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MGMT3304CH04
Global Management
28
Management
09/22/2010

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Term
Globalization
Definition
The trend of world economy toward becoming a more interdependent system.
Term
Three Causes for Collapse of Time and Distance
Definition

1. The rise of "Global Village" and Electronic Commerce

2. The world's becoming one market instead of many national ones.

3. The rise of both megafirms and internet enabled mini-firms worldwide.

Term
Global Village
Definition
Refers to the "shrinking" of time and space as air travel and electronic media have made it easier for the people of the globe to communicate with one another.
Term
Global Economy
Definition
Refers to the increasing tendency of the economies of the world to interact with one another as one whole market instead of individual ones.
Term
Positive and Negative Effects of One World Market
Definition

Positive: Increased productivity

Negative: Financial systems are so interconnected that the financial failure of one can result in a domino affect.

Term
Multi-National Corporation
Definition
Business firm with operations in several countries.
Term
Multi-National Organization
Definition
Non-Profit Organization with operations in several countries.
Term
Ethnocentric Mangers
Definition
Believe that their native culture, country, language and behavior are superior to all others.
Term
Parochialism
Definition
Narrow view through which people see things solely through their own perspective.
Term
Polycentric Managers
Definition
Take the view that the native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone.
Term
Geocentric Managers
Definition
Accept that there are differences and similarities between home and foreign personnel practicies and that they should use whatever techniques are most effective.
Term
Maquiladoras
Definition
Manufacturing plants allowed to operate in Mexico with special privelages in return for employing Mexican Citizens.
Term
Five Ways to Expand Globablly
Definition

1. Global Outsourcing

2. Exporting, Importing, and Countertrading

3. Licensing and Franchising

4. Joint Ventures

5. Wholly-Owned Subsidiaries

Term
Outsourcing
Definition
Using outside suppliers to provide goods and services.
Term
Global Outsourcing
Definition
Using suppliers outside the US to provide laborm, goods, or services.
Term
Importing
Definition
A company buys goods outside the country and re-sells them domestically.
Term
Exporting
Definition
A company produces goods domestically and sells them to other countries.
Term
Licensing
Definition
Company allows a foreign company to pay it a fee to make or distribute the first company's product or services.
Term
Franchising
Definition
Form of licensing where a company allows a foreign company to pay it a fee and a share in the profit of in return for using the first comapny's brand name and a package of materials and services.
Term
Joint Venture
Definition
Also known as a strategic alliance with a foreign company to share the risks and rewards of starting a new enterprise in a foreign country.
Term
Wholly-Owned Subsidiary
Definition
Foreign subsidiary that is totally owned and controlled by an organization.
Term
Greenfiled Venture
Definition
Foreign subsidiary that the owning organization has built from scratch.
Term
Culture
Definition
Shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.
Term
Low-Context Culture
Definition
Shared meanings are primarily derived from written and spoken word.
Term
High-Culture Context
Definition
People rely heavily on situational cues when communicating with other people.
Term
Hofstede Model of Four Cultural Dimensions
Definition

1. Individualism/Collectivism

2. Power Distance

3. Uncertainty Avoidance

4. Masculinity/Femininity

Term
Monochronic Time
Definition
Preference for doing one thing at a time.
Term
Polychoronic Time
Definition
Preference for doing more than one thing at a time.