Chapter 7 - Global Management Flashcards
(19 cards)
Global Village
Shrinking of time and space as air travel and electronic media have made it easier for the people to communicate each other
One Big World Market
Refers to the increasing tendency of the economies of the world to interact with one another
Mega mergers & minifirms
Opposite kind of business
International Management
Higher salary and more marketable
Multinational Corporation
Business firm with operations in several countries. AT&T, Walmart etc
Multinational organizations
A non profit organization with operation in several countries.
RedCross, World health organization
3 types of international managers
Ethnocentric, oily centric, geocentric
Ethnocentric Managers
Believes that their native country are superior to all others
Polycentric Managers
Believe that the native managers in the foreign offices best understand native personnel and practices
Geocentric managers
Use whatever techniques are most effective
How to expand internationally
- Global Outsourcing
- Importing, exporting and Countertrading
- Licensing and Francchising
- Joint Ventures
- Wholly Owned Subsidiaries
Free Trade
Movement of goods and services among nations without political or economic obstruction
Barriers of international trade
Tariffs, Import Quotas, Embargoes
Tariff
Customs duty, tax
Import quotas
Limit numbers of a product that can be imported
Embargoes
Complete ban on the import of export of certain products
major trading blocs
NAFTA, EU, APEC, ASEAN, Mercosur
Cultural differences
A nation’s culture is the shared set of beliefs, values and knowledge and patterns of behavior common to a group of people.
Low context culture NA
High context culture China, Japan
What is globalization?
Is the world economy becoming a more independent system
