Chapter 2 MGT 367 Flashcards
Majority of Fortune 500 companies are now _______; many of them are deriving more than half of their revenues from overseas business
MULTINATIONAL
Creation of offshore professional and operations centers is derived from which of the four trends ________.
GLOBALIZATION TREND
Why should a company expand globally?
- Access to additional resources
- Lower costs
- Economies of scale
- Favorable regulations and tax systems
- Direct access to new & growing markets
- Ability to customize products to local tastes & styles
- Rise of regional trade alliances
How do organizations expand globally?
Engaging in international commerce without investing in foreign factories or facilities
___________ is when the firm sells its products and services in foreign marketplaces through intermediaries
EXPORTING
_______ is when the licensor leases the right to use its intellectual property to another firm (the licensee) in exchange for a fee
LICENSING
________ is a special form of licensing which allows an independent organization (the franchisee) to operate a business under the name of the franchisor in return for a fee
FRANCHISING
______ is a firm outsources the creation of its products to another country
CONTRACT MANUFACTURING
____________ is a company sells its management (and sometimes technical) expertise to a company in another country
MANAGEMENT CONTRACTS
___________ is partnering with a local organization allowing the firm to make a direct investment very gradually while sharing its risk with a knowledgeable, experienced other party
ALLIANCES
______________ is partners create a new, separate company that is owned jointly by the venture partners
JOINT VENTURES
_____________is companies agree to partner with one another, but do not set up a separate entity
STRATEGIC ALLIANCE
_____________- a firm owns an operation in a foreign country in order to ensure that they have full decision-making authority and operational control
SOLE OWNERSHIP
The _______ environment includes; A country’s economic, legal, political, and socio-cultural systems and it’s
Language and religious beliefs
GENERAL
The _______ enviornment includes; Forces that are directly related to the industry, such as: cost pressures, intensity of competitive rivalry, barriers to entry….
TASK
What are Porter’s two types of international industries?
Multilocal & Global industry
______________—competition in each country or regional is essentially independent of the competition in other regions
MULTILOCAL INDUSTRY
___________– a firms competitive position in one country is significantly affected by its position in other countries.
GLOBAL INDUSTRY
Factors Influencing Organization’s Decision to Invest in an International Market include;__________________________.
General enviornment, task enviornment, multilocal industry, global industry,and internal strengths and weaknesses.
What are the factors that affect the level of difficulty of HRM?
- Legal complexity
- Degree of foreign investment in relation to its domestic investment
- Attitude of senior management toward international operations
Who described the degree of cultural differences by cultural dimensions?
Geert Hofstede
What are Hofstede’s four cultural dimensions?
- INDIVIDUALISM VS. COLLECTIVISM
- POWER DISTANCE
- MASCULINITY VS. FEMININITY
- UNCERTAINTY AVOIDANCE
______________:the ties between individuals are loose; everyone is expected to look after him/herself and his/her immediate family.
INDIVIDUALISTIC SOCIETIES
__________: People from birth onwards are integrated into strong, cohesive in-groups, often extended families which continue protecting them in exchange for unquestioning loyalty.
COLLECTIVISTIC SOCIETIES
