HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU)...
-
date post
21-Dec-2015 -
Category
Documents
-
view
216 -
download
0
Transcript of HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU)...
![Page 1: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/1.jpg)
HAS 3260
Week Three
Spring 2006
Dr. Burton
![Page 2: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/2.jpg)
The Global Economy
• The New Europe– European Union (EU)
• grouping of 25 Western European countries who have agreed to support mutual economic growth
• 12 have agreed to adopt the Euro (common currency)
![Page 3: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/3.jpg)
Austria €Belgium €Denmark Finland €France €Germany €Greece €Ireland €Italy €Luxembourg €Netherlands €Portugal €Spain €Sweden United Kingdom of Great Britain and Northern Ireland Ten countries have joined the EU on 2004-05-01:Cyprus (Greek part), the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.
European Union Members€ - Adopted the Euro
![Page 4: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/4.jpg)
The Global Economy
• The Americas– North American Free Trade
Agreement (NAFTA)• Agreement for free flow of
goods and services between the U.S., Canada and Mexico
– Free Trade of the Americas (FTAA) is a possibility
– Other agreements• MERCOSUR
• Andrean Pact
• CARICOM
![Page 5: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/5.jpg)
The Global Economy
• Maquiladoras– foreign manufacturing plants allowed to
operate in Mexico• allowed special privileges in exchange for hiring
Mexican labor– import materials, components and equipment with duty
paid are “value added”
![Page 6: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/6.jpg)
The Global Economy
• Maquiladoras– advantages
• increased employment and prosperity
– disadvantages• social costs in border towns• exploitation of less expensive Mexican labor
![Page 7: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/7.jpg)
The Global Economy
• Asia and the Pacific Rim– Asia and Pacific Rim economies are expected
to be larger than those of the EU– China is the world’s largest single-country
marketplace• Population >1.2 Billion
– Japanese companies account for many Fortune 500 companies
![Page 8: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/8.jpg)
People’s Republic of China
Population:Population: 1,306,313,812 (July 2005 est.) (July 2005 est.)
Age structure:Age structure: 0-14 years:0-14 years: 21.4% (male 148,134,928/female 131,045,415) 21.4% (male 148,134,928/female 131,045,415) 15-64 years:15-64 years: 71% (male 477,182,072/female 450,664,933) 71% (male 477,182,072/female 450,664,933) 65 years and over:65 years and over: 7.6% (male 47,400,282/female 7.6% (male 47,400,282/female 51,886,182) (2005 est.) 51,886,182) (2005 est.)
![Page 9: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/9.jpg)
India
• Population: >1Billion• 25% below the
poverty line• Approx. 20% are
middle class• >26 million Cell
Phones
![Page 10: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/10.jpg)
The Global Economy
• Africa– beckons international
business– increased attention to
stable countries
![Page 11: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/11.jpg)
Environmental Challenges in the Global Economy
• Economic Systems– Central-planning
• government makes basic economic decisions for entire country
– Free-market• operate under capitalism
![Page 12: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/12.jpg)
Environmental Challenges in the Global Economy
• General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO)– international accords in which member
nations agree to ongoing negotiations and reduction of tariffs and trade restrictions
![Page 13: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/13.jpg)
Environmental Challenges in the Global Economy
• Laws vary between countries– common legal problems
• incorporation practices• negotiating contracts• protecting patents, trademarks and copyrights• foreign exchange restrictions
![Page 14: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/14.jpg)
Environmental Challenges in the Global Economy
• Human resource concerns– illiteracy– absence of appropriate skills– shortage of labor supplies
![Page 15: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/15.jpg)
Environmental Challenges in the Global Economy
• Pros of MNCs– larger tax bases– increased employment opportunities– technology transfers– introduction of new industries– development of local resources
![Page 16: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/16.jpg)
Environmental Challenges in the Global Economy
• Cons of MNCs– extract excessive profits– dominate local economy– do not respect local customs and laws– fail to help domestic firms develop– do not transfer most advanced technology
![Page 17: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/17.jpg)
Environmental Challenges in the Global Economy
• Ethical Issues in Multinational Operations– Foreign Corrupt Practices Act– Sweatshops– Environmental protection
![Page 18: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/18.jpg)
Culture and Global Diversity
• Culture– shared set of beliefs, values and patterns of
behavior common to a group of people
![Page 19: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/19.jpg)
Culture and Global Diversity
• Culture shock – discomfort a person feels in an unfamiliar
culture
• Ethnocentrism– tendency to view one’s own culture as
superior to others
![Page 20: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/20.jpg)
Culture and Global Diversity
• Popular Dimensions of Culture– language– use of space– time orientation– religion– role of contracts
![Page 21: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/21.jpg)
Culture and Global Diversity
• Language– varies throughout world– same language varies in usage from one
region to another– language training is increasingly important to
U.S. managers
![Page 22: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/22.jpg)
Culture and Global Diversity
• Spoken Language– Low context
• Explicit spoken and written word• Examples: US, Germany
– High context• Words convey part of the message• Examples: Middle East, Asia
![Page 23: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/23.jpg)
Culture and Global Diversity
• Use of Space (Proxemics)– interpersonal distance used in communication
• Latin Americans tend to be close• Americans value more space
![Page 24: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/24.jpg)
Culture and Global Diversity
• Time Orientation– Monochronic
• time is allotted do one thing at a time
– Polychronic• time is allotted to do many things at once
![Page 25: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/25.jpg)
Culture and Global Diversity• Religion
– may influence business practices– source of ethical and moral teaching
Theism Pantheism AtheismJudaism
ChristianityIslam
HinduismBuddhismNew Age
NaturalismHumanism
Marxism/LeninismNihilism
![Page 26: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/26.jpg)
![Page 27: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/27.jpg)
Christianity: 2.1 billion*Islam: 1.3 billionSecular/Nonreligious/Agnostic/Atheist: 1.1 billionHinduism: 900 millionChinese traditional religion: 394 millionBuddhism: 376 millionprimal-indigenous: 300 millionAfrican Traditional & Diasporic: 100 millionSikhism: 23 millionJuche: 19 millionSpiritism: 15 millionJudaism: 14 millionBaha'i: 7 millionJainism: 4.2 millionShinto: 4 millionCao Dai: 4 millionZoroastrianism: 2.6 millionTenrikyo: 2 millionNeo-Paganism: 1 millionUnitarian-Universalism: 800 thousandRastafarianism: 600 thousandScientology: 500 thousand
World Distribution of Religious Beliefs
*The following website argues that the real Muslim population worldwide isgreater than 1.79 Billion in 2006 http://www.islamicpopulation.com/index.html
![Page 28: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/28.jpg)
Culture and Global Diversity
• Role of Contracts– some cultures view as final and binding– others view as a starting point– some expect contracts to be written– others accept “word” as binding
![Page 29: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/29.jpg)
Culture and Global Diversity
• Are Management Theories Universal?– U.S. management
theories may be ethnocentric
• emphasis on participation and individual performance is not applicable to other cultures
![Page 30: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/30.jpg)
Culture and Global Diversity
• Values and National Cultures (Hofstede)– Power Distance– Uncertainty avoidance– Individualism-collectivism– Masculinity-femininity– Short-term – Long-term orientation
![Page 31: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/31.jpg)
Culture and Global Diversity
• Are Management Theories Universal?– Japanese management practices
• lifetime employment• job rotation and broad career experience• shared information• collective decision-making• quality emphasis
– These practices are not easy to translate
![Page 32: HAS 3260 Week Three Spring 2006 Dr. Burton. The Global Economy The New Europe –European Union (EU) grouping of 25 Western European countries who have.](https://reader030.fdocuments.net/reader030/viewer/2022032704/56649d5d5503460f94a3ba64/html5/thumbnails/32.jpg)
Culture and Global Diversity
• Global Organizational Learning– cultural awareness facilitates more informed
transfers of management practices