Summary Management Chapter 3

Chapter 3: Global management


L03.1




Definitions

Ethnocentric attitude (Home): The parochial belief that the best work approaches and
practices are those of the home country (nationalistic).
Polycentric attitude (host): The view that the managers in the host country know the best
work approaches and practices for running their business.
Geocentric attitude (global): A world-oriented view that focuses on using the best
approaches and people from around the globe.
Parochialism: Viewing the world solely through your own perspectives, leading to an
inability to recognize differences between people.

, L03.2




Countries enter regional trading alliances for a variety of reasons, mainly to stimulate
economic growth.



The European Union

 5 countries have applied for membership
 A union of 28 European nations created as a
unified economic and trade entity.



NAFTA

 North American Free Trade Agreement
 Helps Canada, Mexico, and the United States strengthen their global economic
power.
 Doesn’t exist anymore.



CAFTA-DR

 Latin-America
 promotes trade liberalization between the United States and 5 Central American
countries.



Southern Common Market or Mercosur

 free trade agreement of 10 South American countries
 effective way to combine resources to better compete against other global economic
powers.



ASEAN

 Association of Southeast Asian Nations
 Trading alliance of 10 Southeast Asian nations
(important region in the global economy)