Chp 3: International Management And Globalization

The flow of goods and services, capital(money), and knowledge across country borders

The country's rules, policies, and enforcement processes that influence individuals' and organizations' behaviors that operate within the country boundaries.

A learned set of assumptions, values, and beliefs that members of a group have accepted and that affect human behavior.

The extent to which people accept power and authority differences among people.

When cultures differ in the extent to which they need things to be clear or ambiguous.

The extent to which people's identities are self-oriented and people are expected to take care of themselves and their immediate families.

The extent to which identity is a function of a group(s) to which an individual belongs(e.g., families, firm members, community, members, etc.) and the extent to which group members are expected to look after each other.

The extent to which people in a country value masculine or feminine traits

Manufacturing products in a firm's home country and shipping them to a foreign market.

Arrangements establishing how to allow a local firm in the new market to manufacture and distribute its product.

A cooperative arrangement between two firms in which they agree to share resources to accomplish a mutually desirable goal.

acquisitions of local firms made by foreign firms to enter a new international market.

A direct investment to establish a business in a foreign market in which the local firm owns and controls 100 percent of the business.

An organization that invests the primary authority for major strategic decisions in the home office.

A situation in which primary authority for determining competitive strategy rests with the management of the international subsidiary based in a region of the world or a specific country.

An organization that strives to be simultaneously centralized and decentralized.

The degree to which a situation influences behavior or perception of the appropriateness of behaviors.

A culture in which people pay close attention to the situation and its various elements

A culture in which contextual variables have much less impact on the determination of appropriate behavior.

A team that relies on electronically mediated communication.

The rapid development of trust in teams with positive and reciprocal communities about the team's task activities.

A set of cognitive attributes that allows an individual(such as a manager) to influence individuals, groups, and organizations from diverse sociocultural and institutional environments.

contributes to better living standards and citizens' health and welfare, and opens up greater market opportunities for firms.

Separated into three categories:

1. Developed

2. Emerging

3. Developing

Dimension of the institutional environment, which refers to a country's political risks, regulations, and laws, and their enforcement.

Includes such aspects as the amount and quality of roads and highway , number of telephone lines per capita, and the number of airports.

Facilitates business communications and the movement of goods from their source to the ultimate consumer.

1. Power Distance

2. Uncertainty Avoidance

3. Individualism vs collectivism

4. Gender Focus

1. Exporting

2. Licensing

3. Creating Strategic Alliance

4. Cross-border acquisitions

5. Establish a wholly owned subsidiary

1. A global focus

2. a region/country focus

3. A transnational focus

Tend to be larger than less-developed or emerging economies and have more effective capital markets where people and business are readily able to borrow money from banks and other financial institutions. Countries such as the United States and Japan have this type of economy.

Have relatively the weakest economies and virtually no effective capital markets.

Often have rapidly growing economies and their capital markets are young and underdeveloped. Countries such as the BRIC(Brazil, Russia, India, China) have this type of economy.