Chapter 4: Global Management Flashcards Preview

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Flashcards in Chapter 4: Global Management Deck (51)
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1
Q

Globalization

A

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

2
Q

Global village

A

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
Q

E-commerce

A

Electronic commerce

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

4
Q

Global economy

A

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

5
Q

Minfirms operating world wide

A

Small companies can get started more easily

Small companies can maneuver faster

6
Q

Cross cultural awareness

A

The ability to operate in different cultural settings

7
Q

Multinational corporation

A

A business firm with operations in several countries

8
Q

Multinational organization

A

A nonprofit organization with operations in several countries

9
Q

Ethnocentric managers

A

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

10
Q

Parochialism

A

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

11
Q

Polycentric managers

A

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
Q

Geocentric managers

A

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
Q

Why companies expand internationally

A

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

14
Q

Maquiladoras

A

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

15
Q

5 ways to expand internationally

A

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

16
Q

Outsourcing

A

Using supplies outside the company to provide goods and services

17
Q

Global outsourcing

A

Also called offshoring

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

18
Q

Importing

A

Buying goods outside the country and reselling them domestically

19
Q

Exporting

A

Producing goods domestically and selling them outside the country

20
Q

Counter trading

A

Bartering goods for goods

21
Q

Licensing

A

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

22
Q

Franchising

A

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
Q

Joint venture

A

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
Q

Wholly owned subsidiary

A

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

25
Q

Greenfield venture

A

A foreign subsidiary that the owning organization has built from scratch

26
Q

Free trade

A

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

27
Q

Trade protectionism

A

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

28
Q

Elements of trade protectionism

A

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

29
Q

Tariff

A

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

30
Q

Import quotas

A

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

31
Q

Dumping

A

Practice of a foreign company’s exporting products abroad at a lower price than the price in the home markets - or even below the costs of production - in order to drive down the price of a competing domestic product

32
Q

Embargo

A

Complete ban on the import, export of a certain product

33
Q

Sanction

A

Trade prohibition on certain types of products, services, or technology to another country for a specific reason

34
Q

3 organizations to facilitate international trade

A

World trade organization

World bank

International Monterey fund

35
Q

Trading bloc

A

Aka economic community

A group of nations within a geographical region that have agreed to remove trade barriers with one another

36
Q

North American free trade agreement

A

Trading block consisting of USA, Canada, Mexico

37
Q

European Union

A

Union of 28 trading partners in Europe

38
Q

Trans pacific partnership

A

A trade agreement among 12 pacific rim countries

39
Q

Most favoured nation

A

Trading status describes a condition in which a country grants other countries favourable trading treatment such as the reduction of import duties

40
Q

Exchange rate

A

Rate at which currency of one area or country can be exchanged for the currency of another’s

41
Q

Culture

A

Shares set of beliefs, values, knowledge, and patterns of behavior common to a group of people

42
Q

Low context culture

A

Culture in which shared meanings are primarily derived from written and spoken words

43
Q

High context culture

A

Culture in which people rely heavily on situational cues for meaning when communicating with others

44
Q

Hofstede model of four cultural dimensions

A

Identifies four dimensions along which national cultures can be placed

1) individualism / collectivism
2) power distance
3) uncertainty avoidance
4) masculinity / feminity

45
Q

Globe project

A

Massive ongoing cross cultural investigation of nine cultural dimensions involved in leadership and organizational processes

46
Q

Variations in six cultural areas

A

1) lanaguage
2) interpersonal space
3) communications
4) time orientation
5) religion
6) law and political stability

47
Q

Monochronic time

A

The standard kind of time orientation in US business; a preference for doing one thing at a time

48
Q

Polychronic time

A

The standard king of time orientation in Mediterranean, Latin American, and Arab cultures, a preference for doing more than one thing at a time

49
Q

Expropriation

A

Governments seizure of a domestic or foreign company’s assets

50
Q

Foreign corrupt practices act

A

Act that makes it illegal for emplyees of US companies to make questionable or dubious contributions to political decision makers in foreign nations

51
Q

Expatriates

A

People living or working in a foreign country