Chapter 6 Study Guide Flashcards
(19 cards)
Which 3 regions dominate the global economy?
North America, Western Europe, and Asia
Which country is becoming the largest producer and consumer of goods?
China
What is NAFTA?
North American Free Trade Agreement
Which country provides significant online computer and software support for the US?
India
Contracting with an outside provider to produce one or more of an organization’s goods or services.
Outsourcing
Moving work to other countries.
Offshoring
- Expansion of international trade.
- Foreign direct investment (FDI) is playing an ever- increasing role in the global economy.
- Imports are penetrating deeper into the world’s largest economies.
- Companies are finding their home markets under attack from foreign competitors.
The Consequences of a Global Economy
An arrangement by which a licensee in another country buys the rights to manufacture a company’s product in its own country for a negotiated fee.
Licensing
When a company sells limited rights to use its brand name to franchisees in return for a lump-sum payment and a share of the franchisee’s profits. The franchisee has to abide by strict rules regarding how it does business.
Franchising
Parent-company nationals who are sent to work at a foreign subsidiary.
Expatriates
A foreign national brought in to work at the parent company.
Inpatriates
Natives of the country where an overseas subsidiary is located.
Host-country Nationals
Natives of a country other than the home country or the host country of an overseas subsidiary.
Third-country Nationals
The tendency to judge others by the standards of one’s group or culture, which are seen as superior.
Ethnocentrism
The disorientation and stress associated with being in a foreign environment.
Culture Shock
The extent to which a society values quantity of life (accomplishment, money) over quality of life (compassion, beauty).
Hofstede’s national culture dimensions of masculinity/femininity
The extent to which people in a society feel threatened by uncertain and ambiguous situations.
Hofstede’s national culture dimensions of uncertainty avoidance
The extent to which people act on their own or as a part of a group.
Hofstede’s national culture dimensions of individualism/collectivism
The extent to which a society accepts the fact that power in organizations is distributed unequally.
Hofstede’s national culture dimensions of Power Distance
