Learning About International Human Resources Management - chap 11 Flashcards
The following 4 terms are mainly used to describe any company doing business in another country:
multinational, international, transnational, and global.
Each term is distinct and has a specific meaning defining the scope and degree of interaction with the operations outside the “home” country.
multinational companies
have investments in other countries but do not have coordinated product offerings in each country.
They focus more on adapting their products and services to each local market.
(e.g., McDonald’s with different menus in each country).
international companies
are importers and exporters; they have no investment outside of their home country.
EX. A company that exports goods from its home country to foreign markets but doesn’t have local branches or offices abroad.
transnational companies
are much more complex organizations.
They have invested in foreign operations and have a central corporate facility but give decision-making, research and development, and marketing powers to each foreign market.
ex. A company with offices, factories, and operations spread around the world, working together in a coordinated way (e.g., Unilever or Nestlé).
global companies
Has a unified brand and strategy across all countries, focusing on high volume, efficiency, and cost management.
A company that sells the same product with the same branding everywhere, focusing on global reach (e.g., Apple or Coca-Cola).
Forbes list are in a strong position to affect the world economy in the following ways:
- Production and distribution extend beyond national boundaries, making it easier to transfer technology.
- They have direct investments in many countries, affecting the balance of payments.
- They have a political impact that leads to cooperation among countries and to the breaking down of barriers of nationalism.
what is the affect of the world economy and organization test thorugh
industry analysts in a methodological “peer review” of reputation
what is the belief of the peer review method
belief that a company’s reputation is positively related to measurable outcomes, such as innovation, social responsibility, financial soundness, and global competitiveness.
Free Trade Zones and Agreements
Free Trade Zones: Economic areas within Europe, North America, and the Pacific Rim where trade barriers are reduced.
Brexit: The United Kingdom’s departure from the European Union, complicating international business.
CUSMA (Canada–United States–Mexico Agreement): A trade agreement that came into effect on July 1, 2020, affecting business relations between these countries.
Trans-Pacific Partnership (TPP): A deal aimed at improving trade relationships among Pacific countries, including Canada.
Global Trade and Economic Regions
BRICS: Group of fast-growing economies: Brazil, Russia, India, China, and South Africa. China and India are integrating into global supply chains; Brazil, Russia, and South Africa focus on selling natural resources.
China: Key global player with a large consumer market and rapid economic growth, especially after trade reforms in the 1970s.
Global Auto Industry Changes:
Examples of cross-border mergers and collaborations, such as Fiat and Chrysler, and GM and Isuzu.
Political and Legal Considerations for International Business
Property Rights: Poor protection in many countries, especially in Africa
Intellectual Property: Lack of protection in countries like China (e.g., knock-off products before official launch).
Cultural Environment
Cultural Factors: Important considerations include values, norms, religion, language, and social structure, which affect business practices in foreign countries.
Example: In India, promotions are valued more than compensation, while in Japan, a 4-day workweek was introduced to improve employee motivation.
Hofstede’s Cultural Dimensions
Framework for understanding cultural differences in business practices.
what are the Hofstede’s cultural dimensions
power distance
Individualism and collectivism
masculinity and femininity
uncertainty avoidance
Confucian dynamic
indulgence verses restraint
power distance
Power Distance refers to the degree to which less powerful members of institutions and organizations in a country accept and expect that power is distributed unequally.
A high power distance culture accepts hierarchical order and centralized authority, while a low power distance culture seeks more equality and less reliance on hierarchy in decision-making and leadership.
individualism verses collectivism
Individualism describes the cultures in which the ties between individuals are loose.
Collectivism describes cultures in which people are integrated into strong, cohesive groups that protect individuals in exchange for
for unquestioning loyalty.
masculinity verses feminity
Masculinity pertains to cultures in which social gender roles are clearly distinct.
Femininity describes cultures in which social gender roles overlap.
uncertainty avoidance
Uncertainty avoidance is the extent to which the members of a culture feel threatened by uncertain or unknown situations.
confucian dynamic
there is a strong emphasis on the importance of long-term thinking, family values, respect for tradition, and social harmony.
short term = instant gratification
indulgence versus retraint
refers to the degree to which a society allows or controls the gratification of desires and the pursuit of happiness.
Amazon’s Cultural Misstep in Germany
Union Issues: Amazon struggled with Germany’s strong union culture, which contrasts with its direct approach to dealing with employees.
Cultural Clash: Amazon’s approach conflicted with German expectations of employer-employee relations, leading to strikes and a cultural conflict.
International HRM (Human Resources Management)
Complexities in HR: When doing business internationally, companies must address challenges like relocating employees, hiring locally, and managing operations abroad.
HRM Systems: Tools to manage global operations, track employees, and ensure their safety during crises like natural disasters or pandemics (e.g., COVID-19).
why do global mergers and acquisitions fail?
due to the lack of addressing and combining different cultures
expatriate
Employee from an organization’s home country who moves to the international country where the organization does business
