Contrastethnocentric,polycentric,andgeocentricattitudestowardglobalbusinessDiscusstheimportanceofregionaltradingalliancesandglobaltrademechanismsDescribethestructuresandtechniquesorganizationsuseastheygointernationalExplaintherelevanceofthepolitical/legal,economic,andculturalenvironmentstoglobalbusinessParochialism-viewingtheworldsolelythroughyourownperspectives,leadingtoaninabilitytorecognizedifferencesbetweenpeople.EthnocentricAttitude-theparochialisticbeliefthatthebestworkapproachesandpracticesarethoseofthehomecountry.PolycentricAttitude-theviewthatthemanagersinthehostcountryknowthebestworkapproachesandpracticesforrunningtheirbusiness.GeocentricAttitude-aworld-orientedviewthatfocusesonusingthebestapproachesandpeoplefromaroundtheglobe.EuropeanUnion(EU)-aunionof27EuropeannationscreatedasaunifiedeconomicandtradeentityEuro-asinglecommonEuropeancurrencyNations(ASEAN)-atradingallianceof10SoutheastAsiannations.NorthAmericanFreeTradeAgreement(NAFTA)-anagreementamongtheMexican,Canadian,andU.S.governmentsinwhichcertainbarrierstotradehavebeeneliminated.WorldTradeOrganization(WTO)-aglobalorganizationof153countriesthatdealswiththerulesoftradeamongnations.InternationalMonetaryFund(IMF)-anorganizationof185countriesthatpromotesinternationalmonetarycooperationandprovidesadvice,loans,andtechnicalassistance.WorldBankGroup-agroupoffivecloselyassociatedinstitutionsthatprovidesfinancialandtechnicalassistancetodevelopingcountries.OrganizationforEconomicCooperationandDevelopment(OECD)-aninternationaleconomicorganizationthathelpsits30membercountriesachievesustainableeconomicgrowthandemployment.MultinationalCorporation(MNC)-abroadtermthatreferstoanyandalltypesofinternationalcompaniesthatmaintainoperationsinmultiplecountries.MultidomesticCorporation-anMNCthatdecentralizesmanagementandotherdecisionstothelocalcountry.GlobalCompany-anMNCthatcentralizesmanagementandotherdecisionsinthehomecountry.TransnationalorBorderlessOrganization-anMNCinwhichartificialgeographicalbarriersareeliminated.GlobalSourcing-purchasingmaterialsorlaborfromaroundtheworldwhereveritischeapest.Exporting-makingproductsdomesticallyandsellingthemabroad.Importing-acquiringproductsmadeabroadandsellingthemdomestically.Licensing-anorganizationgivesanotherorganizationtherighttomakeorsellitsproductsusingitstechnologyorproductspecifications.Franchising-anorganizationgivesanotherorganizationtherighttouseitsnameandoperatingmethods.StrategicAlliance-apartnershipbetweenanorganizationandoneormoreforeigncompanypartner(s)inwhichbothshareresourcesandknowledgeindevelopingnewproductsorbuildingproductionfacilities.JointVenture-aspecifictypeofstrategicallianceinwhichthepartnersagreetoformaseparate,independentorganizationforsomebusinesspurpose.ForeignSubsidiary-directlyinvestinginaforeigncountrybysettingupaseparateandindependentproductionfacilityoroffice.FreeMarketEconomy-aneconomicsysteminwhichresourcesareprimarilyownedandcontrolledbytheprivatesector.PlannedEconomy-aneconomicsysteminwhicheconomicdecisionsareplannedbyacentralgovernment.NationalCulture-thevaluesandattitudessharedbyindividualsfromaspecificcountrythatshapetheirbehaviorandbeliefsaboutwhatisimportant.GlobalLeadershipandOrganizationalBehaviorEffectiveness(GLOBE)program-aresearchprogramthatstudiescross-culturalleadershipbehaviors.CulturalIntelligence-culturalawarenessandsensitivityskills.GlobalMind-Set-attributesthatallowaleadertobeeffectiveincross-culturalenvironments.WorldBankGroupOrganizationforEconomicCooperationandDevelopment(OECD)Multinationalcorporation(MNC)MultidomesticcorporationGlobalcompanyTransnationalorborderlessorganizationGlobalsourcingExportingImportingLicensingParochialismEthnocentricattitudePolycentricattitudeGeocentricattitudeEuropeanUnion(EU)EuroNorthAmericanFreeTradeAgreement(NAFTA)AssociationofSoutheastAsianNations(ASEAN)WorldTradeOrganization(WTO)InternationalMonetaryFund(IMF)FranchisingStrategicallianceJointventureForeignsubsidiaryFreemarketeconomyPlannedeconomyNationalcultureGlobalLeadershipandOrganizationalBehaviorEffectiveness(GLOBE)programCulturalintelligenceGlobalmind-set