Term
| What is the No. 1 (or core) culture/value in this class? |
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Definition
| Contribution of Perspective |
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Term
| What is the No. 1 (or core) barrier in cross-cultural communication? |
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Definition
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Term
| What is the No. 1 (or core) field for practicing international management? |
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Definition
| Global Corporations, Embassy, Multicultural Business |
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Term
| What is the No. 1 (or core) risk in international investment? |
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Definition
| Politics/Political Stability |
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Term
| 5 characteristics of class engagement |
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Definition
| 1. Practice oriented 2. Positivity initiated 3. Open communication based 4. Leadership driven 5. Teamwork encouraged (imperative) |
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Term
| Why we study this course and how this course helps us |
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Definition
| Impact of 9/11 and 11/9-Fall of the Berlin Wall; Cultures become major challenges to managers; Studies indicated that 40% American expatriate managers have failed in managing joint ventures with Asian countries; “Culture eats strategy for breakfast.” (“way forward,” from the war room of the new Ford makeover); Globalization, digitalization, privatization, virtualization, mobilization; A fit of culture, strategy, and behavior produces dynamics to a nation’s economic development. |
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Term
| How many parts international management consists of |
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Definition
| Three components: Culture Strategy Behavior |
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Term
| Relationship of belief to value, attitude, and behavior (iceberg picture) |
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Definition
| Behavior->Attitude->Value->Belief |
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Term
| What International Management means |
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Definition
| the process of applying management concepts and technique in a multicultural environment and adapting management practices to different economic, political, and cultural environments; seeking for the fit-the treasure! |
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Term
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Definition
| the process of integration among countries around the world w/ a vision of a single market entity: Social, Economic, Political, Technological, Cultural; benefits of growing global trade and investment |
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Term
| Concept of offshore outsourcing |
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Definition
| globalization causes offshoring of business service jobs to lower-wage countries, which causes growing trade deficits, slow wage growth, and environmental and social impacts; the world is flat |
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Term
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Definition
| the subcontracting or contracting out of activities to endogenous organizations that had previously been performed by the firm |
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Term
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Definition
| the process by which companies undertake some activities at offshore locations instead of in their countries of origin |
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Term
| Economic performance of and challenges facing Central and Eastern Europe, Russia, and the other republic of the former Soviet Union |
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Definition
| Central and Eastern Europe, Russia, Czech Republic, Hungary, Poland; Perestroika-economic and political restructuring; Dismantling of Russian price controls (allowing supply and demand to determine prices); Privatization; Major EU economic partnership; Inflation; Membership in International Monetary Fund (IMF); Crime; Political uncertainty |
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Term
| Economic performance of and challenges facing Latin American countries |
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Definition
| South American countries have experienced difficult economic problems; High inflation; Heavy foreign debt; Major factor in success is inter-country trade; Free market policies among South American countries; Survey of business leaders in S.A. countries finds that doing business w/ U.S is most important agenda |
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Term
| Economic performance of and challenges facing Japan |
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Definition
| Phenomenal economic success in 1970s and 1980s-Impact of W. Edwards Deming (total quality control & continuous improvement); Ministry of International Trade & Industry (MITI); Keiretsus: Vertically integrated industries-Cross-Ownership and Holdings provide assistance needed in providing goods and services to end users; Decade long recession in 1990s; Bank loans backed by RE or projected revenues; By 2000, most major banks had billions of dollars in uncollectible loans; International competition has increased |
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Term
| Economic performance of and challenges facing China |
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Definition
| In November, 2009, Chinese car sale surpassed the US for the first time in history; Annual real economic growth of 10 percent during the 1980s and early 1990s; More recent growth of 8 percent (9.6% on December 25, 2009); Healthy and growing economy; Attractive to foreign investors despite major political risk; Product pirating is a problem; Complicated and high-risk venture; “New Hand” (Four Hands – the US, big hand; Europe, regular hand; Japan, small hand; China, new hand); In 2035, China surpasses the U.S. in output. |
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Term
| Characteristics of the nature of India’s current relationship with multinational business |
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Definition
| Pop of about 1 billion; Software and other higher-value-added services; GDP quickly reaching the level of China; Attractive to multinationals, esp to U.S. and British firms; Indian ppl speak English well, well educated, known for advanced info technology expertise; Indian gov is providing funds for economic development |
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Term
| Mexico’s characteristic of industry |
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Definition
| very strong maquiladora industry (bonded industry); foreign manufacturers can send materials to their Mexican-based plants, process or assemble the products, and then ship them back out of Mexico with only the value added being taxed; now competitive with Asia for the U.S. market; lower-cost labor; proximity to the American market (lower transportation costs and faster delivery); Increasingly active in EU and Asian markets |
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Term
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Definition
| Korea and the U.S. Free Trade Agreement |
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Term
| Japan’s economic situation after 1990’s and why it takes long for its economy to recover |
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Definition
| Decade long recession in 1990s; Bank loans backed by real estate or projected revenues; By 2000, most major banks had billions of dollars in uncollectible loans; International competition has increased; Major barriers to recovery: 1. Too much focus on manufacturing industry 2. Keiretsus is against globalization culture; Vertically integrated industries – Cross-Ownership; Holdings provide assistance needed in providing goods and services to end users 3. Lack of entrepreneurial economic power 4. Economic take-off of neighbor countries; Politically, Japan foster a bad taste to its neighbor countries due to the WWII |
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Term
| More than 50% of world trade volume among which countries? |
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Definition
| US Japan and EU; increased substantially over last 2 decades |
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Term
| Former largest trade partner to and from the US |
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Definition
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Term
| Current largest trade partner to and from the US |
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Definition
| China is to; Canada is from |
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Term
| A common problem facing South American countries |
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Definition
| High inflation; Heavy foreign debt; Major factor in success is inter-country trade; Free market policies among South American countries; Survey of business leaders in S.A. countries finds that doing business with U.S. is most important agenda |
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Term
| Challenges facing Indian economic development |
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Definition
| Reducing red taps for the past two decades; Low per capita GDP; Recent trend of locating software and high value-added services to this country; Attractive to U.S. and British investors (well educated, English speaking, technologically sophisticated workers) |
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Term
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Definition
| an organizational arrangement in Japan in which a large group of vertically integrated companies bound together by cross-ownership, interlocking directorates, and social ties provide goods and services to end users |
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Term
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Definition
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Term
| Initial Challenges facing Africa |
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Definition
| Considerable natural resources; African nations remain very poor and undeveloped; International trade is not a major source of income; Populace divided into 3,000 tribes that speak 1,000 languages and dialects; Major political instability; Poverty, starvation, illiteracy, corruption, overcrowding among many social problems negatively affecting economic sector |
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Term
| Popular problem facing the Middle East countries (Highly unstable geopolitical and religious forces) |
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Definition
| Large oil reserves; Highly unstable geopolitical and religious forces; Plagued by continuing economic problems |
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Term
| The largest FDI partner to and from the United States |
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Definition
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Term
| What pressure does the United States put on China in trade balance negotiation? |
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Definition
| Schumer-Graham bill-blanket tariff on all U.S. imports from China unless Beijing takes steps to revalue the yuan |
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Term
| Chinese former leader Deng Xiao Peng made a call for China and that became a turning point for Chinese economic development. What was that call? |
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Definition
| “To get rich is glorious.”; “Let a small portion of the population get rich first.” |
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Term
| What do people in the Middle East admire of the United Sates? |
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Definition
| Technology and freedom of speech |
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Term
| What initial problems in Russia makes MNCs hesitate to invest there? |
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Definition
| Neglect, corruption, and confusing changes in economic policy; (e.g. Andrei Kozlov, 41, Russian Deputy Chairman of Central Bank, was assassinated) ; Infrastructure is weak and a political quagmire or predicament (Legal, Financial, Trade sectors); Corruption interferes with attraction of more foreign investment; Lack of transparency |
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Term
| What advice shall we take if we do business with the Middle East countries? |
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Definition
| most challenging to do business with; requires knowledge of: Regulations, Legal environment, Tax regimes, Accnting methods, Business structures, Import/export regs, Manpower and labor regs, Restrictions on foreign capital investment; Doing business in Middle Eastern countries is risky and potentially dangerous: War on terrorism, Ongoing Afghanistan and Iraq wars, Israel—Arab conflicts, Rising tensions; Business requires knowledge of Islam: Religion and way of life, Framework of life and society, Islamic fundamentalists have become aggressive toward U.S. and its allies. |
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Term
| Major ethical issues in Japan |
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Definition
| Political and business scandals: Japanese cabinet member have accepted questionable payments and favors, Japanese banking system has failed to take corrective actions when dispersing loans, Some Japanese firms systematically concealed customer complaints; Equal opportunity issues: Refusal to hire women or promote them into management positions, Hostile work environment, Traditional role of females and female employees, Sexual harassment may not be considered a moral issue |
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Term
| Major ethical issues in Germany |
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Definition
| Equal employment opportunity: Glass ceiling pervasive throughout the world, France, Germany, Great Britain have seen increase in number of women in management, but tend to represent only lower levels |
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Term
| Piracy of intellectual property and other ethical issues in China |
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Definition
| Workers not well paid; Often forced to work 12 hours a day, 7 days a week; Piracy, counterfeiting, industrial spying; Human rights violations-Use of prisoner and child labor |
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Term
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Definition
| Acquired knowledge that people use to interpret experience and generate social behavior: forms values, creates attitudes, influences behavior |
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Term
| Characteristics of culture |
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Definition
| Learned, shared, adaptive, patterned, symbolic, transgenerational |
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Term
| What are the 4 Strategic Predispositions |
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Definition
| ethnocentric, polycentric, regiocentric, geocentric predispositions |
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Term
| Ethnocentric predisposition |
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Definition
| A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions |
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Term
| Polycentric predisposition |
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Definition
| A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates |
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Term
| Regiocentric predisposition |
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Definition
| A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis |
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Term
| Geocentric predisposition |
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Definition
| A philosophy of management whereby the company tries to integrate a global systems approach to decision making |
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Term
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Definition
| Tendency to view the world through one’s own eyes and perspectives |
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Term
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Definition
| Process of exhibiting the same orientation toward different cultural groups |
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Term
| Definition of Organization Culture |
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Definition
| shared values and beliefs enabling members to understand their roles and the norms of the organization, including: Observed behavioral regularities, typified by common language, terminology, rituals; Norms, reflected by things such as amount of work to do and degree of cooperation between management and employees; Dominant values organization advocates and expected participants to share (e.g., low absenteeism, high efficiency) |
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Term
| Organizational Culture Characteristics |
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Definition
| Norms, dominant values, organizational climate, rules of employee behavior, observed behavioral regularities, philosophy on treatment of employees/customers |
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Term
| Interaction between national and organizational culture (Can organizational culture override national culture?) |
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Definition
| National cultural values of employees have a significant impact on organizational performance; Cultural values that employees bring to the workplace are not easily changed by the organization; Substantial differences may be observed among subsidiaries that cause coordination problems |
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Term
| P.I.G.S.P formula for effective feedback and three outcomes of negative reinforcement or punishment (temporary, side effect, and no win game) |
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Definition
| positive, immediate, graphic, specific, personal/private |
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Term
| What are Hofstede’s Cultural Dimensions |
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Definition
| power distance, uncertainty avoidance, individualism/collectivism, masculinity/femininity |
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Term
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Definition
| Extent to which less powerful members of institutions and organizations accept that power is distributed unequally |
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Term
| Hofstede: Uncertainty Avoidance |
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Definition
| Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations; High uncertainty avoidance countries: people have high need for security, strong belief in experts and their knowledge, structured organizational activities, more written rules, less risk taking by managers; Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, less structured organizational activities, fewer written rules, more risk taking by managers, higher employee turnover, more ambitious employees |
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Term
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Definition
| Tendency of people to look after themselves and their immediate family only; Countries high in individualism: tend to be wealthier, support protestant work ethic, greater individual initiative, promotions based on market value |
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Term
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Definition
| a culture in which the dominant social values are success, money and things; Countries high in masculinity: great importance on earnings, recognition, advancement, challenge, and wealth. High job stress. |
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Term
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Definition
| Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty; Countries high in collectivism: tend to be poorer, less support for protestant work ethic, less individual initiative, promotions based on seniority |
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Term
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Definition
| a culture in which the dominate social values are caring for others and the quality of life; Countries high in femininity: great importance on cooperation, friendly atmosphere, employment security, group decision making, and living environment. Low stress and more employee freedom. |
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Term
| What are Trompenaars 7 Cultural Dimensions? |
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Definition
| Universalism vs. Particularism; Individualism vs. Communitarism; Neutral vs. Emotional; Specific vs. Diffuse; Achievement vs. Ascription; Time; Environment |
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Term
| Trompenaars: Universalism |
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Definition
| belief that ideas and practices can be applied everywhere in the world without modification; In countries with high universalism, focus is more on formal rules, business contracts are adhered to closely, people believe “a deal is a deal”; Includes Canada, U.S., Germany, U.K., Netherlands, France, Japan, Singapore, Thailand, and Hong Kong. |
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Term
| Trompenaars: Particularism |
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Definition
| belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere; In countries with high particularism, legal contracts often modified, well-acquainted people often change the way in which deals are executed; Includes China and South Korea |
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Term
| Trompenaars: Individualism |
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Definition
| people regard themselves as individuals; In countries high on individualism, people stress personal and individual matters, and are more likely to make negotiated decisions on the spot by a representative, achieve things alone and assume great personal responsibility; Includes Canada, Thailand, U.K., U.S., Netherlands, France, Japan, China, Singapore, and Hong Kong |
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Term
| Trompenaars: Communitarism |
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Definition
| people regard themselves as part of a group; In countries high on communitarianism, people value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibility; Includes Malaysia and Korea |
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Term
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Definition
| culture in which emotions are held in; In high neutral culture countries, people try not to show their feelings, act stoically and maintain their composure; Includes Japan and the U.K. |
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Term
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Definition
| culture in which emotions are expressed openly and naturally; In high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasm; Includes Mexico, the Netherlands and Switzerland |
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Term
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Definition
| individuals have a large public space shared with others and a small private space they guard closely and share only with close friends and associates; In high specific cultures, people are more open and extroverted, and there is a strong separation of work and private life; Includes Austria, U.K., U.S. and Switzerland |
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Term
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Definition
| public and private space are similar in size, individuals guard public space carefully because it is shared with private space; In high diffuse cultures, people often appear to be indirect and introverted, and work and private life often are closely linked; Includes Venezuela, China, and Spain |
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Term
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Definition
| status is accorded based on how well people perform their functions; Includes Austria, U.S., Switzerland and the U.K. |
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Term
|
Definition
| status is based on who or what a person is; Includes Venezuela, Indonesia, and China |
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Term
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Definition
| Sequential approach: People do only one activity at a time, keep appointments strictly, prefer to follow plans as laid out (United States); Synchronous approach: People tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (France, and Mexico); Present oriented/future oriented; Future is more important (U.S., Italy, and Germany); Present is more important (Venezuela, Indonesia, and Spain); All three time periods equally important (France and Belgium) |
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Term
| Trompenaars: The Environment |
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Definition
| Inner-directed: people believe in controlling outcomes (Includes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and Japan); Outer-directed: people believe on letting things take their own course (Includes China and many other Asian countries) |
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Term
| How culture affects managerial approaches (8) |
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Definition
| Centralized/Decentralized; Safety/Risk; Individual/Group Rewards; Informal/Formal Procedures; High/Low Org Loyalty; Cooperation/Competition; Short/Long Term Horizons; Stability/Innovation |
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Term
| Centralized vs. Decentralized Decision Making |
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Definition
| In some societies, top managers make all important organizational decisions. In others, these decisions are diffused throughout the enterprise, and middle- and lower-level managers actively participate in, and make, key decisions. |
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Term
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Definition
| In some societies, organizational decision makers are risk averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged, and decision making under uncertainty is common. |
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Term
| Individual vs. Group Rewards |
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Definition
| In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on. |
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Term
| Informal vs. Formal Procedures |
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Definition
| In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly. |
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Term
| High vs. Low Organizational Loyalty |
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Definition
| In some societies, people identify very strongly with their organization or employer. In others, people identify with their occupational group, such as engineer or mechanic. |
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Term
| Cooperation vs. Competition |
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Definition
| Some societies encourage cooperation between their people. Others encourage competition between their people. |
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Term
| Short term vs. Long term horizons |
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Definition
| Some cultures focus most heavily on short-term horizons, such as short-range goals of profit and efficiency. Others are more interested in long-range goals, such as market share and technologic development. |
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Term
|
Definition
| The culture of some countries encourages stability and resistance to change. The culture of others puts high value on innovation and change. |
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Term
| Concept of globalization imperative |
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Definition
| Many MNCs are committed to a globalization imperative; A belief that one worldwide approach to doing business is the key to both efficiency and effectiveness; Many factors are facilitating the need to develop unique strategies for different cultures: 1. The diversity of worldwide industry standards such as those in broadcasting, where television sets must be manufactured on a country-by-country basis 2. A continual demand by local customers for differentiated products that must meet local tastes 3. The importance of being an insider who prefer to “buy local” |
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Term
| What are the Four types of organizational cultures? |
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Definition
| Family, Eiffel Tower, Guided Missile, Incubator |
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Term
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Definition
| Strong emphasis on hierarchy and person orientation: Power-oriented with paternalistic leader; Leader looked to for guidance; Can catalyze and multiply employees’ energy; Reliance on intuition rather than rational knowledge |
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Term
| Org culture: Eiffel Tower |
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Definition
| Strong emphasis on hierarchy and task orientation: Employees know what to do, coordination from the top; Rational procedures such as assessment center, appraisal systems, training and developing programs, job rotation. Methodic approach to motivating and rewarding people and resolving conflict, skill-based selection |
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Term
| Org culture: Guided Missile |
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Definition
| Strong emphasis on equality in the workplace and orientation to the task: Work typically undertaken by teams or project groups; Low priority attached to hierarchical concerns; Employs a “cybernetic” structure; Culture may change quickly, project is greater than loyalties. Responding to change quickly. |
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Term
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Definition
| Strong emphasis on equality and personal orientation: Organizations are secondary to the fulfillment of individuals; Organization is an incubator for self-expression and self-fulfillment; Participants have intense emotional commitment to their work; Entrepreneurs are good examples. |
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Term
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Definition
| The global organization of countries that oversees rules and regulations for international trade and investment |
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Term
|
Definition
| A free-trade agreement between the US, Canada, and Mexico that has removed most barriers to trade and investment; eliminated tariffs and import and export quotas; opened gov procurement markets to companies in the other 2 nations; increased the opportunities to make investments in each other's country |
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Term
| FTAA: Free Trade Agreement of the Americas |
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Definition
| A proposed free-trade agreement among the 34 democratically governed countries of the Western Hemisphere |
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Term
|
Definition
| A political and economic community consisting of 27 member states |
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Term
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Definition
| US-Central American Free Trade Agreement: reduced barriers to trade and requires addl domestic legal and business reforms in developing nations to protect property rights |
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Term
|
Definition
| Association of SE Asian Nations |
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Term
|
Definition
| Closer Economic Partnership Agreement (Mainland China vs. Hong Kong and Macao) |
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Term
|
Definition
| EU: unified currency called the euro; MNCs can now achieve the operational scale and scope necessary to reduce costs and increase inefficiencies |
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Term
|
Definition
| General Agreement on Tariffs and Trade |
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Term
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Definition
| Important factors: Privatization of traditionally nationalized industries; Emergence of the EU as an operational economic union; Economic linkages between the EU and newly emerging Central and Eastern European countries; Foreign MNCs gain foothold in EU by: Acquisitions, Alliances, Cooperative R&D efforts; Challenge is to absorb former communist-bloc countries |
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Term
| What countries make up the 4 Tigers? |
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Definition
| South Korea, Hong Kong, Singapore, and Taiwan: a term used in reference to the highly developed economies after 1970; regions were the first newly-industrialized regions, noted for maintaining exceptionally high growth rates and rapid industrialization between the early 1960s and 1990s. By the 21st century, all four regions have since graduated into advanced economies and high-income economies |
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Term
| Why is the term, 4 tigers not used as popularly as before? |
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Definition
| South Korea: World leader of speed intern and other IT technology; High e-commerce usage; Chaebols (large family-held Korean conglomerates that have considerable political and economic power); Known for conglomerate corporations or investments; Hong Kong: Now part of People’s Republic of China; Uncertainty about role the Chinese government intends to play in local governance; Singapore: Least hurt by economic downturn of 1990s; Taiwan: Progression from labor-intensive economy to one dominated by technologically sophisticated industries (banking, electricity generation, petroleum refining and computers); However, attention has increasingly shifted to other Asian economies which are now experiencing faster economic transformation |
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Term
| Emerging INTERDEPDENT economic global community |
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Definition
| India, Middle East and Central Asia, Africa |
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Term
| Expectations of government welcoming MNCs and of MNCs setting up global operations |
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Definition
| Impact of political systems on the past 200 wars; The conflict between local governments and MNCs seems inevitable; Political-economic connection - State Owned Enterprises or SOEs; MNCs must be very sensitive to the political change; Political instability - highest risk ranking for MNCs to go internationally or globally; A positive view toward political changing Vs. unchanging. |
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Term
| How political change impact MNCs |
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Definition
| Change in government policies; MNCs must adjust their strategies and practices to accommodate the new perspectives and actual requirements; Less stable governments=Greater risk; Significant differences among political systems across countries and regions; Ideologies (ideas reflecting beliefs and values influencing behavior/culture of nations and political systems) underlie the actions of governments; Evaluate a political system along two dimensions: (1) rights of citizens based on a system of government (range democratic to totalitarian); (2) Focus of political system on individualism vs. collectivism; No pure form of government; Democratic tend to emphasize individualism and totalitarian tends to emphasize collectivism |
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Term
| Ideology: Individualism (1) |
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Definition
| People should be free to pursue economic and political endeavors without constraint; In business context, similar to capitalism and connected to free market society; Private property more successful, productive, and progressive than communal property; Betterment of society related to level of freedom individuals have in pursuing economic goals |
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Term
| Ideology: Collectivism (1) |
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Definition
| Views needs/goals of society at large as more important than individual desires; No rigid form of collectivism as societal goals differ greatly among cultures; e.g.: Fascism: nationalism, authoritarianism, militarism, corporatism, collectivism, totalitarianism |
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Term
|
Definition
| Government ownership of institutions; Profit is not the ultimate goal; Can be viewed as moderate example of collectivism in practice; Has been practiced in China, North Korea, Cuba; Democratic socialism, more moderate form, practiced by Great Britain’s Labour Party, and in France, Spain, and Greece; Communism is extreme form of socialist thought |
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Term
|
Definition
| European roots; System in which government is controlled by citizens either directly or through elections; Democratic society cannot exist without at least a two-party system; Once elected, representative is held accountable to electorate for actions (which limits power of government) |
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Term
| Ideology: Totalitarianism (2) |
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Definition
| Only one representative party which exhibits control over every facet of political and human life; Power maintained by suppression of opposition; Dominant ideals include media censorship, political representation, denial of rights, and civil liberties |
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Term
| What are the 4 law foundations of international law? |
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Definition
| Islamic, Socialist, Common, Civil or Code |
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Term
|
Definition
| Derived from interpretation of Qur’an and teachings of Prophet Muhammad; Found in Islamic countries: Middle East and Central Asia |
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Term
|
Definition
| Origins in Marxist socialist system; Requires most property to be owned by state or state enterprises; Continues to influence regulations in former communist countries: Members of former Soviet Union, Peoples’ Republic of China, Vietnam, North Korea, Cuba |
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Term
|
Definition
| Origins in English law; Foundation of legal system for: United States, Canada, England, Australia, New Zealand |
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Term
|
Definition
| Derived from Roman law; Found in non-Islamic and non-socialist countries: France, Some Latin American countries, Louisiana in the U.S. |
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Term
| Basic principles of international law |
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Definition
| Sovereignty and Sovereign Immunity, International Jurisdiction, Doctrine of Comity, Act of State Doctrine, Treatment and Rights of Aliens, Forum for Hearing and Settling Disputes |
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Term
| Sovereignty and Sovereign Immunity |
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Definition
| An international principle of law which holds that governments have the right to rule themselves as they see fit. |
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Term
| International Jurisdiction |
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Definition
| A jurisdictional principle of international law which holds that every country has jurisdiction over its citizens no matter where they are located: Nationality principle, Territoriality principle, Protective principle |
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Term
|
Definition
| A jurisdictional principle of international law which holds that there must be mutual respect for the laws, institutions, and government of other countries in the matter of jurisdiction over their own citizens. |
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Term
|
Definition
| A jurisdictional principle of international law which holds that all acts of other governments are considered to be valid by U.S. courts, even if such acts are illegal or inappropriate under U.S. law |
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Term
| Treatment and Rights of Aliens |
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Definition
| Countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on their conduct, right of travel, where they can stay, and what business they may conduct; Nations can also deport aliens |
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Term
| Forum for Hearing and Settling Disputes |
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Definition
| U.S. courts can dismiss cases brought before them by foreigners; however, they are bound to examine issues such as: where the plaintiffs are located, where the evidence must be gathered, where property to be used in restitution is located |
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Term
| What is one of the biggest problems facing MNCs? |
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Definition
| bureaucratization; Japan-more beholden to their local interests than to those in the rest of the country |
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Term
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Definition
| German gov-has sped up privatization and deregulation of its telecommunications mkt-created opportunities for MNCs to create joint ventures with local German firms |
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Term
| Technological environment and global shifts in production |
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Definition
| Biotechnology, Nanotechnology, Satellites, Automatic translation telephones, Artificial intelligence and embedded learning technology, Advancements in computer chip technology, Supercomputers, E-business: Business to business (B2B), Business to consumer (B2C), E-tailing, Financial services (e-cash), Telecommunications, Technology, outsourcing and offshoring: Technology has reduced and eliminated some work in middle management and white collar; Global competition has forced some MNCs to outsource jobs to offshore productions; Emerging technology makes work more portable |
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Term
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Definition
| Very restrictive foreign bureaucracies are one of the biggest problems/challenges facing MNCs (right after the establishment of MNC’s oversea operations); The relationships with the neighbor countries is also part of political risks for MNCs to assess in their global operations |
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Term
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Definition
| nationalism, authoritarianism, militarism, corporatism, collectivism, totalitarianism, communism) |
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Term
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Definition
| describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not be of equal social status. Guanxi can also be used to describe a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. |
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Term
| major cultural difference between China and Western |
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Definition
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Term
| Cornerstone of a United Europe |
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Definition
| Franco-German relations are the cornerstone of a united Europe |
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Term
| The foundation of the legal system in the US, France, China, and Iraq. |
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Definition
| US-common law; France-civil law; China-Socialist law; Iraq-Islamic law |
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Term
| Foreign Corrupt Practices Act |
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Definition
| Illegal to influence foreign officials through: personal payment, political contribution; Restrictive bureaucratization; Privatization |
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Term
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Definition
| Protective principle is a rule of international law that allows a sovereign state to assert jurisdiction over a person whose conduct outside its boundaries threatens the states security or interferes with the operation of its government functions |
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Term
| Critics of the Foreign Corrupt Practices Act |
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Definition
| feared the loss of sales to foreign competitors, esp in those countries where bribery is an accepted way of doing business |
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Term
| Technology and reduction of level of employees |
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Definition
| Technology, outsourcing and offshoring: Technology has reduced and eliminated some work in middle management and white collar; Global competition has forced some MNCs to outsource jobs to offshore productions; Emerging technology makes work more portable |
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Term
| The sources of conflict between MNCs and local governments |
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Definition
| MNCs must adjust their strategies and practices to accommodate the new perspectives and actual requirements |
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Term
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Definition
| Planning, Interpersonal relationship building, Exchanging task-related info, Persuasion, agreement |
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Term
| Integrative negotiation approaches (inventing options) |
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Definition
| Establishing super-ordinate goals, Separating the people from the problem, Focus on interest, not positions, Inventing options for mutual gain, Using objective criteria |
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Term
| Focus of traditional vs. contemporary negotiations |
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Definition
| Contemporary – differences from Traditional: Focus on expanding the pie; Win-win outcomes; Problem-solving technique; collaborating |
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Term
| Meaning of negotiation and conceptual background |
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Definition
| negotiation is a decision-making process among interdependent parties who do not share identical preferences. It is through negotiation that the parties decide what each will give and take in their relationship |
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Term
| What is the most effective way to build cross-culture communication |
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Definition
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Term
| George England’s work with relatively stable personal value systems |
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Definition
| He found that they don’t change rapidly, however, changes are taking place in managerial values as a result of both culture and technology; In particular, they focused attention on such key organizational values as lifetime employment, formal authority, group orientation, seniority and peternalism |
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Term
| Three aspects that affect organizational cultures |
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Definition
| General relationship between employees and the company; Hierarchical system of authority; Employees’ views about MNC’s purpose, destiny, and goals |
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Term
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Definition
| Enhance creativity (Generation of more and better ideas); Lead to better decisions; More effective/productive results; Prevent groupthink (Social conformity and pressures on individual members of a group to conform and reach consensus); Can facilitate highly effective teams under right conditions |
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Term
| Corporate Social Responsibility (CSR) |
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Definition
| Closely related to ethics; Actions of a firm to benefit society beyond requirements of law and direct interests of firm; CSR involves taking voluntary action; CSR concerns include working conditions in factories and service centers as well as environmental impacts of corporate activities; Ethical standards vary over cultures; Increasing expectations of ethical conduct from MNCs |
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Term
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Definition
| Non-governmental organization; private, not-for-profit organization that seeks to serve society’s interests by focusing on social, political, and economic issues such as poverty, social justice, education, health and the environment; NGOs have urged MNCs to be more responsive to range of social needs in developing countries; NGOs have grown in number, power, influence; NGO activism has caused major changes in corporate behavior; NGO leaders are the most trusted of eight leadership categories |
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Term
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Definition
| The System by which business corporations are directed and controlled: Distribution of rights and responsibilities, Stakeholder management, Spells out rules and procedures, Makes decisions: 1. Objective setting 2. Means of attaining objectives 3. Monitors performance |
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Term
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Definition
| Governments and corporations increase collaboration to provide assistance to communities and locales through global partnerships; Best “investments:” 1. Controlling and preventing AIDS 2. Fighting malnutrition 3. Reducing subsidies and trade restrictions 4. Controlling malaria |
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Term
| Top two values for USA, Japan, and Arab Countries |
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Definition
| freedom, independence; belonging, group harmony; family security, family harmony |
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