Glossary Flashcards
Born-global companies
Companies that start out with a global focus, usually because of their founders’ international experience and knowledge of foreign markets through advances in communications.
Collaborative arrangements
Companies’ working together, such as in joint ventures, licensing agreements, management contracts, minority ownership, and long-term contractual arrangements.
FDI
An acronym for foreign direct investment.
Foreign direct investment
This is sometimes referred to simply as ‘direct investment’. It is an operation in which an investor holds a controlling interest in a foreign company.
Franchising
A contract in which a company assist another on a continuous basis and allows use of its trademark.
Globalization
The widening and deepening of interdependent relationships among people from different nations. The term sometimes refers to the elimination of barriers to international movements of goods, services, capital, technology, and people that influence the integration of world economies.
Institutions
Systems of established and prevalent social rules that structure social interactions, such as language, money, law, systems of weights and measures, table manners and organizations.
Joint ventures
An operation in which two or more companies share ownership. (There are also non-equity joint ventures)
Licensing agreements
Contracts whereby firms allow others to use some assets, such as trademarks, patents, copyrights, or expertise.
Management contracts
Arrangements in which a company provides personnel to perform management functions for another organization.
Merchandise exports and imports
Tangible products - goods - that are respectively sent ‘out’ of and brought ‘into’ a country.
MNC
An acronym for multinational corporation or multinational company and a synonym for multinational enterprise.
Multinational corporation or company (MNC)
A synonym for a multinational enterprise (MNE)
Multinational enterprise (MNE)
Usually signifies any company with foreign direct investments
Off shoring
The dependence on production in a foreign country, usually by shifting from domestic source.
Reshoring
Firm’s bringing operations back to their home countries from abroad and is sometimes called rightshoring.
Rightshoring
Also known as reshoring is the process of shifting production from abroad to the home country.
Royalties
Payments for the use of some assets, such as trademarks, patents, copyrights, or expertise.
Service exports and imports
Non-merchandise international earnings. They are also referred to as invisibles.
Sovereignty
A country’s freedom to “act locally” and without externally imposed restrictions.
Strategic alliance
Refers simply to companies’ working together, such as in joint venture and licensing agreements. However, the terms sometimes refers to an agreement that is of critical importance to a partner or one that does not involve joint ownership.
TNC
An acronym for transnational company.
Transnational company
A term used by the United Nations to refer to a multinational enterprise.
Turnkey operations
Construction projects performed under contract and transferred to owners when they’re operational.
Bargaining school theory
A premise that the terms of a foreign investor’s operations depend on how much the investor and host country need each other.
Consortium
An organization owned by more than two firms.
Coopetition
Refers to situations in which competing firms collaborate on some portions of their operations.
Cross-licensing
An arrangement whereby companies exchange technology or other intangible property rather than compete with each other in every product in every market.
Dependencia theory
A theory holding that emerging economies have practically no power in their dealings with MNEs.
Equity alliance
A collaborative arrangement in which at least one of the companies takes an ownership position (almost always minority) in the other(s).
Internalization
Control through self-handling of foreign operations, primarily because such control is less expensive than to contract with an external organization.
Resource-based view
Each company has a unique combination of resources, capabilities, and competencies.
Acquired group membership
An individual affiliation not determined by birth, such as religion, political membership, and profession.
Ascribed group membership
An individual affiliation determined by birth, such as gender, family, age, ethnicity, and race.
Bicultural
A description of someone which has internalized two different national cultures.
Collectivism
Perspective that the needs of the group take precedence over the needs of the individual; encourages dependence on the organization.
Core value
Values so strong that they are not negotiable.
Cultural collision
A situation whereby contract among divergent culture creates problems.
Cultural distance
A measurement based on cultural factors that indicates the relative similarly of countries culturally.
Cultural imperialism
The imposition of certain elements from an alien culture.
Culture
The shared values, attitudes, and beliefs of a group of individuals.
Culture shock
The frustration resulting from having to absorb a vast array of new cultural cues and expectations.
Deal-focus (DF) culture
A culture in which people are primarily task oriented rather than relationship oriented.
Future orientation
A willingness to delay gratification in order to reap more in the future.
Hierarchy-of-needs theory
A motivation theory that people try to fulfill lower-level needs before moving on to higher-level ones.
High-context cultures
Where most people tend to understand and regard indirect information as pertinent.
Idealism
A preference to establish overall principles before trying to resolve small issues.
Individualism
A construct comparing people’s preference to fulfill leisure time, build friendships, and improve skills independently and outside the organization as opposed to collectively and within the organization.
Low-context cultures
Where people generally regards as relevant only firsthand information that bears directly on the subject at hand.
Masculinity-femininity index
A construct measuring attitudes towards achievement and the roles expected of genders.
Monochronic
A term to describe cultures in which most people normally prefer to work sequentially, such as finishing transactions with one customer before dealing with another.
Multicultural
Description of someone who has internalized more than two national culture.
Peripheral values
Those values that are less dominant and more pliable than core values.
Polychronic
A term to describe cultures where most people are more comfortable when working simultaneously on a variety of tasks (multitasking).
Power distance
A measurement of employee preferences of interaction between superiors and subordinates.
