Chapter 4 Flashcards
(26 cards)
The trend of the world economy towards becoming a more interdependent system
Globalization
Three important developments:
(1) Rise of the global village and electronic commerce
(2) The world becoming one market instead of many national ones
(3) The rise of both mega firms and internet enables mini firms worldwide
The shrinking of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another
Global Village
The buying and selling of products and services through 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
Results of the Internet:
(1) Small companies can get started more easily
(2) Small companies can maneuver faster
The ability to operate in different cultural settings
Cross cultural awareness
A business with operations in several countries.
Multinational Corporation
A nonprofit organization with operations in several countries
Multinational Organization
Believe that their native country, culture, language and behavior are superior to all others.
Ethnocentric Managers
Narrow view in which people see things solely through their own persepctive
Parochialism
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
Accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.
Geocentric Managers
Shared set of beliefs, values, knowledge and patterns of behavior common to a group of people
Culture
Shared meanings are primarily derived from written and spoken words
Low-context Culture
People rely heavily on situational cues for meaning when communicating with others
High-context culture
Holfstede Model of four cultural dimensions:
(1) Individualism/ Collectivism
(2) Power distance
(3) Uncertainty avoidance
(4) Masculinity/ femininity
Degree to which people accept inequality in social situations
Power Distance
Expresses people’s tolerance for uncertainty and risk
Uncertainty Avoidance
A massive and ongoing cross cultural investigation of nine cultural dimensions involved in leadership and organizational processes
GLOBE project
Nine cultural dimensions
(1) Power distance
(2) Uncertainty avoidance
(3) Institutional Collectivism
(4) In group collectivism
(5) Gender egalitarianism
(6) Assertiveness
(7) Future orientation
(8) Performance orientation
(9) Human orientation
How do you go about bridging cross cultural gaps?
(1) Language
(2) Interpersonal space
(3) Communication
(4) Time orientation
(5) Religion
(6) Law and political stability
Preference for doing one thing at a time
Mono chronic Time
Preference for doing more than one thing at a time
Poly chronic Time
