3.5 Managing in a Global Environment

Managing in a global environment entails the following challenges. There are many challenges associated with managing in a global environment.

The Legal-Political Environment:

The legal-political environment doesn't have to be unstable or revolutionary to be a challenge to managers.

It is important to recognize that a country's political system differs from that of Malaysia.

The Economic Environment:

The economic environment also presents many challenges to foreign-based managers, including fluctuations in currency rates, inflation, and diverse tax policies.

In a market economy, resources are primarily owned by the private sector. In a command economy, all economic decisions are planned by a central government.

The Cultural Environment:

Values and attitudes shared by individuals from a specific country that shape their behaviour and their beliefs about what is important.

National culture may have more influence on an organization than the organization culture.