3. Managing in a global environment Flashcards
Parochialism (Global Perspective)
viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.
Ethnocentric Attitude (Global Perspective)
the parochialistic belief that the best work approaches and practices are those of the home country.
Polycentric attitude (Global Perspective)
the view that the managers in the host country know the best work approaches and practices for running their business.
Geocentric Attitude (Global Perspective)
a world-oriented view that focuses on using the best approaches and people from around the globe.
Exporting
making products domestically and selling them abroad.
Global Sourcing
purchasing materials or labor from around the world wherever it is cheapest.
Transnational or Borderless Organization
an MNC in which artificial geographical barriers are eliminated.
Global Company
an MNC that centralizes management and other decisions in the home country.
Multidomestic Corporation
an MNC that decentralizes management and other decisions to the local country.
Multinational Corporation (MNC)
a broad term that refers to any and all types of international companies that maintain operations in multiple countries.
Importing
acquiring products made abroad and selling them domestically.
Licensing
an organization gives another organization the right to make or sell its products using its technology or product specifications.
Franchising
an organization gives another organization the right to use its name and operating methods.
Strategic Alliance
a partnership between an organization and one or more foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities.
Joint Venture
a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
