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chapter 5 Flashcards

1
Q

planning ahead

A
  • Discuss the implications of globalization for
    management and organizations
  • Describe global corporations and the issues they face
    and create
  • Define culture and identify ways to describe diversity in
    global cultures
  • Identify the benefits of global learning for
    management and organizations
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2
Q

Global economy

A

Resources, markets, and competition are worldwide in
scope

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3
Q

Globalization

A

The growing interdependence among elements in the
global economy

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4
Q

World 3.0

A

Balancing cooperation in the global economy with
national identities and interests

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5
Q

Global management

A

Managing business and organizations with interests in more than one country

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6
Q

Global manager

A

Is culturally aware and informed on international affairs

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7
Q

International businesses

A

Conducting for-profit transactions of goods and services
across national boundaries

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8
Q

why do businesses go gloab

A
  • Customers
  • Suppliers
  • Capital
  • Labour
  • Risk
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9
Q

Market entry strategies:

A

involve the sale of goods or
services to foreign markets but do not require expensive
investments

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10
Q

Types of market entry strategies:

A
  • Global sourcing
  • Exporting
  • Importing
  • Licensing agreement
  • Franchising
    Copyright ©2018 John Wiley & Sons, Inc.
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11
Q

Joint venture:

A

co-ownership arrangement in which foreign
and local partners agree to pool resources, share risks, and jointly operate the new business

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12
Q

Strategic alliance

A

International joint ventures are types
of global strategic alliances in which foreign and domestic
firms work together for mutual benefit. Partners in alliance
hope to generate more market penetration and profits by
cooperating than they would have been able to achieve
alone.

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13
Q

Owned subsidiary:

A

A foreign subsidiary is a local operation
completely owned and controlled by a foreign firm. These
subsidiaries may be built from the ground up as agreenfield
venture.

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14
Q

Global Sourcing

A

the process of purchasing materials or services
around the world for local use

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15
Q

Exporting

A

selling locally made products in foreign markets

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16
Q

Importing

A

buying foreign-made products and selling them
domestically

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17
Q

Licensing Agreement

A

one firm pays fee for rights to make or sell
another company’s products

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18
Q

Franchising

A

a fee is paid for rights to use another firm’s name,
branding, and methods

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19
Q

Insourcing

A

refers to local job creation that results from
foreign direct investment

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20
Q

types of insourcing

A
  • joint ventures
  • strategic alliances
  • foregin subsidiares
21
Q

criteria for choosing a joint venture partner

A
  • Familiarity with your firm’s major business
  • Strong local workforce
  • Values its customers
  • Future expansion possibilities
  • Strong local market for partner’s own products
  • Good profit potential
  • Sound financial standing
22
Q

global business environments

A
  • Legal and political systems
  • Trade agreements and trade barriers
  • Regional economic alliances
23
Q

Legal and political systems

A
  • Differing laws and practices regarding
  • Business ownership
  • Negotiation and implementation of contracts
  • Foreign currency exchange
  • Protection of intellectual property rights, e.g. counterfeit
    merchandise
24
Q

Political risk:

A

Potential loss in value of a foreign investment
due to instability and political changes in the host country

25
Q

Political risk analysis:

A

Forecast political disruptions that threaten the value of a foreign investment

26
Q

Trade Agreements and Trade Barriers

A

World Trade Organization
* Most favored nation status
* Tariffs: constitute taxes that governments impose on
imports
* Nontariff barriers
* Protectionism

27
Q

Regional Economic Alliances

A
  • NAFTA/USCMA – North American Free Trade
    Agreement
  • EU – European Union
  • APEC – Asia Pacific Economic Cooperation
  • ASEAN – Association of Southeast Asian Nations
  • SADC – Southern Africa Development Community
28
Q

Mutual benefits for host country and global corporation or
MNC

A
  • Shared growth opportunities
  • Shared income opportunities
  • Shared learning opportunities
  • Shared development opportunities
29
Q

Global corporation:

A

MNE (multinational enterprise) or MNC
(multinational corporation) with extensive business
operations in more than one foreign country

30
Q

Transnational corporation:

A

A global corporation that
operates worldwide on a borderless basis – scale is much
bigger

31
Q

Ethical challenges for Global Businesses:

A
  • Corruption
  • Sweatshops
  • Child Labour
  • Conflict minerals
32
Q

Corruption

A

illegal practices that further one’s business
interests (

33
Q

Child labour

A

employment of children for
work otherwise done by adults (Nike in
Pakistan)

34
Q

Sweatshops

A

employment of workers at very
low wages for long hours in poor working
conditions (Foxconn in China; Rana Plaza in
Bangladesh)

35
Q

Culture

A

The shared set of beliefs, values, and patterns of behavior
common to a group of people

36
Q

Culture shock

A

Confusion and discomfort a person experiences in an
unfamiliar culture

37
Q

Cultural intelligence

A

The ability to adapt and adjust to new cultures

38
Q

Ethnocentrism

A

Tendency to consider one’s own culture as superior to others
and not caring about others culture

39
Q

Stages in adjusting to a new
culture

A
  • Confusion
  • Small victories
  • The honeymoon
  • Irritation and anger
  • Reality
40
Q

Silent languages of culture:

A
  • Context
  • Low context
  • High context
  • Space
  • Proxemics
  • Time
  • Monochronic
  • Polychronic
41
Q

Low context cultures

A

emphasize communication via spoken
or written words

42
Q

High context cultures

A

rely on nonverbal and situational cues
as well as on spoken or written words

43
Q

Monochronic

A

Monochronic cultures – people tend to do one thing at a
time

44
Q

Polychronic cultures

A

Polychronic cultures – time is used to accomplish many
different things at once

45
Q

Proxemics

A

Proxemics – study of how people use space to communicate

46
Q

Tight and Loose Cultures

A
  • Strength of norms that govern social behavior
  • Tolerance for any deviation from norms
47
Q

Values and national cultures (Hofstede):

A
  • Power distance
  • Uncertainty avoidance
  • Individualism-collectivism
  • Masculinity-femininity
  • Time orientation
48
Q
A

gms (9 decks)

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