Management-Chapter 4 Flashcards
Globalization
Refers to the extent to which trade and investments, information, ideas and political cooperation flows between countries.
Global Outsourcing
Sometimes called offshoring, means engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country.
Market Entry Strategies
Various tactics managers use to enter foreign markets.
Exporting
A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.
Countertrade
One type of exporting which is the barter of products for other products rather than the sale of products for currency.
Licensing
With a market entry strategy in which a company in one country makes certain resources available to companies to participate in the production and sale of its products abroad.
Franchising
a form of licensing in which a company provides its foreign franchisees with a complete package of materials and services.
Direct Investing
A market entry strategy in which the organization is directly involved in managing its production facilities in a foreign country.
Joint Venture
An organization shares costs and risks with another firm in a foreign country to build a facility, develop new products or set up a sales and distribution network.
Wholly Owned Foreign Affiliate
A foreign subsidiary over which an organization has complete control
Greenfield Venture
The most risky type of direct investment in which a company builds a subsidiary from scratch in a foreign country.
International Management
The management of business operations conducted in more than one country.
Political Risk
A company’s risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.
Political Instability
Includes events such as riots, revolutions, or government upheavals that can affect the operations of an international company.
Power Distance
The degree to which people accept inequality in pawer among institutions, organizations and people.
Uncertainty Avoidance
Characterized by people’s untolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.
Individualism
A preference for a loosely knit social framework in which individuals are excepted to take care of themselves.
Collectivism
A preference for a tightly knit social framework in which individuals look after ne another and organizations protect their members’ interests.
Masculinity
A cultural preference for achievement, heroism, assertiveness, work centrality and material success.
Femininity
A cultural preference for relationships, cooperation, group decision making, and the quality of life.
Long-term Orientation
Hofstede later identified another dimension which reflects a greater concern for the future and a high value on thrift and perseverance..
Short-term Orientation
Reflects a concern with the past and present and a high on meeting current obligations.
High-context Culture
One of which people use communication to build personal relationships.
Low-context Culture
People use communication primarily to exchange facts and information
Ethnocentrism
Managers working internationally should guard against which is the natural tendency among people to regard their own culture as superior to others.
Cultural Intelligence (CQ)
Refers to a persons ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately.
Culture Shock
Managers working in foreign countries often experience feelings of confusion, disorientation and anxiety that result from being constantly confronted with unfamiliar cues about how to behave.
Euro
A single European currency that has replaced the currencies of 16 EU member nations.
Multinational Corporation (MNC)
An organization that receives more than 25 % of its total sales revenues from operations outside the parent company’s home country and has a number of distinctive managerial characteristics.
Bottom of the Pyramid (BOP)
THe concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world’s poor.
