46 terms

management test 2 Chapter 4

the trend of the world economy toward becoming a more interdependent system
Global village
refers to the "shrinking" of time and space as air travel and the electronic media have made it easier for the people of the globe to communicate with one another.
the buying and selling of products and services through computer networks
global economy
refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets
multinational corporation
multinational enterprise, is a business firm with operations in several countries
multinational organization
a nonprofit organization with operations in several countries
ethnocentric managers
believe that their native country, culture, language, and behavior are superior to all others
a narrow view in which people see things solely through their own perspective
polycentric managers
the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.
Geocentric managers
accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.
manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens.
using suppliers outside of the country to provide goods and services
Global outsourcing
using suppliers outside of the United States to provide labor, goods, or services
a company buys goods outside of the country and resells them domestically
a company produces goods domestically and sells them outside the country
bartering goods for goods
a company allows a foreign company to pay it a fee to make or distribute the first company's product or service
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's brand name and a package of materials and services
Joint Venture
also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a neew enterprise together in a foreign country
Wholly-owned subsidiary
a foreign subsidiary that is totally owned and controlled by an organization
Greenfield venture
is a foreign subsidiary that the owning organization has build from scratch
Free trade
the movement of goods and services among nations without political or economic obstruction.
Trade protectionism
the use of government regulations to limit the import of goods and services
a trade barrier in the form of a customs duty or tax levied mainly on imports
Import quota
a trade barrier in the form of a limit on the numbers of a product that can be imported
the practice of a foreign company's exporting products abroad at a lower price than the price in the home market - or even below the costs of production - in order to drive down the price of the domestic product.
a complete ban on the import and export of certain products
World Trade Organization (WTO)
designed to monitor and enforce trade agreements
World bank
to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications
International Monetary Fund (IMF)
designed to assist in smoothing the flow of money between nations
Exchange rate
the rate at which one country's currency can be exchanged for another country's currency
Trade bloc
also known as economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another.
North American Free Trade Agreement (NAFTA
a trading bloc consisting of the United States, Canada, and Mexico
European Union (EU)
consistsof 27 trading partners in Europe
Asia-Pacific Economic Cooperation (APEC)
a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties
Association of Southeast Asian Nations (ASEAN)
a trading bloc consisting of 11 countries in Asia
the largest trade bloc in Latin America and has four core members - Argentinga, Brazil, Paraguay, and Uruguay, with venezuala scheduled to become a full member upon ratification by other countries - and a five associate members: Bolivia, Chile, Columbia, Ecuador, and Peru
The Central America Free Trade Agreement (CAFTA-DR
involves the United States and Costa Rica, the Dominican republic, El Salvador, Guatemala, Honduras, and Nicaragua - is intended to reduce tariffs and other barriers to free trade.
the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.
Low-context culture
shared meanings are primarily derived from written and spoken words
High-context culture
people rely heavily on situational cues for meaning when communicating with others.
Hofstede model of four cultural dimensions
- identified four dimensions along which national cultures can be placed 1) individualism/collectivism 2)power distance 3) uncertainty avoidance 4) Masculinity/femininity.
Globe Project
a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes.
Monochromic time
a preference for doing one thing at a time
Polychromic time
a preference for doing more than one thing at a time
people living or working in a foreign country