International Business Management Flashcards
4 levels at which globalisation can be analysed.
1) global
2) country
3) industry
4) company
What is the Trans-nationality index (TNI)?
% of a company’s assets, sales and employment abroad compared to domestic
3 drivers of globalisation.
1) economy liberalisation (trade, finances, foreign direct investment - FDI)
2) technology development (info and comms, transport)
3) internationalisation of firms (offshoring)
3 deterrents of globalisation.
1) Covid-19
2) geopolitical tensions (war in Ukraine)
3) negative perception (modern slavery, cultural changes, MNC gain power)
What is United Nations Global Compact? 4 action areas.
Call for businesses to adopt CSR practices.
1) human rights
2) labour
3) environment
4) anti-corruption
3 factors of firm internationalisation.
1) push (forces to leave home markets)
2) pull (attracts to foreign markets)
3) facilitating
5 types of push factors.
1) legal hinders
2) growing costs
3) local economy
4) home market saturation
5) demogaphics
4 types of pull factors.
1) markets (growth opportunities, per capita income, consumer preferences)
2) resources (raw materials, infrastructure low-cost & skilled labour)
3) strategic (innovations, diversification, competitors follow-up)
4) efficiency
2 ways to select markets for expansion.
1) opportunistic
2) systematic
5 types of entry modes.
1) exports (direct & indirect)
2) licences
3) joint ventures
4) acquisitions
5) green-fields
4 types of licensing entry modes.
1) licensing (e.g. Batman was licensed to LEGO)
2) franchising (e.g. McDonalds)
3) turnkey operations (i.e. a more controlled franchise, e.g. Subway, who prepare the premises, manage marketing etc. and the owner just runs the store)
4) management contracts (e.g. Sol Melia hotels, that run the place but do not own the property)
3 types of firm internalisation process.
1) sequential (Scandinavian / Uppsala model), where expansion is based on physical distance and market similarities
2) network, where expansion is based on contacts
2) born globals (IT companies etc.)
5 conditions of the Porter’s diamond.
1) factors (resources, infrastructure, education)
2) demand (growth, saturation)
3) home market rivalry (innovation, competition)
4) related and supporting industries
5) government role
3 types of strategic approaches.
1) global
2) multidomestic
3) transnational
5 key characteristics of the Global strategy.
1) ethnocentric (parent country managers)
2) passive (dependent) subsidiaries
3) centralised, HR visits to central HQ
4) international or product org. structure
5) control via procedures, behaviour control
5 key characteristics of the Multidomestic strategy.
1) polycentric (host country managers)
2) autonomous subsidiaries (independent)
3) decentralised
4) geographic org. structure
5) control via socialisation, results
5 key characteristics of the Transnational strategy.
1) geocentric (managerial nationality does not matter)
2) interdependent subsidiaries
3) selective centralisation and decentralisation
4) hybrid or matrix org. structure
5) control via socialisation and informal relationships
5 types of organisational structure.
1) functional
2) international
3) product
4) geographic
5) hybrid & matrix
4 categories of Hofstede’s cultural framework.
1) power distance
2) uncertainty avoidance
3) masculinity / femininity
4) individualism / collectivism
4 key points of high Power distance.
1) autocratic managers
2) formal titles and positions are important
3) vertical org. structure
4) wide salary differences
3 key points of high Uncertainty avoidance.
1) loyalty to the employer
2) highly formalised management
3) preference for tradition
4 key points of high Individualism.
1) commitment to oneself and closest kin
2) personal achievement and financial autonomy
3) hiring and promotion based on performance and skill
4) greater social mobility across occupations
4 key points of high Masculinity.
1) live to work (emphasis on income, status)
2) managers expected to be decisive, firm, assertive
3) career ambitions are expected
4) focus on fast career growth
4 steps of expatriation process.
1) recruitment and selection
2) training and career development
3) compensation
4) expatriation failure and repatriation
3 types of MNC tendencies nowadays.
1) re-shoring and regionalisation
2) digitalisation
3) sustainability (CSR and stakeholders)
Example of re-shoring.
“Mango” moved production from India, China and Bangladesh to Spain, Italy and Turkey
