Chapter 2 Flashcards
Culture shock
The disorientation and stress associated with being in a foreign environment.
Ethnocentrism
The tendency to judge others by the standards of one´s own group or culture which are seen as superior.
Expatriates
Parent-company nationals who are sent to work at a foreign subsidiary.
Failure rate
The number of expatriate managers of an overseas operation who come home early.
Global model
Views the world as a single market. Operations are controlled centrally from the corporate office
Host-country nationals
Natives of the country where an overseas subsidiary is located.
Inpatriate
A foreign national brought in to work at the parent company.
Inshoring
Moving work from other countries back to the headquarters country. Work may be done by a domestic provider or in-house.
Insourcing
Producing in-house one or more of an organization’s goods or services.
International model
An organizational model that is composed of a company’s overseas subsidiaries and characteristics by greater control by the parent company over local product and marketing strategies than is the case in the multinational model.
Multinational model
An organizational model that consists of the subsidiaries on each country in which a company does business, and provides a great deal of description to those subsidiaries to respond to local conditions
North American Free Trade Agreement (NAFTA)
An economic pact that combined the economies of the United States, Canda, and Mexico into one of the world´s largest trading blocs.
Third-country nationals
Natives of a country other than the home country or the host country of an overseas subsidiary.
Transnational model
An organizational model characterized by centralizing certain functions in locations that best achieve cost economies; basing other functions in the company´s national subsidiaries to facilitate greater local responsiveness, and fostering communication among subsidiaries to permit transfer of technological expertise and skills.
