SU 2: Managing In A Global Environment

Question 1

What are the benefits and opportunities of a borderless world

Answer 1

• trade barriers have fallen
• communication is faster and cheaper
• consumer taste converge

Question 2

What is globalization

Answer 2

The extent to which trade, investments, information, etc. between countries results in countries, businesses and people becoming increasingly interdependent

Question 3

Name the three dimensions of global mindset

Answer 3

• cognitive dimension
• psychological dimensions
• social dimension

Question 4

What are the different types of multinational corporations

Answer 4

Ethnocentric companies, polycentric companies, geocentric companies

Question 5

What are ethnocentric companies

Answer 5

Places emphasis on their home countries

Question 6

What are polycentric companies

Answer 6

Orientated towards the markets of individual foreign host countries

Question 7

What are geocentric companies

Answer 7

World orientated and favor no specific country

Question 8

In what way are multinational corporations managed

Answer 8

Multinational corporations are managed and integrated whole, controlled by one management authority that have a global perspective

Question 9

What is considered as the globalization backlash

Answer 9

• free trade
• loss of jobs
• foreign competition
• economics benefits

Question 10

Explain the concept of serving the bottom of the pyramid

Answer 10

It’s an approach for multinational to do good. Corporations can alleviate problems and make large profits by selling to the poor

Question 11

What are strategies for entering the international arena

Answer 11

• Exporting
• Global outsourcing
• Licensing
• Franchising
• Joint venture
• Acquisition
• Greenfield venture

Question 12

Define political risk

Answer 12

The risk of lost assets earning power or managerial control

Question 13

Define political instability

Answer 13

Includes riots, civil disorders and frequent changes in government

Question 14

What are Hofstede’s value dimensions

Answer 14

• Power distance
• Uncertainty avoidance
• Individualism and collectivism
• masculinity and femininity

Question 15

Explain the power distance value dimension

Answer 15

The degree to which people accept inequality in power among institutions organisations and people

Question 16

Explain the uncertainty avoidance value dimension

Answer 16

Is characterised by people intolerance for uncertainty and ambiguity and resulting in support for beliefs that promise certainty and conformity

Question 17

Explain the individualism and collectivism value dimension

Answer 17

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

Question 18

Explain the masculinity and femininity value dimension

Answer 18

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

Question 19

What are the globe project value dimensions

Answer 19

• assertiveness
• future orientation
• gender difference
• performance orientation
• human orientation

Question 20

What’s the difference between high context culture and low context culture

Answer 20

High context culture uses communication to build personal relationship.

Low context culture use communication primarily to exchange facts and information