Business and

CONNECTING THE DOTS

Management in A
(CTD 1)
Global Context
CLASS 11 Dr. Howaida M. Barakat
Topic one:
Introduction to the global
business environment
CHAPTERS
1, 2 & 3

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Low barriers to trade and investment
GLOBALIZATION WAVE 1 International trade
between developed
economies
Technological change

Transportation improvements WAVE 2 Emerging

An integrated and interdependent economies joining
world economy. international trade
Trends

World Output Foreign Direct Investment World Order

Types of Companies
From all developed countries US share from 66% to 18% From opening up to
From MNEs to SMEs
to 60% developing countries China’s share from 1% to 15% protectionism/isolationism

Jobs & Income

GLOBAL ECONOMIC
CRISIS Labor Policies & The Environment
Slow Down Deglobalization
Faster recovery in some of the
developing countries caused a new Debate
Economic Power
set of emerging economies
wealth Distribution
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 INSTITUTIONAL BASED VIEW

INFORMAL FORMAL
Culture, Ethics, Laws, Regulations,
Norms Rules

Ethics & Political Economic Legal

Culture Language Religion systems systems systems

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 Political System: Individualism, Democracy Political System: Individualism or Right-wing totalitarianism

Market economy Mixed economy

Liberal Market
Coordinated Market
Civil Law Common Law
Cultural Dimensions:
• Low power distance Cultural Dimensions:
• Femininity • High power distance
• High uncertainty avoidance • Masculinity
• Long-term normative orientation • Low uncertainty avoidance
• Short-term normative orientation
Low context language
High context language
Islam - Christianity
Islam – Christianity - Hinduism
Ethical Imperialism

CSR: Explicit and morally demanded Ethical Relativism

Middle of the Road

CSR: Implicit and legally demanded

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 6. Religion:
3. LEGAL SYSTEMS:
•Islam
•Common law
•Christianity
•Civil law
•Hinduism
•Religious/Theocratic law
•Buddhism
1. POLITICAL SYSTEMS: •Confucianism
•Communist totalitarianism
•Theocratic totalitarianism 4. CULTURAL DIMENSIONS:
•Tribal totalitarianism •Power distance (high/low) 7. Approach to ethics:
•Individualism /collectivism •Friedman (1970)
•Masculinity/femininity •Relativism
2. ECONOMIC SYSTEMS: •Uncertainty avoidance (high/low) •Imperialism
Macro: •Long/short term orientation •Middle of the road
•Market economy •Hill (2021)
•Mixed economy
•Command economy
5. Language: 8. Approach to CSR:
Micro: •High context •Explicit and morally demanded
•Coordinated market •Low context •Implicit and legally demanded
•Liberal market

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Thank You
Dr. Howaida M. Barakat
Howaida.barakat@eue.edu.eg

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