SUMMARY OF CHAPTER FOUR: GLOBAL MANAGEMENT

Global management is most influenced by the globalization which means is the trend of the
world economy towards becoming more interdependent. The global economy is the
increasing tendency of the economies of nations to interact with one another as one market.
Besides, its prepares us to work with foreign customers or partners. The successful
international manager is not ethnocentric or polycentric but geocentric. There are five reasons
why companies want to expand internationally; they seek cheaper or more plentiful supplies,
new markets, lower labour costs, access to finance capital, and avoidance of tariffs.
Companies expand by several ways such that, engage in importing, exporting and
countertrading, engage in global outsourcing and become wholly owned subsidiaries, or
foreign subsidiaries. Thus it will create the world of free trade which is the movement of
goods and services among nations without political or economic obstructions. Yet, countries
often use trade protectionism. Three barriers to free trade are tariffs, import quotas and
embargoes and there are three organizations exist that are designed o facilitate international
trade which are The World Trade Organization, The World Bank, and The International
Monetary Fund. Furthermore, there are six major trading blocs: NAFTA, EU, ASEAN, APEC
and CAFTA. Global management indeed told us it is best to understand the cultural
differences as it helps the person to communicate improve the ability to manage globally.
Power distance, uncertainty avoidance, assertiveness and humane orientation are some of the
nine cultural dimensions that involved in leadership and organizational processes. Successful
managers will try to understand four basic cultural which are language, interpersonal space,
time orientation and religion. These sums up that global management will create the whole
new person who can manage the company internationally.