chapter 4 Flashcards
(32 cards)
the trend of the world economy toward becoming a more interdependent system
globalization
electronic commerce; the buying and selling of goods or services over computer networks
e- commerce
the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets
global economy
the ability to operate in different cultural settings
Cross cultural awareness
management that oversees the conduct of operations in or with organizations in foreign countries
international management
a business firm with operations in several countries
multinational corporations
a nonprofit organization with operations in several countries
multinational organizations
managers who believe that their native country, culture, language, and behavior are superior to all others
Ethnocentric managers
a narrow view in which people see things solely through their own perspective
parochialism
managers who take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
polycentric managers
foreign owned manufacturing plants allowed to operate in Mexico with special privileges in return form employing mexican citizens
Maquiladoras
using suppliers outside the company to provide goods and services
outsourcing
also called offshore outsourcing; use of suppliers outside the US to provide labor, goods, or services
global outsourcing
buying goods outside the country and reselling them domestically
importing
producing goods domestically and selling them outside the country
exporting
the movement of goods and services among nations without political or economic obstruction
free trade
a trade barrier in the form of a customs duty, or tax, levied mainly on imports
tariffs
trade barrier in the form of a limit on the numbers of a product that can be imported
important quotas
also known as an economic community, it is a group of nations within a geographical region that have agreed to remove trade barriers with each other
trading bloc
a trading bloc consisting of the US, canada, and mexico
north armerican free trade agreement
the rate at which the currency of one area or country can be exchanged for the currency of another’s
exchange rates
shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people
culture
culture in which shared meanings are primarily derived form written and spoken words
low context culture
culture in which people rely heavily on situational cues for meaning when communicating with others
high context culture
