Organisations can choose to enter the global market place in a number of different ways. Regardless of how they choose to do this, if an organisation goes into the global market with the view that ‘our way is the best and only way’, then their chances of success are not good. This view is termed ‘parochialism’.

All managers must seek to recognise, understand and respect foreign customs and market differences.

Managers adopt one of three views of international business:

(a) Ethnocentric perspective – this is the parochial belief that the best work practices and approaches are those of the home nation.

Advantages of this view are that organisations will have simple structures and managers can exercise closer control.

Disadvantages this view are that decision-making may be less effective. There is no flexibility for employees working in foreign locations and there will be difficulties in building good business relationsh

(iv) Quantity versus quality of life contrasts the pursuit of material goods versus the importance of relationships and concern for the welfare of others.

(c) Borderless corporation – as organisations continue to seek an edge in the global marketplace, many larger and well-known companies are globalising their management structure by breaking-down internal arrangements that impose artificial geographic barriers. The development of e-commerce is reinforcing this trend.

National culture refers to the attitudes and perspectives shared by the people of a specific nation or cultural group that shape their behaviour and the way they see the world.

(ii) Power distance – is a measure of the extent to which people accept unequally distributed power.

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