Ch. 3 Flashcards
What is international management?
The management of business operations conducted in more than one country.
Define globalization.
The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries.
What is a global mindset?
The ability to perceive and respond to many different perspectives at the same time.
What are the three dimensions of a global mindset?
- Cognitive dimension: knowing about the global environment and global business
- Psychological dimension: emotional and affective aspect
- Social dimension: ability to build trusting relationships with people different from oneself
What is a multinational corporation (MNC)?
A corporation that typically receives more than 25 percent of its total sales revenues from operations outside the parent’s home country.
List the characteristics of multinational corporations.
- Managed as an integrated worldwide business system
- Ultimately controlled by a single management authority
- Top managers exercise a global perspective
What does the bottom of the pyramid (BOP) concept propose?
Corporations can alleviate poverty and make significant profits by selling to the world’s poorest people.
Fill in the blank: Exporting means the company maintains its production facilities within the home nation and transfers its products for sale in _______.
[foreign countries]
What is political risk?
The risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.
Define ethnocentrism.
The natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.
What does Hofstede’s dimension of power distance refer to?
The extent to which power is shared equally.
What are Hofstede’s Value Dimensions?
- Power distance
- Uncertainty avoidance
- Individualism and collectivism
- Masculinity–femininity
- Long- or short-term orientation
True or False: The GLOBE Project extends Hofstede’s assessment.
True
What is implicit communication?
Communication that includes unspoken cues, such as tone of voice or body language, in addition to explicit spoken words.
What characterizes a high-context culture?
People are sensitive to circumstances surrounding social exchanges and use communication primarily to build personal social relationships.
What is the General Agreement on Tariff and Trade (GATT)?
A set of rules to ensure nondiscrimination, clear procedures, and the negotiation of disputes in international trade.
What is the World Trade Organization (WTO)?
A permanent global institution that can monitor international trade and has legal authority to arbitrate disputes.
What was the goal of the European Union (EU)?
To create a powerful single-market system for Europe.
What did the North American Free Trade Agreement (NAFTA) do?
Merged the United States, Canada, and Mexico into a single market.
What is the Trans-Pacific Partnership (TPP)?
A trade agreement designed to reduce trade barriers and promote economic growth among participating countries.
