Ch.3 Managing in a Global environment

Parochialism
viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.
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.
European Union (EU)
a union of 27 European nations created as a unified economic and trade entity
Nations (ASEAN)
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.
Global Company
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.
Global Sourcing
purchasing materials or labor from around the world wherever it is cheapest.
Exporting
making products 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 products using its technology or product specifications.
Franchising
an organization gives another organization the right to use its name and operating methods.
Strategic Alliance
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
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.
Free Market Economy
an economic system in which resources are primarily owned and controlled by the private sector
Planned Economy
an economic system in which economic decisions are planned by a central government.
National Culture
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 Intelligence
cultural awareness and sensitivity skills.
Global Mind-Set
attributes that allow a leader to be effective in cross-cultural environments.