1. Four stages of Globalization:
    • 1. Domestic
    • 2. International
    • 3. Multinational
    • 4. Global
  2. Market-entry strategy
    An organization strategy for entering a foreign market
  3. Exporting
    An entry strategy in which the organization maintains its production facilites within its home country and transfers its products for sale in foreign countries
  4. Countertrade
    The barter of products for other products rather than their sale for currency
  5. Global outsourcing
    Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country; also called offshoring
  6. Franchising
    A form of licensing in which an organization provides its foreign franchisees with a complete package of materials and services
  7. International management
    The management of business operations conducted in more than one country
  8. Key factors in the international environment (Three):
    • 1. Economic
    • 2. Legal-Political
    • 3. Sociocultural
  9. Infrastructure
    A country's physical facilities that support economic activites (ex: highways,airports,utilites,telephone lines)
  10. Political Risk
    A company's risk of loss of assets, earning power, or managerial control due to politcally based events or actions by host governments
  11. Political instability
    Events such as riots,revolutions, or government upheavals that affect the operations of an international company
  12. Hofstede's Value Dimensions (Four):
    • 1. Power Distance
    • 2. Uncertainty Avoidance
    • 3. Individualism and Collectivism
    • 4. Masculinity and Femininity
  13. Power Distance
    The degree to which people accept inequality in power among institutions, organizations, and people (High: Accept inequal/Low: Expect inequal)
  14. Uncertainty Avoidance
    A value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and comformity (High: Uncomforable with uncertainty/ Low: High tolerence for the unstructured)
  15. Individualism
    A preference for a loosely knit social framwork in which individuals are expected to take care of themselves
  16. Collectivism
    A preference for a tightly knit social framwork in which indivisuals look after one another and organizaions protect their members interests
  17. Long-term orientation
    A greater concern for the future and high value on thrift and perseverance
  18. Short-term orientation
    A concern wiht the past and present and a high value on meeting social obligations
  19. GLOBE Project Value Dimentions (Nine)
    • 1. Assertiveness
    • 2. Future orientation
    • 3. Uncertainty avoidance
    • 4. Gender differentiation
    • 5. Power distance
    • 6. Societal collectivism
    • 7. Individual collectivism
    • 8. Performance orientation
    • 9. Humane orientation
  20. High-context culture
    A culture in which communication is used to enhance personal relationships
  21. Low-context culture
    A culture in which communication is used to exchange facts and information
  22. Ethnocentrism
    A cultural attitude marked by the tendency to regard one's own culture as superior to others
  23. Euro
    TA single European currency that replaced the currencies of 15 European nations
  24. Cultural intelligence components (Three)
    • 1. Cognitive aspect
    • 2. Emotional aspect
    • 3. Physical aspect ¬†
  25. Cultural Intelligence (CQ)
    A person's ability to use reasoning and observation skills to interpret unfamilar gestures and situations and devise appropriate behavioral responses
  26. Expatriates
    Employees who live and work in a country other than their own
Card Set
Managing in a Global Environment