Module 12 - Intercultural Dynamics

Question 1

What is internationalization?

Answer 1

the performance of trade and investment activities by companies across national borders

Question 2

What are the 2 dominant theories of internationalization?

Answer 2

1. traditional growth and development

2. born- global

Question 3

What is the traditional model of internationalization?

Answer 3

• incremental; entering physically close markets first then increasing commitment to international markets gradually
  domestic > import/export > multinational org > global firm

Question 4

What is the born-global model of internationalization?

Answer 4

after business inception, seeks to derive significant competitive advantage from the use of resources & sale of outputs in multiple countries

Question 5

What is a multinational organization?

Answer 5

an organization that thinks of itself as a firm that has a nationality but has operations in many countries

Question 6

What is a national subsidiary?

Answer 6

managers at subsidiaries have direct access and communication with managers at headquarters; may have minimal communication with other subsidiaries

Question 7

What is an international division?

Answer 7

an official line of communication goes from the field through the international division to the appropriate areas and departments at headquarters; could lead to duplication of efforts; may create rivalry between domestic and international division

Question 8

What is a global firm?

Answer 8

does not divide operations into domestic and international; has a global perspective

Question 9

What are 4 different organizational structures? (CCFP)

Answer 9

1. credentials
2. context
3. family orientation
4. political principles

Question 10

What are the characteristics of an organization based on credentials?

Answer 10

• people identify with professional attributes
• employees can enter and leave an org at any level
• individual advancement & individual opportunities
• cultural leaning toward equal opportunity, individualism, merit

Question 11

What are the characteristics of an organization based on context?

Answer 11

• people identify with their organization
• importance of group, reciprocity, mutual dependency
• personality that fits is more important than skills
• company loyalty from employees

Question 12

What are the characteristics of an organization based on family orientation?

Answer 12

• implication that family will take care of family before outsiders
• positions are flexible to accommodate family qualifications
• business conducted at a personal level; trust is necessary

Question 13

What are the characteristics of an organization based on political principles?

Answer 13

• political orientation of employee influences employment and promotion decisions

Question 14

What are the 3 types of culturally diverse teams?

Answer 14

1. destroyers
2. equalizers
3. creators

Question 15

What are “destroyers”?

Answer 15

• when members of culturally diverse teams mistrust each other and guard information
• teams may engage in stereotyping

Question 16

What are “equalizers”?

Answer 16

• members are prone to achieving mediocrity because they prefer to view themselves as a homogenous group & suppress differences
• cannot/ do not want to leverage diversity for innovation or performance advantage

Question 17

What are “creators”?

Answer 17

• members that explicitly recognize and accept differences between members
• understand, incorporate, and leverage differences to gain competitive advantage

Question 18

What are the 5 steps in building successful culturally diverse teams?

Answer 18

1. create self awareness
2. map cultural differences
3. bridge gaps and identify synergies
4. develop strategies
5. assess results