Chapter 4: Global Management Flashcards Preview

MGMT 110 > Chapter 4: Global Management > Flashcards

Flashcards in Chapter 4: Global Management Deck (51)
Loading flashcards...
1

Globalization

The trend of the world economy toward becoming a more interdependent system

2

Global village

The “shrinking” of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another

3

E-commerce

Electronic commerce

The buying and selling of a goods and services over computer networks

4

Global economy

The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets

5

Minfirms operating world wide

Small companies can get started more easily

Small companies can maneuver faster

6

Cross cultural awareness

The ability to operate in different cultural settings

7

Multinational corporation

A business firm with operations in several countries

8

Multinational organization

A nonprofit organization with operations in several countries

9

Ethnocentric managers

Managers who believe that their native country, culture, laugaue, and behavior are superior to all others

10

Parochialism

A narrow view in which people see things solely through their own perspective

11

Polycentric managers

Managers who take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

12

Geocentric managers

Managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

13

Why companies expand internationally

1) availability of supplies
2) new markets
3) low labor costs
4) access to financial capital
5) avoidance of tariffs and import quotas

14

Maquiladoras

Manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens

15

5 ways to expand internationally

1) global outsourcing
2) importing, exporting, countertrade
3) licensing and franchising
4) joint ventures
5) wholly owned subsidiaries

16

Outsourcing

Using supplies outside the company to provide goods and services

17

Global outsourcing

Also called offshoring

Use of suppliers outside the United States to provide labor, goods, services

18

Importing

Buying goods outside the country and reselling them domestically

19

Exporting

Producing goods domestically and selling them outside the country

20

Counter trading

Bartering goods for goods

21

Licensing

Company x allows a foreign company to pay it a fee to make or distribute ax’s product or service

22

Franchising

A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company brand name and a package of materials and services

23

Joint venture

Aka strategic alliance

A US firm may form a joint venture with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

24

Wholly owned subsidiary

A foreign subsidiary or subordinate section of an organization, that is totally owned and controlled by an organization

25

Greenfield venture

A foreign subsidiary that the owning organization has built from scratch

26

Free trade

Movement of goods and services among nations without political or economic obstruction

27

Trade protectionism

The use of government regulations to limit the import of goods and services

28

Elements of trade protectionism

1) tariffs
2) import quotas
3) trade embargo’s and sanctions

29

Tariff

Trade barrier in the form of a customs duty, or tax, levied mainly on imports

30

Import quotas

Trade barrier in the form of a limit on the numbers of a product that can be imported