Key Terms Ch 6 Flashcards
The disorientation and stress associated with being in a foreign environment
Culture Shock
The tendency to judge others by the standards of one’s group or culture, which are seen as superior
Ethnocentrism
Parent-company nationals who are sent to work at a foreign subsidiary
Expatriates
The number of expatriate managers of an overseas operation who come home early
Failure Rate
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
Global Mode
Natives of the country where an overseas subsidiary is located
Host-country Nationals
A foreign national brought in to work at the parent company
Inpatriate
An organizational model that is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model
International model
An organizational model that consists of the subsidiaries in each country in which a company does business, and provides a great deal of discretion to those subsidiaries to respond to local conditions.
Multinational Model
An economic pact that combined the economies of the United States, Canada, and Mexico into one of the world’s largest trading blocs.
NAFTA- North American Free-Trade Agreement
Moving work to other countries
Offshoring
Contracting with an outside provider to produce one or more of an organization’s goods or services
Outsourcing
Natives of a country other than the home country or the host country of an overseas subsidiary
Third-country National
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
Transnational Model
