Management-Chapter 4

Question 1

Globalization

Answer 1

Refers to the extent to which trade and investments, information, ideas and political cooperation flows between countries.

Question 2

Global Outsourcing

Answer 2

Sometimes called offshoring, means engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country.

Question 3

Market Entry Strategies

Answer 3

Various tactics managers use to enter foreign markets.

Question 4

Exporting

Answer 4

A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.

Question 5

Countertrade

Answer 5

One type of exporting which is the barter of products for other products rather than the sale of products for currency.

Question 6

Licensing

Answer 6

With a market entry strategy in which a company in one country makes certain resources available to companies to participate in the production and sale of its products abroad.

Question 7

Franchising

Answer 7

a form of licensing in which a company provides its foreign franchisees with a complete package of materials and services.

Question 8

Direct Investing

Answer 8

A market entry strategy in which the organization is directly involved in managing its production facilities in a foreign country.

Question 9

Joint Venture

Answer 9

An organization shares costs and risks with another firm in a foreign country to build a facility, develop new products or set up a sales and distribution network.

Question 10

Wholly Owned Foreign Affiliate

Answer 10

A foreign subsidiary over which an organization has complete control

Question 11

Greenfield Venture

Answer 11

The most risky type of direct investment in which a company builds a subsidiary from scratch in a foreign country.

Question 12

International Management

Answer 12

The management of business operations conducted in more than one country.

Question 13

Political Risk

Answer 13

A company’s risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

Question 14

Political Instability

Answer 14

Includes events such as riots, revolutions, or government upheavals that can affect the operations of an international company.

Question 15

Power Distance

Answer 15

The degree to which people accept inequality in pawer among institutions, organizations and people.

Question 16

Uncertainty Avoidance

Answer 16

Characterized by people’s untolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.

Question 17

Individualism

Answer 17

A preference for a loosely knit social framework in which individuals are excepted to take care of themselves.

Question 18

Collectivism

Answer 18

A preference for a tightly knit social framework in which individuals look after ne another and organizations protect their members’ interests.

Question 19

Masculinity

Answer 19

A cultural preference for achievement, heroism, assertiveness, work centrality and material success.

Question 20

Femininity

Answer 20

A cultural preference for relationships, cooperation, group decision making, and the quality of life.

Question 21

Long-term Orientation

Answer 21

Hofstede later identified another dimension which reflects a greater concern for the future and a high value on thrift and perseverance..

Question 22

Short-term Orientation

Answer 22

Reflects a concern with the past and present and a high on meeting current obligations.

Question 23

High-context Culture

Answer 23

One of which people use communication to build personal relationships.

Question 24

Low-context Culture

Answer 24

People use communication primarily to exchange facts and information

Question 25

Ethnocentrism

Answer 25

Managers working internationally should guard against which is the natural tendency among people to regard their own culture as superior to others.

Question 26

Cultural Intelligence (CQ)

Answer 26

Refers to a persons ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately.

Question 27

Culture Shock

Answer 27

Managers working in foreign countries often experience feelings of confusion, disorientation and anxiety that result from being constantly confronted with unfamiliar cues about how to behave.

Question 28

Euro

Answer 28

A single European currency that has replaced the currencies of 16 EU member nations.

Question 29

Multinational Corporation (MNC)

Answer 29

An organization that receives more than 25 % of its total sales revenues from operations outside the parent company’s home country and has a number of distinctive managerial characteristics.

Question 30

Bottom of the Pyramid (BOP)

Answer 30

THe concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world’s poor.