Defintions & Co. Flashcards
What is globalization?
Globalization involves growing interdependence in economies, cultures, and information, increasing worldwide interconnections across all spheres of activity.
Globalization affects various sectors, including trade, technology, and cultural exchanges.
Define culture in the context of international management.
Culture is a set of knowledge structures consisting of systems of values, norms, attitudes, beliefs, and behavioral meanings that are shared by members of a social group and embedded in institutions.
Culture is learned and passed down through generations, influencing management practices.
What are SMEs?
Small and medium enterprises, defined differently worldwide: in the US, companies with 500 employees or less; in the EU, 250 or less.
SMEs play a crucial role in global competition.
What is outsourcing?
Outsourcing involves hiring external organizations to perform services or produce goods traditionally managed in-house, often to reduce costs.
It can lead to cross-cultural conflicts and ethical dilemmas.
What is privatization?
Privatization transfers ownership from public to private entities, aiming for greater efficiency.
It may enhance competitiveness but can also create monopolies.
What does migration refer to?
Migration is the movement by people from one place to another with the intention of settling, permanently or temporarily, in a new location.
Global migration has reshaped workforce demographics, with an increasing number of skilled migrants.
What are the three levels of culture according to the Iceberg Model?
- Artifacts (Visible)
- Espoused Values (Just Below Surface)
- Basic Assumptions (Deepest Level)
Each level represents different aspects of culture, influencing perceptions and behaviors.
What is the impact of globalization on international managers?
Globalization presents both opportunities and challenges, significantly influencing managerial work.
Managers must adapt to rapid changes in global contexts while navigating cultural differences.
What is the definition of tariffs?
Tariffs are taxes used to restrict imports by increasing the price of goods and services purchased from another country.
They make imported goods less attractive to domestic consumers.
True or False: Culture is an observable aspect of a country.
False
Culture is largely invisible and influences behavior in ways that are often overlooked by managers.
What are the 3 managerial roles in Mintzberg’s model.
Interpersonal —> figurehead, leader, liaison (relationship)
Informational —> monitor information, disseminator (informing stakeholders
Decisional —> entrepreneur, Ressource allocation
What are the advantages of globalization?
- Improved living standards
- Economies of scale
- Human rights advancements
Globalization can lead to economic growth and social improvements.
What are the disadvantages of globalization?
- Environmental harm
- Job insecurity
- Inequalities exacerbated by global competition
These challenges require careful management and policy responses.
What is the role of culture in shaping management practices?
Culture influences behavior, organizational processes, and national systems, affecting how international managers operate.
Its effects are often invisible yet pervasive in management.
What is acculturation?
Acculturation is the process by which individuals adopt values from new cultures, potentially achieving biculturalism.
Biculturals may adapt behaviors based on context.
What is ethnocentrism?
Ethnocentrism is the belief that one’s culture is superior, often leading to negative judgments of out-groups.
This bias can hinder effective intercultural interactions.
What factors influence culture?
- Language
- Religion and ideology
- Geography and economy
- Technology and political boundaries
These factors shape cultural traits and their persistence over time.
What is the significance of cultural diversity in teams?
Cultural diversity introduces complexities in work methods, compensation, and management, challenging organizations to integrate demographic changes.
This includes the growing presence of women and older workers in the workforce.
What does the term ‘flat world’ refer to?
The term ‘flat world’, coined by Thomas Friedman, suggests that the competitive playing field between industrial and emerging market countries is leveling.
It emphasizes the role of global supply chains in modern economies.
What are the characteristics of totalitarianism?
Totalitarianism is a system of government that is entrenched and dictatorial, requiring complete subservience to the state.
It can be based on religious (theocratic) or ideological (secular) principles.
How does understanding culture benefit managers?
It helps in communication, decision-making, and building trust across cultures.
What is cultural distance?
The measure of how far apart the values of two societal groups are.
Name the six universal issues outlined in Kluckhohn and Strodtbeck’s framework.
- Relationship to Nature
- Time Orientation
- Beliefs about Human Nature
- Nature of Human Activity
- Social Relationships
- Conception of Space (perspective on ownership )
What does Hofstede’s dimension of Individualism-Collectivism refer to?
The prioritization of personal identity versus group identity.
What does the dimension of Power Distance measure?
Acceptance of unequal power distribution within society.
What are the seven value orientations identified in Schwartz’s Value Survey?
- Egalitarianism (social equality)
- Harmony (balance with nature)
- Embeddedness (social order)
- Hierarchy (authority)
- Mastery (ambition)
- Affective Autonomy (emotional independence)
- Intellectual Autonomy
What are Trompenaars’s dimensions?
- Universalism vs. Particularism: Rules vs. relationships.
- Individualism vs. Collectivism: Personal goals vs. group loyalty.
- Specific vs. Diffuse: Separate work/personal life vs. integrated.
- Neutral vs. Emotional: Suppressed vs. open emotional expression.
- Achievement vs. Ascription: Status by merit vs. status by title/background.
- Sequential vs. Synchronous Time: Linear, task-focused vs. multitasking, fluid.
- Internal vs. External Direction: Control environment vs. adapt to it.
What is the significance of cultural tightness-looseness?
It describes the strictness of norms and conformity within cultures.
What is cultural friction?
Refinement of cultural distance, considering relationship dynamics.
Conflicts from differing cultural norms or values.
What is social cognition?
How we process, store, and apply information about others and social situations.
What are schemas in social cognition?
Mental frameworks organizing information to simplify complex environments.
What is the difference between Type 1 and Type 2 cognition?
Type 1 is spontaneous and automatic; Type 2 is deliberate and slower.
Define cultural identity.
A person’s sense of belonging to a particular cultural or ethnic group.
What do cultural scripts guide?
Behavior based on cultural expectations.
What are cultural norms?
Shared standards of acceptable behavior within a cultural group.
What is selective perception?
The process of interpreting information based on cultural expectations and past experiences.
What factors influence the categorization of individuals as in-group or out-group members?
- Certain category indicators (e.g., race, gender)
- Distinctiveness against the wider population
- Typicality of a person to a particular group
- Speech differences
- Interactions with another group
Example: In rural Japan, Europeans are easily categorized due to their distinctiveness.
True or False: We see differences among in-group members but perceive out-group members as more similar to each other.
True
What is selective avoidance?
The tendency to direct attention away from information that challenges existing beliefs.
Define stereotypes.
Simplified ideas about groups that shape expectations and feelings toward those groups.
What is Social Dominance Theory?
A theory of intergroup relations that focuses on the maintenance and stability of group-based social hierarchies.
What are the two types of attribution in the context of behavior?
1. Internal Attribution: Behavior is due to personal traits or choices (e.g., “They succeeded because they’re hardworking”).
**2. External Attribution: Behavior is caused by external forces or circumstances **(e.g., “They failed because the task was unfair”).
What is the Fundamental Attribution Error?
The tendency to overemphasize personal characteristics and ignore situational factors in judging others’ behavior.
What are the steps in the Cross-Cultural Interaction Model?
- Observing a behavior
- Categorizing it
- Making causal attributions
- Responding
Define independent and interdependent self schemas
A self-schema is a mental framework of beliefs about oneself, shaping how identity, traits, and experiences are perceived and remembered.
- Independent self-schema: Personal needs
- Interdependent self-schema: Group cohesion
What is bounded rationality?
The concept that decisions are limited by constraints such as limited information and biases.
List the four main decision styles.
- Vigilance (Careful, systematic, and thorough)
- Complacency (ignoring decision or choosing first possible option)
- Defensive Avoidance (postponing decisions and their importance)
- Hypervigilance (Rushed and impulsive under stress.)
What is a heuristic?
An approach to problem solving that employs a practical method, not guaranteed to be optimal.
Define the availability heuristic.
A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic.