Week 6 - Thinking Globally (Ch. 8)

Question 1

Globalization

Answer 1

Tendecy of firms to expand sales, manufacturing, and ownership to new markets in other countries

Question 2

International Process

Answer 2

Stage 1: Exporting
Stage 2: Cooperative Contracts
Stage 3: Strategic Alliances
Stage 4: Wholly Owned Affiliates

Question 3

Global Ventures

Answer 3

Companies that are founded with the goal of being a global company from the start.

Question 4

Two Different Types of Cooperative Contracts

Answer 4

Licencing The company receives royalty payments by allowing a foreginer to produce/brand/sell their products in a foreign market.
Franchising: Allow a foreigner to adopt your entire business and run in it certain geographic area.

Question 5

High/Low Context Culture

Answer 5

High: Cultures in which nonverbal and situational messages conver meaning
Relationships more importants than terms
Low: Cultures in which words convey primary meaning
Nonverbalmessages are secondary
Terms of the deal are more important than building a business relationship

Question 6

Hofstede’s Dimensions

Answer 6

1. Long term vs Short term orientation
2. Uncertainty avoidance
3. Masculinity vs Femininity
4. Individualism vs Collectivism
5. Power distance

Question 7

Characteristics of an attractive foreign business climate

Answer 7

• Positions the company for easy access to growing markets
• Effective but cost efficent place to build a facility
• Minimizes the politcal risk

Question 8

Preparing for an International assignment

Answer 8

1. Foreign Language
2. Foreign Customs
3. Documentary Training (focus on critical differences in culture)
4. Cultural Simulations (practice adaptation)
5. Field Experiences (place in an ethninc neighborhood)