Ch.3 Managing in a Global environment
viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.
the parochialistic belief that the best work approaches and practices are those of the home country.
the view that the managers in the host country know the best work approaches and practices for running their business.
a world-oriented view that focuses on using the best approaches and people from around the globe.
European Union (EU)
a union of 27 European nations created as a unified economic and trade entity
a trading alliance of 10 Southeast Asian nations.
North American Free Trade Agreement (NAFTA)
an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated.
World Trade Organization (WTO)
a global organization of 153 countries that deals with the rules of trade among nations.
International Monetary Fund (IMF)
an organization of 185 countries that promotes international monetary cooperation and provides advice, loans, and technical assistance.
World Bank Group
a group of five closely associated institutions that provides financial and technical assistance to developing countries.
Organization for Economic Cooperation and Development (OECD)
an international economic organization that helps its 30 member countries achieve sustainable economic growth and employment.
an MNC that centralizes management and other decisions in the home country.
Transnational or Borderless Organization
an MNC in which artificial geographical barriers are eliminated.
purchasing materials or labor from around the world wherever it is cheapest.
making products domestically and selling them abroad.
acquiring products made abroad and selling them domestically.
an organization gives another organization the right to make or sell its products using its technology or product specifications.
an organization gives another organization the right to use its name and operating methods.
a partnership between an organization and one or more foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities
a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
directly investing in a foreign country by setting up a separate and independent production facility or office.
Free Market Economy
an economic system in which resources are primarily owned and controlled by the private sector
an economic system in which economic decisions are planned by a central government.
the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important.
Global Leadership and Organizational Behavior Effectiveness (GLOBE) program
a research program that studies cross-cultural leadership behaviors.
cultural awareness and sensitivity skills.
attributes that allow a leader to be effective in cross-cultural environments.
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