GMS Chap 3

Question 1

Global Management

Answer 1

Involves managing operations in more than one country

Question 2

Global manager

Answer 2

Is culturaly aware and informed on international affairs

Question 3

Global Business

Answer 3

Conduct comercial transactions across national boundaries

Question 4

Going Global: 5 Market entry strategies

Answer 4

• Global outsoursing
• Exporting
• Importing
• Licinsing
• Franchising

Question 5

Going Global: 2 Direct investment strategies

Answer 5

• Joint Ventures

- Foreign subsidaries

Question 6

Global Sourcing

Answer 6

Material or services are purchassed around the world for local use

Question 7

Exporting

Answer 7

Local products are sold abroad to foreign customers

Question 8

Importing

Answer 8

Involves the selling in domestic markets of products acquired abroad

Question 9

Licensing

Answer 9

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

Question 10

Insourcing

Answer 10

Job creation through foreign direct investment

Question 11

Joint Venture

Answer 11

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

Question 12

Global strategic alliance

Answer 12

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

Question 13

Foreign Subsidiary

Answer 13

A local operation completly owned by a foreign firm

Question 14

Greenfield investment

Answer 14

Builds an entierly new operation in a foreign country

Question 15

Political Risk

Answer 15

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

Question 16

World Trade Organization

Answer 16

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

Question 17

Tariffs

Answer 17

Taxes government levy on imports from abroad

Question 18

Protectionism

Answer 18

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

Question 19

NAFTA

Answer 19

North American Free trade Agreement

Question 20

Global Corporation / MNC

Answer 20

Multinational Corporation with extensive operations in more that one foreign country

Question 21

Transnational Corporation

Answer 21

MNC that operates worldwide on a borderless baisis

Question 22

Corruption

Answer 22

Involves illegal practices to further one’s business interest

Question 23

Child Labour

Answer 23

Full time employment of childrun for work otherwise done by adults

Question 24

Sweatshops

Answer 24

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

Question 25

Culture Shock

Answer 25

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

Question 26

Ethnocentrism

Answer 26

The tendency to consider one's culture supperior to others

Question 27

Cultural Inteligence

Answer 27

The ability to accept and adapt to new cultures

Question 28

Low Context Cultures

Answer 28

Emphasize comunication via spoken and written words

Question 29

High Context Cultures

Answer 29

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

Question 30

Monochronic Cultures

Answer 30

People tend to do one thing at the time

Question 31

Polychronic Cultures

Answer 31

Time is used to accomplish many different things at once

Question 32

Proxemics

Answer 32

How people use space to comunicate

Question 33

Ecological Fallacy**

Answer 33

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

Question 34

Hofstede 5 dimentions of culture

Answer 34

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

Question 35

Cooperative Management

Answer 35

Studies how Management practices differ among countries and cultures

Question 36

Polycentric attitude

Answer 36

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

Question 37

Geocentric Attitude

Answer 37

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

Question 38

5 Criteria of Useful information

Answer 38

- Timely - High Quality - Complete - Relevant- Understandable

Question 39

Globalization

Answer 39

The PROCESS of growing interdependence among elements of the global economy

Question 40

Franchising

Answer 40

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

Question 41

Foreign Direct Investment

Answer 41

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

Question 42

Sustainable Development

Answer 42

Meets the needs of present without hurting future generations