Trends And Challenges Of Management In 
Subject: Principles of
Management
Subject code: MG2351 by Edna Elizabeth.N
Associate Professor
ECE department
What’s Your Global
Perspective?
• Parochialism
– Is viewing the world solely through one’s own eyes and perspectives.
– Is not recognizing that others have different ways of living and working.
– Is a significant obstacle for managers working in a global business world.
– Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is better than theirs” to foreign cultures.
The Global Marketplace
• Opportunities and Challenges
– Coping with the sudden appearance of new competitors
– Acknowledging cultural, political, and economic differences
– Dealing with increased uncertainty, fear, and anxiety
– Adapting to changes in the global environment – Avoiding parochialism
Adopting a Global Perspective
• Ethnocentric Attitude
– The parochialistic belief that the best work approaches and practices are those of the home country.
• Polycentric Attitude
– The view that the managers in the host country know the best work approaches and practices for running their business.
• Geocentric Attitude
– A world-oriented view that focuses on using the best approaches and people from around the globe.
Regional Trading Agreements
• The European Union (EU)
– A unified economic and trade entity
• Belgium, Denmark, France, Greece, Ireland,
Italy, Luxembourg, the Netherlands,
Portugal, Spain, the United Kingdom,
Germany, Austria, Finland, and Sweden
• North American Free Trade Agreement (NAFTA)
– Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees)
• United States, Canada, and Mexico
Exhibit 4–1 European Union
Regional Trading Agreements
• U.S.-Central America Free Trade Agreement
(CAFTA)
• Free Trade Area of the Americas
• Southern Cone Common Market (Mercosur)
• Association of Southeast Asian Nations (ASEAN)
– Trading alliance of 10 Southeast Asian nations • African Union
•
Management
Subject code: MG2351 by Edna Elizabeth.N
Associate Professor
ECE department
What’s Your Global
Perspective?
• Parochialism
– Is viewing the world solely through one’s own eyes and perspectives.
– Is not recognizing that others have different ways of living and working.
– Is a significant obstacle for managers working in a global business world.
– Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is better than theirs” to foreign cultures.
The Global Marketplace
• Opportunities and Challenges
– Coping with the sudden appearance of new competitors
– Acknowledging cultural, political, and economic differences
– Dealing with increased uncertainty, fear, and anxiety
– Adapting to changes in the global environment – Avoiding parochialism
Adopting a Global Perspective
• Ethnocentric Attitude
– The parochialistic belief that the best work approaches and practices are those of the home country.
• Polycentric Attitude
– The view that the managers in the host country know the best work approaches and practices for running their business.
• Geocentric Attitude
– A world-oriented view that focuses on using the best approaches and people from around the globe.
Regional Trading Agreements
• The European Union (EU)
– A unified economic and trade entity
• Belgium, Denmark, France, Greece, Ireland,
Italy, Luxembourg, the Netherlands,
Portugal, Spain, the United Kingdom,
Germany, Austria, Finland, and Sweden
• North American Free Trade Agreement (NAFTA)
– Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees)
• United States, Canada, and Mexico
Exhibit 4–1 European Union
Regional Trading Agreements
• U.S.-Central America Free Trade Agreement
(CAFTA)
• Free Trade Area of the Americas
• Southern Cone Common Market (Mercosur)
• Association of Southeast Asian Nations (ASEAN)
– Trading alliance of 10 Southeast Asian nations • African Union
•