week 1 Flashcards
(12 cards)
What is international management concerned with?
It examines how business management varies across economies and how institutional environments shape management practices.
What are key trends in the global business context today?
*Regional economic integration vs disintegration
*Digital transformation
*Rise of platform companies
*Changing nature of work
*Sustainability imperatives
What is globalisation?
The integration of previously independent economies into an interdependent global economy, enabled by the removal of barriers to the flow of goods, capital, and people, driven by technology and policy.
What is the KOF Globalisation Index?
A composite index measuring globalisation across 3 dimensions — economic, social, and political — using de jure (policies) and de facto (actual flows) measures.
What are institutions?
*Formal rules: laws, regulations
*Informal practices: customs, norms
They shape managerial behaviour, innovation, and organisational strategies.
Why do institutions matter in international management?
*Influence how firms operate
*Shape competitive advantages
*Define management practices
*Create path dependency in strategy
What is the ‘Varieties of Capitalism’ (VoC) framework?
A model explaining how institutional differences across countries lead to different types of capitalism and management coordination.
What are the two main types of capitalism in the VoC framework?
*Liberal Market Economies (LMEs): USA, UK – market-based coordination
*Coordinated Market Economies (CMEs): Germany, Japan – rely on non-market coordination
What are the five institutional spheres in VoC where firms coordinate activities?
1.Industrial relations
2.Employee relations
3.Education and training
4.Inter-company relations
5.Corporate governance and financial markets
What are strengths of the VoC framework?
*Explains cross-national variation in practices
*Highlights how institutions shape innovation
*Emphasises institutional complementarity and path dependence
What are weaknesses of the VoC framework?
*Too deterministic
*Overly simplistic (binary LME/CME divide)
*Doesn’t account for informal institutions, subnational differences, or state influence
What is the Nordic Model in capitalism?
A hybrid between LMEs and CMEs featuring:
*Market efficiency + strong coordination
*Tripartite cooperation (state, unions, employers)
*Flexicurity (easy hiring/firing + strong social protection)
*Emphasis on welfare and lifelong education
