MGMT Chapter 4 Flashcards
what is international management?
the management of business operations conducted in more than one country
what is globalization?
the extent to which trade and investment, information, social, and cultural ideas and political cooperate flow between countries
what is the ability of managers to appreciate and influenced individuals, groups, and organizations that possesses different social, cultural, political, institutional, intellectual and psychological characteristics?
global mind set
what is a multinational corporation?
receive more than 25% of its total sales revenue from operations outside parent’s home country
what are ethnocentric companies?
places an emphasis on their home countries
what are polycentric companies?
are oriented toward the markets of individual foreign host countries
what are geocentric companies?
are world oriented and favor no specific country
what is the strategy in which the corporation maintains its production facilities within their home nation and ships its products for sale in foreign countries?
exporting
what is partnership?
partners with a local company in forging countries
what type of venture is when a company shares costs and risks with another firm, typically in the host county, to develop new products, build a manufacturing facility, or set up a sales and distribution network ?
joint venture
what is political risk?
the risk of loss assets, earning power, or managerial control due to political changes or instability in a host country
what is political instability?
includes, riots, revolution, civil disorders, and frequent changes in government
what is ethnocentrism?
natural tendency of people to regard their own culture as superior and downgrade or dismiss other cultural values
what are Hofstede’s value dimensions?
5 dimensions of national value system that influence organizational and employee working relationships
what is the GLOBE project?
9 dimensions that explain cultural differences
what is power distance?
level of acceptance of inequality in power among institutions, organizations and people
what is uncertainty avoidance ?
uncomfortable with unstructured, ambiguous and unpredictable situations
what is individualism ?
value for loose knit social framework in which individuals are expected to take care of themselves
what is collectivism ?
preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests
what is masculinity ?
preference for achievement, heroism, assertiveness, work centrality (with resultant high stress) and material success
what is femininity ?
values relationships, cooperation, group decision making and quality of life
what is long time orientation?
greater concern for the future and highly values thrift and perseverance
what is short term orientation?
more concerned with the past and the present and places a high value on tradition meeting social obligations
what is assertiveness?
extent to which a society encourages toughness, assertiveness and competitiveness
what is future orientation?
extent to which a society encourages planning for the future over short term results
what is gender differentiation?
extent to which society maximizes gender role differences
what is performance orientation?
extent to which a society places emphasis on performance and rewards people for improvement
what is human orientation?
degree to which a society encourages and rewards people for being fair, altruistic, generous and caring
what is implicit communication?
people send and receive unspoken cues, such as tone of voice or body language in addition to the explicit spoken words when talking with others
what is high context culture?
people are sensitive to circumstance surrounding social exchanges
what is low context culture?
people use communication primarily to exchange facts and information; meaning is derived primarily from words
what is cultural intelligence?
a persons ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavior responses
what is cognitive component?
a person’s observational skills and recognition of cause to understanding
what is emotional component ?
a persons self confidence and self motivation
what is physical component ?
a persons ability to shift his or her speech patterns/expressions and body language to match those in a different culture
what was signed by 23 nations in 1947 to ensure nondiscrimination, clear procedures, negotiation of disputes, and participation of lesser developed countries in International trade ?
General Agreement on Tariffs and Trade (GATT)
what is the maturation of GATT into permanent global institute with 164 member countries by July 2016?
World Trade Organization (WTO)
what is the 27 nation alliance to improve economic and social conditions among members, a power single market system for Europes millions of consumers, allowing people, goods, and services to move freely, more competitive with other markets because of economic of scale?
European Union
what is the single European currency that replaced many national currencies in many European countries?
Euro
what is when the British exited from the European Union?
BREXIT
what replace the North American Free Trade Agreement (NFTQ) that merged the US, Canada, and Mexico into a single market in 1994?
US-Mexico-Canada Agreement (USMCA)
