Ibus 590: Exam 1- Chapter 3

Front 1

Includes other elements besides national culture that can produce important differences. It's extremly important for better multinational management.

Back 1

Institutional Context

Front 2

Made up of the respective national cultures and social institutions of any society.

National cultures of any society shape the important norms, values, and beliefs in any society.

Back 2

National Context

Front 3

What are three key factors affecting social institutions?

Back 3

•The economic systems
•The level of industrialization
•The religions

Front 4

Constrains behaviors through rules

Back 4

Regulative social institution

Front 5

Widely shared knowledge regarding how things are done

Back 5

Cognitive dimension

Front 6

Values and norms promulgated by the social institution

Back 6

Normative dimension

Front 7

Pressure to follow similar paths in management practices

Back 7

Organizational isomorphism

Front 8

Forces that coerce organizations to adopt certain practices

Back 8

Coercive isomorphism

Front 9

Organizations purposefully copy the strategies of the most successful organizations

Back 9

Mimetic isomorphism

Front 10

Conformance to professional and technical norms

Back 10

Normative isomorphism

Front 11

Production is decentralized to private owners

Owners perform these activities to make profits

Back 11

Capitalist/market economy

Front 12

Production resources are owned by the state

Production decisions are centrally coordinated

Back 12

Socialist/command economy

Front 13

Combines aspects of capitalist and socialist economies

Back 13

Mixed economy

Front 14

The absence of government coercion or constraint on the production, distribution, or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself

Back 14

Index of Economy Freedom

Front 15

The index includes 10 indicators ranging from trade policy, taxation policies, and the level of governmental intervention in the economy to property rights and regulation

Back 15

True

Front 16

Decisions to operate in a country can be made based on the dominant economic type

Back 16

Implications

Front 17

In mixed economies, multinationals should expect to subordinate its economic goals and respect social objectives

Back 17

True

Front 18

Multinationals should also expect to develop more formal relations with the government in mixed economies

Back 18

True

Front 19

Index of economic freedom can be used to determine the extent of governmental intervention

Back 19

True

Front 20

Changes societies experience as they move from socialism to a market based economy

Back 20

Market Transitions

Front 21

What are Multinational implications?

Back 21

•Need to turn around inefficient formerly state-owned companies to perform business functions

•Motivational issues with workers

Front 22

Transfer of state ownership to private individuals

Back 22

Privatization

Front 23

Implicatations of privatization?

Back 23

•Significant opportunities to invest in companies

•Opportunities to access new markets and cheap labor

Front 24

How production is organized and distributed in society

Back 24

Industrialization

Front 25

Agriculture dominates the economic environment

Back 25

Pre-industrial society

Front 26

Dominance of the secondary or manufacturing sectors

Back 26

Industrial society

Front 27

Emphasis on the service sectors

Back 27

Postindustrial society

Front 28

Implications of industrialization?

Back 28

•Direct correspondence between industrialization and economic development

•Industrial societies favor growth and innovation
•Favorable environment for business
•Industrial societies present significant market size and growth

Front 29

Characteristics of Postindustrial societies?

Back 29

•Emphasis on quality-of-life as opposed to economic achievement

•People more likely to espouse individual expression values and movement toward more humane societies

•Post-materialist values

Front 30

Shared set of beliefs, activities, and institutions that have basis upon faith in supernatural forces

Back 30

Religion

Front 31

Organized networks of socialization experiences which prepare individuals to act in society.

Helps construct competencies, professions and professionals

Back 31

Education

Front 32

What are the implications of education?

Back 32

•Gives an idea of the skills level of workers in any society

•The more educated, the more skills workers have

•Multinationals can look at educational attainment scores to determine the nature of the workforce

Front 33

Refers to the degree to which people have privileged access to resources and positions within societies.

Back 33

Social inequality

Front 34

What are the implications of social inequality?

Back 34

•Multinational companies are facing significant criticisms for their operations in countries with high social inequalities

•Many multinational companies are realizing that it is sometimes in their interest to be more socially responsible to mitigate social inequalities

•Many multinational companies now actively avoid countries with high inequalities to prevent potential negative publicity

Front 35

Has significant influence on a company’s strategy

Determines the comparative advantage of nations, which ultimately determines which strategies multinational companies choose

Also determines the global platform, namely the areas of business that can be performed the best in a country

Plays an important role in the human aspect of international management

Is a determinant of the nature of the relationship between workers and their superiors

Back 35

National context