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60 Cards in this Set
- Front
- Back
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Global business
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The buying and selling of goods and services by people from different countries.
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Multinational corporation
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A corporation that owns businesses in two or more countries.
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Direct Foreign Investment
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A company that builds new businesses or buys an existing business in a foreign country.
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Tariff
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Direct tax on imported goods.
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Nontariff Barriers
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Indirect ways of adjusting prices.
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Name the 5 nontariff barriers.
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1) Quotas
2) Voluntary export restraints 3) Government import standards 4) Government subsidies 5) Customs Valuation/Classification |
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What is GATT?
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General Agreement on Tariffs and Trade. It made it easier and cheaper for consumers in all countries to buy foreign products.
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What are some of the regional trading zones called?
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1) EU
2) Nafta 3) FTAA 4) ASEAN and APEC |
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What do Free Trade Agreements increase and decrease?
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Increase: choices, competition and purchasing power.
Decrease: food, clothing, necessities and luxuries. |
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Global Consistency
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When a multinational compeny has offices.plants in different countries and uses the same rules, guidelines, policies, and procedures.
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Local Adaptation
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When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies.
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What is the phase model of globalization?
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Exporting, cooperative contracts, strategic alliances, wholly owned affiliates and global new ventures.
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What are the pros and cons of exporting?
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Pros: Less dependance on home market sales; greater control.
Cons: subject to tariff and non-tariff barriers; transportation costs can increase price; may depend on foreign importers for product distribution. |
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Liscensing
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A domestic company receives royalty payments for allowing another company to produce its product, sell a services, or use its brand name in a specified foreign market.
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Franchising
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A collection of networked firms in which the manufacturer or marketer of a product/service licenses the entire business to another person or organization.
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What are the pros and cons of licensing?
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Pros: profits without additional investments-royalty stream; licensor has investment risk; helps avoid tariff and non-tariff barriers.
Cons: control loss over product quality; licenses may eventually become competitors. |
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What are the pros and cons of franchising?
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Pros: fast way to enter foreign markets; good strategy when domestic sales have slowed.
Cons: Franchisers may lose some control; franchising success may be culture-bound. |
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Strategic Alliance
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An agreement in which companies combine key resources, costs, risk, technology, and people.
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Joint Venture
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A strategic alliance in which two existing companies collaborate to form a third, independent company.
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What are the pros and cons of joint ventures?
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Pros: help avoid tariff and non-tariff barriers to entry; share costs/risks of new venture; advantageous to smaller local partners.
Cons: must share profits; 'merging' multiple cultures; power, leadership stuggles. |
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What are 2 common factors of global new ventures?
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1) Common Vision
2) Simultaneous Entry |
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Name the 3 factors to consider when finding a business climate?
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1) Growing markets
2) Location 3) Political risk |
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Growing markets consist of what 2 factors?
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Purchasing power and the degree of global competition
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Name 2 qualitative factors to consider when choosing a business location.
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Work force quality and company strategy.
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Name 4 quantitative factors to consider when choosing a business location.
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1) Facilities
2) tariff and non-tariff barriers 3) Currency/exchange rates 4) Transportation/labor costs |
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Name 3 factors of political risk.
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1) Political uncertainty
2) Policy uncertainty 3) Strategies (avoidance, control and cooperation) |
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National Culture
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the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.
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Name Hofstede's 5 cultural difference.
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1) Power distance
2) Individualism 3) Masculinity and femininity 4) Uncertainty avoidance 5) Short-term/long-term orientation |
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Expatriate
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Someone who lives and works outside his or her native country.
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What are the two things you need to consider while preparing for an international assignment?
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1) Language and Cross-cultural training.
2) Consideration of spouse, family, and dual-career issues. |
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What are some reasons expatriate managers often fail?
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-perceive career blockage.
-culture shock -lack of cross-cultural training -overemphasis on technical qualifications -family problems |
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What is one of the more difficult tasks of being an expatriate?
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Manageing change
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Managing in a globall environment has as much to do with ______ as with leadership of technical skill.
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interpersonal/cosmopolitan knowledge
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What are four additional types of distance?
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1) cultural distance
2) administrative distance 3) Geographic distance 4) Economic Distance |
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The very first step to the change process is to _____.
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create a sense of urgency
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Often the difference between successful vs. unsuccessful change is ______.
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not knowing what to do, bu being able to effectively do it.
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What is the technology cycle?
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A cycle that begins with the "birth" of a new technology and ends when that technology reaches its limits and is replaced by a newer, better technology.
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Organizational innovation
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successful implementation of creative ideas in an organization.
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Creativity
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The production of novel and useful ideas
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Organizational change
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Creating a difference in the form, quality, or condition of an organization over time.
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Innovation streams
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Patterns of innovation over time that can create sustainable competitive advantage.
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Technological discontinuity
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A scientific advance or unique combination of existing technologies that creates a significant breakthrough in performance or function.
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Technological substitution
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When customers purchase new technologies to replace older technologies.
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Era of ferment
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When firms compete over various designs for a given innovation; this is called design competition.
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Dominant design
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Accepted standard, the 'winner' of the design competition.
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Incremental change
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When firms focus on operational/production innovations over new paradigms (minor innovation)
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What are 3 things to manage when creating innovation?
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1) Sources of innovation
2) During discontinuous change 3) During incremental change |
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Creative work environments
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Workplace cultures in which workers perceive that new ideas are encouraged.
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Flow
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The psychological state of effortlessness in which you become absorbed in your work and time seems to pass quickly.
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Name three ways to keep innovation alive.
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1) Look outside the organization
2) Involve your supply chain 3) Cross functional teams |
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What are the steps to the experiential approach in discontinuous innovation?
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1) Design iterations
2) Testing 3) Milestones 4) Multi-functional teams 5) Powerful leaders |
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What are the steps in the compression approach to incremental innovation?
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1) Planning
2) supplier involvement 3) shortening time of individual steps 4) overlapping steps 5) multi-functional teams |
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Generational change
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Incremental improvements made to a dominant design.
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What are the 3 steps Lewin says will manage resistance to change?
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1) Unfreezing
2) Change intervention 3) Refreezing |
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According to Kotter, what are some errors made when elading change?
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1) Not establishing a sense of urgency
2) Lacking a vision. 3) Declaring a victory too soon. |
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What are Kotter's 9 steps for leading change?
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1) Create a sense of urgency
2) Decide what to change 3) Create a guiding coalition and mobilize commitment 4) Shared vision 5) Empower others to make change 6) Short-term wins 7) Consolidate gains 8) Anchor the change 9) Monitor progress and adjust the vision |
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Name 4 tools for change.
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1) Results-driven change
2) GE Workout 3) Transitional Management teams 4) Organizational Development |
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What is a transitional management team?
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A team of employees whose full-time job is to manage and coordinate change.
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Steps of Organizational development interventions
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Intervene, fix, then leave
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What are the 3 kinds of OD interventions?
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1) Large system interventions
2) Small group interventions 3) Person-focused interventions |
