MGT 300 Lecture Notes - Lecture 4: World Economy, Offshoring, Finance Capitalism

• School: University of Alabama
• Department: Management
• Course: MGT 300
• Professor: Eric Williams

Document Summary

Globalization trend of the world economy toward becoming a more interdependent system. Shrinking of time & space as air travel & the electronic media make it easier & less costly for people to communicate & do business. Offshoring & foreign direct investment in america. Global economy increasing tendency of the economies of the world to interact with one another as one market instead of many national markers. Vast surplus fund from global investments flowed into u. s. that were invested badly in subprime mortgages. Ethnocentric manager believe that their native country, culture, language, Polycentric manager take the view that native managers in the foreign offices best understand native personnel/practices, and so the home office should leave them alone. Geocentric manager accept that there are differences & similarities between home & foreign personnel & practices & that they should use whatever techniques are most effective.