Chapter 4 Globalizaton Management

Front 1

Globalization and it's trends

Back 1

The trend of the world economy toward becoming a more independent system

1 the rise of the "global village" and electronic commerce
2. the worlds becoming one market instead of many national ones
3. the rise of both megafirms and internet-enabled minifirms worldwide

Front 2

global village

Back 2

refers to the shrinking of time and space as air travel and the electronic media have made it easier for the people of the globe to communicate with one another

Front 3

e-commerce / electronic commerce

Back 3

the buying and selling of products and services through computer networks.

Front 4

global economy

Back 4

refers to the increasing tendency of the world to interact with one another as one market instead of many national markets

Front 5

Trends of minifirms operating worldwide

Back 5

1. small companies can get started more easily
2. small companies can maneuver faster

Front 6

Multinational corporation / multinational enterprise

Back 6

is a business firm with operations in several counties ex. ford

Front 7

multinational organization

Back 7

is a non profit organization with operations in several countries. ex. red cross

Front 8

ethnocentric managers

Also can be called Parochialism..

Back 8

believe that their native country, culture, language, and behavior are superior to all others.

parochilalism- the narrow view in which people see things solely through their own perspective

Front 9

polcentric managers

Back 9

take the view that native managers in the foreign offices best understand native personnel and practice and so the home office should leave them alone.

Front 10

geocentric managers

Back 10

accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

Front 11

What are the five reasons that companies expand internationally?

Back 11

1. availability of supplies
2. new markets due to the product life cycle
3. lower labor costs
4. access to financial capital
5. avoidance of tariffs and import quotas

Front 12

maquiladoras

Back 12

manufacturing plants allowed to operate in mexico with special privileges in return for employing Mexican citizens

Front 13

outsourcing

Back 13

defined as using suppliers outside the company to provide goods and services

Front 14

global outsourcing

Back 14

using suppliers outside the u.s to provide labor, goods, or services

Front 15

franchising

Back 15

form of licensing in which a company allows a foreign copay to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services

Front 16

joint venture/strategic alliance

Back 16

with a foreign company to share the risks and reqards of starting a new enterprise together in a foreign country

Front 17

wholly-owned subsidiary

Back 17

a foreign subsidiary that is totally owned and controlled by an organization

Front 18

greenfield venture

Back 18

a foreign subsidiary that the owning organization has built from scratch.

Front 19

free trade

Back 19

the movement of goods and services among nations without political or economic obstruction

Front 20

trade protectionism

Back 20

The use of government regulations to limit the import of goods and services

Front 21

tariff

Back 21

a trade barrier in the form of a customs duty, or tax, levied mainly on imports

Front 22

import quota

Back 22

trade barrier in the form of a limit on the numbers of a product that can be imported

Front 23

dumping

Back 23

the practice of a foreign company exporting products abroad at a lower price than the price in the home market- or even below the costs of production in order to drive down the price of the domestic product

Front 24

World Trade Organization

Back 24

is designed to monitor and enforce trade agreements

Front 25

world bank

Back 25

provides low interest loans to developing nations for improving transportation, education, health and telecommunications

Front 26

international monetary fund

Back 26

designed to assist in smoothing the flow of money between nations

Front 27

trading bloc/economic community

Back 27

group of nations within a geographical region that have agreed to remove trade barriers with one another

Front 28

north american free trade agreement

european union

Back 28

consist of trading partners within these groups

Front 29

asia pacific economic cooperation

Back 29

purpose is to improve economic and political ties

Front 30

mercosur

Back 30

the largest trade block in latin america has four core members

Front 31

central america free trade agreement

Back 31

aimed at reducing tariffs and other barriers to free trade

Front 32

most favored nation

Back 32

trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties.

Front 33

culture

Back 33

shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

Front 34

low contest culture

Back 34

shared meanings are primarily derived from written and spoken words

Front 35

high context culture

Back 35

people rely heavily on situational cues for meaning when communicating with others

Front 36

Hofstede model of four cultural dimensions

Back 36

identified four dimensions along which national cultures can be placed

1. individualism/collectivism
2. power distance
3. uncertainty avoidance
4. masculinity/femininity

Front 37

GLOBE project

Back 37

massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes.

Front 38

monchromatic time

Back 38

is a preference for doing things on time

Front 39

polychronic time

Back 39

preference for doing more than one thing at a time

Front 40

expatriates

Back 40

people living or working in a foreign country