1. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-18 Managing in a Global Environment The Legal-Political Environment –Stability or instability of legal and political systems Legal procedures are established and followed Fair and honest elections held on a regular basis –Differences in the laws of various nations Effects on business activities Effects on delivery of products and services

2. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-19 Managing in a Global Environment The Economic Environment –Economic Systems Market economy –An economy in which resources are primarily owned and controlled by the private sector Command economy –An economy in which all economic decisions are planned by a central government –Monetary and Financial Factors Currency exchange rates Inflation rates Diverse tax policies

3. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-20 Managing in a Global Environment The Cultural Environment –National Culture Values and attitudes shared by individuals from a specific country that shape their behaviour and their beliefs about what is important May have more influence on an organization than the organization culture

4. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-21 Managing in a Global Environment Hofstede’s Framework for Assessing Cultures (Exhibit 3-5) –Individualism vs. Collectivism –Power Distance –Uncertainty Avoidance –Achievement vs. Nurturing –Long-Term vs. Short-Term Orientation

5. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-22 The GLOBE* Framework for Assessing Cultures Assertiveness Future orientation Gender differentiation Uncertainty avoidance Power distance Individualism/collectivism In-group collectivism Performance orientation Humane orientation *Global Leadership and Organizational Behaviour Effectiveness

6. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-23 Exhibit 3.6 Globe Rankings

7. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-24 The Challenge of Global Management Increased threat of terrorism Economic interdependence of trading Dealing with increased uncertainty, fear, and anxiety Acknowledging cultural, political, and economic differences Avoiding parochialism

8. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-25 Summary and Implications What are the different ways of viewing global differences? –Ethnocentric attitude, polycentric attitude, geocentric attitude What kinds of alliances affect trade relations among countries in the world? –Regional trading alliances and the agreements negotiated through the WTO –Regional trading alliances include the EU, NAFTA, and ASEAN

9. Chapter 3, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 3-26 Summary and Implications How do organizations do business globally? –Multinational corporations, multi-domestic corporations, global companies, transnational or borderless organizations What are the challenges of doing business globally? –Global legal-political and economic environments of other countries