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Flashcards in Chapter 4 Deck (30):
1

Globalization

The trend of the world economy toward being a more interdependent system

2

Multinational corporation

Business firm with operations in several countries

3

Multinational organization

Nonprofit organiazation with operations in several countries

4

Ethnocentric managers

Believe that their native country, culture, language, and behavior are superior to all others

5

Parochialism

Narrow view in which people see things solely through their own perspectives

6

Poly centric managers

Take the view that native managers in the foreign offices best understand native personnel and practices, and so home office should leave them alone

7

Geocentric managers

Accept that there are differences and similarities between home and foreign personnel and practices that they should use whatever techniques are most effective

8

What are the 5 ways of expanding internationally

LOWEST RISK AND INVESTMENT
Global outsourcing
Importing, exporting, and counter trading
Licensing and Franchising
Joint Ventures
Wholly owned subsidiaries
HIGHEST RISK AND INVESTMENT

9

Global outsourcing

Using suppliers outside the US to provide labor, goods, or services
AKA offshoring

10

Importing

A company buys goods outside the country and resells them domestically

11

Exporting

A company produces goods domestically and sells them outside the country

12

Counter-trading

Bartering goods for goods

13

Lincensing

A company allows a foreign company to pay it a fee to make or distribute the firms product or service

14

Franchising

A company allows a foreign company to pay it a fee and a share of the profit in return for using the company’s brand name and a package of materials and services

15

Joint ventures

Formed with a foreign country to share the risks and rewards of starting a new enterprise together in a foreign country “strategic alliance”

16

Wholly-owned subsidiary

Foreign subsidiary that is totally owned and controlled by an organization

17

Greenfield venture

A foreign subsidiary that the owning organization has built from scratch

18

What is NAFTA

The major trading bloc of the US, Canada, and Mexico

19

What is the EU?

The European Union major trading bloc
28 trading partners in Europe

20

Power distance (Cultural Dimensions)

How much unequal distribution of power should there be in organizations and society

21

Uncertainty Avoidance (Cultural Dimensions)

How much should people rely on social norms and rules to avoid uncertainty

22

Institutional collectivism (Cultural Dimensions)

How much should leader encourage and reward loyalty to the social unit

23

In-group collectivism (Cultural Dimensions)

How much pride and loyalty should people have for their family or organization

24

Gender egalitarianism (Cultural Dimensions)

How much should society maximize gender role differences

25

Assertiveness (Cultural Dimensions)

How confrontational and dominant should individuals be in social relationships

26

Future orientation (Cultural Dimensions)

How much should people delay gratification by planning and saving for the future

27

Performance orientation (Cultural Dimensions)

How much should individuals be rewarded for improvement and excellence

28

Humane orientation (Cultural Dimensions)

How much should society encourage and reward people for being generous, kind fair, and friendly

29

Two types of time orientation

Mono chronic: linear timeline, people do one thing at a time
Polychronic: cyclical timeline, interruptions acceptable

30

Expatriates

People living or working in a foreign country
10% to 20% of all US managers are sent abroad and return early because of job dissatisfaction or adjustment difficulties