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Flashcards in Chapter3 Deck (42):
2

Global Management

Involves managing operations in more than one country

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Global manager

Is culturaly aware and informed on international affairs

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Global Business

Conduct comercial transactions across national boundaries

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Going Global: 5 Market entry strategies

- Global outsoursing - Exporting - Importing - Licinsing - Franchising

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Going Global: 2 Direct investment strategies

- Joint Ventures- Foreign subsidaries

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Global Sourcing

Material or services are purchassed around the world for local use

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Exporting

Local products are sold abroad to foreign customers

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Importing

Involves the selling in domestic markets of products acquired abroad

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Licensing

A local firm pays a fee to a foreign firm for rights to make or sell its products

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Insourcing

Job creation through foreign direct investment

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Joint Venture

Operates in foreign country through co-ownership by foreign and local partners

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Global strategic alliance

Partnership in which foreign and domestic firms share resources and knowledge for mutual gain

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Foreign Subsidiary

A local operation completly owned by a foreign firm

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Greenfield investment

Builds an entierly new operation in a foreign country

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Political Risk

The potential loss in value of forein investment due to instability and political changes in the host country

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World Trade Organization

Member nations agree to negociate and resolve disputes about tariffs and trade restrictions

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Tariffs

Taxes government levy on imports from abroad

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Protectionism

A call for tariff and favourable treatment to protect firms from foreign competition

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NAFTA

North American Free trade Agreement

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Global Corporation / MNC

Multinational Corporation with extensive operations in more that one foreign country

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Transnational Corporation

MNC that operates worldwide on a borderless baisis

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Corruption

Involves illegal practices to further one's business interest

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Child Labour

Full time employment of childrun for work otherwise done by adults

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Sweatshops

employ workers at very low wages for long hours in pour working conditions

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Culture Shock

The confusion and discomfort z person experiences when in an unfamilliar environment

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Ethnocentrism

The tendency to consider one's culture supperior to others

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Cultural Inteligence

The ability to accept and adapt to new cultures

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Low Context Cultures

Emphasize comunication via spoken and written words

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High Context Cultures

Rely on non verbal and situational cues as well as on spoken or written words in communication

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Monochronic Cultures

People tend to do one thing at the time

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Polychronic Cultures

Time is used to accomplish many different things at once

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Proxemics

How people use space to comunicate

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Ecological Fallacy**

Assumes that a generalized cultural value applies equaly well to all members of the culture

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Hofstede 5 dimentions of culture

- Power distance - Uncertainty avoidance - Individualism / collectivism - masculinity/ Femininity - Short/Long term orientation

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Cooperative Management

Studies how Management practices differ among countries and cultures

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Polycentric attitude

Respect local knowledge and allows foreign operations to run with substential freedom

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Geocentric Attitude

High in cultural inteligence and take a collaborative approach to global management prectices

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5 Criteria of Useful information

- Timely - High Quality - Complete - Relevant- Understandable

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Globalization

The PROCESS of growing interdependence among elements of the global economy

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Franchising

A fee is paid to a foreign business for rights to locally operate using its name, branding and methodes

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Foreign Direct Investment

Building, buying all or buying part ownership of a business in another country

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Sustainable Development

Meets the needs of present without hurting future generations