Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-1Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-2•Contrastethnocentric,polycentric,andgeocentricattitudestowardglobalbusiness•Discusstheimportanceofregionaltradingalliancesandglobaltrademechanisms•Describethestructuresandtechniquesorganizationsuseastheygointernational•Explaintherelevanceofthepolitical/legal,economic,andculturalenvironmentstoglobalbusinessCopyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-3What’sYourGlobalPerspective?•Parochialism-viewingtheworldsolelythroughyourownperspectives,leadingtoaninabilitytorecognizedifferencesbetweenpeople.•EthnocentricAttitude-theparochialisticbeliefthatthebestworkapproachesandpracticesarethoseofthehomecountry.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-4MoreGlobalPerspectives•PolycentricAttitude-theviewthatthemanagersinthehostcountryknowthebestworkapproachesandpracticesforrunningtheirbusiness.•GeocentricAttitude-aworld-orientedviewthatfocusesonusingthebestapproachesandpeoplefromaroundtheglobe.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-5TradingAlliances•EuropeanUnion(EU)-aunionof27Europeannationscreatedasaunifiedeconomicandtradeentity•Euro-asinglecommonEuropeancurrencyCopyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-6Exhibit3-1:EuropeanUnionMapCopyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-7TradingAlliances(cont.)•Nations(ASEAN)-atradingallianceof10SoutheastAsiannations.•NorthAmericanFreeTradeAgreement(NAFTA)-anagreementamongtheMexican,Canadian,andU.S.governmentsinwhichcertainbarrierstotradehavebeeneliminated.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-8Exhibit3-1:ASEANMapCopyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-9GlobalTradeMechanisms•WorldTradeOrganization(WTO)-aglobalorganizationof153countriesthatdealswiththerulesoftradeamongnations.•InternationalMonetaryFund(IMF)-anorganizationof185countriesthatpromotesinternationalmonetarycooperationandprovidesadvice,loans,andtechnicalassistance.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-10GlobalTradeMechanisms(cont.)•WorldBankGroup-agroupoffivecloselyassociatedinstitutionsthatprovidesfinancialandtechnicalassistancetodevelopingcountries.•OrganizationforEconomicCooperationandDevelopment(OECD)-aninternationaleconomicorganizationthathelpsits30membercountriesachievesustainableeconomicgrowthandemployment.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-11TypesofInternationalOrganizations•MultinationalCorporation(MNC)-abroadtermthatreferstoanyandalltypesofinternationalcompaniesthatmaintainoperationsinmultiplecountries.•MultidomesticCorporation-anMNCthatdecentralizesmanagementandotherdecisionstothelocalcountry.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-12TypesofInternationalOrganizations(cont.)•GlobalCompany-anMNCthatcentralizesmanagementandotherdecisionsinthehomecountry.•TransnationalorBorderlessOrganization-anMNCinwhichartificialgeographicalbarriersareeliminated.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-13HowDoOrganizationsGoGlobal?•GlobalSourcing-purchasingmaterialsorlaborfromaroundtheworldwhereveritischeapest.•Exporting-makingproductsdomesticallyandsellingthemabroad.Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallManagement,EleventhEditionbyStephenP.Robbins&MaryCoulter©2012PearsonEducation,Inc.publishingasPrenticeHall3-14GoingGlobal(cont.)•Importing-acquiringproductsmadeabroadandsellingthemdomestically.•Licensing-anorganizationgivesanotherorganizationtherighttomakeorsellitsproductsusingitstechnologyorproductspecifications.