Chapter 3 Flashcards
viewing the world solely through one’s own eyes and perspectives
Parochialism
believe that people in foreign countries don’t have the needed skills, expertise, knowledge, or experience to make the best business decisions as people in the home country do.
Ethnocentric
the view that employees in the host country (the foreign country in which the organization is doing business) know the best work approaches and practices for running their business.
Polycentric Attitude
a world-oriented view that focuses on using the best approaches and people from around the globe.
Geocentric Attitude
any type of international company that maintains operations in multiple countries.
Multinational Corporation (MNC)
decentralizes management and other decisions to the local country.
Multidomestic Corporation
centralizes its management and other decisions in the home country.
Global Company
This type of MNC reflects a geocentric attitude. Managers choose this approach to increase efficiency and effectiveness in a competitive global marketplace.
Transnational, borderless, organization
purchasing materials or labor from around the world wherever it is cheapest.
Global Sourcing
acquiring products made abroad and selling them domestically.
Importing
making products domestically and selling them abroad.
Exporting
a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities.
Strategic Alliance
A specific type of strategic alliance in which the partners form a separate, independent organization for some business purpose
Joint Venture
Managers must stay informed of the specific laws in countries where they do business.
Political/Legal Environment
A global manager must be aware of economic issues when doing business in other countries.
Economic Environment
the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important.
Cultural Environment
one of the most widely referenced approaches to helping managers better understand differences between national cultures.
HOFSTEDE’S FRAMEWORK FOR ASSESSING CULTURES.
nine dimensions on which national cultures differ.
The Globe Framework for Assessing Cultures
Dimension of GLOBE Framework: the degree to which members of a society expect power to be unequally shared.
Power distance
Dimension of GLOBE Framework:a society’s reliance on social norms and procedures to alleviate the unpredictability of future events.
Uncertainty Avoidance
Dimension of GLOBE Framework:the extent to which a society encourages people to be tough, confrontational, assertive, and competitive rather than modest and tender.
Assertiveness
Dimension of GLOBE Framework:the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others.
Humane Orientation
Dimension of GLOBE Framework:the extent to which a society encourages and rewards future-oriented behaviors such as planning, investing in the future, and delaying gratification.
Future Orientation
Dimension of GLOBE Framework:the degree to which individuals are encouraged by societal institutions to be integrated into groups within organizations and society.
Institutional Collectivism
Dimension of GLOBE Framework:the extent to which a society maximizes gender role differences as measured by how much status and decision-making responsibilities women have.
Gender Differentiation
Dimension of GLOBE Framework:the extent to which members of a society take pride in membership in small groups, such as their family and circle of close friends, and the organizations in which they’re employed.
In-Group Collectivism
Dimension of GLOBE Framework:the degree to which a society encourages and rewards group members for performance improvement and excellence
Performance Orientation
