Global Management
Involves managing operations in more than one country
Global manager
Is culturaly aware and informed on international affairs
Global Business
Conduct comercial transactions across national boundaries
Going Global: 5 Market entry strategies
- Global outsoursing - Exporting - Importing - Licinsing - Franchising
Going Global: 2 Direct investment strategies
- Joint Ventures- Foreign subsidaries
Global Sourcing
Material or services are purchassed around the world for local use
Exporting
Local products are sold abroad to foreign customers
Importing
Involves the selling in domestic markets of products acquired abroad
Licensing
A local firm pays a fee to a foreign firm for rights to make or sell its products
Insourcing
Job creation through foreign direct investment
Joint Venture
Operates in foreign country through co-ownership by foreign and local partners
Global strategic alliance
Partnership in which foreign and domestic firms share resources and knowledge for mutual gain
Foreign Subsidiary
A local operation completly owned by a foreign firm
Greenfield investment
Builds an entierly new operation in a foreign country
Political Risk
The potential loss in value of forein investment due to instability and political changes in the host country
World Trade Organization
Member nations agree to negociate and resolve disputes about tariffs and trade restrictions
Tariffs
Taxes government levy on imports from abroad
Protectionism
A call for tariff and favourable treatment to protect firms from foreign competition
NAFTA
North American Free trade Agreement
Global Corporation / MNC
Multinational Corporation with extensive operations in more that one foreign country
Transnational Corporation
MNC that operates worldwide on a borderless baisis
Corruption
Involves illegal practices to further one’s business interest
Child Labour
Full time employment of childrun for work otherwise done by adults
Sweatshops
employ workers at very low wages for long hours in pour working conditions
Culture Shock
The confusion and discomfort z person experiences when in an unfamilliar environment
Ethnocentrism
The tendency to consider one’s culture supperior to others
Cultural Inteligence
The ability to accept and adapt to new cultures
Low Context Cultures
Emphasize comunication via spoken and written words
High Context Cultures
Rely on non verbal and situational cues as well as on spoken or written words in communication
Monochronic Cultures
People tend to do one thing at the time
Polychronic Cultures
Time is used to accomplish many different things at once
Proxemics
How people use space to comunicate
Ecological Fallacy**
Assumes that a generalized cultural value applies equaly well to all members of the culture
Hofstede 5 dimentions of culture
- Power distance - Uncertainty avoidance - Individualism / collectivism - masculinity/ Femininity - Short/Long term orientation
Cooperative Management
Studies how Management practices differ among countries and cultures
Polycentric attitude
Respect local knowledge and allows foreign operations to run with substential freedom
Geocentric Attitude
High in cultural inteligence and take a collaborative approach to global management prectices
5 Criteria of Useful information
- Timely - High Quality - Complete - Relevant- Understandable
Globalization
The PROCESS of growing interdependence among elements of the global economy
Franchising
A fee is paid to a foreign business for rights to locally operate using its name, branding and methodes
Foreign Direct Investment
Building, buying all or buying part ownership of a business in another country
Sustainable Development
Meets the needs of present without hurting future generations