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7 Cards in this Set
- Front
- Back
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What is Multinational Corporations?
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a corp that owns businesses in 2 or more countries.
thousands all over the world |
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Direct Foreign Investment
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a method of investment in which a company builds a new business or buys an existing business in a foreign country.
*Foreign companies invest over 2.1 trillion a year to do business in the US *U.S. companies have made their largest direct foreign investments in the UK, Netherlands, and Canada. Invest over 2.8 trillion a year to do business in other countries |
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Trade Barriers
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Government imposed regulations that increase the cost and restrict the number of imported goods
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What are Hofstede's 5 cultural dimensions?
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1. Power Distance: status/power
2. Individualism: individual/collective 3. Masculinity/Femininity: $/ Life 4. Long Term/Short Term orientation: whether cultures are oriented toward the present or future goals, immediate gratification versus delayed gratification. 5. Uncertainty Avoidance: Risk Taking- comfortable not knowing, unpredictable, flexibility? Unstructured, ambiguous. |
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What are the 6 different ways a business can go global?
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1. Exporting: selling domestically produced products to customers in foreign countries
2.Cooperative Contracts: sign a contract with a foreign business owner who pays the company a fee for the right to conduct its business in his or her country. There are 2 kinds: licensing (receives payments to allow another company to produce its product) and franchising (licenses entire business) 3. Strategic Alliance: companies combine key resources, costs, risk, technology, and people 4. Joint venture: 2 existing companies collaborate to from a third independent company. 5. Wholly Owned Affiliate: foreign offices, facilities, and manufacturing plants that are 100 % owned by the parent company. 6. Global new Venture: new companies that are founded with an active global strategy and have sales, employees, and financing in different countries. |
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What is National Culture?
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set of shared values and beliefs that affect the perceptions, decisions, and behavior of the people from a particular country.
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What are methods to help prepare for an international assignment?
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1. Language and cross cultural training: can reduce the uncertainty that expatriates (someone who lives and works outside his or her native country) feel.
*Practice cultural simulations to practice adapting to cultural differences. 2. Consideration of Spouse, Family, and Dual career issues Use: Adaptability Screening: to assess how well managers and their families are likely to adjust to foreign cultures |
