Documente Academic
Documente Profesional
Documente Cultură
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Globalization: the extent to which trade
and investments, information, social and
cultural ideas, and political cooperation
flow between countries
Result is that countries, businesses, and
people become increasingly
interdependent
Fewer large international corporations
located in the U.S.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Global mind-set: ability of managers to
appreciate and influence individuals,
groups, organizations, and systems that
represent different social, cultural, political,
institutional, intellectual, and psychological
characteristics
Expand a global mind-set
Thinking: curiosity
Doing: relationships with people across
cultural and national boundaries
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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China, Inc.
Largest or second-largest market for a
variety of products and services
Relationships are more important than
contracts
Regulations and government policies make
doing business in China a challenge
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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India, the service giant
Second only to China in population
Large English-speaking population makes it
a natural for U.S. companies outsourcing
services
Rising power in software design, services,
and precision engineering
Industry leader in IT outsourcing
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Multinational corporation: receives more
than 25% of its total sales revenues from
operations outside parent’s home country
Characteristics
Managed as integrated worldwide business
systems
Controlled by a single management
authority
Regard the entire world as one market
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Ethnocentric companies place emphasis
on their home countries
Polycentric companies are oriented toward
the markets of individual foreign host
countries
Geocentric companies are world oriented
and favor no specific country
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Bottom of the pyramid (BOP): proposes that
corporations can alleviate poverty and
other social ills as well as make significant
profits by selling to the world’s poorest
people
Pyramid is defined by per-capita income
More than 4 billion people are at the lowest
level of the economic pyramid
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Exporting: strategy in which the corporation
maintains its production facilities within the
home nation and transfers its products for
sale in foreign countries
Global outsourcing: engaging in the
international division of labor so that work
activities can be done in countries with the
cheapest sources of labor and supplies
Also called offshoring
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Partnerships
Represent a higher level of involvement in
international trade
Often the fastest, cheapest, and least risky
way to get into global business
Joint venture: a company shares costs and
risks with another firm, typically in the host
country, to develop new products, build a
manufacturing facility, or set up a sales and
distribution network
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Political risk: the risk of loss of assets, earning
power, or managerial control due to
political events or actions by host
governments
Includes government takeovers of property
and acts of violence directed against a
firm’s properties or employees
Political instability: events such as riots,
revolutions, civil disorders, and frequent
changes in government
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Ethnocentrism: natural tendency of people
to regard their own culture as superior and
to downgrade or dismiss other cultural
values
Hofstede’s value dimensions
Four dimensions of national value systems
that influence organizational and employee
working relationships
GLOBE Project (Global Leadership and
Organizational Behavior Effectiveness)
Nine dimensions of national value systems
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Power distance: acceptance of inequality
in power among institutions, organizations,
and people
Uncertainty avoidance: comfort level with
uncertainty and ambiguity
Individualism: value for a loosely knit social
framework in which individuals are
expected to take care of themselves
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Collectivism: preference for a tightly knit
social framework in which individuals look
after one another and organizations
protect their members’ interests
Masculinity: preference for achievement,
heroism, assertiveness, work centrality (with
resultant high stress), and material success
Femininity: values relationships,
cooperation, group decision making, and
quality of life
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Fifth dimension developed later
Long-term orientation: greater concern for
the future and highly values thrift and
perseverance
Short-term orientation: more concerned with
the past and the present and places a high
value on tradition and meeting social
obligations
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Assertiveness: extent to which a society
encourages toughness, assertiveness, and
competitiveness
Future orientation: extent to which a society
encourages planning for the future over
short-term results
Gender differentiation: extent to which a
society maximizes gender role differences
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Performance orientation: extent to which a
society places emphasis on performance
and rewards people for improvement
Humane orientation: degree to which a
society encourages and rewards people for
being fair, altruistic, generous, and caring
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Implicit communication: people send and
receive unspoken cues, such as tone of
voice or body language, in addition to the
explicit spoken words when talking with
others
Cultural intelligence (CQ): a person’s ability
to use reasoning and observation skills to
interpret unfamiliar gestures and situations
and devise appropriate behavioral
responses
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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High-context culture: people are sensitive
to circumstances surrounding social
exchanges
Low-context culture: people use
communication primarily to exchange facts
and information; meaning is derived
primarily from words
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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General Agreement on Tariffs and Trade
(GATT)
Started by 23 nations in 1947
Started as a set of rules to ensure
nondiscrimination, provide clear procedures,
settle disputes, and encourage participation
of lesser-developed countries in international
trade
World Trade Organization (WTO)
Maturation of GATT into permanent global
institute
162 member countries by February 2016
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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European Union
Alliance to improve economic and social
conditions among members
Evolved into 28-nation European Union
Goal is to create a powerful single-market
system for Europe’s millions of consumers,
allowing people, goods, and services to
move freely
Euro: the single European currency that
replaced national currencies in many
European countries
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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North American Free Trade Agreement
(NAFTA)
Agreement that merged the United States,
Canada, and Mexico into a single market
Opinions of its benefits are divided
Trans-Pacific Partnership (TPP)
A proposed trade agreement among 12
countries
Supporters believe it will help the economy
Others say that it doesn’t enforce labor and
environmental standards
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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