Management Chapter 4

Front 1

globalization

Back 1

extent to which trade and investments, info, ideas, and political cooperation flow between countries

Front 2

most globalized countries

Back 2

Belgium, Ireland, the Netherlands, Austria, Singapore

Front 3

global mindset

Back 3

ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics

Front 4

China and India

Back 4

1. first steps in international business

2. China: strong in manufacturing

3. India: strong in services

4. both have lower cost tech and scientific brainpower

Front 5

multinational corporation (MNC)

Back 5

1. organization that receives more than 25% of total sales revenue from operations outside parent company's home country

2. has resources to reach and serve world's poorest ppl

Front 6

ethnocentric companies

Back 6

place emphasis on home country

Front 7

polycentric companies

Back 7

oriented toward markets of individual host countries

Front 8

geocentric companies

Back 8

world-oriented

Front 9

bottom of the pyramid (BOP)

Back 9

corporations can alleviate poverty and other social ills, & make significant profits, by selling to world's poor

Front 10

Why go international?

Back 10

1. seek cheaper resources via outsourcing

2. develop markets outside home country

Front 11

global outsourcing

Back 11

offshoring; engaging in international division of labor to obtain cheap sources of labor and supplies

Front 12

market entry strategies

Back 12

tactics managers use to enter foreign markets

Front 13

exporting

Back 13

market-entry strategy when company maintains production facilities in home country and transfers products for sale in foreign countries

Front 14

licensing

Back 14

company in one country makes certain resources available to companies in other countries to participate in production and sale of products abroad

Front 15

franchising

Back 15

form of licensing in which company provides foreign franchisees with complete package of materials and services

Front 16

direct investing

Back 16

market-entry strategy in which organization directly involved in managing its production facilities in a foreign country

Front 17

greenfield venture

Back 17

company builds a subsidiary from scratch in a foreign country

Front 18

joint venture

Back 18

organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, set up sales and distribution network

Front 19

wholly owned foreign affiliate

Back 19

foreign subsidiary over which an organization has complete control

Front 20

international management

Back 20

managing business operations in more than one country

Front 21

economic development

Back 21

1. developed countries

2. less-developed countries (LDCs)

Front 22

infrastructure

Back 22

country's physical facilities (highways, utilities, airports) that support economic activity

Front 23

global competitiveness

Back 23

U.S. is #7

Front 24

political risk

Back 24

company's risk of loss of assets, earning power, managerial control due to politically based events or actions by host governments

Front 25

political instability

Back 25

events such as riots, revolutions, or government upheavals that can affect operations of an international company

Front 26

Arab Spring

Back 26

protests in Arab world that began in late 2010, created tumultuous environment for businesses operating in region

Front 27

ethnocentrism

Back 27

natural tendency among ppl to regard their own culture as superior to others

Front 28

Hofstede's sociocultural value dimensions

Back 28

1. power distance

2. uncertainty avoidance

3. individualism-collectivism

4. masculinity-femininity

5. long-term orientation - short-term orientation

Front 29

power distance

Back 29

degree to which ppl accept inequality in power among institutions, organizations, and ppl

Front 30

uncertainty avoidance

Back 30

ppl's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity

Front 31

individualism

Back 31

preference for loosely knit social framework in which individuals are expected to take care of themselves

Front 32

collectivism

Back 32

preference for tightly knit social framework in which individuals look after one another and organizations protect member's interest

Front 33

masculinity

Back 33

cultural preference for achievement, heroism, assertiveness, work centrality, material success

Front 34

feminity

Back 34

cultural preference for relationships, cooperation, group decision making, and quality of life

Front 35

long-term orientation

Back 35

greater concern for future and high value on thrift and perseverance

Front 36

short-term orientation

Back 36

concern with the past and high value on meeting current obligations

Front 37

GLOBE project extra dimensions

Back 37

1. assertiveness

2. future orientation

3. gender differentiation

4. performance orientation

5. human orientation

Front 38

high-context culture

Back 38

ppl use communication to build personal relationships (China)

Front 39

low-context culture

Back 39

ppl use communication mostly to exchange facts and info (U.S.)

Front 40

cultural intelligence

Back 40

ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond

1. cognitive CQ

2. emotional CQ

3. physical CQ

Front 41

WTO

Back 41

1. World Trade Organization

2. permanent membership organization that monitors trade and has authority to arbitrate disputes among 159 member countries

Front 42

EU and NAFTA

Back 42

1. European Union

2. North American Free Trade Agreement

Front 43

euro

Back 43

single European currency that has replaced currencies of 16 EU member nations