3. Behavioral skills– using one’s knowledge
and mindfulness to choose appropriate
behavior in those situations.
Global mind-set
 Effective global leader needs attributes
to be effective in cross-cultural
environments which have three
components.
1. Intellectual capital
2. Psychological capital
3. Social capital
Best of Luck

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