4. GLOBAL ENVIRONMENT
Countries and organizations have been trading with each other for centuries.
And it continues strong today.
Two forces
Regional trading alliances
Global trade mechanisms
6. Regional trading alliances Understanding the concept of
global enviornment
Global compititon considered country
against country
Us vs japan
Mexico vs Canada
Global compititon is shaped by regional
trading agreements,including European
union ,SAARC etc
Countries and organizations have been trading with
each other for centuries.
7. Ethnocentric
• the best work
approaches and
practices are those
of the home
country.
Polycentric
• attitude is the view
that the managers
in the host country
Geocentric
• attitude is a world-
oriented view that
focuses on using
the best approaches
and people from
around the globe
8.
9. When agreements
in key issues
by the North
American Free Trade
Agreement (NAFTA)
were reached by the
Mexican, Canadian,
and U.S.
governments in
1992, a vast
economic bloc was
created.
NAFTA
10. ASEAN
The Association of Southeast Asian Nations (ASEAN) is a trading
alliance of 10 Southeast Asian nations.
11. Describe the structures and techniques organizations use as they
go international.
A multinational corporation is an international company that maintains operations in
multiple countries. A multidomestic organization is an MNC that decentralizes manage-
ment and other decisions to the local country (the polycentric attitude).
12. To outside and trade internationally( globally)
• Multinational corporation(MNC)(polycentric attitude)
• Transnational corporation(the geocentric attitude)
13. Relevance Of The Political/Legal, Economic, And Cultural
Environments To Global Business.
