Lecture 4 Flashcards

Global partnerships, assignments, and negotiations

1
Q

What are the three different ways to acquire culture?

A
  • Formal learning
  • Informal learning
  • Technical learning
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2
Q

What is formal learning in acquiring culture

A

Older generations teach younger generations cultural behaviors, norms and values.

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3
Q

What is informal learning in acquiring culture

A

children get ‘taught’ the culture through interactions with friends and family.

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4
Q

What is technical learning in acquiring culture

A

teachers teach students culture in an educational setting.

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5
Q

what is enculturation?

A

the acquiring of one’s own culture

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6
Q

What is acculturation?

A

The acquisition of culture different from one’s own.

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7
Q

What is Hofstede’s onion model made up of?

A

**Culture **consists of various layers and we often compare it with an onion. On the outer layer of the onion, you’ll have symbols, such as food, logos, colours or monuments. The next layer consists of heroes, and can include real life public figures, like statesmen, athletes or company founders, or figures such as Superman in popular culture. On the third layer, closest to the core, youll find rituals, such as sauna, karaoke, or meetings. At the core there are values.

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8
Q

Trompenaar’s and Hampden-
Turner model of culture

A

Basic assumptions: the implicit assumptions behind norms and values which form the base. Hard to uncover.
Norms and values: principles
artifacts and products

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9
Q

What are Hofstede’s dimensions of culture

A
  1. High vs. low power distance
  2. Uncertainty avoidance
  3. Masculinity vs femininity
  4. Indulgence vs. restraint
  5. Individualism vs. collectivism
  6. Long vs. short term orientation
  7. Pragmatic vs normative
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10
Q

Hofstede: power distance

A

This refers to the degree of power that exists – and
is accepted – between people with and without
power.

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11
Q

Hofstede: individualism vs. collectivism

A

This refers to the strength of the ties that people have to others within their community and conformity within it.

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12
Q

Hofstede: masculinity vs. femininity

A

This is mostly attributed to the distribution of roles between men and women.

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13
Q

Hofstede: uncertainty avoidance

A

This dimension describes how well people can cope with uncertainty and the degree to which life is made controllable.

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14
Q

Hofstede: pragmatic vs. normative

Used to be: long-term vs. short-yerm orientation

A

It refers to the degree to which people need to explain the inexplicable.
In general terms, countries that score highly for PRA tend to be pragmatic, modest,
long-term oriented, and more thrifty.
* In low-scoring countries, people tend to place more emphasis on principles, consistency and truth and are typically more religious and nationalist.

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15
Q

Hofstede: indulgence vs. restraint

A

Hofstede’s sixth dimension, discovered and described together with Michael Minkov, is also relatively new, and is therefore accompanied by less data.
* Countries with a high IVR score allow or encourage relatively free gratification
of people’s own drives and emotions, such as enjoying life and having fun.
* In a society with a low IVR score, there is more emphasis on suppressing gratification and more regulation of people’s conduct and behavior, and there are stricter social norms.

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16
Q

What are the criticisms on Hofstede’s cultural dimensions

A
  • *Mcsweeney (2002): *Certain problematic assumptions; every microlocation is assumed to be typical of the national culture
  • While, these frameworks are helpful these dimensions simply must be regarded as guidelines in effort to understand
  • It encases entire nationalities and therefore cannot be used to say things about differences between members within a society
  • Cultures are dynamic and so may change
17
Q

What are global organizations?

A

those that operate internationally and/or have branches in multiple countries. They are instrumental in providing different strategies for local and global development.

18
Q

What are international firms?

A

Firms that do import and export but have no (direct) investments in other countries.

19
Q

What is a global organization characterized by?

A

Having an integrated system of international operations and management that binds the company together as an international eandevor.

20
Q

What are the main types of global organizations?

A
  • International organizations (IGO); work across multiple countries to solve developmental issues.
  • Non-gouvernmental organizations (NGO); Non-profit organizations that operate to adress social and political issues.
  • Multinational corporations (MNC); significant direct foreign investment in at least one foreign nation other than its home country and it has actual management responsibility for those foreign operations. ie; Nike, Volkswagen.
  • Transnational corporation (TNC); a “globally integrated” organisation, which is a multinational, yet distinct in its expansive interests; its pervasive markets and transactions; and its interdependent management systems. ie; Apple, Amazon
21
Q

What are the characteristics of a multinational corporation (MNC)?

A
  • MNC’s own a home company and additional foreign subsidiaries
  • Have centralized decision-making in the hands of the home company
  • MNC’s will experience barriers in decision-making bc of centralized management
22
Q

What are the characteristics of a transnational corporation (TNC)?

A
  • Companies in foreign countries are not subsidiaries but rather other companies (franchising)
  • There is decentralized decision-making for each company manages its own
  • TNC’s are more able to enter local markets due to the maintained local systems

MCDonald’s

23
Q

What are the benefits of global partnerships?

A
  • Promoting growth
  • Acquiring new technologies
  • Responding to government pressures
  • Reducing operation costs
  • Taking advantage of exchange rates
  • Respond to exonomic changes
  • Get closer to clients
  • Diversifying operations and markets
  • Opportunities for vertical integration
24
Q

What are challenges in obtaining global partnerships?

A
  • Overlooking long-term objectives on the long-term causing for misalignment of goals between parties
  • Underestimating the significance of cultural differences
  • Difficulty of merging multiple organizations
  • Lack of long-term commitment
  • Conflict over benefit distributions
  • Potential loss of local control of one partner to another partner
  • Failure to learn and adapt
  • The changing business conditions
25
Q

What is a negotiation?

A

– two or more parties with (partly) conflicting interests;
– a common need for agreement because of an expected gain from such agreement;
– an initially undefined outcome;
– a means of communication between parties;
– a control and decision-making structure on either side by which either side’s negotiator(s) is/are linked to his/their superiors
– the nature of the control and decision-making structure on either side;
– reasons for trusting or distrusting the behaviour of the other side;
– tolerance for ambiguity during the negotiation process;
– emotional needs of negotiators

26
Q

What is the sequential approach to bargaining?

A

going through a contract item by item and trying to reach agreement on each item sequentially

27
Q

What is the hollistic approach to bargaining?

A

Both parties first fully review the contract without negotiating. Then proposals and counterproposals are made to reach agreement.

28
Q

What are the five strategies within a negotiation process?

A
  • Collaborating: if the relationships are important in addition to the outcome
  • Avoiding: if the relationships are unimportant as well as the outcome
  • Competing: if the relationship is unimportant but the outcome very much is
  • Accomodating: if the outcome is unimportant but the relationship is
  • Compromising: if the outcome is important and the relationship is too but there is not enough time to problem-solve
29
Q

What are the three strategies in global assignments?

A
  • Cultural adaptation: adapting to the new culture
  • Maintaining: holding on to the old culture
  • Assimilating: attempting to change the new culture
30
Q

What are the four stages of acculturation?

adapting to a new culture

A
  1. Honeymoon stage: Expats feel a great deal of excitement, often overestimating the ease of adapting.
  2. Disillusionment: Cultural differences become irritating many individuals choose to quit at this stage or emotionally withdraw.
  3. Adaptation: Beginning to understand and adjust to local culture, still characterized by occassional moodswings and irritations.
  4. Biculturalism: Expats begin to feel stable and have a sense of confidence in their new culture. Characterized by a sense of heritage in the old culture as well as the new.