MGMT Chapter 4

Question 1

what is international management?

Answer 1

the management of business operations conducted in more than one country

Question 2

what is globalization?

Answer 2

the extent to which trade and investment, information, social, and cultural ideas and political cooperate flow between countries

Question 3

what is the ability of managers to appreciate and influenced individuals, groups, and organizations that possesses different social, cultural, political, institutional, intellectual and psychological characteristics?

Answer 3

global mind set

Question 4

what is a multinational corporation?

Answer 4

receive more than 25% of its total sales revenue from operations outside parent’s home country

Question 5

what are ethnocentric companies?

Answer 5

places an emphasis on their home countries

Question 6

what are polycentric companies?

Answer 6

are oriented toward the markets of individual foreign host countries

Question 7

what are geocentric companies?

Answer 7

are world oriented and favor no specific country

Question 8

what is the strategy in which the corporation maintains its production facilities within their home nation and ships its products for sale in foreign countries?

Answer 8

exporting

Question 9

what is partnership?

Answer 9

partners with a local company in forging countries

Question 10

what type of venture is when a company shares costs and risks with another firm, typically in the host county, to develop new products, build a manufacturing facility, or set up a sales and distribution network ?

Answer 10

joint venture

Question 11

what is political risk?

Answer 11

the risk of loss assets, earning power, or managerial control due to political changes or instability in a host country

Question 12

what is political instability?

Answer 12

includes, riots, revolution, civil disorders, and frequent changes in government

Question 13

what is ethnocentrism?

Answer 13

natural tendency of people to regard their own culture as superior and downgrade or dismiss other cultural values

Question 14

what are Hofstede’s value dimensions?

Answer 14

5 dimensions of national value system that influence organizational and employee working relationships

Question 15

what is the GLOBE project?

Answer 15

9 dimensions that explain cultural differences

Question 16

what is power distance?

Answer 16

level of acceptance of inequality in power among institutions, organizations and people

Question 17

what is uncertainty avoidance ?

Answer 17

uncomfortable with unstructured, ambiguous and unpredictable situations

Question 18

what is individualism ?

Answer 18

value for loose knit social framework in which individuals are expected to take care of themselves

Question 19

what is collectivism ?

Answer 19

preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests

Question 20

what is masculinity ?

Answer 20

preference for achievement, heroism, assertiveness, work centrality (with resultant high stress) and material success

Question 21

what is femininity ?

Answer 21

values relationships, cooperation, group decision making and quality of life

Question 22

what is long time orientation?

Answer 22

greater concern for the future and highly values thrift and perseverance

Question 23

what is short term orientation?

Answer 23

more concerned with the past and the present and places a high value on tradition meeting social obligations

Question 24

what is assertiveness?

Answer 24

extent to which a society encourages toughness, assertiveness and competitiveness

Question 25

what is future orientation?

Answer 25

extent to which a society encourages planning for the future over short term results

Question 26

what is gender differentiation?

Answer 26

extent to which society maximizes gender role differences

Question 27

what is performance orientation?

Answer 27

extent to which a society places emphasis on performance and rewards people for improvement

Question 28

what is human orientation?

Answer 28

degree to which a society encourages and rewards people for being fair, altruistic, generous and caring

Question 29

what is implicit communication?

Answer 29

people send and receive unspoken cues, such as tone of voice or body language in addition to the explicit spoken words when talking with others

Question 30

what is high context culture?

Answer 30

people are sensitive to circumstance surrounding social exchanges

Question 31

what is low context culture?

Answer 31

people use communication primarily to exchange facts and information; meaning is derived primarily from words

Question 32

what is cultural intelligence?

Answer 32

a persons ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavior responses

Question 33

what is cognitive component?

Answer 33

a person's observational skills and recognition of cause to understanding

Question 34

what is emotional component ?

Answer 34

a persons self confidence and self motivation

Question 35

what is physical component ?

Answer 35

a persons ability to shift his or her speech patterns/expressions and body language to match those in a different culture

Question 36

what was signed by 23 nations in 1947 to ensure nondiscrimination, clear procedures, negotiation of disputes, and participation of lesser developed countries in International trade ?

Answer 36

General Agreement on Tariffs and Trade (GATT)

Question 37

what is the maturation of GATT into permanent global institute with 164 member countries by July 2016?

Answer 37

World Trade Organization (WTO)

Question 38

what is the 27 nation alliance to improve economic and social conditions among members, a power single market system for Europes millions of consumers, allowing people, goods, and services to move freely, more competitive with other markets because of economic of scale?

Answer 38

European Union

Question 39

what is the single European currency that replaced many national currencies in many European countries?

Answer 39

Euro

Question 40

what is when the British exited from the European Union?

Answer 40

BREXIT

Question 41

what replace the North American Free Trade Agreement (NFTQ) that merged the US, Canada, and Mexico into a single market in 1994?

Answer 41

US-Mexico-Canada Agreement (USMCA)