SU 2: Managing In A Global Environment Flashcards
What are the benefits and opportunities of a borderless world
- trade barriers have fallen
- communication is faster and cheaper
- consumer taste converge
What is globalization
The extent to which trade, investments, information, etc. between countries results in countries, businesses and people becoming increasingly interdependent
Name the three dimensions of global mindset
- cognitive dimension
- psychological dimensions
- social dimension
What are the different types of multinational corporations
Ethnocentric companies, polycentric companies, geocentric companies
What are ethnocentric companies
Places emphasis on their home countries
What are polycentric companies
Orientated towards the markets of individual foreign host countries
What are geocentric companies
World orientated and favor no specific country
In what way are multinational corporations managed
Multinational corporations are managed and integrated whole, controlled by one management authority that have a global perspective
What is considered as the globalization backlash
- free trade
- loss of jobs
- foreign competition
- economics benefits
Explain the concept of serving the bottom of the pyramid
It’s an approach for multinational to do good. Corporations can alleviate problems and make large profits by selling to the poor
What are strategies for entering the international arena
- Exporting
- Global outsourcing
- Licensing
- Franchising
- Joint venture
- Acquisition
- Greenfield venture
Define political risk
The risk of lost assets earning power or managerial control
Define political instability
Includes riots, civil disorders and frequent changes in government
What are Hofstede’s value dimensions
- Power distance
- Uncertainty avoidance
- Individualism and collectivism
- masculinity and femininity
Explain the power distance value dimension
The degree to which people accept inequality in power among institutions organisations and people
Explain the uncertainty avoidance value dimension
Is characterised by people intolerance for uncertainty and ambiguity and resulting in support for beliefs that promise certainty and conformity
Explain the individualism and collectivism value dimension
Individualism refers to a preference for a loosely knit social framework in which individuals are expected to take care of themselves, while collectivism refers to a preference for a tightly knit social framework in which individuals look after one another and organisations protect their members interests
Explain the masculinity and femininity value dimension
Masculinity is a cultural preference for achievement, heroism, assertiveness, and material success, while femininity is a cultural of preference for relationships, cooperation, group decision making and quality life
What are the globe project value dimensions
- assertiveness
- future orientation
- gender difference
- performance orientation
- human orientation
What’s the difference between high context culture and low context culture
High context culture uses communication to build personal relationship.
Low context culture use communication primarily to exchange facts and information
