3. Global Management Flashcards
Parochialism
/pəˈrəʊkiəlɪzəm/
viewing the world through your “own perspectives”
-> leading to an inability to recognize differences between people
Ethnocentric
/ˌeθnəʊˈsentrɪk/
view that “home country” has best work practices
Polycentric
view that managers in the “host country” know the best approaches
Geocentric
/ˌdʒiːəʊˈsentrɪk/
“world-oriented” view; wants to use best practices from around the globe
Regional Trading Alliances (liên minh thương mại khu vực)
Global competition and the global economy are shaped by regional trading agreements, including
- European Union (EU)
- North American Free Trade Agreement (NAFTA)
- Association of Southeast Asian Nations (ASEAN)
European Union (EU)
a union of “28 democratic European nations” created as a unified “economic and trade” entity with the Euro as a single common currency
North American Free Trade Agreement (NAFTA)
an agreement among the “Mexican, Canadian, and U.S. governments” in which “barriers to trade have been eliminated”
Association of Southeast Asian Nations (ASEAN)
a trading alliance of “10 Southeast Asian nations”
Other Trade Alliances
- African Union (AU)
- East African Community (EAC)
- South Asian Association for Regional Cooperation (SAARC)
- Trans-Pacific Partnership (TPP)
Global Trade Mechanisms (cơ chế)
- World Trade Organization (WTO)
- International Monetary
- Fund (IMF)
- World Bank Group
- Organization for Economic - Cooperation and Development (OECD)
World Trade Organization (WTO)
global organization of 161 countries that deals with the rules of trade among nations
International Monetary Fund (IMF)
An organization of 188 countries that promotes international monetary cooperation and provides advice, loans, and technical assistance
World Bank Group
a group of very closely associated institutions that provides financial and technical assistance to developing countries
Organization for Economic Cooperation and Development (OECD)
an international economic organization that helps its 34 member countries achieve sustainable economic growth and employment
How Organizations Go International (minimal -> significant)
- Global sourcing ( Tìm nguồn cung ứng toàn cầu)
- Exporting and Importing (Xuất nhập khẩu)
- Licensing (Cấp phép)
- Franchising /ˈfræntʃaɪzɪŋ/
(Nhượng quyền thương mại) - Strategic /strəˈtiːdʒɪk/ Alliance /əˈlaɪəns/
- Joint Venture (Liên minh Chiến lược - Liên doanh) - Foreign Subsidiary /səbˈsɪdieri/ (Công ty con nước ngoài)
Global sourcing:
- Multinational corporation (MNC)
- Multidomestic corporation (IMF)
- Global company
- Transnational or borderless organization
purchasing /ˈpɜːrtʃəs/ materials or labor from around the world wherever it is cheapest
- Exporting
2. Importing
- making products domestically and selling them abroad
2. acquiring products made abroad and selling them domestically
Licensing (Cấp phép)
an organization gives another organization the right to make or sell its products “using its technology or product specifications”
Franchising (Nhượng quyền thương mại)
an organization gives another organization the right to “use its name and operating methods”
Strategic Alliance (Liên minh Chiến lược)
partnership between an “organization and foreign company partner(s)” (in which both share resources and knowledge in developing new products or building production facilities)
Joint Venture (Liên doanh)
A strategic alliance in which the partners agree to form a “separate, independent” organization for some business purpose
Foreign Subsidiary
directly “investing in a foreign country by setting up a separate and independent production facility or office”
Managing in a Global Environment
What challenges will a manager face in a new country?
- Political/Legal Environment
- Economic Environment
- Cultural Environment
Political/Legal Environment
- U.S. managers are accustomed to a stable legal and political system
- Managers must stay informed of the specific laws in countries where they do business
- Some countries have risky political climates
Economic Environment
- Free Market Economy: an economic system in which resources are primarily owned and controlled by the “private sector”
- Planned Economy: an economic system in which economic decisions are planned by a central “government”
Cultural Environment
National Culture—the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important.
Global Leadership and Organizational Behavior Effectiveness (GLOBE)
The GLOBE studies identified nine dimensions for assessing country cultures:
- Power distance
- Uncertainty avoidance
- Assertiveness (Tính quyết đoán)
- Humane orientation
- Future orientation
- Institutional collectivism
- Gender differentiation
- In-group collectivism
- Performance orientation
Global Management in Today’s World
- The Challenge of Openness
- Cultural Intelligence
- Global Mind-Set
The Challenge of Openness
- Increased threat of terrorism (khủng bố)
- Economic interdependence of trading countries
- Intense fundamental cultural differences
Cultural Intelligence
cultural awareness and sensitivity skills
Global Mind-Set (definition and sections)
attributes that allow a “leader to be effective in cross-cultural environments”
- Intellectual capital
- Psychological capital
- Social capital
Intellectual capital
Knowledge of international business and the capacity to “understand how business works on a global scale”
Psychological capital
Openness to “new ideas and experiences”
Social capital
Ability to form “connections and build trusting relationships with people who are different from you”
Geert Hofstede identified five dimensions for assessing a country’s culture including:
- individualism-collectivism
- power distance
- uncertainty avoidance
- achievement-nurturing
- long-term/short-term orientation
Explain the relevance of the political/legal, economic, and cultural environments to global business.
- The laws and political stability of a country are issues in the global political/legal environment with which managers must be familiar
- Managers must be aware of a country’s economic issues such as currency exchange rates, inflation rates, and tax policies.
multinational corporation (MNC)
an international company that maintains operations in multiple countries
multidomestic organization
MNC that decentralizes (phân quyền cho cấp dưới) management and other decisions to the “local” country (polycentric)
global organization
MNC that centralizes (tập trung cho cấp trên) management and other decisions in the “home” country (ethnocentric)
transnational organization
MNC that has eliminated artificial geographical barriers and uses the best work practices and approaches from “wherever” (geocentric)
