Chapter 3 Flashcards
Organizational strategy to entering a foreign market
Market-entry strategy
Entry strategy in which the organization maintains it production facilities within its home country and transfers its products for sale in other countries.
Exporting
Barter of products for other products in less developed countries.
Countertrade
Entry strategy in which the organization engages in the international division of labor so as to obtain the cheapest sources of labor and supplies. Also called offshoring.
Global outsourcing
Entry strategy in which the organization provides its foreign franchises with a complete package of materials and services.
Franchising
Management of a business conducted in more than one country.
International management
A country’s physical facilities to support economic activities.
Infrastructure
A company’s risk of loss of assets, earning power, or managerial control due to politically based events or actions hosted by the government.
Political risk
Events such as riots, revolutions, or government upheavals that affect the operations of international companies.
Political instability
Hofstede’s Value Dimensions (4)
- Power distance
- Uncertainty avoidance
- Individualism
- Masculinity
People are sensitive to circumstances surrounding social exchanges, they use communication primarily for communication and social relationships.
High-context cuture
People use communication primarily to exchange facts and information, business transactions are more important than building social relations.
Low-Context culture
Cultural attitude in which someone regards one’s culture as superior to others’.
Ethnocentrism
Principal international trade alliances (3)
- GATT (General Agreement on Tariffs and Trade)
- EU (European Union)
- NAFTA (North American Free Trade Agreement)
A person’s ability to use reasoning and observation to interpret unfamiliar gestures and situations, and devise appropriate behavioral responses.
Cultural Inteligence (CQ)
