Term
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Definition
| The trend of world economy toward becoming a more interdependent system. |
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Term
| Three Causes for Collapse of Time and Distance |
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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. |
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Term
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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. |
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Term
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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. |
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Term
| Positive and Negative Effects of One World Market |
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Definition
Positive: Increased productivity
Negative: Financial systems are so interconnected that the financial failure of one can result in a domino affect. |
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Term
| Multi-National Corporation |
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Definition
| Business firm with operations in several countries. |
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Term
| Multi-National Organization |
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Definition
| Non-Profit Organization with operations in several countries. |
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Term
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Definition
| Believe that their native culture, country, language and behavior are superior to all others. |
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Term
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Definition
| Narrow view through which people see things solely through their own perspective. |
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Term
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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. |
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Term
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Definition
| Accept that there are differences and similarities between home and foreign personnel practicies and that they should use whatever techniques are most effective. |
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Term
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Definition
| Manufacturing plants allowed to operate in Mexico with special privelages in return for employing Mexican Citizens. |
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Term
| Five Ways to Expand Globablly |
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Definition
1. Global Outsourcing
2. Exporting, Importing, and Countertrading
3. Licensing and Franchising
4. Joint Ventures
5. Wholly-Owned Subsidiaries |
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Term
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Definition
| Using outside suppliers to provide goods and services. |
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Term
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Definition
| Using suppliers outside the US to provide laborm, goods, or services. |
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Term
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Definition
| A company buys goods outside the country and re-sells them domestically. |
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Term
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Definition
| A company produces goods domestically and sells them to other countries. |
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Term
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Definition
| Company allows a foreign company to pay it a fee to make or distribute the first company's product or services. |
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Term
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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. |
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Term
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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. |
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Term
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Definition
| Foreign subsidiary that is totally owned and controlled by an organization. |
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Term
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Definition
| Foreign subsidiary that the owning organization has built from scratch. |
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Term
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Definition
| Shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people. |
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Term
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Definition
| Shared meanings are primarily derived from written and spoken word. |
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Term
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Definition
| People rely heavily on situational cues when communicating with other people. |
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Term
| Hofstede Model of Four Cultural Dimensions |
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Definition
1. Individualism/Collectivism
2. Power Distance
3. Uncertainty Avoidance
4. Masculinity/Femininity |
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Term
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Definition
| Preference for doing one thing at a time. |
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Term
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Definition
| Preference for doing more than one thing at a time. |
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