[MGT-201 (D)]

NAME: M.TALAL AZEEM

ROLL# 2013602623
I

MAKING NOTES FOR CHAPTER# 03

ASSIGNMENT# 01

Q.1 Write 3 examples for each global perspective that you studied.

o Parochialistic Attitude:
 Parochialism is the process of viewing the world
solely through one's own eyes and perspectives. People with a parochial
attitude do not recognize that others have different ways of living and
working. Parochialism is a significant obstacle for managers working in a
global business world. If managers fall into the trap of ignoring others'
values and customs and rigidly applying an attitude of "ours is better than
theirs" to foreign cultures, they'll find it difficult to compete with other
organizations around the world that are seeking to understand foreign
customs and market differences.

Example 01:

Example 02:

Example 03:

o Geocentric Attitude
Geocentric attitude, a world-oriented view that focuses
on using the best approaches and people from around the globe. Managers with
this type of attitude have a global view and look for the best approaches and
people, regardless of origin.
Example 01:

Example 02:

Example 03:

o Polycentric Attitude:
A polycentric attitude is a view that employees in the
host country the foreign country in which the organization is doing business
know the best work approaches and practices for running their business.
Managers with this attitude view every foreign operation as different and
difficult to understand. Thus, they’re likely to let employees in the host
country figure out how best to do things.

Example 01:

Example 02:

Example 03:

o Ethnocentric Attitude:
Ethnocentrism is a basic attitude expressing the
belief that one's own ethnic group or one's own culture is superior to other ethnic
groups or cultures, and that one's cultural standards can be applied in a universal
manner.

Example 01:
 Example 02:

Example 03:

Q2. Make notes for “international Trade Alliances” Where Pakistan is a

member. You can write about top three (3) alliances.

Pakistan has free trade agreements with Sri Lanka, China, and Malaysia. Pakistan
is also a part of the South Asian Association for Regional Cooperation (SAARC)
and has preferential trade agreements with Iran, Indonesia, and Mauritius. The
United States and Pakistan have had a bilateral tax treaty in force since 1959. The
China-Pakistan Free Trade Agreement (CPFTA) is a free trade agreement (FTA)
between the People’s Republic of China and the Islamic Republic of Pakistan that
seeks to increase trade and strengthen the partnership between the two countries.
Top three Alliances:

 United States: US$3.8billion

 China: $1.8billion
 Unites Kingdom: $1.7billion

Q3. Make your notes for IMF, World Bank, and WTO. Dedicate one page to
each international organization.
I. IMF:
The International Monetary Fund was conceived in July 1944 at the
United Nations Bretton Woods Conference in New Hampshire, United States. The
IMF is organization of 190 countries, working to foster global monetary
cooperation, secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty around the
 world .The 44 countries in attendance sought to build a framework for international
economic cooperation and avoid repeating the competitive currency devaluations
that contributed to the Great Depression of the 1930s. The IMF’s primary mission
is to ensure the stability of the international monetary system—the system of
exchange rates and international payments that enables countries and their citizen
to transact with each other. In order to maintain stability and prevent crisis in the
international monetary system, the IMF monitors member country policies as well
as national, regional, and global economic and financial developments through a
formal system. The IMF providing loans to member countries that are experiencing
actual or potential balance –of – payments problems is a core responsibility of the
IMF and are supported by IMF financing, and ongoing financial support is
dependent on effective implementation of those adjustments. In response to the
covid-19 pandemic, the IMF temporarily increased the access limits under
emergency financing instructions and the annual limit on overall access under no
concessional resources. Loan resources available to low- income countries (LICs).
The IMF provides technical assistance and training to help member countries build
better economic institutions and strengthen related human capacities.

II. World Bank:

The World Bank is an international organization dedicated to
providing financing, advice, and research to developing nations to aid their
economic advancement. The World Bank was created in 1944 out of the Bretton
Woods Agreement, which was secured under the auspices of the United Nations in
the latter days of World War II. The Bretton Woods Agreement included several
components: a collective international monetary system, the formation of the
World Bank, and the creation of the International Monetary Fund (IMF).
.The bank predominantly acts as an organization that attempts to fight poverty by
offering developmental assistance to middle- and low-income countries. Currently,
the World Bank has two stated goals that it aims to achieve by 2030. The first is to
end extreme poverty by decreasing the number of people living on less than $1.90
a day to below 3% of the world population. The second is to increase overall
prosperity by increasing income growth in the bottom 40% of every country in the
world. The World Bank is a provider of financial and technical assistance to
individual countries around the globe. The bank considers itself a unique financial
institution that sets up partnerships to reduce poverty and support economic
development. The World Bank supplies qualifying governments with low-interest
 loans, zero-interest credits, and grants, all to support the development of individual
economies. Debt borrowings and cash infusions help with global education,
healthcare, public administration, infrastructure, and private-sector development.
The World Bank also shares information with various entities through policy
advice, research and analysis, and technical assistance. It offers advice and training
for both the public and private sectors. The World Bank and IMF are
headquartered in Washington, D.C. The World Bank currently has more than
10,000 employees in more than 130 offices worldwide.

III. WTO:
The World Trade Organization (WTO) is a global organization of 153
countries that deals with the rules of trade among nations.33 Formed in 1995, the
WTO evolved from the General Agreement on Tariffs and Trade (GATT), a trade
agreement in effect since the end of World War II. Today, the WTO is the only
global organization that deals with trade rules among nations. Its membership
consists of 153 member countries and 30 observer governments (which have a
specific time frame within which they must apply to become members). The goal
of the WTO is to help countries conduct trade through a system of rules. Although
critics have staged vocal protests against the WTO claiming that global trade
destroys jobs and the natural environment, it appears to play an important role in
monitoring, promoting, and protecting global trade. For instance, the WTO
recently ruled that the European plane maker Airbus received improper European
Union subsidies for the A380 super jumbo jet and several other airplanes, hurting
its American rival, Boeing.34 Airbus has the right to appeal the ruling, but even
after appealing, any member ultimately found to have provided improper subsidies
is obliged to bring its policies into compliance with global trade rules. Failure to
comply could bring trade sanctions. In another recent news story, the U.S.
government is weighing whether to file a WTO complaint against China’s Internet
censorship.35 In addition, the WTO played a pivotal role in keeping global trade
active during the global economic crisis. WTO Director General Pascal Lamy said,
“During these difficult times, the multilateral trading system has once again proven
its value. WTO rules and principles have assisted governments in keeping markets
open and they now provide a platform from which trade can grow as the global
economy improves.”36 These examples illustrate the types of trade issues with
which the WTO deals. Such issues are best handled by an organization such as the
WTO and it has played, without a doubt, an important role in promoting and
protecting global trade.

Q4. You have studied about MNCs and their types. Write three examples for
each type, preferable from Pakistani context.

A multinational corporation (MNC) has facilities and other assets in at least one country
other than its home country. A multinational company generally has offices and/or
factories in different countries and a centralized head office where they coordinate global
management. These companies, also known as international, stateless, or transnational
corporate organizations tend to have budgets that exceed those of many small countries.

Types of Multinationals
There are four categories of multinationals that exist. They include:
 A decentralized corporation with a strong presence in its home country.
 A global, centralized corporation that acquires cost advantage where cheap
resources are available.
 A global company that builds on the parent corporation’s R&D.
 A transnational enterprise that uses all three categories.