Chapter 3- Managing in a Global Environment Notes * Today’s companies and managers operate in a borderless world that provides both risks and opportunities * Globalization- Refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries * The most globalized countries according to one ranking are Belgium, Austria, the Netherlands, Switzerland, and Swden * Managers can move their companies into the international arena on a variety of levels, and organizations can be thought of a passing through four distinct stages as they become increasingly global. 1. The four stages are Domestic, International, Multinational, and Global * Two major alternatives for …show more content…

* Companies such as Google doing business in China have experienced the effects of political risk and political instability * Managers must understand and follow the differing laws and regulations in the various countries where they do business * Hofstede’s sociocultural value dimensions measure power distance, uncertainty avoidance, individualism-collectivism, and masculinity femininity * Hofstede’s value dimension is a research that included 116,000 IBM employees in 40 countries. Result of this research they were able to find four dimension of national value system that influence organizational and employee working relationships 2. Power distance- is the degree to which people accept inequality in power among institutions, organizations, and people. Countries value high power distances are Malaysia, the Philippines, and Panama. Countries that value low power distance are Denmark, Austria and Israel. 3. Uncertainty avoidance- is characterized by people’s intolerance for uncertainty and ambiguity and the resulting support for beliefs that promise certainty and conformity. Countries with uncertainty avoidance are Greece, Portugal, and Uruguay. Countries with low uncertainty avoidance values are Singapore and