Global Business Flashcards
What is the definition of success in global business
Sustained, profitable growth margins at or above those at home
What are three things to understand when making international decisions?
Use CAGE Framework
Understand complexity of the enviornment
understand international business theory
What is CAGE Framework?
Cultural
Administrative (political)
Geographic
Economic
What are the two options for timing of entry in foreign markets
First Movers and Fast Followers
What are advantages of first movers?
establish strong brand name
build sales volume
establish social ties
what are disadvantages of being a first mover
learning curve
may need to build infrastructure
need to train customers
What are some geographic considerations?
Population density
transportation infrastructure
communications infrastructure
weather/climate
education/healthcare
Ghemawat’s distance factors? (geographic)
Physical remoteness
lack of common borders
lack of sea or river access
size of county
weak transportation
communication links
difference in climates
What is Culture?
society’s system of shared, learned, values and norms
define values
abstract ideas about “good” “right” and “Desirable”
what are norms
social rules and guidelines that determine appropriate behavior in a situation
what are the layers of culture?
Artifacts - things you can sense
values/Norms
Assumptions
Hofstede’s cultural dimensions
power distance
individualism vs collectivism
uncertainty avoidance
masculine vs feminine
long term orientation
indulgence vs restraing
What is power distance
degree of social inequality considered normal by people
what is individualism vs collectivism
degree to which people prefer to act as individuals rather than in groups
