GMS Chap 3 Flashcards Preview

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Flashcards in GMS Chap 3 Deck (42):
1

Global Management

Involves managing operations in more than one country

2

Global manager

Is culturaly aware and informed on international affairs

3

Global Business

Conduct comercial transactions across national boundaries

4

Going Global: 5 Market entry strategies

- Global outsoursing
- Exporting
- Importing
- Licinsing
- Franchising

5

Going Global: 2 Direct investment strategies

- Joint Ventures
- Foreign subsidaries

6

Global Sourcing

Material or services are purchassed around the world for local use

7

Exporting

Local products are sold abroad to foreign customers

8

Importing

Involves the selling in domestic markets of products acquired abroad

9

Licensing

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

10

Insourcing

Job creation through foreign direct investment

11

Joint Venture

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

12

Global strategic alliance

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

13

Foreign Subsidiary

A local operation completly owned by a foreign firm

14

Greenfield investment

Builds an entierly new operation in a foreign country

15

Political Risk

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

16

World Trade Organization

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

17

Tariffs

Taxes government levy on imports from abroad

18

Protectionism

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

19

NAFTA

North American Free trade Agreement

20

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

22

Corruption

Involves illegal practices to further one's business interest

23

Child Labour

Full time employment of childrun for work otherwise done by adults

24

Sweatshops

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

25

Culture Shock

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

26

Ethnocentrism

The tendency to consider one's culture supperior to others

27

Cultural Inteligence

The ability to accept and adapt to new cultures

28

Low Context Cultures

Emphasize comunication via spoken and written words

29

High Context Cultures

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

30

Monochronic Cultures

People tend to do one thing at the time

31

Polychronic Cultures

Time is used to accomplish many different things at once

32

Proxemics

How people use space to comunicate

33

Ecological Fallacy**

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

34

Hofstede 5 dimentions of culture

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

35

Cooperative Management

Studies how Management practices differ among countries and cultures

36

Polycentric attitude

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

37

Geocentric Attitude

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

38

5 Criteria of Useful information

- Timely - High Quality - Complete - Relevant- Understandable

39

Globalization

The PROCESS of growing interdependence among elements of the global economy

40

Franchising

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

41

Foreign Direct Investment

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

42

Sustainable Development

Meets the needs of present without hurting future generations