chapter 4 Flashcards
Globalization
: trend of the world economy toward becoming a more interdependent system
Ethnocentric managers :
Managers who believe that their native country, culture, language, and behavior are superior to all others
Polycentric managers :
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
Geocentric managers :
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
Why companies expand internationally
- availability of supplies
- new markets
- lower labor costs
- access to financial capital
- avoidance of tariffs and import quotas
how companies expand internationally
outsource – use outside suppliers
import/ export/ countertrading : exchange of goods beyond borders
licensing and franchising : make g/s available at another country
joint venture : create a company with another foreign company in a foreign country
wholly owned subsidiary : make an expansion of your company in a foreign country
world trade organization
monitor and enforce trade agreements
world bank
low interest loans to developing nations to improve transportation, edu, health, and telecommunications
international monetary fund
assist in the flow of money between nations
trading bloc
aka economic community, nations within geographical region removed trade barriers for each other
low context culture
meaning derived from written and spoken words
high scontext culture
people rely on context and situational cues when talking
hofstede model of 4 cultural dimensions
individualism/collectivisim
power distance
uncertainty avoidance
masculinity/femininity
GLOBE
House;
power distance – unequal power
uncertainty avoidance – social norms
institutional collectivism – loyalty
in group collectivism – pride of family, friends, org
gender egalitarianism – minimize gender inequality
assertiveness – confrontational and competitive
future orientation – invest in future by planning and saving
performance orientation – rewards for imporvement and excellence
human orientation – be caring, kind, generous, and fair
