CHAPTER 3

MANAGING IN A GLOBAL
ENVIRONMENT

Lizeth Novoa
Sara Rojas
 Ethnocentric attitude
Is the parochialistic belief that the best work approaches and
practices are those of the HOME country, also belive that
people in foreing countries don´t have the skills, expertise,
knowledge to make the best decisions as people in the home
conuntry do.

 Polycentric attitude
Is the 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

WHAT´S YOUR GLOBAL PERSPECTIVE?

 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.
REGIONAL TRADING ALLIANCES

European Union North American Free Association of southeast

• A union of 27 European Trade Agreement asian nations
nations created as a • Eliminating the • Is a trading Alliance of 10
unified economic and barriers to free trade Southeast Asian nations
trade entity (tariffs, import • To accelerate the
• Euro a single common licensing economic growth, social
European currency requirements, progress and cultural
customs user fees). development in the
region
THE WORLD TRADE ORGANIZATION (WTO)
 Is a global organization of 153 countris that deals whiththe rules of
trade among nations
 Is the only global international organization dealing with the rules
of trade between nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading nations
and ratified in their parliaments. The goal is to ensure that trade
flows as smoothly, predictably and freely as possible.

GLOBAL TRADE MECHANISMS