Daily 8

Question 1

expatriates

Answer 1

parent company nationals who are sent to work at a foreign subsidiary

Question 2

host country nationals

Answer 2

natives of the country where an overseas subsidiary is located

Question 3

third country nationals

Answer 3

natives of a country other than the home country or the country of an overseas subsidiary

Question 4

ethnocentrism

Answer 4

the tendency to judge others by the standards of one’s own group or culture which are seen as superior

Question 5

culture shock

Answer 5

the disorientation and stress associated with being in a foreign environment

Question 6

impatriate

Answer 6

a foreign national brought in to work at the parent company

Question 7

global

Answer 7

views the world as a single market. operations are controlled centrally from the corporate office

Question 8

transnational

Answer 8

specialized facilities permit local responsiveness. complex coordination mechanisms provide global integration

Question 9

international

Answer 9

uses existing capabilities to expand into foreign markets

Question 10

multinational

Answer 10

several subsidiaries operating as stand-alone business units in multiple countries

Question 11

international model

Answer 11

an organizational model that is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over local product and marketing strategies than is the case in the multinational model

Question 12

international licensing

Answer 12

an arrangement by which a licensee in another country buys the rights to manufacture a company’s product of its own country for a negotiated fee (typically, royalty payments on the number of units)

Question 13

franchising

Answer 13

the company sells limited rights to use its brand name to franchisees in return for a lump sum payment and a share of the franchises profits

Question 14

transnational model

Answer 14

an organizational model characterized by centralizing certain functions in locations that best achieve cost economies; basing other functions in the company’s national subsidiaries to facilitate greater local responsiveness; and fostering communication among subsidiaries to permit transfer of technological expertise and skills

Question 15

global model

Answer 15

an organizational model consisting of a company’s overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations; typically adopted by organizations that base their global competitive strategy on cost considerations