Chapter 3

Question 1

What is globalization?

Answer 1

The trend of the world economy toward becoming a more interdependent system in which there are 3 different developments of the world

Question 2

The 3 different developments of the world

Answer 2

• The rise of the global village and electronic commerce
• The worlds becoming one market instead of many national ones
• The rise of both megafirms and Internet-enabled minifirms worldwide

Question 3

What did Rosabeth Kantor say about global reactions to international business ?

Answer 3

We are now beginning to see changes to things happening from the 80’s like the Berlin Wall

Question 4

What is the Global Economy?

Answer 4

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

Question 5

What are some positive effects of globalization?

Answer 5

For example in India, you cannot find any soft drinks in Coke or Pepsi, and there are a lot of foreign firms building plants in the United States, which helps revitalize America.
Globalization could potentially lead to better and more affordable products and better communication among countries.

Question 6

Negative effects of globalization?

Answer 6

which is the movement or outsourcing of formerly well-paying jobs overseas when companies seek cheaper labor

Question 7

What is goal of mergers?

Answer 7

The goal is sto share the cost of research and production.

Question 8

Minifirms?

Answer 8

Small internet based companies. They are able to start up easier and can maneuver faster

Question 9

Bonuses to working with firms outside the US?

Answer 9

Working with foreign customers or partners, dealing with foreign employees or suppliers or working for a foreign firm in the United States or working for an American firm outside the united states for a foreign company are all situations where being well traveled and versed can come in handy.

Question 10

What are the 3 different types of international managers?

Answer 10

Geocentric, Ethnocentric and Polycentric.

Question 11

Ethnocentric

Answer 11

believe that their native country, culture and language are superior to others. They believe that they can export their customs to anyone and anywhere in the world.
• Ethnocentrism can be bad for business and can affect purchasing decisions as well.

Question 12

Polycentric Managers

Answer 12

take the view that native managers in foreign offices best understand native personnel and practices, so the home office should leave them alone. Polycentric managers are the exact opposite of ethnocentric managers.

Question 13

Geocentric

Answer 13

accept that there are differences and similarities of foreign personnel and practices that they should use whatever techniques are most effective. Being ethnocentric or polycentric is easier, but the payoff of being a geocentric manager is greater.

Question 14

What is culture

Answer 14

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

Question 15

What did Edward T. Hill say about culture?

Answer 15

that since so much culture operates outside of our awareness, we unconsciously learn what to notice and what not to notice

Question 16

Culture Shock?

Answer 16

the feelings of discomfort and disorientation that may experience when introduced to new or different culture sets

Question 17

Low-Context Culture

Answer 17

culture is where shared meaning are primarily derived from written and spoke words (Like people from North America )

Question 18

High-Context Culture

Answer 18

culture in which people rely on situational cues for meaning when communicating with others.

Question 19

What is the GLOBE project?

Answer 19

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

Question 20

What does GLOBE stand for?

Answer 20

Global Leadership and Organizational Behavior Effectiveness, of 150+ scholars from 62 societies.

Question 21

What are the nine cultural dimensions of GLOBE?

Answer 21

Power Distance, Uncertainty Avoidance, Institutional Collectivism, In Group Collectivism, Gender Egalitarianism, Assertiveness and Future Orientation, Performance Orientation and Humane Orientation

Question 22

What are the different culture variations ?

Answer 22

Language, Interpersonal Space, Communication, Time Orientation, Religion and Law and Political Stability

Question 23

1978 Foreign Corrupt Practices Act

Answer 23

makes it illegal for employees of us companies to make questionable or dubious contributions to political decision makers in foreign nations.

Question 24

What is labor abuse?

Answer 24

• overseas supplier may offer low prices but working conditions can be harsh as has been the case with garment makers in Bangladesh, the DR and other countries.

Question 25

Interpersonal space (Definition)

Answer 25

People of different cultures have different ideas about what is acceptable interpersonal space – that is how close or far away one should be when communicating with another person.

Question 26

Monochronic Time

Answer 26

Monochronic time is a preference for doing one thing at a time. In this perception, time is viewed as being limited, segmented and schedule driven.

Question 27

Polychronic Time

Answer 27

a preference for doing more than one thing at a time. Here, time is viewed as being flexible and multi-dimensional. An example of this is when you visit a Latin American client and you find yourself sitting in the waiting room for 45 minutes only to realize they were dealing with 3 other clients.

Question 28

Expropriation

Answer 28

as a governments seizure of domestic or foreign company’s assets.