Topic 4
Managing The Environment

What’s Your Global Perspective?
• 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.

Other Global Perspectives
• 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.

Understanding the Global Environment – Trading Alliances
• European Union (EU) - a union of 27 European nations created as a unified economic and trade entity with the Euro as a single common currency.

Exhibit 4-1 European Union Map

Trading Alliances (cont.)
• 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.

Trading Allowances (cont.)
• Association of Southeast Asian Nations (ASEAN) - A trading alliance of 10 Southeast Asian nations

Exhibit 4-2 ASEAN Map

Global Trade Mechanisms
• 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.

Global Trade Mechanisms (cont.)
• 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