GMS Chapter 3

Question 2

Global Management

Answer 2

Involves managing operations in more than one country

Question 3

Global manager

Answer 3

Is culturaly aware and informed on international affairs

Question 4

Global Business

Answer 4

Conduct comercial transactions across national boundaries

Question 5

Going Global: 5 Market entry strategies

Answer 5

Global outsoursing, Exporting, Importing, Licinsing, Franchising

Question 6

Going Global: 2 Direct investment strategies

Answer 6

Joint Ventures, Foreign subsidaries

Question 7

Global Sourcing

Answer 7

Material or services are purchassed around the world for local use

Question 8

Exporting

Answer 8

Local products are sold abroad to foreign customers

Question 9

Importing

Answer 9

Involves the selling in domestic markets of products acquired abroad

Question 10

Licensing

Answer 10

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

Question 11

Insourcing

Answer 11

Job creation through foreign direct investment

Question 12

Joint Venture

Answer 12

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

Question 13

Global strategic alliance

Answer 13

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

Question 14

Foreign Subsidiary

Answer 14

A local operation completly owned by a foreign firm

Question 15

Greenfield investment

Answer 15

Builds an entierly new operation in a foreign country

Question 16

Political Risk

Answer 16

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

Question 17

World Trade Organization

Answer 17

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

Question 18

Tariffs

Answer 18

Taxes government levy on imports from abroad

Question 19

Protectionism

Answer 19

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

Question 20

NAFTA

Answer 20

North American Free trade Agreement

Question 21

Global Corporation / MNC

Answer 21

Multinational Corporation with extensive operations in more that one foreign country

Question 22

Transnational Corporation

Answer 22

MNC that operates worldwide on a borderless baisis

Question 23

Corruption

Answer 23

Involves illegal practices to further one’s business interest

Question 24

Child Labour

Answer 24

Full time employment of childrun for work otherwise done by adults

Question 25

Sweatshops

Answer 25

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

Question 26

Culture Shock

Answer 26

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

Question 27

Ethnocentrism

Answer 27

The tendency to consider one's culture supperior to others

Question 28

Cultural Inteligence

Answer 28

The ability to accept and adapt to new cultures

Question 29

Low Context Cultures

Answer 29

Emphasize comunication via spoken and written words

Question 30

High Context Cultures

Answer 30

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

Question 31

Monochronic Cultures

Answer 31

People tend to do one thing at the time

Question 32

Polychronic Cultures

Answer 32

Time is used to accomplish many different things at once

Question 33

Proxemics

Answer 33

How people use space to comunicate

Question 34

Ecological Fallacy**

Answer 34

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

Question 35

Hofstede 5 dimentions of culture

Answer 35

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

Question 36

Cooperative Management

Answer 36

Studies how Management practices differ among countries and cultures

Question 37

Polycentric attitude

Answer 37

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

Question 38

Geocentric Attitude

Answer 38

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

Question 39

5 Criteria of Useful information

Answer 39

Timely, High Quality, Complete, Relevant, Understandable

Question 40

Globalization

Answer 40

The PROCESS of growing interdependence among elements of the global economy

Question 41

Franchising

Answer 41

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

Question 42

Foreign Direct Investment

Answer 42

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

Question 43

Sustainable Development

Answer 43

Meets the needs of present without hurting future generations