Chapter 14 Flashcards
Selling abroad, either directly or indirectly, by retaining foreign agents and
distributors.
Exporting
Arrangement whereby an organization grants a foreign firm the right to use
intellectual properties such as patents, copyrights, manufacturing processes, or trade
names for a specific period of time.
Licensing
Option whereby the parent company grants another firm the right to do
business in a prescribed manner.
Franchising
Firm that is based in one country (the parent or
home country) and produces goods or provides services in one or more foreign countries
(host countries).
Multinational corporation (MNC)
: Organization that has corporate units in a number of countries that
are integrated to operate as one organization worldwide.
Global corporation:
The norms for behaviors and beliefs.
Cultural values
Employee who is not a citizen of the country in which a firm’s operations
are located, but is a citizen of the country in which the organization is headquartered
Expatriate
Employee who is a citizen of the country where the
subsidiary is located.
Host-country national (HCN)
Citizen of one country, working in a second country,
and employed by an organization headquartered in a third country
Third-country national (TCN)
Staffing approach in which companies primarily hire expatriates
to staff higher-level foreign positions.
Ethnocentric staffing:
Staffing approach in which host-country nationals are used
throughout the organization, from top to bottom
Polycentric staffing
Staffing approach that is similar to the polycentric staffing
approach, but regional groups of subsidiaries reflecting the organization’s strategy and
structure work as a unit.
Regiocentric staffing:
Staffing approach that uses a worldwide integrated business
strategy.
Geocentric staffing:
Process of bringing expatriates home.
Repatriation
Provides expatriates the standard of living they normally
enjoy in the United States or the expatriate’s home country
Balance sheet approach:
