Chapter 3 Flashcards
What is the utilitarian approach to ethics?
When managers use financial performance as the best definition of an ethical choice (“the greatest good”)
What is the moral-rights approach of ethics?
Guided by respect for the fundamental rights of human beings
What is the justice approach to ethics?
The distribution of benefits and costs among stakeholders in a fair, equitable, or impartial way
What are ethnocentric managers? (Ethnocentric approach to managing multinational companies)
“We know best”
Managers who believe that their native country, culture, language, and behavior are superior to all others.
What are polycentric managers? (Polycentric approach to managing multinational companies)
“They know best”
Managers who take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
What are geocentric managers? (Geocentric approach to managing multinational companies)
“What’s best is what’s effective, regardless of origin”
Managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective
Who is the successful international manager? (Based on the approaches)
Geocentric managers
What are the BRICS countries?
The five major emerging economies; important international competitors. (Brazil, Russia, India, China, and South Africa)
What is China’s advantage?
It is the second-largest economy in the world, and it may be the overall largest soon based on its strengths in manufacturing
What is India’s advantage?
It’s larger english-speaking population, it’s technological and scientific expertise, and it’s reputation in services, such as “back office” accounting systems and software engineering. Fastest growing economy in the world.
What is Brazil’s advantage?
Benefits from agriculture, mining, manufacturing, and services. Experienced a decade of economic and social progress, lifting millions of people out of poverty
What is a low context culture?
A culture in which shared meanings are primarily derived from written and spoken words
What is a high-context culture?
A culture in which people rely heavily on situational cues for meaning when communicating with others, relying on nonverbal cues as to another person’s official position, status or family connections.
What are five ways of expanding a company internationally? (From lowest to highest risk & investment)
- Global outsourcing
- Importing, exporting, & countertrading
- Licensing & franchising
- Joint ventures
- Wholly owned subsidiaries
What is global outsourcing? (AKA offshoring)
The use of suppliers outside the United States to provide labor, goods, or services
What is countertrading?
Bartering goods for goods
What is licensing?
When company X allows a foreign company to pay it a fee to make or distribute X’s product or service. (Used by manufacturing companies)
What is franchising?
A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services. (Used by service companies)
What is a joint venture? (AKA strategic alliance)
A U.S. firm may form a joint venture with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country
What is a wholly owned subsidiary?
A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by an organization. (May be an existing company that is purchased outright)
