<p> Chapter 2: Environmental Constraints on Managers Understanding the Global Environment</p><p> The global environment presents both ______and ______for managers.  With the marketplace now ______and national borders becoming increasingly irrelevant, the potential for organizations to grow is expanding dramatically.  Managers working within the global environment must deal with:  ______differences  ______differences  ______differences  New ______from around the globe that can appear at any time</p><p>Global Trade  An important part of the global environment is global ______ Global trade has been around for centuries, and is shaped by several regional trading alliances and agreements that are negotiated through the ______ Examples: European Union (EU) North America Free Trade Agreement (NAFTA)</p><p>The Legal-Political Environment  Canadian managers are used to ______legal and political systems, this however is not the case in some countries of the world  Managers in such countries face uncertainty and are not always to accurately ______outcomes due to such circumstances  Example: Google in China</p><p>The Economic Environment  The global manager must be aware of the economic system under which a country operates when conducting business globally.  A ______is one in which resources are primarily owned and controlled by the private sector (Ex. Canada)  A ______is one in which all economic decisions are planned by a central government.</p><p>The Cultural Environment  National culture has a ______effect on employees than does their organization’s culture…what is national culture?  ______are the values and attitudes shared by individuals from a specific country that shape their behaviour and beliefs about what is important.</p><p>HOFSTEDE’S CULTURAL DIMENSIONS  Studied 116,000 IBM employees in 40 different countries  He was able to classify their ______and ______into four distinct categories  His research proved useful to managers in determining Canada’s placement (Scale: High to low)  Good managers must recognize the ______in order to be successful. </p><p>Individualism Vs. Collectivism ______– Look after their own interests and those of the immediate family (Example: US, Canada) ______- People prefer to act as members of a group and expect to be looked after and protected. (Example: Mexico, Thailand)</p><p>Power Distance Power Distance – A society that accepts that power is ______within an organization or institution. Employees have a high regard and respect for those in positions of ______.</p><p>Uncertainty Avoidance Uncertainty Avoidance – This refers to the degree to which people tolerate ______and prefer structured over unstructured situations. People in a society with high uncertainty avoidance tend to be ______.</p><p>Achievement Vs. Nurturing  Achievement is the degree to which values such as ______is seen as important (Example: US, Japan)  Nurturing emphasizes ______and concern for others. (Example: France, Sweden)</p><p>Long Term and Short Term Orientation  This attribute looks at a country’s orientation toward ______.  Long term Orientation – People look to the ______and value thrift and persistence; leisure time ______. (Example: China, Japan)  Short term Orientation – People value the ______and emphasizes respect for tradition and fulfilling social obligations; leisure time ______(Example: Canada, US, Australia)</p>