Part 2
During exchange of task-related information, Mexicans tend to be direct and avoid engaging in lengthy, evasive conversation.
FALSE
IHR managers are not responsible for developing effective global management teams.
FALSE
Middle Easterners avoid hiring mediators, as they cannot deal with direct conflicts.
FALSE
Negotiators in the Far East address issues one at a time, in a linear fashion.
FALSE
The term "software of negotiation" refers to the contractual terms mentioned in a written document.
FALSE
According to the GLOBE project team, highly assertive societies emphasize loyalty and solidarity. True or False?
False
Achievement and personal capabilities are valued in collectivistic societies. True or False?
False
In high-context cultures, the message is implicit; in low-context cultures, it is explicit
Ch4 Which of the following is the most accurate statement concerning the role of context in cross-cultural communication?
Creolization is the process where immigrants completely disregard all aspects of the local culture. True or False?
False
Social loafing is common in a collectivistic society. True or False?
False
Performance-oriented societies tend to take initiative and have the confidence to get things done. True or False?
True
Knowledge transfer is optimized when career opportunities provided by the organization are congruent with repatriate career goals and aspirations.
TRUE
Nontask sounding involves general, polite conversation and informal communication before meetings.
TRUE
Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.
TRUE
Reverse culture shock occurs primarily because of the difficulty of reintegrating into the organization.
TRUE
Chinese management style focuses on human-centeredness, family-centeredness, centralization of power, and small size. True or False?
True
Contingency management requires managers to adapt to the local environment and people, and to manage accordingly. True or False?
True
Uncertainty avoidance refers to the extent to which people in a society feel threatened by ambiguous situations. True or False?
True
Values are a society's ideas about what is good or bad. True or False?
True
virtual global teams
a horizontal networked structure with people around the world conducting meetings and exchanging information through the Internet, enable the organization to capitalize on 24-hour productivity.
negotiation can be seen as
a series of explicit and implicit decisions, and the subjects of negotiation and decision making become interdependent.
Historically, a firm reorganizes as it internationalizes to ________.
accommodate new strategies
Which of the following terms refers to a bond between specially connected firms that generates preferential treatment to members of the network?
guanxihu
No matter what the stage of internationalization, a firm's structural choices always involve ________.
integration and differentiation
Gift giving
involves giving token gifts to business and government associates, yet the proper type of gift can differ across cultures
When acting as a sender, a manager must:
make it a point to know the receiver and encode the message in a form that will most likely be understood as intended. On the manager's part, this requires an awareness of his or her own cultural baggage and how it affects the communication process
7. Which of the following is the first step in the planning/control cycle?
make the plan
"Keeping the expatriate whole", in terms of compensation means _____.
making sure he is compensated to maintain a standard of living equal to his colleagues at home plus paying additional costs
A ________ is a hybrid organization of overlapping responsibilities.
matrix structure
cultural intelligence, or cultural quotient (CQ)
measure of how well a person can adapt and manage effectively in culturally diverse settings
Which of the following is NOT a characteristic of strategic implementation of the McDonald's corporation?
minimizing autonomy
U.S. and Great Britain more future or short-term oriented?
more value on short-term results and profitability and evaluate their employees accordingly
11. When a company uses a supplier outside itself to provide goods and services, it is
outsourcing
Contract manufacturing is also known as
outsourcing
IJVs are a means to:
overcome trade barriers, achieve economies of scale, secure access to raw materials, acquire managerial and technological skills, and to spread the risk
10. People who can claim an organization as their legal property are called
owners
Expatriates
parent-company nationals who are sent to work at a foreign subsidiary
9. A narrow view in which people see things solely through their own perspective is known as
parochialchism
What term refers to the expectation that foreigners should automatically fall into host-country patterns of behavior
parochialism
1. Employees in countries that rank low on power distance are more likely to prefer a(n) _____ leadership style.
participative
Which of the following is a predominant characteristic of the Chinese management style?
paternalism
Which of the following is one of the forces working toward convergence in labor systems?
political changes
In general, decentralized decision making is common for some functions such as ________.
production
Which of the following aspects of negotiating is most closely associated with nontask sounding?
relationship building
The feedback from the control process and the information systems should ________.
signal any necessary change in strategy, structure, or operations in a timely manner
kinesic behavior
communication through body movements—posture, gestures, facial expressions, and eye contact
How can managers understand their own styles and then determine how they differ from the norm in other countries?
comparing profiles of those perceived to be successful negotiators in different countries.
26. Systems, contingency, and quality-management viewpoints are part of the ________ perspective.
contemporary
4. The systems, contingency, and quality-management viewpoints are part of the ________ perspective on management.
contemporary
Alliances are also known as ________.
cooperative strategies
A company that barters goods for other goods is involved in
counter-trading
1. Which of the following is not a category of success for expatriate managers?
country factors
1. Some American companies are waging an intense lobbying campaign to persuade the Chinese government to revise or abandon a new proposed law. That proposed law would _____.
crack down on sweatshops and protect worker's rights by giving labor unions real power.
Franchising
similar to licensing. A franchiser licenses its trademark, products, or services and operating principles to a franchisee in a host country for an initial fee and ongoing royalties
Typical stages of global integration
simple exporting > large-scale exporting with sales branches abroad > assembly abroad > full production abroad with its own subsidiaries
Which of the following approaches to conflict involves handling the situation indirectly and implicitly without clear delineation of the situation from the person handling it?
expressive-oriented
Legal Setting
- rules of origin - Competition laws - creating a fair price - free markets - Marketing and distribution laws - Product liability laws - Intellectual property laws - Employment Laws Movement of funds - banking systems - profits, tax avoidance
About ___% of IJVs fail
60%. This is bc of ineffective managerial decisions and a lack of "fit" between partners
It emphasizes applying rules and systems objectively
Ch3 According to Trompenaar's value dimensions, which of the following is true of the universalistic approach?
Universalistic
- Applies ideas, rules and systems objectively, without consideration of individual circumstances. - Sees one reality, uses one definition to determine right and wrong. - In similar situations people from different origins receive the same salary. - Business meetings are rational, based on professional arguments. - Ex.: USA, CAN, AUT, GER
Behaviour traits
- Assertiveness - Future Orientation - Gender Egalitarianism - Humane Orientation - Performance Orientation
Key issues managing Expatriates
- Attracting the right employees - not just about skills - Assigning a sponsor - teaming up with right people - Staying in frequent touch - Drafting a plan for reintegration - Learning from the assignees experience
Technological Setting
- Availability - leapfrogging - Cost - Reletive advantage (if its available but costly) - Human related concerns (how comfortable are people useing tech) - Dyanism
Common Approaches to Exap compensation
- Balance sheet approach - approach where you pay the cost of living - then they can add premiums on top of that - Destination based approach - no benefits compared to what employees in the new destination would receive - International HQ approach - same benefits the home country employees receive
Expat compensation
- Base salary - cost and living allowance (pay for disruption to your life) - Allowances - education for family, travel, housing, relocation costs - tax equalisation - treaty between countries - Reparation - returning to host country
Advantages of outsourcing
- Cheaper (comparative advantage, economies of scale) - Specialization (on competitive advantage) - Strategic flexibility (less capital, switching suppliers, exchange rates) - Access to resources - Offsets (more orders from host)
Different views of work
- Classical view - people should pursue intellect, work is physical (upsets human spirit) - Protestant view - work to stay out of trouble - Instrumental view - income, good mindset, social good - Hedonic view - work to live, not live to work (the price we pay to enjoy life) Fulfilment view - Life is to be spent developing and fulfilling our potential
Environmental Setting
- Climate and weather - affects operational efficiency - if your product uses natural resources - Geographical location/ time difference - Susceptibility
High Context Culture
- Communication - fast, shared codes - Commitment to relationships - long lasting, deep - Authority - concentrated, hierarchial - insider/ outsider - easy to identify - Agreements - spoken, flexible
Low Context Culture
- Communications - Explicit, blunt - Commitment to relationships - short, heterogeneous - Authority - difficult to pinpoint - Outsiders - difficult to identify - Agreements - Written, binding
Culture and motivation
- Culture creates values, attitudes and norms of a person - This culture therefore provides different motivations based on different places
International orientations
- Ethnocentric - based on the mindset that techniques used in one's home country are useful/relevant everywhere - Polycentric - reflects the view that host country knowledge/ techniques are critical to international success. You adapt and do as the locals do - Geocentric - notion of using and transferring techniques from all parts of the world.
Different types international orientations
- Ethnocentric - techniques used in ones home country - Polycentric - host country knowledge. techniques critical - adapt to locals - Geocentric - transferring techniques from all parts of the world
Types of motivation
- Extrinsic (process) - factors in the external environment such as pay, status, supervision, job perks • Intrinsic (content) - internal - relationship between worker and the task - Managers need to be able to tap into intrinsic motivations (internal marketing - employees need to buy the idea you are selling as a company)
Practical challenges of IHRM
- Getting the right people - High failure rates - Knowledge, innovation and information dissemination - Talent identification and innovation - Barriers to women and minorities - International ethics, equity and fairness - Language differences and cultural fault lines - Recording laws and administering procedures
Specific vs Diffuse
- In specific cultures, individuals get straight to the point. - Diffuse cultures discuss business after a relationship has been established.
Economic Setting
- Nature/ type of economy - Size and growth - size of middle class, gdp, - Key economic indicators - wage and income levels, unemployment rates, cost of living, inflation, interest rates Economic setting is important for long term prospects
Key roles of management
- Planning - goal setting - Organising - allocating resources towards activities, delegating responsibility - Leadership - motivating/ influencing behavior and action - Controlling - evaluating all roles of management - are we going in right direction?
why are chinese among toughest negotiators in world?
- Reluctant to negotiate details - Difficult to compromise and trade
Formal Institutions
- Sanctioned roles/ regulations that govern how we do business - Political - Economic regulations - Technological - Legal -Environmental
Factors that contribute to Political risk
- Type of govt -Representativeness of the govt - Transfer of power from one govt to another. What establishes powerful democracies of western world How will institutions function. Power and strength
Universal vs. particularism
- Universalist: believe what is good and right can be applied everywhere - Particularists: obligations imposed by relationships are more important
Troompenaars measures of culture
- Universial vs particularism - Individualism vs Communitarianism - Neutral vs Effective - Specific vs Diffuse - Achievement vs Adoption - Sequential vs Sychronic Inner vs Outer-directed
International human resource management
- What type of employees do we want to have? host home or other employees? - Where do we have our HRM function? - host or home? - Which functions of HRM do we want to internationalize Along three dimensions - number of employees - countries - activities
Comparing culture to individuals
- What we know of culture is constant most of the time. However when we look at individuals, they change significantly. - Thus in international business, it is important not to treat everyone as constant
Procurement
- Where do we source from? What country/ supplier - What standards do we put in place? - quality, price, ethics - How do we qualify/ evaluate suppliers? - international universal standard, adjustments for local reality Logistics
Transpatriate
- a term similar to expatriate but referring to managers who may be from any country other than that in which the firm is domiciled and who tend to work in several countries over time, that is, a manager who has no true corporate home
Significance of negotiations stakeholders
- promote business - all have certain interests - many involve foreign investment - relationships between parties - People involved - travelling/ employment impacted
Political setting - political risk
- refers to the probability of a distribution to an MNEs operations - affects traders and investors - often accompanied with other forms of international risk - (likely hood of an event happening) x (impact of it occurs)
Global Strategy
A firm's home office determines the strategies business units are to use in each country or region. Seeks greater levels of standardisation across country markets. Suitable where a firm has a high need for global integration and a low need for local responsiveness.
Buddhism promotes a life centered on spiritual rather than worldly matters. Buddhists seek nirvana (escape from reincarnation) through charity, modesty, compassion for others, restraint from violence, and general self-control
A focus on earning money violates strict beliefs in Confucianism. Business in South Korea reflects Confucian thought in its rigid organizational structure and reverence for authority
negotiation
A form of communication between opposing sides in a conflict in which offers and counteroffers are made and a solution occurs only when both parties agree
Geocentric orientation:
A global mindset in which the manager is able to understand a business or market without regard to national boundaries • Managers should strive for a geocentric orientation
45) In ________ cultures, people tolerate many things occurring simultaneously and change plans frequently.
A) polychronic
1. In a survey of 440 training and development professionals across a variety of industries by Rosen, Furst, and Blackburn, respondents indicated that the most important training needs were
All of the above: a. Training on how to lead a virtual team meeting. b. Leader training on how to coach and mentor team members virtually. c. How to monitor team progress, diagnose problems, and take corrective action.
Internal analysis
An analysis that determines which areas of the firm's operations represent strengths or weaknesses compared to competitors. This is used to help with strategic advantage.
SWOT analysis
An assessment of a firm's capabilities (strengths and weaknesses) relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms
Licensing
An entry mode in which an agreement is formed that allows a foreign subsidiary to purchase the right to manufacture and sell a firm's products within a host country's market(s). The licensor is normally paid a royalty on each unit produced/sold. An attractive entry mode for smaller/newer firms.
Cross-border acquisition
An entry mode through which a firm from one country acquires a stake in or purchases all of a firm located in another country.
Wholly owned subsidiary
An entry mode through which a firm invests directly in another country or market.
Location of the negotiation
Ch5 Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation?
It will encourage Yu Fei to assess a wide range of alternatives for a resolution
Ch5 Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials. Her seniors advise her to completely understand the Americans' viewpoint during the conference. Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice?
Factual appeals
Ch5 ___________ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis.
Why does a company's strategy tend to evolve over time?
Changing circumstances and ongoing management efforts to improve their strategy
6 Leadership styles in GLOBE study
Charismatic/value-based Team-oriented Participative Humane-oriented Autonomous Self-protective
During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation?
Chinese
Uncertainty avoidance
Degree to which people feel threatened by uncertain or unknown situations - risk tolerance • High - places premium on job security, career patterns, rules, trust • Low - greater willingness to accept risks and less emotional resistance to change
Information flow, low-context cultures
(Germany or the United States), information is controlled and focused and thus does not flow so freely.65 Compartmentalized roles and office layouts stifle information channels; information sources tend to be more formal.
Advantages manufacturing making yourself
- Cost (transaction cost) - Learning and specialization - Knowledge and propriety technology - Flexibility, speed, scheduling - Avoiding dependence and risks - don't need to rely on other people
3 Guidelines for creating trust
- Create a clear and calculated basis for mutual benefits - Improve predictability and open communication - Develop mutual bonding through regular socialising
Socio-cultural Setting
- National level - how culture impacts business - Organisational level - culture reflects firm values - Industrial level - how culture is reflected in values and norms of society - Demographics
The ability of a firm to protect its technology from competitors and to profit by the technology.
Ch1 The appropriability of technology is best defined as ____.
Civil Law
Ch1 ____ is based on a comprehensive set of laws organized into a code.
Negotiation process
Preparation Relationship Building Exchange of task related information Persuasion Concessions
________ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.
Relationship building
82) In low-contact cultures, people prefer to stand close, touch a great deal, and experience a "close" sensory involvement.
FALSE
External Direction
People believe they can control their environment and try to do so as much as possible. Most typical in Western cultures
Pros and Cons of Inpatriates
Advantages - Link between firm HQ and local host subsidiaries. Provide continuity among parent country's Disadvantages - Does not replace need for PNCs or HCNs
1. _____ and _____ are examples of the home country exit transition.
Host culture sensitivity training; predeparture training
High uncertainty avoidance
Individuals feel threatened by ambiguous situations. Tend to have strict laws/procedures designed to provide certainty. Individuals avoid unconventional ways of thinking/acting. Managers favour low-risk decisions. Example: Japan
Specific culture
Individuals separate work and private lives. People often approach each other informally in both public and private spaces. Example: USA
contextual intelligence
ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed
High power distance usually results in a centralized structure and autocratic leadership. True or False?
True
Paternalism and patronage are important in humane-oriented societies. True or False?
True
Topography:
Physical features characterizing the surface of a geographic region • Cultures isolated by mountains or water change more slowly • Affects people's product needs and personal communication
Cultures with small _______ tend to display greater equality and a more equal distribution of rewards.
Power Distance
Masculine vs feminine
Relationship between gender and work roles - Masculine cultures: strong minded, individualistic, assertive - Feminine cultures: modest, relational, concerned with quality of life - good work-life balance
83) The term paralanguage refers to how something is said rather than the content—i.e., the rate of speech, the tone and inflection of voice, other noises, laughing, or yawning.
TRUE
85) In monochronic cultures, time is experienced in a linear way, with a past, a present, and a future, and time is treated as something to be spent, saved, made up, or wasted.
TRUE
87) In high-context cultures, feelings and thoughts are not explicitly expressed; instead, one has to read between the lines and interpret meaning from one's general understanding.
TRUE
89) In high-context cultures, feelings and thoughts are not explicitly expressed.
TRUE
90) The Japanese ningensei style of communication refers to the preference for humanity, reciprocity, a receiver orientation, and an underlying distrust of words and analytic logic.
TRUE
A horizontal networked structure, with people around the world conducting meetings and exchanging information via the Internet, thus enabling the organization to capitalize on 24-hour productivity is called a virtual global team.
TRUE
According to the study by Lazarova and Caligiuri, career planning sessions are associated with successful repatriation.
TRUE
During the stage of concessions and agreement, Russians and Chinese generally take extreme positions.
TRUE
Effective human resource management of a company's global cadre ends with the successful repatriation of the executive into company headquarters.
TRUE
For a firm, the ability to develop a globally experienced top management team depends largely on the success of expatriates' assignments.
TRUE
Fundamental to Japanese culture is a concern for the welfare of the group; anything that affects one member or part of society affects the others.
TRUE
In the globalized economy, the knowledge and management resources required for the firm to succeed are no longer concentrated in a single region but are distributed around the world.
TRUE
Italian negotiators have a sense of drama and do not hide their emotions.
TRUE
Negotiation support systems can provide support for the negotiation process by maximizing the chances for optimal outcomes.
TRUE
Risk tolerance is one of the cultural variables that greatly affects the decision-making process.
TRUE
Russians employ axiomatic appeals—that is, their appeals are based on the ideals generally accepted in their society.
TRUE
Since the Chinese have a preference for emotional restraint and saving face, aggressive or emotional attempts at persuasion in negotiation are likely to fail.
TRUE
The manner in which multicultural interaction affects the firm's operations depends on its level of international involvement, its environment, and its strategy.
TRUE
The prevailing labor relations system in a country is important to the international manager because it can constrain the strategic choices and operational activities of a firm operating there.
TRUE
The ringi process involves gaining approval on a proposal by circulating documents to those concerned throughout the company.
TRUE
To maximize the long-term use of their global cadre, companies need to make sure that the foreign assignment and the reintegration process are positive experiences
TRUE
In cross-cultural leadership, what are Universal facilitators?
Trustworthiness, visionary and inspirational behaviours, good communication skills
Identify cost drivers(factor with strong effect on value chain) in a company's value chain.
a. The number of products in a company's product line b. Its capacity utilization c. The type of components used in the assembly line d. The extent of its employee benefits package
What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?
a. The target market niche is big enough to be profitable and offers good growth potential b. Industry leaders have chosen not to compete in the niche - focusers can avoid battling head-to-head against the industry's biggest and strongest competitors c. * It is different from broad differentiation strategy because the group to focus on is much smaller
30. The ________ viewpoint emphasizes that a manager's actions should vary according to the situation.
contingency
Cultural sensitivity is also known as ________.
cultural empathy
Cultural intelligence is also known as ________.
cultural quotient
1. In order to motivate its managers and employees, Fujitsu _____.
cut managers' salaries by several percent
Qualitative Approach
collecting information about people and social worlds, identifying patterns and unique features, and analyzing the information by using interpretive procedures and tests.
Western companies that seek to succeed in China need to
demonstrate sincerity and commitment in conducting business in order to gain the Chinese partner's trust as this appears to be the ultimate predictor for success of business relations in China.
Identify indicators of whether a company's present strategy is working well.
a. Whether the company is recording gains in financial strength and profitability b. Whether the company's competitive strength and market standing are improving c. Trends in the company's sales and earnings growth d. Trends in the company's stock price e. The company's overall financial strength f. The rate at which new customers are required
1. Research on 321 American expatriate spouses shows that effective cross-cultural adjustment by spouses is more likely when _____.
all of the above a. firms seek the spouse's opinion about the assignment b. the spouse initiates his or her own predeparture training c. firms seek the spouse's opinion on the expected standard of living
1. Which of the following is a reason for falling union membership in industrialized countries, most notably in Europe?
all of the above a. increase in proportion of white collar and service workers b. rising proportion of temporary and part-time workers c. reduced belief in unions by the younger generation
1. According to Ronen's research, which of the following are common clusters of needs and goals across nationalities?
all of the above a. job goals b. relationships with co-workers and supervisors c. work challenges and opportunities for using skills
1. Which of the following is a recommendation by Govindarajan and Gupta for improving global teamwork?
all of the above a. link rewards to team performance b. rotate and diffuse team leadership rotate meeting location
1. According to a study by Steers, Koreans' hard work was attributable to _____.
all of the above a. loyalty to the company b. group-oriented achievement c. emphasis on group harmony and business relationships
1. The All-China Federation of Trade Unions claimed that foreign employers ________.
all of the above a. often force workers to work overtime b. pay no heed to labor safety regulations c. deliberately find fault with workers as an excuse to cut wages or fine them
1. Which of the following are suggestions for implementing work teams in Mexico?
all of the above a. provide leadership from the top throughout the implementation process b. develop motivation and harmony through clear expectations c. provide adequate training to prepare workers for teamwork
In the Middle East, leaders are expected to
all of the above a. show a highly authoritarian tone b. give rigid instructions c. provide too many management directives
1. According to the former Deputy Chairman of Pirelli, if you want to close a plant in Italy, France, Spain, or Germany, you need to notify which of the following groups of even the possibility of closure?
all of the above a. the state b. the local community c. the trade unions
1. Successful repatriation is important to the parent company because _____.
all of the above a. they have spent so much developing each expatriate b. it signals to the other members that expatriates can be successful c. it improves the ability to recruit new expatriate managers
1. The labor contract generally determines _____.
all of the above: a. rights regarding workers' pay b. job duties c. firing procedures
1. According to Adler, which of the following are skills likely to be acquired by managers returning from an overseas alignment?
all of the above: a. tolerance for ambiguity b. multiple perspectives ability to work with and manage others
1. Which of the following is an operational challenge for a global virtual team with respect to cultural differences?
all of the above: a. variations in attitudes and expectations towards time b. variations in sets of norms and patterns of behavior variations in goal sets and work styles based on value of work
1. In Michailova's study, Russian employees were more motivated by the _____ of their Russian managers than by attempts of empowerment by Western managers.
authoritarianism
The _____ management style works best in Mexico
authoritative
1. According to Hofstede, employees in countries that rank high on power distance are more likely to prefer a(n) _____ leadership style.
autocratic
Which of the following types of decision making is generally used in China, Germany, Turkey, and India?
autocratic
Workplaces in high power distance cultures will most likely be characterized by ________.
autocratic leadership
14. The ability of an organization to outperform others by producing goods or services more effectively than its competitors is called its
competitive advantage
managers around the world motivated by
intrinsic than by extrinsic factors
paralanguage
how something is said rather than the content—that is, the rate of speech, the tone and inflection of voice, other noises, laughing, or yawning
20. ______ is the illegal buying or selling of a company's stock by people using confidential company information.
insider training
Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees?
knowledge management
Administrative distance
lack of common trading bloc or currency, political hostility, non-market or closed economy
Problems with global strategy
lack of local flexibility and responsiveness. Neglect of the need for differentiated products.
Which of the following refers to a language- and communication-related issue that poses a challenge to many virtual global teams?
lack of visibility of nonverbal cues
individualism
refers to the tendency of people to look after themselves and their immediate families with less emphasis on the needs of society; the primary focus is on the individual or the nuclear family.
Self-protective leadership
reflects behaviors that ensure the safety and security of the leader and the group
Perceptions of space
reflects each culture's orientation about personal space and conversational distance
Charismatic/value-based leadership
reflects the ability to inspire, to motivate, and to expect high performance from others based on strongly held core values
1. All of the following are examples of support systems recommended by Tung for a successful repatriation program except _____.
repatriation compensation program
1. To the older generation in Japan, a working married woman _____.
represented a loss of face to the husband
What is a drawback of organizational culture?
resistance to change
27. Which of the following is an example of a decisional role that managers play?
resource allocator
13. The _________ effect states that a manager's influence on the organization has implications far beyond the results that can be achieved by one person acting alone.
multiplier
Job security level of high uncertainty avoidance?
need for job security
Types of nonverbal communication
(1) kinesic behavior, (2) proxemics, (3) paralanguage, and (4) object language.
International HRM compared to national
- More complex/ costly - More strategic - Much broader external influences - More involvement to employees personal needs - greater exposure to risks - Broader HRM activities
Factors to consider when entering a market
-Market attractiveness -Market similarity -Trade regulations -Market risk -Industry competition
2 initial choice levels in a hierarchy-of-decision factors sequence
1. the extent to which the firm will export or produce locally 2. the extent of ownership control over activities that will be performed locally in the target market
20. Setting goals and deciding how to achieve them is called
planning
21. The constant feedback loop of the ______ is designed to ensure plans stay headed in the right direction.
planning/control cycle
Loose culture countries?
Belgium, Luxembourg, France, Great Britain, and Sweden
Infrastructure development and support
Ch2 Which of the following is a potential benefit to the host country of MNC operation?
Industrial Ecology
Ch2 ________ is a systems view in which one seeks to optimize the total materials cycle from virgin material, to finished material, to component, to product, to obsolete product, and to ultimate disposal.
Guanxi
Chinese term that refers to the use of informal institutions or networks of interpersonal connections
86) In polychronic cultures, people focus on one thing at a time and adhere to time commitments.
FALSE
88) In low-context cultures, key information is embedded in the context rather than made explicit.
FALSE
A successful repatriation program starts after the first phase of the assignment has been completed.
FALSE
Feelings of alienation due to the loss of contact with family, friends, and daily life speed up the resocialization process.
FALSE
Research indicates that correspondence through e-mails is the best way to kick off a virtual team project.
FALSE
Task facilitation is the ability to build teams and resolve conflicts.
FALSE
The attrition rate for expatriates is considerably lower than that of non-expatriates.
FALSE
The relationship-building process during negotiation is over as soon as a negotiator is done exchanging task-related information.
FALSE
Cultural contingencies?
Individualistic and risk-taking behaviours, being status-conscious
Demand Conditions
Nature and size of home demand / customers needs for the industry's product or service
Which of the following is most likely to be true about negotiators in the Far East?
Negotiators approach issues in a holistic manner, deciding on the whole deal at the end.
Barton & Green is an MNC based in the United States that provides a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to TMC Enterprises, one of the best IT infrastructure maintenance firms in India?
Outsourcing will enhance Barton & Green's competitiveness.
________ refers to the assumption that every member of a society or subculture has the same characteristics or traits without regard to individual differences.
Stereotyping
15. ________ goals are set by and for middle managers and focus on the actions needed to achieve ________ goals.
Tactical; strategic
20. The principal organization that provides low-interest loans to developing nations for improving, for example, their transportation or education systems is
The World Bank
Political risks
The probability of disruptions by political forces or events whether they occur in host countries, home countries, or from changes in the international environment such as instability in national governments, war (civil and international), potential nationalization of a firms resources.
Normative Ethics
The search for, and justification of, moral standards, or norms.
applied ethics
The study of applying theories from philosophers regarding ethics
Dimensions shared by Hofstede and GLOBE frameworks
Uncertainty avoidance/ambiguity, power distance and future orientation/time orientation
In order to minimize potential problems in alliances, companies should most likely choose partners with ________.
complementary products and skills
In general, centralized decision making is common for some functions such as ________.
finance
7. The trend of the world economy toward becoming a more interdependent system is called
globalization
American managers believe strongly in self-determination and perceive problem situations as something they can change. This shows that they ________.
have internal locus of control
Instrumental orientated conflict
how conflict is handled in low context cultures - explicitly and directly, based on fact and knowledge
20. The first step in the MBO process is to
jointly set objectives
decoding is
process of translating the received symbols into the interpreted message.
the ways people ___, _____, and _____ are based on their ingrained societal culture
think, feel, and act
humane leader
those who are compassionate to their employees.
What refers to a society's ideas and convictions about what is good or bad and right or wrong
values
Which of the following most likely provides a strategic advantage during the implementation of a global alliance?
unified technology infrastructure
1. Which of the following is not a trait of codetermination?
union veto power over CEO appointments
1. In a large power distance society, subordinates _____.
expect superiors to act autocratically
1. The operational challenges for global virtual teams include all of the following except _____.
exposure to different viewpoints
Which of the following is an advantage of a synergy?
exposure to different viewpoints
high-context cultures such as middle east approach to negotiation
expressive-oriented conflict—that is, the situation is handled indirectly and implicitly, without clear delineation of the situation by the person handling it. - use evasion and avoidance if they cannot reach agreement through emotional appeals
performance orientation
how much should individuals be rewarded for improvement and excellence
institutional collectivism
how much should leaders encourage and reward loyalty to the social unit
future orientation
how much should people delay gratification by planning and saving for the future
humane orientation
how much should society encourage and reward people for being kind, fair, friendly, and generous
gender egalitarianism
how much should society maximize gender role differences
5. According to the GLOBE project, power distance is
how much the people of a society expect power to be unequally shared
Achievement vs. Ascription
how rewards/status in a society are handed out: performance vs. place in society
Culturally attractive
how similar the target culture is to the MNC's culture
object language, or material culture
how we communicate through material artifacts, whether architecture, office design and furniture, clothing, cars, or cosmetics. Material culture communicates what people hold as important.
34. ______ skills consist of the ability to work well in cooperation with other people to get things done.
human
1. According to research by Tung, most U.S. firms failed to include _____ in their assessment of candidates for potential international experience.
human relational skills
7.An organization's board of directors is part of its ______ environment.
internal
Porter's Forces
is a framework that attempts to analyze the level of competition within an industry and business strategy development. Focuses on competition among five forces including: buyer bargaining power, substitute products, supplier bargaining power, threat of new entrants, rivalry among competing sellers.
Parent companies use the IJV control process in order to ensure that the management of the joint venture conforms to ________.
its own interests
1. Kanungo and Wright recommend that efforts to improve managerial performance in the U.K. should focus on _____.
job content
1. In a study of "The Best International Human Resource Management Practices Project," it was found that Anglo countries believed ________to be the most important selection criteria.
job interview, technical skills, and work experience
1. One of the constraints organized labor places on management is _____.
limits on the firm's ability to vary employment levels when necessary
Performance Orientation
measures the importance of performance improvement and excellence in society and refers to whether people are encouraged to strive for continued improvement. Singapore, Hong Kong, and the United States score high on this dimension; typically, this means that people tend to take initiative and have a sense of urgency and the confidence to get things done.
Collectivism (low individualism)
motivation will more likely work through appeals to group goals and support
1. Which two sets of needs are identified in the Herzberg model?
motivators and maintenance factors
high power distance
motivators in the relationship between subordinates and a boss
1. In international firms that export and produce goods overseas, _________ play an important role in the relationship.
multicultural teams
Which of the following is/are particularly important in joint ventures for the purposes of strategic planning, implementation, and production?
multicultural teams
In Latin American countries, leaders are respected as
multidimensional social beings
Historically, the geographic division structure is associated with companies pursuing ________ strategies.
multidomestic
The organizational culture has a low impact in a ________ strategy.
multidomestic
1. When a manager says "I learned to understand situations from the perspective of local employees and businesspeople," he or she is demonstrating what management skill?
multiple perspectives
basic factors of production
natural and labor resources
Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests?
negotiation
what is unacceptable in chinese social behavior?
physical contact is not acceptable in Chinese social behavior, nor are personal discussion topics such as one's family. However, it is customary to give and take small gifts as tokens of friendship.
Haptics
- Haptics are very much at play in cross-cultural communication and are discernible from • Greetings • Therapeutic contact • Farewells • Celebrating success
Expressive orientated conflict
- How conflict is handled in high context cultures - indirectly and implicitly, using evasion and avoidance
According to Hofstede, the extent to which subordinates accept a hierarchical system in a company is known as ________.
power distance
What is a cultural dimension identified by the GLOBE Project team
power distance
Hofstede's Cultural Dimensions
power distance, individualism, masculinity, uncertainty avoidance, long-term orientation
Sequential vs. Synchronic
- In sequential culture, time is physical/measurable and activities have to fit a specific schedule. - In synchronic culture, time is immeasurable and activities only fit very loosely within a schedule.
Distinctive (core) competencies
strengths that allow companies to outperform rivals. They represent important corporate resources and are difficult for competitors to imitate
tight culture tendancies
tight culture is one with pervasive norms and practices of sanctioning deviance from norms; people's values, norms, and behavior are similar to one another. People in tight societies preferred to live near those who are similar to them; and they tend to feel better when there is order and predictability in their lives; they tend to be risk-averse.
Which of the following motivates a company to form cross-border alliances?
to gain rapid entry into a new and consolidating market
Jeff Richards works for an American MNC. For more than 10 years, Jeff was posted in the company's subsidiary in Ghana. Upon returning to his home country a few months ago, Jeff reported that his international experience had substantially enhanced his skills of making decisions with less information and more uncertainty about the outcome. In this instance, Jeff alludes to which of the following acquired skills?
tolerance for ambiguity
Which of the following terms suggests that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world?
transformational outsourcing
In translating his or her intended meaning into symbols for cross-cultural communication, the sender must:
use words, pictures, or gestures that are appropriate to the receiver's frame of reference.
In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to the most important HRM practice for successful repatriation?
visible signs that the company values international experience
attrition rate for expatriates is about double that of non-expatriates for the following reasons
• Expatriates are more marketable and receive more attractive offers from other employers. • Expatriates find that their compensation packages on overseas assignments are more ¬generous than at home and go from one company to another to take advantage of that. • Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company
tasks for global business teams
• Cultivating trust among members • Overcoming communication barriers • Aligning goals of individual team members • Obtaining clarity regarding team objectives • Ensuring that the team possesses necessary knowledge and skills
What are the major challenges of IHRM?
• Cultural differences • The expat cycle effectively • The cultural effects on Motivation: eg. Status, perks, delegation of responsibility • Time: eg. setting deadlines 1.Enhancing global business strategy 2.Aligning H R issues with business strategy 3.Designing and leading change 4.Building global corporate cultures 5.Staffing organizations with global leaders
1. Preparation
• Familiarise yourself with the entire context and background of your counterpart negotiators • Do some research to develop a profile of their counterpart so that they are prepared for various situations as they arise • Understand cultural differences in negotiating styles of people from other cultures
Key Elements of Decision Making
• Goal clarity - what you want to achieve • Role clarity - who does what • Resource availability - training, information, training on cultural communication and negotiation • Use of best approach
Negotiation support systems (NSS) can provide support for the negotiation process in the following ways:
• Increasing the likelihood that an agreement is reached when a zone of agreement exists (solutions that both parties would accept) • Decreasing the direct and indirect costs of negotiations, such as costs caused by time ¬delays (strikes, violence), and attorneys' fees, among others • Maximizing the chances for optimal outcomes
why should we try to avoid ethnocentricity?
- May cause us to view other cultures in terms of our own and thus overlook beneficial aspects of other cultures - May undermine our business projects if we are insensitive to cultural nuances
Common dirts tactics for negotiation
- Misleading/ false information - Selective use/display of information -Manipulation of physical space
Levels at which culture exists
- National level - Culture reflected in values on which laws and institutions are based - Industry level - Culture is reflected in values and norms of the industry - Organizational level - Culture is reflected in firm values, norms, structure or reporting patterns
Elements of IHRM
- type of Employees - (host, parent, third country) - Countries - (home host, other) - HR activities - Procedure, Allocate, Utilize
how to categorise expats
- type of expat (country) - Self initiated or assigned - motivation - Short term/ long/ flexi - Individual/ family - highly skilled, one off vs seasonal
Cross-Cultural Relationship Building
- usually takes time - getting to know the other party - method or reaching decisions - Non-Task sounding - social events - Task related exchanges - actual substance of negotiation - All cultures build relationships and trust differently
integration-responsiveness network
-integrating (global) - and standardising always easier and cheaper, however demand might force you to adapt - Responsiveness (local) - will require more money/ managing - good for local competition - local needs, host govt demands, regional substitutes
Pros and Cons of Host COuntry nationals
Advantages - Familiarity with culture - no process with adapting. easy and cheap to hire Disadvantages - less firm-wide coordination. Might have own agenda - leave company join competition
Pros and Cons of Third country nationals
Advantages -Broad global experience - probably most equipt. understand how to adapt - multi-cultural Disadvantages - Little development of HCNs - complex to manage - lack local contacts
Collectivism 2: Institutional
Degree to which organisational and societal institutional practices encourage and reward collective distribution of resources and collective action
Why is increased market size a benefit to firms?
Expand size of international market; enhance size and performance; limited growth opportunities in domestic market; larger markets offer higher potential returns and pose lower risk
Benefits of International Diversification
Expanding sales of goods or services into different geographic locations/markets may: Increase a firm's return; Achieve economies of scale and experience, location advantages, increased market size and opportunity to stabilise returns; Yield greater returns on innovations; Generate additional resources for investment in innovation; Provide exposure to new products/processes in international markets; enhanced knowledge and innovation
Risks of International Diversification
Expansion into global operations in different geographic locations/markets makes implementing international strategy complex, can produce greater uncertainty/risk, costs may exceed benefits of expansion, exposes firm to instable national governments
Concentration strategy
Expansion strategy focused on a few countries
Which of the following best explains the attrition rate for expatriates?
Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company.
Learning patience and tolerance, realizing that managers abroad are in the minority among local people, and learning to communicate more with others and empathize with them implies that an executive has acquired considerable tolerance for ambiguity.
FALSE
Making decisions with more information and less uncertainty about the process and the outcome is referred as tolerance for ambiguity.
FALSE
Opportunities for indigenous female employees to move up the managerial ladder in a given culture do not depend on the values and expectations regarding the role of women in that society.
FALSE
Organizational culture tends to be stronger than societal culture. True or False?
FALSE
Future-oriented societies tend to place more emphasis on instant gratification. True or False?
False
Humane orientation measures the extent to which a society takes part in self-enhancement. True or False?
False
Internal Direction
Life is about living in harmony with the environment. People believe that there are forces that cannot be controlled or influenced and they therefore need to adapt to these external circumstances. Most typical in Eastern cultures
Indulgence
Likelihood of being tempted by other factors
Trans-nationality index
What is your % of assets, sales and employment; compared to the global market
values
a society's ideas about what is good or bad, right or wrong—such as the widespread belief that stealing is immoral and unfair.
International Strategy
a strategy in which global markets are penetrated using exports and licenses
International Strategy
a strategy through which the firm sells its goods or services outside its domestic market
17. Which of these is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal?
ethical dilemma
18. Standards of right and wrong that influence behavior are known as
ethics
1. Fred has been sent from USA (headquarters) to Tokyo to manage his firm's Japanese subsidiary. This is an example of the _____ staffing approach.
ethnocentric
The downside of rationalization is ________.
a lack of differentiation and specialization for local markets
long-term orientation
a national culture attribute that emphasizes the future, thrift, and persistence
International joint venture
a partnership in which ownership is shared by an MNC (typically) and a local partner through agreed-upon terms of equity
Issues of manufacturing yourself
a) Cost aspect (transaction cost) b) Learning & specialisation (investment, spill overs) c) Knowledge and proprietary technology d) Flexibility, speed, scheduling e) Avoiding dependence and risks - don't need to rely on other people.
In what market and competitive circumstances are focused differentiation strategies attractive?
a. Affluent buyers wanting products and services with world-class attributes b. Ex: Four Season, Trader Joe's
What are the distinctive features of a broad differentiation strategy?
a. Buyer needs and uses of the product are diverse b. There are many ways to differentiate the product or service that have value to buyers c. Few rival firms are following a similar differentiation approach d. Technological change is fast-paced and competition revolves around rapidly evolving product features
Firms must ____ to their environment to survive
adapt
The focus of strategic planning is how to ___
adapt
Competitive analysis
an analysis that assesses the firm's capabilities and key success factors compared to those of its competitor
Regiocentric staffing approach
an approach in which recruiting for international managers is done on a regional basis and may comprise a specific mix of PCNs, HCNs, and TCNs Impatriates
Research in the United States indicates that during the final stage of negotiations, it is best to start with ________.
extreme positions
Analysis on the national level provides
an in-depth exploration of specific countries for economic, legal, political, and cultural factors significant to the company
11. A group of people who work together to achieve some specific purpose is/are called
an organization
At persistent signs of ineffective work, a company should ________.
analyze its organizational design, systems, and work flow for the possible causes of those problems
1. According to Miles and Snow, when a company facing uncertainty responds by saying, "Let's let others take the risks of innovating and we'll imitate what works best," it would be classified as a(n)
analyzer
2.The nation to which the United States exports the most is which of the following countries?
canada
MNCs often partner with local SMEs in order to ________.
capture new innovations and ideas
In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to a top-five ranked practice for successful repatriation?
career planning sessions
The method of using extreme positions during the concessions and agreement stage of negotiation involves ________.
careful timing of the disclosure of information and concessions
Which of the following must an international team avoid if it wants to achieve the individual and collective goals of the team members?
causing the global enterprise to disintegrate
21. An ethical _________ represents employee's perceptions about the extent to which work environments support ethical behavior.
climate
Quantitative Approach
collecting information about people and social worlds, converting the information into numbers, and analyzing the numbers by using statistical procedures and tests.
According to Hofstede, tight social frameworks, emotional dependence on belonging to the organization, and a strong belief in group decisions are characteristics of ________.
collectivism
A state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture is called
culture shock
linear active
cultures that are calm, factual and decisive planners - task oriented, highly organised and prefer to do one thing at a time
10. A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n)
defender
Which of the following is considered essential in light of the increasing proliferation of foreign subsidiaries and joint ventures?
developing effective transnational teams
1. In the _____ staffing approach, the best managers are recruited from within or outside of the company, regardless of nationality.
global
1. Which staffing approach in time results in further development of a global executive cadre?
global
Common reason company goes overseas is _____
global competition. If left unchallenged, it becomes difficult for companies to enter at a later time.
collective bargaining in the United States and Canada refers to
negotiations between a labor union local and management.
Which of the following best defines guanxi?
network of personal relations
Customizing a range of products in a combination suitable for a particular target market, as a response for the increasing need for speedy adaptation to the market, is known as ________.
platformisation
16. One type of standing plan, the __________, outlines the general response to a designated problem or situation.
policy
institutional environment elements
political economic technological legal social environmental
1. Local managers are hired to fill key positions in their own company under the _____ staffing approach.
polycentric
Which of the following is one of the stages in the negotiation process?
preparation
5. Focusing on the performance of workers and urging employees to strive for zero defects is called
quality assurance
31. The strategy for minimizing errors by managing each stage of production is called
quality control
Managers choose the manufacturing location for each product based on where the best combination of cost, quality, and technology can be attained in order to achieve ________.
rationalization
Communitarianism
refers to people regarding themselves as part of a group Eastern Societies
Future Orientation
refers to the level of importance a society attaches to future-oriented behaviors such as planning and investing in the future.
checklist approach
relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the creditworthiness of the country
Which subsystems is most likely to underlie both moral and economic norms
religious system
Geographical distance
remoteness, different time zones, weak transportation or communication links
5. The "R" in S.M.A.R.T. goals stand for
results orientated
Which of the following is the primary benefit for a firm that carefully manages its expatriates' careers?
retaining managers with global experience and skills
17. A duty imposed on imported goods designed simply to raise money for the government is known as a(n)
revenue tariff
"The longer a person is away, the more difficult it is to get back into the swing of things." In the context of repatriation, this often leads to ________.
reverse culture shock
leader's role comprises the interaction of two sets of variables
the content and the context of leadership.
According to the Joshi study, the most critical conflicts related to transnational teams are between ________.
subsidiaries
relationship building
the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.
Based on Hofstede's value dimensions, countries in which nationalism is less pronounced, protests are tolerated, and job mobility is common are high on ________.
uncertainty avoidance
What Hofstede variables is associated with a strong sense of nationalism
uncertainty avoidance
In the American culture, which of the following is most likely considered a rough tactic used during negotiations?
uncomfortable room temperatures
Rough tactics used in stage 4 persuasion
uncomfortable room temperatures, too-bright lighting, rudeness, interruptions, and other irritations.
high-contact cultures are mostly located
warmer climates
Aesthetics
what a culture considers to be in "good taste" in the arts, the imagery evoked by certain expressions, and the symbolism of colors
Turnkey operation
when a company designs and constructs a facility abroad, trains local personnel, and then turns the key over to local management for a fee
Offshoring
when a company moves one or all of its factories from the 'home' country to another country
Accounting, finance and investment
- dealing with taxes - how much profit do we declare? where? - Moving money - what do we do with profits? - Raising capital - stocks, bonds, angel investors, crowdfunding
Make gestures
Ch4 When encoding a message during cross-cultural communication, it is most effective for senders to:
1. The direct cost alone of a failed expatriate assignment is estimated to be _____.
$200,000-$1.2 million
1. Move a $100,000 expatriate American executive to London, and suddenly he or she costs the employer _______.
$300,000
Achievement vs. nurturing
(previously called Masculine/Feminine): Cultures with high achievement vs. nurturing emphasize assertiveness, the accumulation of wealth, & an entrepreneurial drive. Cultures rating low on achievement vs. nurturing value relaxed lifestyles and are more concerned for others than they r w/ material gain
What are the stages of the strategy-making
1. Developing a strategic vision, mission and values. Vision: chart long term direction. Mission: describe the company's business. Values: guide the pursuit of the strategic vision and mission. 2. Setting objectives: for measuring the company's performance and track its progress 3. Crafting a strategy to achieve the objectives and move the company along the intended path: for future 4. Executing the strategy: efficiently and effectively 5. Evaluation and analyzing the external environment and the company's internal situation to identify corrective adjustments: to identify corrective adjustments that are needed in the long-term direction
Offshoring provides:
1. access to foreign markets while avoiding trade barriers 2. frequently, an overall lower cost of production
____% of the world's customers live outside the US
96%
reverse culture shock
A state of disorientation and anxiety that results from returning to one's own culture.
Balanced scorecard
A widely used method for combining the use of both strategic and financial objectives, tracking their achievement, and giving management a more complete and balanced view of how well an organization is performing
62) Jerry, representing a U.S firm, is sent to Saudi Arabia to negotiate his company's contracts. Which of the following should Jerry keep in mind when negotiating with the Arabs?
A) Business should be conducted personally and not via telephone or email.
48) Which of the following is the most accurate statement concerning the role of context in cross-cultural communication?
A) In high-context cultures, the message is implicit; in low-context cultures, the message is explicit.
51) Which of the following is true about high-context cultures?
A) One has to read between the lines and interpret meaning from one's general understanding.
21. Which of the following is a major trading bloc?
APEC
Types of location advantages
Access to lower cost labour, critical resources, or customers
Value Orientation Theory
All human cultures are confronted with universally shared problems emerging from relationships with fellow beings, time, activities, and nature
Research shows that managers from ________ have the highest tolerance for risk.
America
Particularism
Approach that emphasises relationships and applying rules subjectively. Places more emphasis on relationships, status is important. Must get to know people one is doing business with. Example: China
58) Al Razim, a construction engineer, recently travelled to Germany in order to find investors for his real-estate project. While he finally succeeded in getting an investor, he was surprised by the explicitness of the Germans. Sometimes all he got was a direct "No." This is because Germans are a ________ culture.
C) low-context
60) The Japanese preference for humanity, reciprocity, and analytic logic is known as ________.
C) ningensei
4) Phil sent an email requesting Mel to join him in the conference room at 2 P.M. and to bring the final report on the building's floor plans. However, Mel's personal secretary skips reading the entire email and just informs Mel to join Phil in the conference room at 2 P.M. This is an example of ________.
C) noise
66) What is the best method for avoiding miscommunication?
C) practicing projective listening
High Gender Egalitarianism culture
Characterised by low gender inequalities at home, within organisations and communities. Example: Canada
________ refers to a process of negotiations between workers and managers.
Collective bargaining
Persuasion in negotiation
Common dirty tactics include • Selective use/ display of information • Misleading false information • Manipulation of physical place - How do you counter this Research - past dealings, regulations, history
________ represent members in several industries.
Conglomerate unions
44) Carlos has an appointment with Higuain in a half hour at his office. However, Carlos decides to take care of some personal errands on his way to the office and informs Higuain. Carlos does not make it on time for the appointment. Higuain most likely concludes that Carlos is from a ________.
D) polychronic culture
29) Which of the following terms refers to the influence of closeness and space on communication?
D) proxemics
19) In an interview, a British journalist asked a German athlete, "Are you a typical German?" When asked to clarify, the journalist explained that a typical German loved machines, worked hard, and was dependable. This is an example of ________.
D) stereotyping
6) Which of the following is the primary cause of noise in the communication process?
D) the difference between two individuals' life space
Brain drain
Departure of highly educated people from one profession, geographic region or nation to another
Assertiveness
Degree to which individuals are assertive, confrontational, and aggressive in their relationships with others
Collectivism 1: In-group
Degree to which individuals express pride, loyalty and cohesiveness in their organisations and families
High collectivism 1 (in-group) culture
Duties and obligations are important determinants of social behaviour. Strong distinction between in-groups and out-groups. People emphasise relatedness with groups. Love assigned little weight in marriage. Example: Philippines
Social mobility:
Ease of moving up or down a culture's "social ladder"
acquisition
FIRM needs rapid cross-border access to new international markets
Where does NZ fall in Hofstedes culture measure
Feminine Individualism High risk tolerance Lower power distance
Which of the following is true with regard to indirect coordinating mechanisms?
Indirect coordinating mechanisms typically include sales quotas.
Factors of Production
Inputs necessary for a firm to compete in any industry; Factors classified as basic, advanced, generalised or specialised.
IHRM
International Human Resource Management
SWOT analysis
It's a tool to help analyze a company's internal strengths, weaknesses, market opportunities and external threats to the company and its future well being
________ is optimized when career opportunities provided by the organization are congruent with repatriate career goals and aspirations.
Knowledge transfer
Basic factors of production
Land, labor, capital
Discuss the role of women in international management in general and as expats in particular.
Limited due to the constant pull of their families
Lewis model
Linear-Active, Multi-Active, Reactive
Lewis Model: three types of behaviour
Linear-active, multi-active, reactive
Paralanguage
Paralanguage refers to how something is said, rather than the content of what is said—e.g., rate of speech, tone and inflection of voice, other noises, laughing, yawning, and silence. For example, the Chinese tend to spend about 30 seconds thinking before they speak. Americans are only comfortable with 10 to 15 seconds of silence.
________ operate(s) outside the formal structure, focusing on innovation and improvement.
Parallel global virtual teams
1. _____ are also called expatriates.
Parent-country nationals
1. _____ are chosen for new international ventures requiring managerial experience in the parent company and where there is a concern for loyalty to the company rather than to the host country.
Parent-country nationals
Institutions contribute to a ______ environment for firms
Stable ex. protecting property rights
Negotiation Application
The ability to negotiate effectively is viewed as one of the most important skills managers can have. Difficult at the best of times, negotiation becomes even more complex and challenging when it takes place between people of different cultural values, lifestyles, expectations, languages, and problem-solving techniques. For example, cultural differences in negotiation may concern the extent to which parties emphasise the task over relationships, spend time in preparation, rely on general principles rather than specific issues, and engage many or few people in the process.
Optimal solution: exporting
The firm has no foreign manufacturing expertise and requires investment only in distribution
Universalism vs. Particularism
The importance of rules versus relationships
astute leadership
The increased number of variables (political, economic, and cultural) in the context of the managerial job abroad requires astute leadership
Which of the following is true about the negotiating tactics used by the Russians?
They stall for time.
Goal of Global Strategy
To develop economies of scale as a firm produces the same, or virtually the same, products for distribution to customers worldwide
Climate:
Weather conditions of a geographic region • Affects where people settle and influences distribution options • Defines lifestyle, clothing, and work habits (e.g., such as organizing production schedules to avoid the "rainy season"
Intercultural communication
When a member of one culture sends a message to a member of another culture
Analysis on the multinational level provides
a broad assessment of significant worldwide trends. This is done through identification, forecasting, and monitoring activities.
What is an equity alliance?
a collaborative arrangement in which at least one collaborating company takes an ownership position in the other
1. Yuko Suzuki, an independent business woman in Japan found that _____.
all of the above a. her customers would not listen to her b. whenever she made a presentation, she was asked who her boss was c. when she hired a man to go with her, her sales increased significantly
The management of the reentry phase of the career cycle, if not handled adequately, ________.
can lead to the negation of the long-term benefits of that executive's international experience
An international manager can best develop an understanding of a particular culture by ________.
creating a cultural profile for that country or region in which the firm does business
Which of the following is a cooperative aspect of strategic alliances?
creating economies of scale in tangible assets
When immigrants adopt some aspects of the local culture while keeping aspects of their culture of origin, this process is called ________.
creolization
is a primary reason for failed expatriate assignments
cross-cultural differences
French expect leaders to be
cultivated—highly educated in the arts and in mathematics
According to a study of global teams by Govindarajan and Gupta, which of the following is the most important task in developing a successful global business team?
cultivating trust among all team members
Several ways future managers can develop a global mindset:
cultural adaptability, bridging the gap, building global mentality, flexibility is key
Which of the following terms refers to company specialists who provide other companies with services such as Web site translation?
e-commerce enablers
increase in competitive and risky behavior occurs because
e-mail does not communicate social context cues in the same way as does the presence of another person
exchanging task-related information is
each side typically makes a presentation and states its position; a question-and-answer session usually ensues, and alternatives are discussed.
15. Inflation is an example of ______ forces in an organization's general environment.
economic
1. For most people, the basic meaning of work refers to _____.
economic necessity
1. In a study of "The Best International Human Resource Management Practices Project," a major selection tool in Korea was _______whereas in Taiwan, the major selection tool was________.
employment test; the job interview
International managers can benefit greatly from cultural sensitivity because it ________.
enables them to develop appropriate policies
Using the Internet to streamline global supply systems ________.
enhances the efficiency of the supply chain
The mission of the International Labor Organization is to ________.
ensure that humane conditions of labor are maintained
29. _________ means taking risks to try to create a new enterprise.
entrepreneurship
15. Which of the following is not an area in which an organization must stay ahead of its competitors to achieve competitive advantage?
environmental action
Which of the following refers to a problem that firms with structurally sophisticated global networks are most likely to face?
environmental volatility
Which of the following is NOT a critical operational value difference
etiquette
The mission of an organization is its overall
function it performs in society
25. A ______ manager is responsible for just one organizational activity.
functional
Describe some ways that a company can improve its supplier-related value chain activities
i. Pressure suppliers for lower prices ii. Switch to lower-priced substitute inputs iii. Collaborate closely with suppliers to identify mutual cost-saving opportunities EX: companies may find that it is cheaper to integrate backward into the business of high-cost suppliers and make the item in-house
3. Which of the following is a practice by which countries try to exert trade protectionism?
imposing important quotas
Managers from Italy and Mexico would most likely express their emotions openly during a business situation, while managers from England and Japan would most likely consider such behavior unprofessional. Which of Trompenaars's value dimensions explains this difference in behavior and attitude
neutral versus affective
Which of the following behaviors is NOT consistent with Casse's profile of successful American negotiators?
never compromises
Which of the following indicates a need for change in organizational design?
new management with different goals and strategies
Modern leadership theory recognizes
no single leadership style works well in all situations
do chinese negotiators have a lot of authority?
no they have little authority
Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________.
non-equity strategic alliance
Joint ventures are often the chosen form of multinational firm alliances because they ________.
provide greater control of proprietary technology
For long-term positive relations, the goal of negotiation should most likely be to ________.
reach a settlement that benefits all parties
1. In Taiwan, the most highly sought reward is _____.
recognition from the top and affection
Offshore outsourcing does the following for firms:
reduce costs, expand relational ties, serve customers more effectively, free up scarce resources, and leverage capabilities of foreign partners.
autonomous leadership
refers to independent and individualistic leadership, which includes being autonomous and unique
4. A ______ plan is developed for activities that are not likely to be repeated in the future, whereas a ______ plan is a plan developed for activities that occur repeatedly over a period of time.
single use; standing
22. A manager's duty to take actions that will benefit the interests of society as well as of the organization is known as
social responsibility
Pillars of Sustainability
social, environmental, economic
Chinese way of making decisions
socialization and initiation of personal guanxi not business discussion
Axiomatic appeals are generally based on ________.
socially accepted ideals
Gender
socially learned traits associated with men or women. Cultures differ on views of gender equality at work
Canada consists of distinct groups such as Anglophones, Francophones, and indigenous Canadians. This is an example of ________.
subculture
1. According to Hofstede, the critical fact to grasp about leadership in any culture is that it is a complement to _____.
subordinateship
1. In _____, most unions are national and represent specific groups of workers—for example truck drivers or airline pilots—so a company may have to deal with several different national unions.
the United States
1. In their study of global teams, Govindarajan and Gupta found that _____.
the ability to cultivate trust among team members is critical to the success of global teams
9. Conceptual skills needed by managers include
the ability to understand how parts of the organization work together
Business people report two major areas of conflict in negotiating with the Chinese--their apparent insincerity about reaching an agreement and ________.
the amount of details desired about product characteristics
Specific vs. Diffuse
the degree to which a society compartmentalises roles (public v private sphere)
related and supporting industries
the presence, absence, and quality in the nation of supplier industries and other related industries that supply services, support, or technology to firms in the industry value chain. E.g. local manufacturers, distribution support
Strategic planning
the process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives
labor relations
the process through which managers and workers determine their workplace relationships.
haptic
touching
All of the following would be examples of international joint ventures EXCEPT ________.
two Venezuelan companies sharing ownership of a company in Venezuela
What will affect the nature of an organization's information system?
type of organizational structure, the staffing policies, and the leadership style
4. Persuasion
• Both parties try to persuade the other to accept more of their position to give up some of their own • Often some persuasion has already taken place beforehand in social settings and through mutual contacts • Tactics in persuasion • Dirty tricks • False information • Threats • commitment
What are some some examples of approaches to address a weakness in a company's customer value proposition?
- Implement the use of best practices throughout the company, particularly for activities that are important for creating customer value- product design, product quality or customer service - Adopt best practices for marketing, brand management, and customer relationship management to improve brand image and customer loyaltly. - Reallocate resources to activities having a significant impact on value delivered to customers
Achievement vs. Ascription
- In the achievement cultures, status derives from your own achievements. - In the ascription context, status is based on age, gender, kinship education, connections.
Why enter a foreign market
- Proactive internal, Proactive external - Reactive internal, Reactive external - If you are only tied to one market, you are completely tied to that market. you are going to be more susceptible to environmental changes - what drives your demand, if there is a seasonal trend, maybe join other markets to offset that
Marketing
- Standardisation v localisation - Global v local v global consumer culture - people loyal to local products - Market segmentation - Country/ brand origin effects and product stereotypes - Consumer decision-making styles (price, quality, brands, time, information processing)
Strategic challenges of IHRM
- Supporting and leveraging global strategy - Aligning HR issues with multinational business strategy - Designing and leading change - Staffing and managing global employees - particularly leaders
Corporate Level Strategy
A plan that indicates in which industries and national markets an organisation intends to compete; focuses on the scope of a firms operations through geographic diversification. Headquarters guide strategy but different approaches afford local managers more substantial strategic input
Licensing
An agreement with a licensee to use a process, patent trademark or trade secret
Which of the following is true of the way Arabs view time?
Arabs believe important decisions cannot be rushed
What impact does regulations and restrictions have on markets?
Companies will seek out less restrictive foreign operating environments
Sustainable competitive advantage
Company attracts large number of buyers, with lasting preferences for its products, over competitors and their efforts.
Expatriate Compensation
Compensation packages of employees on overseas assignments must be adjusted to account for differences in costs of living and working conditions in working aboard versus their home base Firms try to cut overall costs by extending the expatriates tour since the turnover is expensive
________ occurs as the migration of management and workplace practices around the world reduce workplace disparities from one country to another.
Convergence
Management problems associated with International Diversification
Cost coordination across geographically diverse units, institutional and cultural barriers, understanding strategic intent of competitors, complexity of competition, overcoming liability of foreignness
________ unions are based on certain occupational skills.
Craft
26) Subtle differences in eye behavior are known as ________.
D) oculesics
power distance
Degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage
Fully owned subsidiaries started from scratch have the _______ levels of risk
Highest
Generalised factors of production
Highway systems, supply of debt captial
Stake holders in Negotiation
Home/host country external stakeholders Host country internal stakeholders Home country internal stakeholders Firm negotiators - All have different motives
Culture Shock stages
Honeymoon, crisis, recovery, adjustment, reverse
Business model
How strategy and operating approaches will create customer value and financial success for the company.
High Humane Orientation culture
Interests of others are important. People primarily motivated by need for belonging and affiliation. Individuals promote well-being of others. Sensitive to all forms of racism. Example: Philippines, Ireland
Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following best supports Kevin's argument that he should be the primary negotiator?
Kevin is the oldest and the most experienced person on the negotiating team.
non-verbal cues
Kinesics, Proxemics, Paralanguage, Object or material culture
Subculture
People who share a unique way of life within a larger culture (language, race, lifestyle, attitudes, etc.) ex. goth, punk, emo
Hofestede's Cultural Dimensions
Power distance, uncertainty avoidance, individualism, masculinity, time orientation and indulgence
Indulgence
Refers to a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun. Believe themselves to be in control of their own life and emotions. Example: USA
self-protective dimension describes
a leader who is self-centered, conflictual, and status conscious
participative leadership
a leadership style in which the leader consults employees for their suggestions and input before making decisions
Cultural adaptability
a manager must be knowledgeable of an unfamiliar culture, then alter his or her behavior accordingly to lead multicultural teams
GLOBE project
a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organisational processes
Moral Universalism
a moral standard toward social responsibility accepted by all cultures
Comparative advantage
a mutual benefit in the exchange of goods between countries, where each country exports those products in which it is relatively more efficient in production than other countries
Parochialism
a narrow view in which people see things solely through their own perspective
lien
a person's moral character; it is the most important thing defining that person, and without it, one cannot function in society. It can only be earned by fulfilling obligations to others.
Centralized global product responsibility implies that ________.
a single manager at the headquarters is responsible for a specific product around the world
McClelland's Theory of Needs
a theory that states achievement, power, and affiliation are three important needs that help explain motivation
Advantages of outsourcing
a) Cheaper (comparative advantage, economies of scale) b) Specialisation (on competitive advantage) c) Strategic flexibility (less capital, switching suppliers, exchange rates) d) Access to resources e) Offsets (more orders from host)
Political Risk
The likelihood that political forces will cause drastic changes in a country's business environment that will adversely affect the profit and other goals of a particular business enterprise.
What is the meaning of the term "balanced scorecard"? What are the merits of using a balanced scorecard in judging a company's performance?
The merits are that you can measure performance of financial and strategic objectives. Also helps set objectives.
Self-reference criterion
The subconscious reference point of one's own cultural values. Means that many people only understand and relate to others in terms of their own culture
skilled negotiators practice
active listening—asking questions, clarifying their understanding of the issues, and summarizing the issues
According to contingency management, international managers need to ________.
adapt their management styles to the local setting and people
Managing Political Risk
adaptation, information gathering, political influence
which of the following is not one of the tenets of the Toyota way?
a. Top management only has the authority to stop factory assembly lines.
Organizational design as a mechanism for factoring international joint venture control refers to the ________.
amount of decision-making power that the joint venture holds
1. Having studied businesses operating overseas, Adler recommends that businesses _______.
all of the above a. avoid assuming that female executives will fail because of the way she will be received abroad b. avoid assuming that women do no want to go abroad c. give female managers every chance to succeed by giving them the titles, status, and recognition appropriate to the position
1. Which of the following is a phase of the transition process experienced by the company's international management cadre over time?
all of the above a. exit transition from home country b. entry transition to host country c. entry transition back to home country
context of leadership comprises
all those variables related to the particular situation
1. To ensure that expatriates do not lose out through their overseas assignment, the _____ approach is often used to equalize the standard of living between the host country and the home country and to add some compensation for inconvenience or qualitative loss.
balance sheet
Malaysians expect leaders to
behave in a manner that is humble, modest, and dignified.
Assertiveness
behavior intended to express dominance or confidence
ethnocentricity
belief that one's own ethnic group or culture is superior to that of others
Nevis proposes that the hierarchy of Chinese needs would be such that the first need would be
belonging
1. When the expatriate manager and his or her family are able to function effectively in two cultures, it is known as _____.
biculturalism
3.Demographic forces are influences on an organization arising from changes in
characteristics of a population
1. Which of the following is not a leadership style and behavior that was found to be generally accepted anywhere (i.e., universally considered facilitators of leadership effectiveness?
charismatic
Leadership styles and behaviors found to be culturally contingent are
charismatic, team-oriented, self-protective, participative, humane, and autonomous.
The most important single factor determining IJV success or failure is the ________.
choice of a partner
1. All of the following are members of the International Labor Organization except _____.
church representatives
Resource access and ______ entice many companies to operate from overseas bases
cost savings.
setting up beneficial long-term negotiations is more difficult in an international context because
cultural values, lifestyles, expectations, verbal and nonverbal language, approaches to formal procedures, and problem-solving techniques.
CAGE
cultural, administrative, geographical, and economic
24. A nation's __________ is the shared set of beliefs, values, knowledge, and patterns of behavior common to its people.
culture
Which of the following variables is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country?
culture
folk custom
dates back generations in a culture and is practiced within a homogeneous group of people. An example is the Muslim custom of wearing a turban
In the far east in stage 4 persuasion
details are likely to be worked out ahead of time through the backdoor approach (-houmani). However, the majority of the persuasion generally takes place over one or more negotiating sessions. Fraught with verbal and nonverbal behaviors.
When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to ________.
determine how they differ from the norm in other countries
Global strategic alternatives
determines what overall approach to the global marketplace a firm wishes to take
There are various categories of resources—both people and processes—which IHR managers and others must develop and maintain; in particular it is essential for them to ________.
develop effective global management teams
1. When a company suffers from an inadequate number of skilled managers from the local area in which it operates, and close communication is needed between branches and headquarters, which staffing approach is particularly appropriate?
ethnocentric
1. Which staffing approach is preferred when an organization has been structured around a centralized approach to globalization?
ethnocentric
8. __________ managers believe that their native country, culture, language, and behavior are superior to all others.
ethnocentric
1. The _____ staffing approach usually results in a higher level of authority and decision making in headquarters compared to the _____ approach.
ethnocentric; polycentric
1. Most MNCs start their operations in a particular region using a(n) _________staffing approach and then move to a _________staffing approach.
ethnocentric; polycentric or regiocentric
7. ________ management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process.
evidence based
According to the ________ model, as the company becomes larger, more complex, and more sophisticated in its approach to world markets, it may evolve into a transnational corporation.
evolutionary stages
22. The __________ is the rate at which one country's currency can be exchanged for another country's currency.
exchange rates
From an American perspective, the ________ stage of negotiation is straightforward, objective, efficient, and direct.
exchanging task-related information
Diversification strategy
expansion with presence across many markets over a large geographic landscape
The ability to mesh the team's activities with the organization's goals is called ________.
external alignment
The best organizational structure is the one that ________.
facilitates the firm's goals and is appropriate to its industry, size, technology, and competitive environment
1. In Mexico, _____ is of central importance.
family
Arab negotiators will most likely make concessions because of their interest in ________.
forming long-term relationships
A ________ structure is the ideal way to organize work when global integration is more important than local responsiveness and the industry structure encourages cost leadership.
functional
People in Singapore and Denmark are inclined toward long-term planning. According to the GLOBE project, such societies score high on ________.
future orientation
Asian countries more future or short-term oriented?
future-oriented, they strive toward long-term goals; they value investment in the future and are prepared to sacrifice short-term profits.
1. Which of the following staffing approaches has the broadest geographical pool from which to recruit?
global
Which of the following types of alliances can be formed between a company and a foreign government?
global strategic alliance
According to a survey of Alcoa's virtual team members, successful team leaders ________.
have the ability to convey goals and resolve conflicts
According to Lazarova and Tarique, organizations need to ________ in order to facilitate knowledge transfer.
have the right tools to capture knowledge
Based on Hofstede's value dimensions, countries that have strict laws and procedures to which their people adhere closely most likely have ________.
high uncertainty avoidance
leaders in e-businesses need to be
highly flexible
The noncomparability of performance data across countries ________.
hinders the evaluation process
To address the globalization—localization dilemma, firms that have evolved through the multinational form and the global company seek the advantages of ________ in the pursuit of transnational capability.
horizontal organization
1. All of the following are major causes of expatriate failure except _____.
host government intervention
31. According to researcher Robert Katz, which of the following is one of three principal skills acquired by experienced managers?
human
27. Which of the following is a cultural dimension in the GLOBE project?
humane orientation
Describe some ways that a company can improve activities of its forward channel allies.
i. Pressure dealer-distributors and other forward channel allies to reduce their costs ii. Work closely with forward channel allies to identify win win opportunities to reduce costs iii. Change to a more economical distribution strategy EX: Dell computer's direct sales model eliminated all costs of distributors by allowing buyers to purchase PCS directly from Dell
Example of how motivation and rewards is affected by culture
in US culture, employees are motivated by material rewards such as salary increases or bonuses. However, in other cultures, material rewards will not motivate employees and may be considered offensive. In Japan, employees are motivated by prestige, affiliation and social status and are likely to be insulted by material incentives. An appropriate reward to motivate a Japanese employee is recognition in the form of plaques, attention and social recognition, such as promotion to a more senior title.
28. How much pride and loyalty people should have for their family or organization is a cultural dimension in the GLOBE project known as
in-group collectivism
1. According to research, _____ has been the most frequently cited reason for the failure of expatriate managers who work in foreign subsidiaries of U.S. or European companies.
inability of the spouse to adjust
Extended family
includes grandparents, aunts, uncles, cousins, and in-laws; this family group is found in Asia, the Middle East, North Africa, and Latin America
reasons for trade union decrease
increase in the proportion of white-collar and service workers to manufacturing workers, a rising proportion of temporary and part-time workers, offshoring of jobs to gain lower wage costs, and a reduced belief in unions by the younger generations.
A negotiation support system provides support to the negotiation process by ________.
increasing the likelihood that an agreement is reached when a zone of agreement exists
Individualism vs. Communitarianism
individual benefits vs group benefits
Which of the following refers to a financial variable in MNC reports that complicates financial statements and performance evaluations?
inflation level
proxemics
influence of proximity and space on communication—both personal space and office space or layout.
An organization where employees typically wear casual clothes and interact casually is most likely to have a(n) ________ organizational culture.
informal
Which of the following cultural norms greatly affects the negotiation process for the Chinese?
ingrained politeness and emotional restraint
17. Finding ways to deliver new or better goods or services is called
inovation
The fundamental limitation of a matrix structure is that it ________.
institutes a dual hierarchy that violates the unity-of-command principle
recommended managers use what in relationship building stage?
intermediary—someone who already has the trust and respect of the foreign managers and who therefore acts as a relationship bridge.
A(n) ________ permits managers to allocate and coordinate resources for foreign activities under one roof, and thus enhances the firm's ability to respond, both reactively and proactively, to market opportunities.
international division
4. The ________ is designed to assist in smoothing the flow of money between nations, often operating as a last-resort lender to some.
international monetary fund
What is NOT one of Trompenaars' s value dimensions
intrinsic versus extrinsic
Which of the following is likely to cause offense in Saudi Arabia?
introducing business subjects too soon
Strategic group mapping
is a technique for displaying the different market or competitive positions that rival firms occupy in the industry.
Lingua franca
is a third or "link" language that is understood by two parties who speak different languages
1.Which of the following is true of the classical viewpoint of management?
it is concerned with improving efficiency
With the geographic structure, the focus is on ________, since products can be adapted to local requirements.
marketing
13. Which level of management is most often engaged in tactical planning?
middle managers
disadvantages of electronic communications are
might kill a deal before it gets off the ground by the inability to build trust and interpersonal relationships over time before getting down to business
Which of the following is NOT a recommendation made by Govindarajan and Gupta for improving global teamwork?
minimize global exposure for all team members
Currently, the only labor issues that are subject to a formal traditional review under NAFTA are
minimum wages, child labor, and safety issues
Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the United States, have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a ________.
minority JV partner
11. The statement which expresses the purpose of an organization is called a(n)
mission statement
Cross-border allies often have difficulty collaborating effectively, especially in competitively sensitive areas. This generally leads to ________.
mistrust and secrecy
3 forces spurred on by the internet
mobility of talent, capital, and knowledge
6. Performance is maximized when goals are
moderately difficult to challenging.
Ethical Relativism
morality is relative to the norms of one's culture
What is true of countries with low masculinity
more women in high-level jobs
3 levels that global environmental analysis should take place
multinational, regional, and national
Global managers who exhibit cultural intelligence and cultural sensitivity will most likely be able to ________.
negotiate effectively in expatriate assignments
With regard to small family businesses in China, a "guanxi" can be best described as a ________.
network of relationships centered on mutual obligations and favors
The main purpose of Harris and Moran's eight categories is ________.
to show how subsystems in a society affect an individual's behavior
The degree to which headquarters' practices and goals are transferable most likely depends on whether ________.
top managers are from the head office, the host country, or a third country
convergence
occurs as the migration of management and workplace practices around the world reduce workplace disparities from one country to another.
Parochialism
occurs, for example, when a Frenchman expects those from or in another country to fall automatically into patterns of behavior common in France.
1. When it is important to satisfy a country's legal requirement that a specific proportion of the firm's top managers be citizens of that particular country, which staffing approach has the highest potential?
polycentric
1. Which staffing approach will most likely be effective when implementing a global strategy of "acting local"?
polycentric
Which of the following international staffing approaches is more likely to be effective when implementing a multinational strategy?
polycentric
1.Justifications for cheating are mainly
personal and emotional
What forms the basis for the enforcement of most business contracts in Mexico and China?
personal commitments to individuals
The ________ strategy involves maximizing opportunities for both efficiency and local responsiveness by adopting a structure that uses alliances, networks, and horizontal design formats.
transnational corporation
Maslow's Hierarchy of Needs
physiological, safety, love/belonging, esteem, self-actualization
According to Adler, in order to understand the perspectives of both sides and to prepare for meetings effectively, a negotiator must ________.
practice role reversal
high-contact cultures
preferring to stand close, touch a great deal, and experience a close sensory involvement: South Americans, southern and eastern Europeans, Indonesians, and Arabs
23. Applying techniques like statistics and computer simulations to management are characteristic of the ______ viewpoint.
quantitative
3.Management science and operations management are the two branches of ______ management.
quantitative
mien-tzu
refers to one's reputation or prestige, earned through accomplishments or through bureaucratic or political power.48 Giving others one's time, gifts, or praise enhances one's own face.
What facilitates Expat integration
relationship building speaking the local language knowledge sharing cultural adaptability/ flexibility respect overseas experience develop local values encourage local innovation
Positives of licensing
relatively low-risk and little investment. Especially suitable for products in the mature phase Avoids tariffs and quotas (usually)
Positives of exporting
relatively low-risk. little investment is involved, and fast withdrawal is relatively easy
Values
represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal
industrial unions
representing all grades of employees in a specific industry
26. Which of the following is a cultural dimension measured in the GLOBE project?
uncertainty avoidance
self-reference criterion
unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions
The first step for an international manager toward cultural sensitivity should be to ________.
understand his or her own culture
Meta-ethics
understand nature of ethical properties and judgements
To understand cultural differences in negotiating styles managers first must
understand their own styles and then determine how they differ from the norm in other countries.
1. Many companies do little to minimize the potential effects of _____.
reverse culture shock
In Japanese culture, the term ________ refers to a process which involves gaining approval on a proposal by circulating documents to those concerned throughout the company. It usually comprises four steps: proposal, circulation, approval, and record.
ringi
Which of the following is a recommendation made by Govindarajan and Gupta for improving global teamwork?
rotating and diffusing team leadership
In their rush to get on the globalization bandwagon, too many firms have ________.
sacrificed the ability to respond to local market structures and consumer preferences
2.Both Taylor and the Gilbreths conducted motion studies as a part of their efforts in ________ management.
scientific
13. Fredrick Taylor and the Gilbreths were proponents of which of the following?
scientific management
According to Kopp, Japanese firms
scored lower than American and European firms in preparing local nationals for advancement
Which of the following is a typical task performed by e-commerce enablers?
screening orders
1. Which of the following is not one of the common factors frequently mentioned in research as a major cause of expatriate failure?
selection based on assignment needs in host country
What is culture?
set of values, beliefs, rules, and institutions held by a specific group of people
long-term positive relations in negotiations, the goal should be to
set up a win-win situation—that is, to bring about a settlement beneficial to all parties concerned.
9. Planning is defined as
setting goals and deciding how to achieve them.
1. In China, the plaque award "Ms. Wong- employee of the Month" was given to _____.
shame the worst employee of the month
Which of the following human resource problems can be simplified by increasing the autonomy of the IJV?
staffing friction
Which of the following refers to a self-contained business within a company with its own functional departments and accounting systems?
strategic business unit
1. Ideally, the _____ should dictate the organizational structure and staffing needed by a firm.
strategy of the firm
Organization ________ refers to the formal arrangement of roles, responsibilities, and relationships within an organization.
structure
Effective human resource management of a company's global cadre ends with ________.
successful repatriation of the executive into company headquarters
Which of the following is a common Chinese tactic used during negotiations with Americans?
suggesting that the Americans are reneging on their friendship
What are the two negotiation stages that Americans should expect when negotiating with the Chinese?
technical and commercial
Which of the following refers to a force that favors global convergence?
technological standardization
What does interest rates show
tells you about debt levels, investment/ cost of money
Rational strategic planning is often _______
tempered. This is because people are making decisions- their own personal judgments, experiences, and motivations will shape the strategic direction.
Globalization
term that refers to the establishment of worldwide operations and the development of standardized products and marketing
axiomatic appeals
that is, their appeals are based on the ideals generally accepted in their society.
Resource- based
the factors that determine a firm's competitive advantage (within a particular market) that are based off it strengths and weaknesses as relative to the opportunities and threats of a location company's S&W vs. location's O&T
For companies to maximize the long-term use of their global cadre, they need to make sure that ________.
the foreign assignment and the reintegration process are positive experiences
Which of the following forms of organization is particularly appropriate in a dynamic and diverse environment?
the global product structure
Institution- based theory
the global, regional, and country factors and risks that are part of those considerations of existing and potential risks and influences in the host area
motivation
therefore appropriate leadership style—is affected by many powerful variables (societal, cultural, and political)
Monochronic culture
time experienced in a linear way, something to be spent, saved or wasted
Indirect coordinating mechanisms typically include all of the following EXCEPT ________.
visits by head-office personnel
The members of ________ interact through computer-mediated communication systems and are linked together across time, space, and organizational boundaries.
virtual teams
3. Exchange of task-related information
• Involves each side typically making a presentation and stating their position; a question-and-answer session usually ensures and alternatives are discussed • Cultural differences remain an issue • The French enjoy debate and conflict • Show understanding of the other viewpoint
2. Relationship Building
• Know the culture • Getting to know one's contacts and building mutual trust • Use intermediary • Importance of relationship building differs across cultures
the leader and the job
• Leadership experience and technical knowledge • Cultural adaptability • Clarity of information available in host area • Level of authority and autonomy • Level of cooperation among partners, government, and employees
The Job Context
• Level of authority granted to leader • Physical location and local resource availability • Host professional contacts and community relations • Organizational structure, scope of internationalization, technology, and so on • Business environment: social-cultural, political-economic, level of risk • Systems of staffing, coordination, reward system and decision making, locally and in home office
Long vs short term orientation
• Long-term - thrift, perseverance, trust. •Short-term - chase immediate returns, competitive, opportunism, price focus.
swedish negotiators
• Polite, punctual, serious, and thoughtful, though tend to be overcautious. • They run meetings efficiently with little apparent emotion, and like to get straight down to business. • They can be quite flexible, but are wary of confrontations and take time to react to new ideas from the other parties in negotiations.
Factors for choosing member of a negotiation team
• Position in organisation hierarchy - is a signal of how serious you are about deal. Leadership role. • Age/experience • Skill-sets • Adaptability • Teamwork • Roles • Concessions and tactics
Paralanguage
- The study of proxemics traces back to Halls work in the 'Hidden Dimension' - Proxemics refer to how much humans use space as part of a communication in cultural setting - Personal, Social and Physical space
Motivation process theories - how
- Vrooms Expectancy theory - Adams Equity Theory - Goal Setting Theory Reinforcement Theory
Logistics
- What percentage of our overall cost falls on - Demand management - how much do we order? When? How predictable? - Inventory management - what type do we stock, how much do we stock? - Warehousing - Transportation
International human resource management
- What type of employees do we want to have? Host, home or other employees? - Where do we have our HRM function? - host home or other? - Which functions of HRM do we want to internationalise? - Along three dimensions - number of employees, countries and activities
Culture
-comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations. - The learned, shared, and enduring orientation patterns in a society
cultural profiles are part of what stage of negotiations?
1 preparation
Benchmarking
A tool for learning which companies are best at performing particular activities and then using their techniques to improve the cost and effectiveness of a company's own internal activities. Helps assess whether a company's value chain activities are competitive
Americans seek two kinds of leaders:
They seek empowerment from leaders who grant autonomy and delegate authority to subordinates. They also respect the bold, forceful, confident, and risk-taking leader, as personified by John Wayne in his movies.
To be effective, firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________.
allow a great deal of autonomy to subsidiary managers
autonomous leader
an individualist, so countries that ranked participation as important tended to rank autonomy in leadership as relatively unimportant.
Porter's 5 Forces
an industry-based model that examines: 1. competition among rivals 2. the threat of new entrants 3. bargaining power of buyers 4. bargaining power of suppliers 5. threat of substitute goods/services
6. Which of the following is a GLOBE dimension for which U.S. managers score highly?
assertiveness
According to the GLOBE project, which cultural dimensions refers to how much people in a society are expected to be tough, confrontational, and competitive versus modest and tender
assertiveness
What is a primary characteristic of masculine societies
assertiveness
nine cultural dimensions that distinguish one society from another
assertiveness, future orientation, performance orientation, humane orientation, gender differentiation, uncertainty avoidance, power distance, institutional collectivism versus individualism, and in-group collectivism
Which of the following represents government influence on IJVs?
copyright protection
24. The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as
corporate governance
1. Which of the following are components of the expatriates total compensation package?
d. all of the above: - salary - tax equalization - allowances and benefits
10. The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources is called
management
19. MBO stands for
management by objectives
24. ______ focuses on using mathematics to aid in problem solving and decision making.
management science
Implementing strategy depends on
management's ability to negotiate productively
A firm that uses an international division structure sometimes experiences intra-organizational conflict because ________.
more resources and management attention tend to get channeled toward the international division than toward the domestic divisions
3. Between the years 2010 and 2030, the number of U.S. citizens over the age of 65 is expected to
more than double
1. People in highly individualistic countries such as the United States are likely to be motivated by _____.
opportunities for individual advancement and autonomy
Which of the following is a cultural difference that can significantly affect cross-border alliances?
organizational formality
1. Which of the following is not an extrinsic motivational factor?
the work itself
1. _____ is a management skill that is likely to be learned abroad.
Tolerance for ambiguity
Cultures
Ch2 Moral universalism is the need for a moral standard that is accepted by all ________.
Why is the opportunity to integrate operations on a global scale an incentive for adopting an international strategy?
"borderless demand" - as nations industrialise, demand for products and commodities appear to become more similar
What are the five steps on the negotiation process?
(1) Preparation (2) Relationship building (3) The exchange of task-related information (4) Persuasion (5) Concessions and agreement
Managers on international assignments try to maximize leadership effectiveness by juggling several important, and sometimes conflicting, roles as
(1) a representative of the parent firm, (2) the manager of the local firm, (3) a resident of the local community, (4) a citizen of either the host country or of another country, (5) a member of a profession, and (6) a member of a family.
Manners
- Appropriate behavior, speech, and dressing in general - generally acceptable ways of behaving, speaking, and dressing. E.g., conducting business before, during, and after meals is commonly practiced in the USA, but may be unacceptable in another culture which waits until afterward
Manufacturing
- Is the most internationalised function. - Most of production done in other countries? - Consumers are becoming more sensitive to where something is assembled.
key information and assumptions expressed in high-context cultures?
- Key information embedded in context rather than made explicit - People make assumptions about what the message means through their knowledge of the person or the surroundings.
Internationalization - What, Why
- Liability of foreignness - what will you need to overcome/ change - you are not part of foreign environment - Internal vs External stimuli - why are we entering the international environment?
Factors considered when entering a market
- Market attractiveness - Market similarity - Trade regulations - Market Risk - Industry competition
Which market should be entered
- Market attractiveness (size, growth, transactional cost, potential, externalities) - Market Similarity - Trade regulations Market risk Industry competition
Motivation content theories - what
- Maslows need Hierarchy - Hezbergs Motivation Hygine Theory - McClellands Need Theory Alderfers ERG Theory
Culture Is...
- Not right or wrong: It is relative. There is no cultural absolute. Different nationalities simply perceive the world differently • Not about individual behavior: It is about groups. It is a collective phenomenon of shared values and meanings • Not inherited: It derives from the social environment. We are not born with a shared set of values and beliefs; we acquire them as we grow up
Cultural variables in communication
- Perceptions - Attitudes - Social Organisations - Thought Patterns - Roles - Language
Motivation
- Persistent effort working towards a goal - Has a starting point (need), goes in a direction (effort) towards a end poing (goal). Like a vector
Gert Hofstede - measuring national culture
- Power Distance - Long vs Short term orientation - Uncertainty avoidance - Individualism vs Collectivism - Masculine vs Feminine
Understanding international management and functional areas
- Research and development - Procurement - Marketing - Manufacturing - Accounting and finance - Logistics IHRM
Functional areas
- Research, development and innovation - Procurement - (what standards? Price, quality, ethics) - Logistics - (Management, warehousing, distribution, transporting) - Manufacturing - (most internalized function, consumers becoming sensitive to where something is assembled)
Customs
- Traditional ways or behavior in specific circumstances - habits and behaviors in specific circumstances and situations, such as the specific rules governing eating habits during the holy month of Ramadan
Implications of Individualism
- are more direct and those with collectivist orientations are less direct in their communication - those with individualist orientations are less and those with collectivist orientations are more inclined to use deception
Three main areas to Expat training
- cultural training - language instruction familiarity with everyday matters
Choosing a negotiation team
- done on merits and ability. - age - Culture power distance/ match cultural appropriateness - Position - Ability to work in teams - Cross cultural competencies
types of employees
- expats-go to the parenting country - Third Country nationals - come from a separate country - Inpartraites - come from partnering country - Home Country nationals
Imperatives, Selective, Exclusives
- imperatives - something that you are expected to know - serious ratifications - Selective - good to know but usually no punishment for not being knowledgeable - exclusives - not expected to know - if you try to demonstrate knowledge, you may come across as disrespectful
Best Alternative To a Negotiated Agreement
- involves various mechanisms including bluffs and veiled threats. - A BATNA may also entail Zone of Possible Agreement (ZOPA)
integration/ standardisation vs Responsiveness
- is always the preferred option as easier and cheaper. However, this is not always the most effective. Nature of demand might require you to adapt. - will require more money, more managing. however, food for local competition
Alliance-based entry modes are more suitable under the following conditions
- physical, linguistic, and cultural distance between the home and host countries is high - the subsidiary would have low operational integration with the rest of the multinational operations - the risk of asymmetric learning by the partner is low - the company is short of capital - government regulations require local equity participation
Reasons for Expat failure
- poor selection based on inappropriate criteria - inadequate preperation - alienation from HQ inability to adapt to local environment - inadequate compensation package - poor support programs
Entry Modes
-exporting -licensing -strategic alliances -acquistions -wholly owned subsidiaries
10. Scientific and administrative management are part of the ________ viewpoint.
classical
14. What is the time frame of an operational plan?
1-52 weeks
What are country clusters in the GLOBE study?
1. Anglo: Canada, NZ, UK 2. Confucian Asian: Singapore, China, Japan 3. Eastern Europe: Greece, Slovenia, Hungary 4. Germanic Europe: Austria, Netherlands, Switzerland 5. Latin America: Ecuador, Colombia, Argentina 6. Latin European: Spain, Portugal 7. Southern Asia: Philippines, Indonesia, India 8. Middle East: Turkey, Kuwait, Egypt 9. Nordic Europe: Sweden, Norway, Denmark 10. Sub-Saharan Africa: Zimbabwe, Namibia, Zambia, Nigeria
3 tests of ethical corporate actions
1. Is it Legal? 2. Will it garner long-term success? 3. Can it be discussed?
Steps in developing international and global strategies
1. Establish mission and objectives 2. Assess the external environment 3. Analyze internal factors 4. Evaluate strategic alternatives 5. Evaluate entry strategy alternatives 6. Decide on strategy
Incentives of International Strategy
1. Extend a product's life cycle 2. Gain easier access to raw materials 3. Opportunities to integrate operations on a global scale 4. Opportunities to better use rapidly developing technologies 5. Gain access to consumers in emerging markets
Porter's Determinants of National Advantage
1. Factors of Production; 2. Demand Conditions; 3. Related and Supporting Industries; 4. Firm Strategy, Structure, and Rivalry
3 benefits of Internationalisation
1. Increased Market size 2. Economies of scale and learning 3. Location advantages
What tasks are essential to perform in each stage to ensure success and prevent failure?
1. Maximise long-term retention and use of international cadre through career management to develop a top-management team with global experience. 2. Develop effective global management teams. 3. Understand value, and promote the role of women in international management to maximise those under-utilised resources.
Steps in developing international strategies
1. Mission & objectives 2. External constraints [global/regional/national; PESTLE opportunities & threats] 3. Internal analysis [Resources & operations; strengths & weaknesses] Alternatives [Global, multi-domestic or transnational strategy?; CAGE; entry mode alternatives]
Three international corporate level strategies
1. Multi-domestic strategy; 2. Global strategy; 3. Transnational strategy
What 2 phases are involved in the strategic management process?
1. Planning 2. Implementation
Reasons for expatriate failure
1. Problems with family 2. Inadequate prep, training 3. Alienation and poor support from HQ 4. Inability to adapt to local culture 5. Insufficient compensation and financial support 6. Poor programmes for career support and reparation
The strategic choice of one or more of the entry strategies will depend on
1. a careful evaluation of the +/ - of each in relation to the firm's capabilities and resources 2. the critical environment factors 3. the contribution that each choice would make to the overall mission and goals of the company
An ongoing strategic planning process with a global orientation identifies potential opportunities for:
1. appropriate market expansion 2. increased profitability 3. new ventures by which the firm can exploit its strategic advantages
3 strategies to deal with logistics problems
1. build your own internal logistics network 2. outsource delivery services to 3rd party providers 3. form partnerships with or acquire existing logistics companies
Methods for determining strategy
1. develop a weighted assessment 2. hierarchy-of-decision sequence
Ways in which formal institutions affect international competition
1. the attractiveness of overseas markets 2. entry barriers and industry attractiveness 3. anti-dumping laws
2 main global strategic approaches
1.global strategy 2.regional (or local) strategy
As women continue to move up the corporate ladder, the accompanying spouse is often male--estimated at more than ________ percent.
25
1. As women continue to move up the corporate ladder, the accompanying (trailing) spouse is often male - estimated at ____ in the year 2000.
25%
1. As globalization increases, terms such as ______, ______, and _____ are becoming less common.
TCNs, HCNs, expatriates
Small businesses account for about ___% of total export revenue
30%. This is about $500 billion in annual sales
1. A survey by the American Society of Personnel Administration International (ASPAI) revealed that only______of companies had formal repatriation programs for executives.
31%
Most organizations operate on planning cycles of ___ or more years, with intermediate reviews
5
1. While 41 percent of women work in Japan, only _____ hold managerial positions.
8.9%
Triple Bottom Line
A business strategy that includes social, economic, and environmental criteria. Recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
What is the connection between a company's strategy and its quest for sustainable competitive advantage?
A company uses their strategy and chooses strategic actions to gain a competitive advantage over their competitors.
balance sheet approach or home-based method
A compensation system designed to match the purchasing power in a person's home country
Specific
A large public space which they easily share with other people A small private space they share with good friends and close associates UK, USA, FRA, GER
strategic alliance
A long-term partnership between two or more companies established to help each company build competitive market advantages. firm needs to connect with an experienced partner already in the targeted market and to reduce its risk through sharing of costs
Polycentric orientation:
A mindset in which the manager develops a greater affinity for the country in which he or she works than for the home country
What is the difference between a mission statement and a strategic vision?
A strategic vision portrays a company's future business scope whereas a company's mission statement typically describes its present business and purpose (who we are, what we do, and why are we here)
International Diversification Strategy
A strategy through which a firm expands the sales of its goods or services across the border of global regions and countries into a potentially large number of geographic locations or markets [purpose: entering multiple regions/markets to sell products]
9) ________ is the process in which people look for the explanation of another person's behavior.
A) Attribution
65) ________ is the process of translating the received symbols into the interpreted message.
A) Decoding
15) Brenda is the head of a sports firm in Sweden. In order to communicate effectively with her workers, Brenda should ________.
A) build friendly relationships and encourage two-way dialogues
70) Which of the following characteristics is shared by both openness in communication and resilience in communication?
A) tolerance for ambiguity
1. Overall, more managerial opportunities are available for _____ women than for women in most other countries.
American
1. The expatriate success factors are based on studies of _____ expatriates.
American
Overall, more managerial opportunities are available for ________ women than for women in most other countries.
American
1. Which of the following is not correct about women in international assignments?
American women can expect to be discriminated against (because they are women) in many countries
Franchising
An agreement between a franchisor and a franchisee to invest resources to manage a business model
ASEAN
Association of Southeast Asian Nations
According to Dovev Lavie, which of the following is a caution given to global companies by value capture strategies?
Avoid partners that compete in your industry if they enjoy superior bargaining power.
68) Recognizing that one's knowledge, perceptions, and beliefs are valid only for oneself and not for everyone else is known as ________.
B) orientation to knowledge
1) ________ describes the process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts.
B) Communication
40) Which of the following is true about monochronic and polychronic cultures?
B) Monochronic cultures treat time as a tool for bringing order to life; polychronic cultures tolerate many events occurring simultaneously.
35) ________ refers to how something is said rather than the content—i.e., the rate of speech, the tone and inflection of voice, other noises, laughing, or yawning.
B) Paralanguage
8) Intercultural communication most likely occurs when ________.
B) a member of one culture sends a message to a member of another culture
14) According to the GLOBE project, a coworker or subordinate from Sweden, a country ranking low on assertiveness, would most likely prefer ________.
B) a two-way dialogue
41) Which of the following is a characteristic of a person in a monochronic culture?
B) adheres to plan commitments
17) Which of the following is a cultural variable in the communication process?
B) attitude
46) Which of the following is a characteristic of a person from a polychronic culture?
B) changes plans frequently
55) As manager with an international trade firm, John Smith frequently travels between Europe and Saudi Arabia. On John's most recent trip to Saudi Arabia, he noticed that Tariq, his business associate, not only talked about business matters but also talked about several other things, such as upcoming events in Saudi Arabia and the associated impact on the economy. This most likely indicates that Tariq is from a ________.
B) polychronic culture
28) During a business meeting in the United States, a relaxed posture is acceptable, but in Europe or Asia such body language would most likely be interpreted as ________.
B) rudeness
20) Which of the following is one of the reasons that language frequently causes miscommunication during international business situations?
B) translating a local language too literally
16) Tom manages a U.S. pharmaceutical subsidiary located in Ireland. In order to communicate effectively with Irish employees and improve their productivity, Tom should ________.
C) provide positive support to employees
Background of Hofstede's Cultural Dimensions
Based on research of over 115,000 IBM employees in the late 1960's. Proposed four value dimensions but later added two more. One of the most widely used frameworks
Four factors of production
Basic, advanced, generalised, specialised
External Direction
Believe they can control as much of their environment from the outside Western cultures
nonverbal communication
Behavior that communicates without words, these subtle messages account for between 65 and 93 percent of interpreted communication
What benefits might management expect to gain from benchmarking the "best practices" of those in other industries?
Benefits include improving the cost and effectiveness of a company's own internal activities
________ pointed out that expatriate experience not only brings about knowledge about cultural differences but also creates insights about HQ--subsidiary relations from which ideas about improving business could be derived.
Berthoin
Identify and describe the interactions among the competitive forces that comprise the five (six) forces model of competition.
Buyers- Competitive pressures stemming from seller-buyer collaboration and bargaining. Substitute Products- Competitive pressures coming from the market attempts of outsiders to win buyers over to their products. Supplier-Competitive pressures stemming from supplier seller collaboration and bargaining. Potential New Entrants- Competitive Pressures coming from threats of new rivals. Rivalry Among Competing Sellers- Competitive Pressures created by the jockeying of rival sellers for better market position and competitive advantage
To pay the prevailing local minimum wage
Ch2 The Anti-Sweatshop Code of Conduct requires companies to provide a healthy and safe work environment and ________.
23) ________ is one of the elements of nonverbal communication.
C) Kinesic behavior
63) Which of the following tips is most likely to lead to effective intercultural communication?
C) Messages need to be encoded carefully.
42) Which of the following is a true statement about polychronic cultures?
C) Polychronic people focus on relationships rather than material systems.
47) Larry is a top-level manager at Smart-Tech, an American semiconductor firm. Larry is involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. Larry has recently arrived in Saudi Arabia for the purpose of negotiating the final terms of the contract. Which of the following statements undermines the argument that Larry should adhere to a strict agenda when negotiating with the Arabs?
C) Saudi Arabia is a polychronic culture.
69) ________ and ________ are personality traits categorized as openness.
C) Tolerance for ambiguity; extrovertedness
67) Interaction posture is best defined as the ________.
C) ability to respond to others in a nonjudgmental way
34) Which of the following would most likely occur in a low-contact culture?
C) colleagues maintaining a respectful distance while greeting each other
12) Which of the following will help an international business manager cultivate trust in cross-cultural communications?
C) socializing when possible and making friendly contacts with persons involved
36) Which of the following is an element of paralanguage?
C) yawning
PESTEL analysis
Can be used to assess the strategic relevance of the six principal components of the macro-environment: political, economical, social, technological, environmental, and legal forces. The impact of macro-environmental factors can have a small or big impact in a company's strategy so it's important understand them in relation to the company.
Why is location advantages a benefit to firms?
Can help reduce costs. But to reap full benefit firms must effectively manage facilities including assessing firms costs, nature of international customers needs, cultural influences and differences, and physical distance from home country
Demand conditions: impact of efficiency
Can lead to domination of the industry in other countries
Western Europe, Asia, and the Americas
Ch1 In which of the following groups of trade blocs does most of today's world trade take place?
Projective Cognitive Similarity
Ch5 A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French Firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake?
Country in which each style is popular (GLOBE)
Charismatic/value-based: common in anglo cluster Team-oriented: common in European cluster Participative: common in germanic europe and nordic europe clusters Humane-oriented: common in southern asia cluster Autonomous: common in germanic and eastern Europe Self-protective: common in confucian asia, eastern europe and middle east clusters
6. Which of the following titles would be held by a top manager?
Chief Operating Officer
_____ occurs as the migration of management and workplace practices around the world results in the reduction of workplace disparities from one country to another
Convergence
________ is the phenomenon of the shifting of individual management styles to become more similar to one another.
Convergence
Lewis Model Background
Created in response to unwieldy nature of other frameworks. Conducted research in 135 countries and published in late 1990's. Found that people can be categorised into three groups based on behaviour. These groups interrelate on a spectrum (triangle model)
________ is the awareness of and an honest caring about another individual's culture.
Cultural empathy
________ is an outsider's seemingly natural ability to interpret someone's unfamiliar and ambiguous gestures in just the way that person's compatriots and colleagues would
Cultural intelligence
How culture affects organisational functions
Cultural variables determine an employees attitudes towards work, time, materialism, individualism and change. These attitudes affect what motivates an individual and what they expect from their work environment.
CAGE
Cultural, administrative, geographical and economic distances
________ comprises the shared values, understandings, assumptions, and goals that over time are passed on and imposed by members of a group or society.
Culture
Uncertainty avoidance:
Cultures having large uncertainty avoidance tend to value security, systems of rules/procedures, low employee turnover, and relatively slower change; those with low uncertainty avoidance are more open to change and new ideas
Long-term Orientation
Cultures scoring high (strong) on long-term orientation place value on respect for tradition, thrift, perseverance, and a sense of personal shame. Cultures scoring low (weak) on long-term orientation tend to value individual stability and reputation, fulfilling social obligations, and reciprocation of greetings & gifts
53) Which of the following is most likely a characteristic of low-context cultures?
D) Feelings and thoughts are expressed in words.
25) Which of the following is a true statement regarding kinesic behavior?
D) The meaning of body movements varies by culture.
59) Which of the following is most likely characteristic of communication channels in low-context cultures?
D) controlled flow of information
31) Which of the following will a person working in a high-contact culture most likely experience?
D) coworkers putting an arm over their colleague's back
3) Which of the following does NOT constitute a normal interpersonal communication task for managers?
D) giving speeches at conferences
Borderless demand
Demand for products and commodities appears to become more similar across the world
Cultural literacy:
Detailed knowledge of a culture that enables a person to function effectively within it
A Global Strategy most appropriate when
Differences between the markets and customers the firm is serving is insignificant
Advanced factors of production
Digital communication systems and an educated workforce
Increased market size
Domestic market may lack the size to support efficient scale manufacturing facilities.
MERCOSUR (Southern Common Market)
Economic. Argentina, Brazil, Paraguay, Uruguay, and Venezuela. South America.
________ refers to the belief that the practices of one's own country are best no matter where or under what conditions they are applied.
Ethnocentrism
What does cross-cultural leadership research tell us?
Effective leadership varies across cultures, and people have accepted images of what a leader should be e.g. German leaders are very formal
Affective
Emotions are openly expressed Enthusiastic greetings and emoting SPA, ITA, MEX
neutral
Emotions controlled Frown upon being angry in public UK, JAP
Diana's, an Illinois-based cosmetics company, manufactures a wide range of natural cosmetics and skin-care products. The company has international divisions located in Singapore and London. The top management at Diana's is currently considering making a change to the company's organizational structure. Which of the following, if true, best supports the argument that Diana's should change its organizational structure?
Employees at Diana's complain that they are too bogged down with administrative tasks to focus on creating new products and concepts.
71) The term communication is the process of gathering messages through the Internet and printed media.
FALSE
74) When a member of one culture imposes his or her cultural practices on a member of another culture, intercultural communication takes place.
FALSE
75) Attribution is the process by which people send messages to each other across various cultures.
FALSE
77) Behavior that communicates explicitly via words and actions is called nonverbal communication.
FALSE
81) In high-contact cultures, people prefer much less sensory involvement, standing farther apart and touching far less.
FALSE
84) The term object language, or material culture, refers to the value of the material artifacts given to the parties involved in order to show our goodwill.
FALSE
Americans are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions.
FALSE
Compared to Indian negotiators, American negotiators are more likely to withdraw, use silence, and learn from within.
FALSE
Why is the opportunity to better use rapidly developing technologies an incentive for adopting an international strategy?
Facilitates ability for people to visualise and model lifestyles of other cultures; drives globalisation because the economics of scale necessary to reduce costs to lowest level often requires greater investment than required to meet domestic demand; rapid adaptation of technology in emerging markets permits greater integration of trade, capital, culture and labour; can bind disparate markets; makes it possible to organise operations seamlessly
Determinants of National Advantage
Factors of production, demand conditions, firm strategy, structure & rivalry, related and supporting industries
Performance orientation
Reflects the extent to which a community encourages and rewards innovation, high standards, excellence, and performance improvement
Requirement to implement transnational strategy
Flexible coordination - building a shared vision and individual commitment through an integrated network. Allows a firm to manage connections more efficiently
Internal direction vs. External direction
Focus on how people experience their environment
sequential
Forming or following a logical order of time. Peoples lives are based on schedules
Which of the following cultural groups enjoys debate and conflicts and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented?
French
Economic risks
Fundamental weaknesses in a country/regions economy with the potential to cause adverse effects on firms' efforts to successfully implement their international strategies. Includes differences and fluctuations in the value of currencies, differences in prevailing wage rates, difficulties enforcing property rights, availability of important infrastructure, unemployment
GLOCAL
GLObal, loCAL. The idea of going global and acting local to trade off the best advantages of each strategy
1. In ________, the disparity in opportunities for women can be traced in part to the lifestyles and laws, for example, children attend school only in the mornings which restricts the ability of both parents to work.
Germany
Background to GLOBE project
Global Leadership and Organisational Behaviour Effectiveness dimensions are based on data gathered by 170 researchers over 7 years. Data collected from 18,000 managers in 62 countries. Nine dimensions distinguish cultures from one another and have implications for managers
Compensating HCN's
Global Pay strategy and pay due to current market conditions and design methods for job grading and incentive plans
International Human Resource Management
Global Strategy is IHRM and they face challenges such as enhancing global business strategy, aligning HR issues, designing and leading change, building corporate cultures and staffing organizations with global leaders
Characteristics of Exporting
High cost [avoid expense of establishing operations, but must establish marketing and distribution channels], low control [have to contract out to local firms, increasing costs]
18. Who was known as "the father of industrial psychology"?
Hugo Munsterberg
Example of Leadership is affected by culture
In US culture, leadership is shared, and a participative leadership style is most effective. However, in other cultures, such as Latino cultures, a more paternalistic style of management is preferred, and individuals tend to respond better to leaders who command respect.
Example of how planning and scheduling is affected by culture
In US culture, people hold the view that they can affect what happens in the future. In other countries where culture is heavily influenced by religion, such as Islamic States, people hold a fatalistic view; that what happens in the future is determined by the will of God
Importance of ethnocentrism
Important for managers to be aware how it may impact their ability to perceive others. Adopting this view can prevent managers from recognising and implementing better/more efficient practices.
Information flow, high-context cultures
In high-context cultures (such as in the Middle East), information spreads rapidly and freely because of the constant close contact and the implicit ties among people and organizations. Information flow is often informal
Individualism vs. collectivism:
Individualist cultures value hard work, entrepreneurial risk-taking, and freedom to focus on personal goals. Collectivist cultures emphasize a strong association with family and work groups to maintain harmony and to work toward collective goals
Multi-active cultures
Individuals are emotional, talkative, and impulsive people who attach great importance to family, feelings, relationships and people in general. They like to do many things at the same time and are poor followers of agendas. Example: Italy
Exporting
Low risk, low investment mode of entry
Global Mindsets a Manager Possesses
Intellectual Capital, Psychological capital andsocial capital
________ is one of the informal means that firms often use to help the trailing spouse find a position at the same location.
Intercompany networking
________ is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion, new markets, and diversification.
Internationalization
________ is the ability to build teams and resolve conflicts.
Interpersonal facilitation
Strategic vision
It charts the company's long-term direction. It describes where we are going- the course and direction management has charted and the future focus
According to Trompenaars's value dimensions, what is true of the universalistic approach
It emphasizes applying rules and systems objectively
What is true of a future-oriented country
It focuses on longer time horizon for decisions.
Explain why an organization needs a strategic vision. What purpose does a strategic vision serve?
It gives the company future and long term goals, and what their focus is
Value chain
It identifies the primary activities that create customer value and related support activities. It creates value for buyers.
If a country has strong advanced and specialised factors
It is likely to serve an industry well by spawning strong home-country competitors that can be successful global competitors. But these are often developed because the country lacks critical basic resources (forcing innovation)
Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials. Her seniors advise her to completely understand the Americans' viewpoint during the conference. Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice?
It will encourage Yu Fei to assess a wide range of alternatives for a resolution.
Why is it important for strategy makers to have a clear understanding of an industry's key success factors?
It's important to have a clear understanding because if you don't you the risk of an eventual exit from the industry.
1. Expatriates from which nation seem to have the highest probability of success in their overseas assignment?
Japan
1. Which of the following nations ranked highest in the centrality of work according to the Meaning of Work research study?
Japan
Which of the following is true of the attitude toward work in Mexican culture?
Leisure time is more important than work
_____ leads to lower unit costs and have proved a vital ingredient to competitiveness for many companies
Lower labor costs
Fully owned subsidiary
MNC has total control of operations. Either starting from scratch or acquisition in host country
Tactical Level
Manager - specific departments/ functional areas, strategic business units, short term decisions - Responsibilities- actually undergoing tasks and carrying out instructions, turn corporate goals into action plans. control most of resources
________ are all about learning how to deal with a wide range of people, to adapt to their cultures through compromise, and not to be a dictator.
Managerial skills
Which of the following is true with regard to the global geographic structure?
Marketing-oriented companies are most likely to opt for this structure.
19. Who proposed the hierarchy of human needs as a theory of motivation?
Maslow
Motivation Theories
Maslow hierarchy of needs herzberg two factor theory mcclelland manifest needs theory
Why should we work to develop cultural literacy?
May bring us closer to customers' needs and can increase business competitiveness
1. _____ eases the expatriate's adjustment to the host country.
Monitoring and support from headquarters
Tight culture countries?
Morocco, Indonesia, Egypt, Bangladesh, and Jordan
Criticisms of Hofstede's Value Dimensions
Must be cautious of it's relevance. Research findings were drawn from one firm and do not account for within-country differences. No recent research, findings may be outdated.
In conducting a SWOT analysis, is it enough to simply compile lists of the company's strengths, weaknesses, opportunities, and threats? Why or why not?
No. Simply listing these is not enough, it's the payoff from from the conclusion about a company's situation and the implications for strategy improvement that is important
Object or material culture
Object language or material culture refers to how we communicate through material artifacts—e.g., architecture, office design and furniture, clothing, cars, cosmetics, and time. In monochronic cultures, time is experienced linearly and as sometime to be spent, saved, made up, or wasted. Time orders life, and people tend to concentrate on one thing at a time. In polychronic cultures, people tolerate many things happening simultaneously and emphasize involvement with people. In these cultures, people may be highly distractible, focus on several things at once, and change plans often.
Parochialism
Occurs when someone expects a person from another culture to fall into the same patterns of behaviour common in their own culture.
In Hinduism, the caste system strongly influence people's way of life and occupational options. Strict Hindus do not eat or harm living creatures because of a belief in reincarnation—rebirth of the human soul at the time of death
Of the more than 300 denominations within Christianity, Roman Catholics are expected to refrain from placing materialism above God and people. Meanwhile, Protestants believe that salvation comes from faith in God and that hard work gives glory to God.
Identify and briefly explain factors that intensify the threat that new firms entering an industry
One of relates to the size of the pool of likely entry candidates and the resources that they command. A second factor concerns whether or not the likely entry candidates face high or low barriers to entry.
Low Humane Orientation culture
One's own self-interest is important. People primarily motivated by need for power and material possessions. State provides social and economic support for individuals well-being. People are not sensitive to all forms of racial discrimination. Example: Germany
Criticism of Hofstedes work
Only looking at one country/ company, cant assume that a multinational cooperation will give a representation of international environment.
Four major categories of non-verbal communication
Paralanguage - voice, that isn't the word you are saying Proxemic - is to do with the physical space. What is considered normal in that culture Kinesics - is to do with movement, facial Haptics - meaning determined by touch, greetings shaking hands
1. _____ are usually preferable where a high level of technical capability is required.
Parent-country nationals
Reactive
Passive, listens most of the time looks at general principles, polite and indirect.
High power distance cultures prefer
Paternalistic
Uncomfortable room temperatures, too-bright lighting, rudeness, interruptions, and other irritations are examples of rough tactics used during negotiations.
TRUE
Localization or going rate approach
Pays the expatriate the going rate for the same positions in the host country, plus whatever allowances and benefits for the assignment that the manager negotiates
Low collectivism 1 (in-group) culture
Personal needs and attitudes are important determinants of social behaviour. Little distinction made between in-groups and out-groups. People emphasise rationality in behaviour. Example: Denmark
Cultural intelligence is also known as cultural quotient. True or False?
True
Framework to assess what Business-Level Strategy should be adopted
Porter's Determinants of National Advantage
Attitudes
Positive or negative evaluations, feelings, and tendencies toward objects or concepts
Cultural sensitivity requires the willingness to put oneself in another's shoes. True or False?
True
Moral Ethics
Principles or standards one develops and how
Global strategy
Products are standardised across national markets, business-level decisions are centralized in the central office. Strategic business units are assumed to be independent. Emphasises economies of scale. Often lacks responsiveness to local markets. Requires resource sharing and coordination across borders (hard)
Proxemics
Proxemics concern the influence of proximity and space on communication (e.g., in terms of personal space and in terms of office layout). For example, space communicates power in the US and Germany. Executives in the US may have large, private corner offices. French executives, however, communicate their central position by working in the middle of subordinates. In high-contact cultures, people stand close and touch a great deal when communicating. People in low-contact cultures prefer less sensory involvement when communicating. Often people from cooler climates and individual cultures are low-contact communicators. People from warmer climates and collectivistic cultures tend to be high-contact communicators.
diffuse
Public and private space interwoven Attach great value to formality SPA, CHI
Local responsiveness
Refers to how MNEs orchestrate activities to respond to specific needs in each host market
Background to Trompenaar's Cultural Dimensions
Research into value dimensions. His work was spread over a 10 year period, published in late 1990's.
Disadvantage of multi-domestic strategy
Results in less knowledge sharing for the corporation as a whole because of the differences across markets, decentralisation, and the different international business-level strategies employed by local units. Do not allow the development of economies of scale so can be more costly.
_____ occurs because the longer a person is away the more difficult it is to get back into the swing of things
Reverse culture shock
Transnational strategy
Seeks to achieve global efficiency and local responsiveness. Difficult to achieve.
Trompenaar's Individualism
Sees human beings as individuals, traditionally linked with western societies (e.g. USA)
According to the research conducted by Tung et al., which of the following cities in China has people who are business-savvy, confident, career-oriented, and materialistic?
Shanghai
Characteristics of Strategic alliances
Shared costs, shared resources, shared risks, problems of integration (i.e. two corporate cultures, inability to build trust)
Low Gender Egalitarianism culture
Show substantial gender inequalities at home, within organisations and in communities. Example: Saudi Arabia, Somalia
GLOBE: Uncertainty Avoidance
Society's tolerance for uncertainty and ambiguity. Same as in Hofstede's.
Negatives of exporting
Some countries have regulations that make it difficult to remove an inefficient distributor. Export-import tariffs and quotas, freight costs, and distance from supplier countries
SAARC
South Asian Association for Regional Cooperation
Multidomestic strategy
Strategy and operating decisions are decentralized to strategic business units, products are tailored to local markets. Business units in one country are independent of each other. Assumes markets differ by country/region, focusses on competition in each market. Prominent in European firms due to broad variety of cultures/markets in Europe
Operational Level
Supervisor -day to day, execution of action plans - Responsibilities - looking at customers, sales, problems, targets? key performance indicators, resources allocated
In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions?
Sweden
79) Kinesics and proxemics are elements of nonverbal communication.
TRUE
________ is the ability to convey goals and train team members to use the collaborative technology effectively.
Task facilitation
Material Culture
Technology used to manufacture goods and provide services
Basis for multi-domestic strategy
That consumer needs and desires, industry conditions, political and legal structures, and social norms vary by country. Focuses on competition within each country because market needs are thought to be segmented by country
Assumption of Global Strategy
That customers throughout the world have similar needs
Dutch prefer leaders who
The Dutch place emphasis on egalitarianism and are skeptical about the value of leadership. Terms like leader and manager carry a stigma. If a father is employed as a manager, Dutch children will not admit it to their schoolmates.
Why is successful repatriation important for the expat and for the company?
The ability to develop a global management team depends largely on the success of expatriates' assignments, which in turn depend on the ability to manage transitions for the expatriate and accompanying family members. Effective management of a company's global cadre does not end with the overseas assignment. It ends with successful repatriation. Proactive management should begin with the end of the current assignment in mind. Unfortunately, many companies do little to minimize the effects of reverse culture shock or plan for repatriation once an assignment is over. It is unsurprising, then, that US employees commonly see overseas assignments a negative career moves. If managers lose out on promotion opportunities while overseas, few will be willing to take foreign assignments.
Which of the following is true with regard to a global product structure?
The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment.
Ethnocentrism
The attitude of people who operate under the assumption that their way of doing thins is the best way regardless of where or under what conditions they are applied
________ refers to an organization running its operations and opening subsidiaries worldwide right from the beginning.
The born-global phenomenon
_____ is the only source of sustainable competitive advantage available to U.S. companies.
The caliber of its people
Which of the following statements is true regarding a negotiation process?
The cultural norms of the place determine the order of the negotiation process stages.
Time orientation
The extent to which a culture programs its members to accept delayed gratification of their material, social and emotional needs
Individualism vs collectivism
The extent to which people in a culture look after their own interests and those of their immediate family -Individualism: ties are loose, achievements valued -Collectivism: groups, ties are tight, individuals are born into collectives
Optimal solution: strategic alliance
The firm is facing uncertain situations such as an emerging economy in its targeted market
Optimal solution: acquisitions
The firm needs rapid cross-border access to new international markets
Optimal solution: Licensing
The firm needs to facilitate the product improvements necessary to enter foreign markets
Optimal solution: wholly-owned subsidiary
The firm's intellectual property rights in an emerging economy are not well protected, the number of firms in the industry is growing fast, and the need for global integration is high
Globalisation
The increasing integration of economies and societies around the world particularly through international trade
Factors of production
The inputs necessary to compete in any industry [land, labor, capital; infrastructure; skilled/unskilled workforce; nature of capital markets]
Social Organisation
The kinds of social organisations we belong to can influence our perceptions. Examples of social organisations include one's nation, tribe, religious sect, or profession.
Economic Risk
The likelihood that events, including economic mismanagement, will cause drastic changes in a country's business environment that adversely affect the profit and other goals of a particular business enterprise.
Which of the following is true with regard to virtual teams?
The members of virtual teams interact through computer-mediated communication systems.
Convergence
The phenomenon of shifting individual management styles to become similar to one another.
Impact of corporate strategy on business strategy
The type of corporate strategy selected will have an impact on the selection and implementation of the business-level strategies. Some strategies provide individual country units with flexibility to choose strategies, others dictate business level strategies from the home office and coordinate resource sharing across units
Individualism
The unique importance of each individual Traditionally linked to Western Societies
20. An optimistic view of workers that envisions them as capable of accepting responsibility and working in a self-directed manner is representative of
Theory Y
Identify two benefits of constructing a strategic group map.
They allow you to identify which rivals are similarly positioned and you learn to not all positions on the map are equally attractive
Which of the following best describes the role of e-commerce enablers?
They help small- and medium-sized companies to go global without the internal capabilities to carry out global activities.
Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans?
They tend to be argumentative when they think they are right.
Which of the following is true with regard to the structural evolution model?
This model has become known as the stages model, resulting from Stopford's research on 187 U.S. multinational corporations.
Why would a firm take on the role of the "follower"?
To reduce risk in investments.
instrumental-oriented conflict
To negotiate on the basis of factual information and logical analysis
________ is an acquired skill that refer(s) to making decisions with less information and more uncertainty about the process and the outcome.
Tolerance for ambiguity
________ refers to the ability to manage across national boundaries, retaining local flexibility while achieving global integration.
Transnational capability
Assertiveness and materialism are values of a masculine society. True or False?
True
Cultural noise
Type of measurement bias in which analyst fails to recognize that individual is responding with answers the analyst wants to hear and that analyst's culture/values are determining what he or she hears.
Ethnocentric orientation:
Using one's own culture as the standard for judging other cultures
Benefit of multi-domestic strategy
Usually expands a firms local market share because the firm can pay attention to the needs to local clients
Highly assertive cultures
Value competition, success, and progress. Communicate directly and unambiguously. Try to have control over the environment. Expect subordinates to take initiative. Build trust on basis of calculation. Example: Germany
________ enable cost effective, rapid knowledge sharing and collaboration, but are fraught with cross-cultural and logistical challenges.
Virtual global teams
19. The __________ is designed to monitor and enforce trade agreements.
WTO
Education level
Well-educated workforce attracts high-paying jobs, while poorly educated workforce attracts low-paying manufacturing jobs
Three major decisions Major decisions when internationalising
What - will we need to overcome - cultural differences Why - are we going international - proactive vs reactive Where - what is a market (online?) where? Region, city or country How (with what) - capabilities, skills, resources - entry modes When - seasonal trends - proactive vs reactive
What is the role of cultural noise in communication? Provide examples of cultural noise
When a member of one culture sends a message to a member of another culture, intercultural communication occurs. The message contains the meaning intended by the encoder, but the decoder's culture ends up becoming part of the meaning as he/she interprets the message. Attribution is the process in which people look for an explanation of another person's behaviour. When someone does not understand another, he/she usually blames the confusion on the other's "stupidity, deceit, or craziness."
creolization
When immigrants adopt some aspects of the local culture while keeping aspects of their culture of origin
Biculturalism
When people accept and appreciate local people and practices are able to function effectively in two cultures
language
When two people do not share a common language, communication problems arise. Even in countries that share the same language, problems can arise from the subtleties and nuances inherent in language. Because of increasing diversity, managers often have to deal with workforces that speak a variety of languages—even within a single country. Translation can be problematic as well. Pepsi provides one example of translation problems. As another example, in some Asian cultures "yes," often means only that they have heard you and are too polite to disagree. Sometimes how something is said is more important than what is said.
rationality vs emotions in world
Whereas the Western approach is based on rationality (managers interpret a situation and consider alternative solutions based on objective information), this approach is not common throughout the world. Latin Americans, among others, tend to be more subjective, basing decisions on emotions.
Neutral vs. Affective
Withholding emotion vs. expressing emotion
1. A survey of 200 chief executives in France, Germany, and the United Kingdom concluded that___________,
a common leadership style for all E.U. countries is not feasible
The focus of Selina Inc., an MNC producing a range of products that can be marketed through common channels to similar customers worldwide, is marketing. Its aim is to become an insider in every country it operates. Which of the following organizational forms is most likely to be favored by Selina's management?
a global geographic structure
Which of the following is a competitive aspect of strategic alliances?
accelerating diffusion of industry standards and new technologies to create barriers to entry
Which of the following Trompenaars's value dimensions explains the source of power and status in society?
achievement versus ascription
15. __________ was concerned with managing the total organization and was pioneered by Fayol and Weber.
administrative management
Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings?
affective appeals
1. Which of the following is not a force to establish divergent labor relations systems?
agencies monitoring world labor practices
1. A survey of 200 chief executives in France, Germany, and the United Kingdom concluded that _________.
all of the above a. the French are more likely than the British and Germans to regard being in a position of power as being important b. French leaders like to make decisions unilaterally c. leaders in the United Kingdom seemed less troubled about their decisions
1. Which of the following is a factor identified in the Meaning of Work (MOW) research study?
all of the above a. work keeps one occupied b. work provides a needed income c. work provides contacts with others
Feng Shui
ancient Chinese system of aesthetics believed to use the laws of both heaven and earth to help one improve life by receiving positive qi.
• Attitudes
and preferences are developed based on values, and are similar to opinions, except that attitudes are often unconsciously held and may not have a rational basis
noise
anything that interferes with, distorts, or slows down the transmission of information
According to Pierre Casse, Arab negotiators ________.
are able to resist any kind of pressure
countries that rank high on power distance
are more likely to prefer an autocratic leadership style and some paternalism because they are more comfortable with a clear distinction between managers and subordinates than with a blurring of decision-making responsibility.
Key success factors
are those competitive factors that most affect industry members ability to prosper in the marketplace. They are the strategy elements, product attributes, competitive capabilities, or intangible assets with the greatest impact of future success in the marketplace. The value in these factors they are so important to the future of competitive success that all firms in the industry must pay close attention to
Austria and Germany value competition and have a "can-do" attitude. Therefore, according to the GLOBE project, Austria and Germany are most likely to be ________ societies.
assertive
According to Dovev Lavie, which of the following is a value-creation strategy?
assimilating network resources to acquire new skills and capabilities
Using a problem-solving approach during cross-cultural negotiations requires a negotiator to ________.
avoid criticizing the other party in a personal way
Well-prepared negotiators in stage 5 concessions and agreement are
aware of various concession strategies and have decided ahead of time what their own concession strategy will be.
Cultural sensitivity, or cultural empathy
awareness of and an honest caring about another individual's culture
Perceptions
awareness of objects through any of the five senses. These are affected by the cultures that we live in. Cultures differ in terms of their perceptions regarding who should make decisions and who has responsibility for what.
craft unions
based on certain occupational skills.
Entry strategy alternatives
basically the how? in which the firm chooses to enter a market
Linda, the operations executive for Tango, is asked to travel to China in order to set up a new operational facility. When negotiating with the Chinese investors, Linda should ________.
be focused on establishing long-term, trusting relationships, even at the expense of some immediate returns
To be effective, an organizational structure should ________.
be highly adaptable to the changing needs of the company
Harzings 3 types of expat characteristics
bears - dominance-based control Bumble-bees - socialisation based on cross-pollination Spiders - greater inter-connectivity and informal communication networks
Flexibility is key
because the more behavioral the issue, the greater will be local culture's influence on that issue
16. Which of the following viewpoints emphasized the importance of understanding human actions and of motivating employees toward achievement?
behavioral viewpoint
positive leadership behaviors generally accepted anywhere are
behaviors such as being trustworthy, encouraging, an effective bargainer, a skilled administrator and communicator, and a team builder
negatively regarded traits include
being uncooperative, egocentric, ruthless, and dictatorial
Papillion Inc. is a small American high-technology firm that has been successfully competing in the international business arena from its inception two years ago. Instead of internationalizing slowly, Papillion Inc. embarked upon an ambitious plan to leverage niche market opportunities worldwide—right from the beginning. Papillion Inc. exemplifies the ________ phenomenon.
born-global
One of the primary purposes of relationship building during the negotiation process is to ________.
build mutual trust
relationship building is typically followed by
by posturing—that is, general discussion that sets the tone for the meetings. This phase should result in a spirit of cooperation.
Corporate strategies must ____ in response to shifting global economic conditions
change
6.A(n) ______ consists of a formal written set of ethical standards guiding an organization's actions.
code of ethics
Which of the following terms refers to the participation of labor in the management of a firm?
codetermination
low-contact cultures mostly located
colder climates
context: high and low, general meaning
communication takes place affects the meaning and interpretation of the interaction
The U.S. Foreign Corrupt Practices Act prohibits
companies from giving large gifts to win business favors, and it applies to U.S. firms at home and abroad
"born global"
companies that start out with a global reach. This is typically done by using internet capabilities and hiring people with international experience and contacts around the world
1. All of the following are stages in the expatriate transition process except _____.
compensation adjustment
2. Staying ahead of competitors in customer responsiveness, innovation, quality, and efficiency will result in
competitive advantage
Sources of environmental information
computer databases, "clipping" services, internal sources of information (preferred)
33. The ability to think analytically is associated with ______ skills.
conceptual
Which of the following is most likely the last stage of negotiation?
concessions and agreement
The dual role of strategic alliance refers to the ________.
conflict between cooperation and competition
1. According to Mason and Spich, the leader's role is an interaction of which two sets of variables?
content and context
21. Monitoring performance and taking corrective action as needed is called
controlling
5. Monitoring performance, comparing it with goals, and taking corrective action as needed is the management function known as
controlling
According to a study of global teams by Govindarajan and Gupta, which of the following is critical to the success of global business teams if they want to minimize conflict and encourage cooperation?
cultivating trust among team members
The need for knowledge management in IJVs primarily stems from ________.
cultural and system differences between partners
Globalization, in all its forms of personal and business contacts and information crossing borders, brings about changes that result in ________.
cultural diffusion
1. Which of the following are reasons for success of Japanese expatriates?
d. all of the above - Japanese executives are generally posted for a longer time, thus allowing them more time to adjust. - Japanese companies provide better training and support from headquarters. - Japanese executives are not usually accompanied by their families.
1. Which of the following are areas critical to expatriate preparation for an international assignment?
d. all of the above - cultural training - language instruction - familiarity with everyday matters
1. Starbucks in China has found that it can motivate managers in Beijing by _____.
d. all of the above - giving them an opportunity to learn - giving them a good working environment - giving them an opportunity to exercise initiative and authority
1. What did Philip Shearer (Clinique) learn from living in different countries?
d. all of the above - humility and the notion that nothing is easy for everyone - people will trust you if you are trustworthy and credible - wherever you are, you have to deliver
1. Which of the following are examples of changes in HRM policies in Japanese companies?
d. all of the above - less emphasis on lifetime employment - making people responsible for their own retirement fund decisions - basing pay on performance rather than seniority
Which of the following is a typical characteristic of a Japanese work group?
decision making based on a patient, long-term perspective
ringi system
decision-making system in which many people are involved
8. Mintzberg defined three broad managerial roles: interpersonal, informational, and
decisional
masculinity
degree of traditionally masculine values—assertiveness, materialism, and a lack of concern for others—that prevail in a society.
In the American culture, which of the following is most likely to be considered a "dirty trick" during cross-cultural negotiations?
deliberately distorting facts
1. The _____ model of leadership style has been recommended by American research studies as one more likely to have positive results with American employees.
democratic
global management team
describes a collection of managers in or from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement
Ethnocentrism
describes the attitude of those who operate from the assumption that their ways of doing things are best—no matter where or under what conditions they are applied.
Economic distance
difference in level of development, natural or human resources, infrastructure, information, or knowledge
Which of the following is most likely to be a reason for ineffective international business negotiations?
differences in cultural values and problem-solving techniques
Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company. Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance?
differences in national cultures
Cultural distance
differences in values, languages, religion, and trust
Which of the following refers to focusing on and specializing in specific markets?
differentiation
advanced factors of production
digital communication systems and an educated workforce
1. Research shows that women are _________in expatriate assignments.
disproportionately underrepresented
Which of the following is a pitfall of cross-border alliances?
disputes over management
Which of the following is NOT a knowledge management process?
distributing knowledge to clients and media outlets
12. A __________ is a person or organization that helps another organization sell its goods and services to customers.
distributors
Heterogeneous
diverse in character or content
Smaller firms are most likely to reorganize into ________ during their internationalization.
domestic structure plus export department
According to Pierre Casse, which of the following is a typical characteristic of a Swedish negotiator?
down to earth and overcautious
A comparative study of European project groups in several countries by Sylvie Chevrie revealed three main strategies for dealing with the challenge of achieving cross-cultural collaboration in multinational horizontal projects. Which of the following is one of those strategies?
drawing upon individual tolerance and self-control
18. __________ is the practice of a foreign company 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.
dumping
NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n) ________.
e-commerce enabler
What is NOT categorized as a sociocultural variable of culture?
economy
12. To be ______ as a manager means to make the right decisions and successfully carry them out to achieve goals.
effective
Humane-oriented leadership
emphasizes being supportive, considerate, compassionate, and generous
Team-oriented leadership
emphasizes team building and a common purpose among team members
Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance?
employee leadership
France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is best described as a(n) ________.
equity strategic alliance
Which of the following is a recommendation by Tung for a successful repatriation program?
establishing a special organizational unit for the purposes of career planning and continuing guidance for the expatriate
Ethnocentrism
evaluation of other cultures according to preconceptions originating in the standards and customs of one's own culture.
1. While there are limitations on managerial opportunities for women in their own country, there are ________for women to get expatriate assignments.
even more limitations on opportunities
third stage in negotiations?
exchanging task-related information
Subculture shock is
experienced when a manager is transferred from one part of the country to another dissimilar part
12. A company that is producing goods domestically and sells them outside the country is involved in
exporting
Trade barriers can cause companies to switch from ____ to ______
exporting to overseas manufacturing. This is bc exports to a foreign market may be too expensive and impractical to be competitive.
economies of scale
factors that cause a producer's average cost per unit to fall as output rises
According to Harris and Moran's eight categories, a kinship system refers to the influence of ________.
family relationships
Research on expatriate assignments continues to show that ________.
females are disproportionately underrepresented in expatriate assignments
2 Examples of diagnostic tools for conducting an internal resource audit
financial ratios sales-force analysis
Selective transmission
find out how communication is transmitted in the local organization—how much is downward versus upward or vertical versus horizontal, how the grapevine works, and so on
2. Operational planning is completed by
first-line management
24. Managers who make short-term operating decisions and direct the daily tasks of the nonmanagerial employees are called
first-line managers
negotiators generally should do what in exchanging task-related information?
focus not only on presenting their situation and needs but also on showing an understanding of their opponents' viewpoint.
Based on the study conducted by Harris and Moran, which of the following is NOT a workplace behavior of most Americans
following a formal culture
Wholly Owned Subsidiaries
foreign subsidiary that is totally owned and controlled by an organization
wholly owned subsidiary
foreign subsidiary that is totally owned and controlled by an organization. Firms intellectual property rights in an emerging economy are not well protected, the number of firms in the industry is growing fast and the need for global integration is high.
Which of the following factors has the maximum influence on the success of multinational firm alliances?
form of governance chosen
16. The movement of goods and services among nations without political or economic obstruction is called
free trade
Spoken or written language
frequent cause of miscommunication, stemming from a person's inability to speak the local language, a poor or too-literal translation, a speaker's failure to explain idioms, or a person missing the meaning conveyed through body language or certain symbols.
9. Demographic forces are part of the __________ environment of organizations.
general
Sigma Inc. is designed on the basis of the company's business activities such as production, finance, and marketing. Foreign operations at Sigma are integrated into the activities and responsibilities of each division to achieve economies of scale and operative specialization. In other words, Sigma has a(n) ________.
global functional structure
Which of the following organizational structures is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers?
global functional structure
Marketing-oriented companies, such as Nestlé and Unilever, which produce a range of products that can be marketed through similar channels of distribution to similar customers, will usually opt for the ________.
global geographic structure
stage 4 persuasion entails what
hard bargaining. both parties try to persuade the other to accept more of their position and to give up some of their own
Convergence occurs as ________ is sought, such as for the EC countries, and as competitive pressures in free-trade zones, such as the NAFTA countries, eventually bring about demands for some equalization of benefits for workers.
harmonization
1. In the U.S., union membership _____.
has declined about 50% in the last 20 years
Japanese negotiators tend to ________.
hide emotions
which countries would an autocratic style of leadership be most effective
high power distance countries
The ________ the level of the company at which managers make decisions, the more that organization is ________.
higher; centralized
In the Far East, details are likely to be worked out ahead of time through the "backdoor" approach. Which of the following terms refers to this approach?
houmani
in-group collectivism
how much pride and loyalty should people have for their family or organization
Internal Marketing
if your employees do not buy what you are selling as a company, how will they convince customers
low power distance
implies that people would be more motivated by teamwork and relations with peers.
Which of the following is NOT a characteristic of the Arab culture
imposition of deadlines
1. Having grown increasingly concerned about the nation's widening income gap and fearing social unrest, officials in Beijing now seem determined to ______.
improve worker protection
Countries seeking new infusions of capital, technology, and know-how will willingly provide _______
incentives
According to Hofstede, the tendency of people to look after themselves and their immediate family and to place less emphasis on the needs of the society is known as ________.
individualism
host-country national training
individuals from the country where an overseas subsidiary is located. Indigenization policy with well trained managers and receiving training via internet
The traditional trade union structures in Western industrialized societies have been in ________, representing all grades of employees in a specific industry
industrial unions
The ________ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis.
instrumental-oriented
Which of the following refers to the coordination of specific markets?
integration
30. The belief that you control your own destiny is called
internal locus of control
2.Employees of an organization are considered to be
internal stakeholders
A(n) ________ refers to a JV among companies in different countries.
international joint venture
Building global mentality:
involves developing our openness and flexibility toward all things unfamiliar, understanding global business principles, and improving our abilities to implement strategies
Regionalization strategy (aka multidomestic or multi-local)
is a strategy in which local markets are linked together within a region. This allows more more local responsiveness and specialization.
Body Language
is communicated through unspoken cues, including hand gestures, facial expressions, physical greetings, eye contact, and the manipulation of personal space
popular custom
is practiced by a heterogeneous group or by several groups. The playing of golf worldwide is considered a popular custom
Uncertainty avoidance
is the extent to which people feel threatened by ambiguous situations
charismatic leader shown in this research
is, for example, a visionary, an inspiration to subordinates, and performance-oriented.
International joint ventures are less likely to break up when ________.
issues are settled before the merger
A ________ is a new independent entity that is collectively created and owned by two or more parent companies.
joint venture
4.The ______ to ethics is guided by respect for impartial standards of fairness and equity.
justice approach
Opening its own subsidiaries in the host country may be better than contracting with an outside firm in the host country, if it is crucial for the firm to ________.
keep control of proprietary technology and processes
Which of the following is a strategic implementation used by McDonald's?
keeping prices low to build market share
According to Berthoin, which of the following exemplifies knowledge about when?
knowledge about the effect of timing
According to Berthoin, which of the following types of knowledge gained abroad helps in understanding the differences in customer preferences?
knowledge about what
The process through which managers and workers determine their workplace relationships is known as ________.
labor relations
34. Organizations that actively create, acquire, and transfer knowledge within themselves and are able to modify their behavior to reflect this new knowledge are called __________ organizations.
learning
All of the following are cooperative aspects of strategic alliances, EXCEPT ________.
learning new intangible skills from alliance partners
Advantages of South Africa for companies
legal protection of property, high labor productivity, low tax rates, reasonable regulation, low level of corruption, and good access to credit
Rules of Origin
legally what does it mean if something was made somewhere? trade agreements
11. ______ are in an organization's external task environment.
lenders
19. The individual approach is guided by what will result in the individual's ________ best interests, which ultimately are in everyone's self-interest.
long-term
International strategic formulation requires a ____ perspective
long-term
What is an advantage of organizational culture
long-term commitment
Threats of South Africa for companies
low level of skills/education of workers, labor regulation, exchange rate instability, and crime
Exporting
low risk, low investment
25. In a(n) ______, shared meanings are primarily derived from written and spoken words rather than situational cues.
low-context culture
1. Whereas Americans believe that hard work will get the job done, many Hong Kong Chinese believe that outcomes will be determined by _____.
luck
14. The general environment of an organization is also known as its
macroenvironment
1. One advantage of the polycentric staffing approach is _____.
managers will be familiar with local customs and language
According to Berdrow and Lane, the process of transfer can be defined as ________.
managing the flow of existing knowledge between parents and from the parents to the IJV
According to Berdrow and Lane, the process of harvest can be defined as ________.
managing the flow of transformed and newly created knowledge from the IJV back to the parents
According to Berdrow and Lane, the process of transformation can be defined as ________.
managing the transformation and creation of knowledge within the IJV through its independent activities
Stereotyping should most likely be avoided by international managers because ________.
many cultures have diverse subcultures
Bridging the gap
means employing creativity when Western management ideas are applied in Eastern cultures, and vice versa; e.g., Western managers may use "collective leadership" practices in Asia to better suit Asian values of group consensus
3. The accomplishment of low-level goals leads to the accomplishment of high-level goals, so the hierarchy may be called a(n)
means end chain
Humane Orientation
measures the extent to which a society encourages and rewards people for being fair, altruistic, generous, caring, and kind.
Which of the following factors can cause changes in traditional, non-Western societies
media exposure
'friction' is more likely to occur in a ___ or ____ because there is more interaction among parties
merger or acquisition
23. Managers who implement the policies and plans determined at the highest levels and coordinate the activities of lowest-level managers are called
middle managers
29. ______ time is a preference for doing one thing at a time.
monochronic
A repatriated manager says, "I learned to understand situations from the viewpoint of local employees and businesspeople when I worked overseas." Which of the following acquired skills is the manager referring to in this instance?
multiple perspectives
Analysis on the regional level provides
more detail on critical environmental factors to identify opportunities
collectivism
more emphasis on group achievements and harmony and the importance of the extended family or group
23. ______ is a trading status that describes a condition in which a country grants other countries favorable trading treatment such as a reduction of import duties.
most favored nation
12. Frank and Lillian Gilbreth identified 17 basic units of ______, each of which they called a "therblig."
motion
low uncertainty avoidance job security level?
motivated by more risky opportunities for variety and fast-track advancement.
1. Common host country entry issues include all of the following except _____.
motivation adjustment
Lauryn, an American national, was sent to Japan on an assignment. According to her, it was during this time that she learned to understand situations from the viewpoint of local employees and business people. As an expatriate, which of the following skills did Lauryn attain?
multiple perspectives
1. All of the following are causes of convergence in labor relations practices except _____.
national labor relations systems and traditions
1. Laurent concluded that _____ significantly affects the perception of what is effective management.
national origin
10. A polycentric manager believes that
native managers in foreign offices best understand native personnel and practices
The initial challenge in implementing strategies in emerging markets is likely to be how to ________.
navigate poor infrastructures
1. According to the text, Ronen concludes that _____ are constant across nationalities and that Maslow's need hierarchy is confirmed by those clusters.
need clusters
According to Trompenaars's value dimensions, what focuses on the emotional orientation of relationships
neutral versus affective
Alliances that are carried out through contract rather than ownership sharing are called ________.
non-equity strategic alliances
7. A commonweal organization offers services to a more complete group of clients than other types of ________ organizations.
nonprofit
Which of the following terms refers to general, polite conversation and informal communication before meetings?
nontask sounding
Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult?
nonverbal communication
A company's overall ____ flow from its mission, and both guide the formulation of international corporate strategy
objectives
Based on Trompenaars's value dimensions, what is a characteristic of the particularistic approach
obligation toward relationships
Communication is a process
of linking up or sharing the perceptual fields of sender and receiver; the perceptive sender builds a bridge to the life space of the receiver.14 After the receiver interprets the message and draws a conclusion about what the sender meant, he or she will, in most cases, encode and send back a response, making communication a circular process
1. Some MNCs are beginning to recognize that there is no substitute for _____ training in early stages of the careers of managers they hope to develop into senior level global managers.
on-the-job training
participative leader
one who delegates decision making and encourages subordinates to take responsibility
Nuclear family
only immediate relatives (e.g., parents, siblings); this family group is common in Australia, Canada, Europe, and the United States
The high costs of R&D can often be recouped ________
only through global sales
28. A(n) _______ system continually interacts with its environment.
open
Which of the following is NOT a typical characteristic of the Arab culture?
open admission of mistakes
What represents the expectations, norms, and goals held in common by members of a specific company or group?
organizational culture
Which of the following is NOT an operational challenge for global virtual teams?
organizational objectives
trading blocs (common markets)
organizations of nations that remove barriers to trade among their members and that establish uniform barriers to trade with nonmember nations
19. Which of the following is one of the four principal functions of management, also known as the management process?
organizing
1. Managers in Sweden, the Netherlands, U.S., Denmark, and Great Britain seem to believe that employees prefer which style of leadership?
participative
1. The _____ leader is one who delegates decision making and encourages subordinates to take responsibility.
participative
In which of the following societies are people more likely to pass on inside information to a friend
particularistic
According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.
partners can become competitors
High individualism motivation
people would be motivated by opportunities for individual advancement and autonomy
Managers from Singapore, New Zealand, and Hong Kong tend to take initiative and have a sense of urgency, and the confidence to get things done. According to the GLOBE project, such managers score high on the cultural dimension of ________.
performance orientation
During which stage of the negotiations process does hard bargaining begin?
persuasion
Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information?
persuasion
South Africa is the only _____ to Africa
port of entry. (Peter Ibbotson- Acer Africa)
5.According to Kohlberg, the highest level of personal moral development is
post conventional
Which of the following serves as a bridge from relationship building to the more formal stages of negotiating?
posturing
Iranians seek leaders who show
power and strength
According to Hofstede, societies that accept strong hierarchical boss-subordinate relationships are high on ________.
power distance
attribution
process by which people look for an explanation of another person's behavior.
negotiation
process of discussion by which two or more parties aim to reach a mutually acceptable agreement.
Social stratification
process of ranking people into social layers or classes
communication
process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts.
17. A single-use plan encompassing a range of projects or activities is a(n)
program
In order to maximize a firm's global human resources, IHR managers need to ________.
promote the role of women in international management
Manners and customs
refer to ways of behaving and conducting oneself in public and business situations • Present in eating habits, mealtimes, work hours and holidays, drinking and toasting, appropriate behavior at social gatherings (kissing, handshaking, bowing), gift-giving (complex), the role of women, and much more
Assertiveness
refers to how much people in a society are expected to be tough, confrontational, and competitive versus modest and tender
1. Recruiting managers from Latin America for a position in Chile is an example of which staffing approach?
regiocentric
1. Which of the following international staffing approaches can produce a specific mix of PCNs, HCNs, and TCNs?
regiocentric
All of the following are examples of IJV control mechanisms used by parent firms EXCEPT ________.
regional authorities
Which of the following does NOT represent a typical way in which firms organize their international activities?
regional structure
Reverse culture shock occurs primarily because of the difficulty of ________.
reintegrating into the organization
1. Reverse culture shock occurs primarily because of the difficulty of _____.
reintegration into the organization
1. According to a U.S expatriate, Mexican workers need more _____ than US workers.
relationship building
In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the ________ stage.
relationship building
Which aspect of the negotiation process will most likely occur on a continuous basis?
relationship building
second stage of negotiation process?
relationship-building
Institutions determine the "__________"
rules of the game
1. Which of the following is not among the five categories of rewards typical in the American culture?
self-fulfillment
1. The _____ dimension describes a leader who is self-centered, conflictual, and status conscious.
self-protective
1. Which of the following is not a leadership style that is universally considered an impediment to leadership effectiveness?
self-protective
The unconscious reference point of one's own cultural values is called a(n) ________
self-reference criterion
Exporting
selling domestically produced products to buyers in other countries. Firm has no foreign manufacturing expertise and requires investment only in distribution
primary cause of noise
sender and the receiver each exists in a unique, ¬private world thought of as her or his life space
33. The term learning organization was coined by
senge
According to Harris and Moran, what is NOT a category that forms the subsystems in any society
societal system
Power distance:
society's acceptance of unequal power distribution Individualism: tendency for people to look after themselves and their immediate families. Democracy, individual initiative, and achievement are valued
16. ________ forces are influences and trends originating in human relationships and values that may affect an organization.
socioculture
22. Which of the following is a discipline that is part of behavioral science?
sociology
Which of the following terms refers to the nature and appearance of the relationship between the people pursuing common goals in a negotiation?
software of negotiation
1. One of the main dimensions of the labor-management relationship that an international manager must consider is ________.
specific human resource policies in terms of recruitment, training, and compensation
One of the main dimensions of the labor-management relationship that a manager must consider is ________.
specific human resource policies in terms of recruitment, training, and compensation
18. A SMART goal is one that is
specific, measurable, attainable, results-oriented, and has target dates.
Based on Trompenaars's value dimensions, in which of the following cultures do managers separate their work and private lives, and tend to be open and direct when communicating with coworkers
specific-oriented
advantages of electronic communications are
speed, less travel, and the ability to lay out much objective information to be considered by the other party over time.
8. A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career.
spiral
Global Staffing Approach
staff recruited from within or outside of the company, regardless of nationality Transpatriates
Which of the following primarily determines the extent of control exercised over an IJV by its parent company?
staffing choices for top IJV positions
Ascription
status based on who or what a person is In achievement, bring knowledgable and credible members to their group EGYPT< CHINA < VENEZUELA
According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator?
stays humble and trusts the opponent
common cause of misunderstanding
stereotyping
15. A U.S. company agrees with a foreign company to start a new enterprise together in a foreign country, sharing the risks and the rewards. This is called a
strategic alliance
One of the quickest and cheapest ways to develop a global strategy is through a ______
strategic alliance
13. Two organizations who join forces to achieve advantages neither can perform as well alone would be called
strategic allies
12. There are three levels of planning. Their order, from first to last, is
strategic, tactical, and operational
23. The economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as
sustainability
27. The ______ viewpoint sees organizations as entities made up of interrelated parts known as inputs, outputs, transformation processes, and feedback.
systems
9. The contemporary perspective includes which of the following viewpoints?
systems
stage 5 negotiation: concessions and agreement
tactics vary greatly amongst cultures
1. Which of the following is the most common reason given for absenteeism among Mexican workers?
taking care of sick relatives and elderly parents
16. In seeking competitive advantage, the first law of business is to
taking care of the customer
Overlooking cultural differences in cross-border alliances can create a negative impact when ________.
target country has conflicting practices and systems
1. A _____ leader is someone who exhibits diplomatic, integrative, and collaborative behaviors towards the team.
team-oriented
32. ______ skills consist of the job-specific knowledge needed to perform well in a specialized field.
technical
Neil Grahams is a strategic HR advisor in an American MNC. He believes that in today's globalized economy, both the knowledge and management resources as well as the skilled and unskilled employee resources, central to the success of an organization, are dispersed around the world. According to him, an organization can significantly improve global competitiveness by maximizing its global human resources in the long run. With which of the following is Neil most likely to agree?
that IHR managers must develop effective global management teams to improve global competitiveness
Nimbus Inc. is a hybrid organization. The organizational structure of the company has been developed to combine geographic support for both global integration and local responsiveness. Nimbus is not a hierarchical organization and uses cross-functional teams to quickly adapt to the dynamic business environment. If the above information is true, which of the following can be fittingly inferred?
that Nimbus has a matrix structure
Individualism/Collectivism
the degree to which a person believes that people should be self-sufficient and that loyalty to one's self is more important than loyalty to team or company
Masculinity/Femininity
the degree to which a society values assertiveness and materialism
uncertainty avoidance
the degree to which societies are willing to tolerate uncertainty and risk
1. It has been a challenge for Starbucks in China to recruit good local managers because________.
the demand for local managers by foreign companies exceeds the supply
A multi-domestic strategy is most appropriate when
the differences between the markets a firms serves and the customers in them are significant
Reverse culture shock occurs primarily because of
the difficulty of reintegrating into the organization but also because, generally speaking, the longer a person is away, the more difficult it is to get back into the swing of things.
Why does a clear translation not help a person understand what is meant?
the encoding process has obscured the true message.
Market Breadth
the extent of foreign markets we are covering - just because you have experience in one international market, does not mean you have experience in another
uncertainty avoidance
the extent to which people in a society feel threatened by ambiguous situations
Scanning should focus on:
the future interests of the firm
Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge. Firm needs to facilitate the product improvements necessary to enter foreign markets
With regard to less-developed countries, most problems with international joint ventures involve ________.
the local partner
International joint ventures are like a marriage because ________.
the more issues that can be settled before the merger, the less likely it will be to break up
Demand conditions
the nature of home demand for the industry's product or service [sophistication, size and nature buyers needs]
1. Concerns about _____ are a source of a debate about staffing policies among human resource management professionals.
the need to maintain strategic control over subsidiaries while developing managers with a global perspective
Which of the following is the most beneficial aspect of an international joint venture?
the partner's local contacts and markets will be utilized
convergence
the phenomenon of shifting individual management styles to become similar to one another
cultural relativism
the practice of judging a culture by its own standards
information privacy
the right to control information about oneself, as observed in the following quote.
cultural variable that greatly influences the decision-making process is
the risk tolerance of those making the decision.
Descriptive Ethics
the scientific study of moral beliefs and practices
What is dumping?
the selling of a product below the cost of production with the intent to later raise prices
In a cross-border alliance, cultural differences can be overlooked when ________.
the target country is similar to the home country
Knowledge transfer is optimized when
the type of knowledge repatriates gain is matched by the right knowledge transfer mechanisms—for example, by assigning repatriates to strategic teams—and when career opportunities the organization provides are congruent with repatriate career goals and aspirations.
cultural profiles reflect
the value system, attitudes, and expected behaviors inherent in a given society.
1. Personnel directors typically select potential expatriates on the basis of _____.
their domestic track record and technical expertise
three cultural norms greatly affect the negotiation process in china
their ingrained politeness and emotional restraint, their emphasis on social obligations, and their belief in the interconnection of work, family, and friendship.
1. The status of leaders in France is based primarily on__________.
their position and the educational institutions that they attended
Which of the following is NOT a typical reason for forming cross-border alliances?
to test marketing campaigns overseas
polychronic cultures
tolerate many things occurring simultaneously and emphasize involvement with people. Two Latin friends, for example, will put an important conversation ahead of being on time for a business meeting, thus communicating the priority of relationships over material systems.
1. The term _________is increasingly replacing the term_______.
transpatriate, expatriate
1. Which of the following is not a leadership style and behavior that was found to be culturally contingent?
trustworthy
Meaningful, long-term performance standards can be provided by taking into account nonfinancial measures such as ________.
union relations
1. Since effective leadership traits vary with the situation and with the followers according to each context, the idea of _____ is not valid.
universal leadership traits
Trompenaar's Cultural Dimensions
universalism vs. particularism Internal direction v external direction specific vs. diffuse achievement vs. ascription Neutral v Affective Sequential time v Synchronous time Individualism v communitarianism
Opportunities for indigenous female employees to move up the managerial ladder in a given culture depend on the ________.
values and expectations regarding the role of women in that society
collective bargaining
verbal agreement and job descriptions or through a union's written labor contract, which has been reached through negotiation
1. Increasingly, advances in communication now facilitate _____, with people around the world conducting meetings and exchanging information via the Internet, enabling the organization to capitalize on 24-hour productivity.
virtual global teams
major cultural variables affecting decision making is
whether a people tend to assume an objective approach or a subjective approach.
autocratic vs participative leadership
who has the authority to make what kinds of decisions?
1.A ______ is a foreign subsidiary that is totally owned and controlled by an organization.
wholly owned subsidy
1. The degree of general importance that working has in the life of an individual is called _____.
work centrality
Arabs tend to
worship their leader as long as they are in power
Particularistic
¥ Emphasis on relationships and applying rules more subjectively. ¥ Places more emphasis on relationships. ¥ Status is important and salary is linked to reputation and origin. ¥ Must get to know people one is doing business with, so small talk is very important. ¥ Ex.: CHI, KOR, Former SU
Noise
Ch4 Anything that serves to undermine the communication of the intended meaning .
1. While American companies tend to stress individual goals, achievement, and rewards, Japanese companies tend to stress _____.
group wide goals
rational decision-making process
(1) defining the problem, (2) gathering and analyzing relevant data, (3) considering alternative solutions, (4) deciding on the best solution, and (5) implementing the decision
Adaptation to different cultures requires
(1) openness—traits such as open-mindedness, tolerance for ambiguity, and extrovertedness—and (2) resilience—traits such as having an internal locus of control, persistence, a tolerance of ambiguity, and resourcefulness.
five stages of negotiation process
(1) preparation, (2) relationship building, (3) the exchange of task-related information, (4) persuasion, and (5) concessions and agreement
Important differences in the negotiation process from country to country include
(1) the amount and type of preparation for a negotiation, (2) the relative emphasis on tasks versus interpersonal relationships, (3) the reliance on general principles rather than specific issues, and (4) the number of people present and the extent of their influence.8 In every instance, managers must familiarize themselves with the cultural background and underlying motivations of the negotiators—and the tactics and procedures they use—to control the process, make progress, and therefore maximize company goals
two major areas of conflict in negotiating with Chinese
(1) the amount of detail the Chinese want about product characteristics, and (2) their apparent insincerity about reaching an agreement.
successful repatriation
- Expat assignment complete with repatriation - Making re-integration into home country smooth - Minimise effects of culture shock
Five steps to use international strategy as a source of competitive advantage
1. Identify international opportunities / incentives; 2. International strategies [resources and capabilities]; 3. Five modes of entry; 4. Management problems and risk; 5. strategic competitiveness outcomes
Three Basic Benefits of International Strategy
1. Increased market size 2. Economies of scale and learning 3. Location advantages
What are the three stages of expatriate career management?
1. The exit transition from the home country, the success of which will be determined largely by the quality of preparation the expatriate has received 2. Entry into host culture, which is comprised of entry, adjustment and exit 3. The final phase is reentry into the home culture or entry into a new host country, in which the level of reverse culture shock and the ease of re-acculturation will depend on the previous stages
2 types of institutions
1. formal (i.e. promulgate laws) 2. informal (those that exert influence through norms, cultures, and ethics)
2 levels of strategic alternatives
1. global strategic alternatives 2. entry strategy alternatives
Pressures to globalize
1. increasing competitive clout (from trading blocs) 2. declining tariffs (opens new markets) 3. the IT explosion (makes coordination easier)
Certain operational issues that must be taken into account for international ventures or improving operations abroad
1. the difficulty of obtaining marketing information in many countries 2. the often poorly developed financial markets 3. the complexities of exchange rates and government controls 4. institutional voids in target countries 5. poor infrastructure
Neutral culture
A culture in which emotions are controlled. Emotional outbursts in public are frowned upon. Example: Japan
Affective culture
A culture in which emotions are expressed openly. Example: Italy
Achievement cultures
A culture in which people are accorded with status based on how well they perform their functions/individual achievement. Example: UK
Sequential time culture
A culture in which people like events to happen in a chronological order. Punctuality is appreciated; time is important and wasting time is frowned upon
Synchronous time culture
A culture in which people see time-periods as interwoven. Punctuality and deadlines are only important if key to meeting objectives. More flexibility with distribution of time and commitments; people often work on several things at a time.
Ascription cultures
A culture in which status and influence come from who or what a person is (i.e. class, age, gender). Example: China
Joint Venture
A firm considering international expansion gets into an agreement with a foreign firm where responsibility and authority is shared
Offshore outsourcing is typically what type of strategy?
A short-term cost-reduction strategy. As competitive pressures increase costs, it becomes necessary to move the jobs again to another lower-cost country (aka "race to the bottom")
Cross-cultural risk:
A situation or event where a cultural miscommunication puts some human value at stake
13) According to the GLOBE project, workers from countries that ranked low on performance orientation, e.g., Russia or Greece, ________.
A) do not take hard facts and figures seriously
49) In high-context cultures, ________.
A) feelings and thoughts are not explicitly expressed
56) Larry is a top-level manager at Smart-Tech, an American semiconductor firm. Larry is involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. Larry arrives in Saudi Arabia hoping to quickly conclude the business deal. However, to his surprise the Arabs show no great interest in coming to a decision, despite several rounds of discussion. This type of behavior from the Saudi Arabian financial group is most likely attributed towards its ________.
A) high-context culture
21) Understanding foreign languages is especially important for international managers because of ________.
A) increased diversity in the global workforce
24) Posture, gestures, facial expressions, and eye contact are examples of ________.
A) kinesic behavior
43) Classified and compartmentalized, time serves to order life in a ________.
A) monochronic culture
5) Anything that serves to undermine the communication of the intended meaning is known as ________.
A) noise
39) The manner in which people communicate through material artifacts such as architecture, office design, and cars is known as ________.
A) object language
27) The tendency of Americans to look people in the eye contrasts with the tendency of the British to keep looking away while conversing. Such differences are categorized as ________.
A) oculesics
37) Changing the meaning of words by changing the inflection of your voice is an example of ________.
A) paralanguage
Pros and Cons of Parent Country Nationals
Advantages - can help transfer/ control firm strategy. More loyal Disadvantages - costly to relocate. PCN adoption problems. Limits of global skills/ ideas
The attrition rate for expatriates is about double that of non-expatriates because
All of the above a. Expatriates are more marketable and receive more attractive offers from other employees. b. Expatriates move from company to company to take advantage of more highly-compensated overseas assignments. Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company
DR-CAFTA
An international agreement that eliminated tariffs, reduced non tariff barriers, and facilitated investment among the U.S., Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
10) According to Hall and Hall, when people experience a failure in communication, they tend to blame the confusion on the other person's stupidity, deceit, or craziness. This process of trying to explain the other person's behavior is known as ________.
B) attribution
54) The executives from Carlo Foods, U.S., are in Japan to negotiate with Jeong, the head of a local investment firm. While Jeong listens to their plans, he realizes that there are considerable amounts of calculation errors in the market statistics involved in the plan. He starts showing signs of impatience and folds his hands, with a frown on his face. The executives realize that something is wrong and are confused about it. Jeong most likely belongs to a ________.
B) high-context culture
64) When encoding a message during cross-cultural communication, it is most effective for senders to ________.
B) make gestures
22) The term ________ refers to behavior that communicates without words.
B) nonverbal communication
32) Which of the following is an example of proxemics?
B) standing close to others
Measuring a firm's international footprint and understanding multinationality
Behavioural - R and D Structural - foreign employees, taxation, industry details... Performance - sales, investments, joint ventures, production
According to the research conducted by Tung et al., people in ________ are bureaucratic, educated, diversified, highly relationship-oriented, and more direct.
Beijing
In cross-cultural leadership, what are Universal impediments?
Being a loser, or asocial and dictatorial behaviours
Which of the following is true with regard to born globals?
Born globals operate in the international business arena right from their inception.
In the ________ culture, negotiators tend to use the word "no" repeatedly, and they are best described as spontaneous and talkative.
Brazilian
Explain the difference between a company's business model and a company's strategy.
Business Model: blueprint for delivering value to customers to yield profit Strategy: approach to superior value over competitors
Stereotyping
Ch3 _____ refers to the assumption that every member of a society or subculture has the same characteristics or traits without regard to individual differences.
7) Which of the following terms refers to any cultural variables that undermine the communication of intended meaning?
C) cultural noise
11) Trust improves cross-cultural communication by ________.
C) encouraging the open exchange of ideas and information
30) A ________ culture is characterized by people standing close together and touching a great deal.
C) high-contact
50) In ________ cultures, people expect others to understand unarticulated moods, subtle gestures, and environmental clues.
C) high-context
52) In ________ cultures, communication occurs within an extensive network of close personal and business relationships.
C) high-context
38) The considerable variation between Americans and Chinese in the use of silence during meetings is an aspect of ________.
C) paralanguage
Fuel costs in China have risen sharply and are not expected to drop.
Ch1 Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents, including 50,000 people in Asia. Emerson manufactures a wide range of products including automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following, if true, undermines the argument to build a new Emerson facility in China?
Protecting Patents
Ch1 The Paris Union was established for the purpose of ____.
Questionable Payments
Ch2 Tokens of appreciation and grease money are considered ____.
Describe the communication process (include diagram), including noise, culture and the feedback loop
Communication is the process of sharing meaning by transmitting messages through media such as words, behavior, or material artifacts. As shown in this figure, there are several stages in this process in which meaning can be distorted. Anything that undermines the communication of an intended message is referred to as noise.
Basic premise of Porter's Determinants of National Advantage
Conditions/factors in a firms home country can either hinder or support the firms efforts to use an international business-level strategy for the purpose of establishing competitive advantage in international markets; some nations are more competitive in industries relative to other countries
Low power distance
Equal distribution of resources and power is preferred. Employees readily question authority and expect to participate in decisions that affect them. Autocratic or participative leadership style preferred. Example: New Zealand.
2) Communication to managers is of vital importance because it ________.
D) greatly helps in negotiating future plans
57) The international business manager of Toro Automobiles, based in London, is currently in Indonesia negotiating with potential partners to set up a manufacturing plant. He is intrigued and startled by the lack of apprehension shown by every person he has met in standing close to him when greeting him. This is because the persons or the groups involved in the meeting are a part of a ________.
D) high-contact culture
Which of the following is true with regard to direct coordinating mechanisms?
Direct coordinating mechanisms that provide the basis for the overall guidance and management of foreign operations include, the design of appropriate organizational structures and the use of effective staffing practices.
Strategic Level
Director - Strategic -corporate level, long term, Portfolio - Responsibilities - set the instructions and big ideas for specific departments. Visions and goals
Typically, firms use highly formal means to help the accompanying spouse find a position at the same location.
FALSE
Why is being able to compete effectively outside domestic markets increasingly important?
Effects of globalisation reducing the number of markets in which only domestic firms can compete successfully; globally oriented industries mean firms must compete in all world markets to be competitive; global markets are relatively unstable and less predictable
Enculturation and Acculturation
Enculturation - The learning of one's own culture Acculturation - The learning of a new or foreign culture
Etic and Emic views
Etic View - Culture is studied by an independent researcher 'from the outside looking in' Emic - Culture should be studied from the inside, focusing on, and assigning meaning to, interactions within a social group.
1. In _____, collective bargaining takes place between the employer's organization and a trade union at the industry level.
Europe
Strategy
Explains why company matters Specifies: - superior value - how resources will be utilized to deliver desired value
Market Entry Modes
Exporting - (direct/ indirect) Intermediate Hierarchical investment - these pre-empt how we will organise R and D
Entry modes
Exporting, licensing, strategic alliances, mergers & acquisitions, FDI (wholly owned subsidiary)
Mediators are hired in order to teach managers about cultural differences in negotiating styles.
FALSE
The term "polarization" describes the process of discussion by which two or more parties aim to reach a mutually acceptable agreement.
FALSE
3 functions of Expats
Fill positions Develop organization Develop management
Why is economies of scale and learning a benefit to firms?
Firms can enhance ability to reduce costs while increasing value for customers; potential to exploit core competencies through resource and knowledge sharing between units and network partners across country borders and learn to create synergy; knowledge can help firms learn how to produce higher quality products at a lower cost; new learning opportunities (including R&D), which contributes to innovation
How to deal with Political risk concerns
Firms should conduct a political risk analysis of the countries or regions they may enter.
Internal Direction
Forces cannot be controlled Eastern cultures
1. _____ suggests that most people would be more comfortable with the traditional division of work and roles; in a _____ culture, the boundaries could be looser, motivating people through more flexible roles and work networks.
High masculinity; more feminine
1. _____ suggests the need for job security, whereas people with _____ would probably be motivated by more risky opportunities for variety and fast-track advancement.
High uncertainty avoidance; low uncertainty avoidance
17. Which of the following is one of the phases in the development of the behavioral viewpoint?
Human Relations movement
What are four important differences between the negotiating parties in cross-cultural negotiations?
Important differences in the negotiation process from country to country include (1) the amount and type of preparation for a negotiation, (2) the relative emphasis on tasks versus interpersonal relationships, (3) the reliance on general principles rather than specific issues, and (4) the number of people present and the extent of their influence.
Importance of Parochialism
Important to be aware of the detrimental consequences of this narrow outlook. Expecting others to fall into the same patterns of behaviour ignores cultural differences and can create significant obstacles for managers. Adopting this view prevents managers from understanding foreign customs and markets, which may impact their competitiveness in the international marketplace
Importance of self-reference criterion
Important to recognise that some workers of a different cultural background may need to overcome self-reference criterion to fit into organisational culture. Without recognising it's impact, managers may experience verbal and non-verbal issues with communication. For example, Japanese workers must put courtesy aside and interrupt conversations with Americans when there are problems.
Reactive cultures
Individuals are good listeners who rarely initiate action or discussion, preferring first to listen to and establish the other's position, then react to it and form their own opinion. Example: China, Japan
Impatriates
Individuals from a host country or third-country nationals who are assigned to work in the home country
Jade International is a highly diversified global firm with headquarters in New Jersey. It manufactures a variety of products ranging from home security systems to automotive components. Jade's 100,000 employees work at facilities located in more than 60 countries around the world. Jade frequently sends American managers overseas to manage the firm's foreign facilities. The HR department is considering the idea of redesigning Jade's expatriate support services program. Which of the following, if true, best supports Jade's decision to provide assistance to trailing spouses in finding jobs overseas?
Jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma.
Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust?
Japanese
japanese and american tendencies stage 5 concessions and agreement
Japanese are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions. Whereas Americans often plunge straight to the matter at hand, the Japanese instead prefer to develop long-term, personal relationships. The Japanese want to get to know those on the other side and will spend some time in nontask sounding.
konbini
Japanese consumers make online payments by going to a local convenience store, paying the clerk in cash, and then the clerk transfers the payment into the online vendor's account
Which of the following is true about Japanese negotiators?
Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating sessions.
Power distance:
Large power distance means greater inequality between superiors and subordinates, more hierarchical organizations, and power derived from prestige, force, and inheritance. Small power distance implies greater equality, more equally shared prestige and rewards, and power derived from hard work and is often considered more legitimate
________ is most likely to reduce the effectiveness of an organizational structure.
Low adaptability
Customs differ from _______ in that they define appropriate ways or behaviors in specific situations.
Manners
Felix Johnson is a senior HR manager in a global conglomerate. He believes that an important factor contributing to international competitiveness is the ability of an organization to maximize its global human resources in the long run. With which of the following is Felix most likely to agree?
Maximizing long-term retention through career management increases the odds in favor of global competitiveness.
Demand conditions: impact of specialised demand
May create opportunities beyond national boundaries
Power distance
Measures the level of acceptance in a society of the unequal distribution of power / the extent to which a society accept and endorses authority, power differences, and status privileges
Impact of demand conditions
Meeting high demand in home country creates conditions through which a firm can develop scale-efficient facilities, enhance capabilities and perhaps core competencies. Once enhancements are in place, the probability that capabilities and core competencies will benefit the firm as it expands increases.
Low collectivism 2 (institutional) cultures
Members assume they are largely dependent. Pursuit of individual goals at expense of group loyalty. Economic systems emphasise interests of individuals. Example: Greece
NAFTA
North American Free Trade Agreement; allows open trade with US, Mexico, and Canada.
1. The resulting agreements from union bargaining vary around the world. A written, legally binding agreement for a specific period is common in ___________.
Northern Europe and North America
What hinders expat integration
Not using team concept not learning local language withholding useful information spouse and family problems superior and autocratic behaviour
How does international strategy extend a product's life cycle?
Once there's high demand in the home country, often demand develops in other countries. Increases in demand justify expansion.
Low power cultures prefer
Participative
achievement
People are accorded status based on how well they perform their functions In an ascription culture, they have older more senior members with formal titles and show respect to their counterparts Norway, Austria, UK, SUI, Israel
Low uncertainty avoidance
People are comfortable with ambiguity. Accept and are comfortable with unstructured situations or changing environments. Tend to have as few rules as possible. Are more pragmatic and tolerant of change. Example: UK, Denmark
Organisational functions affected by home culture
Planning and scheduling, leadership, motivation and rewards
Dilemma of Corporate Social Responsibilty
Profit as the only goal as opposed to the social problems that need to be solved around the world.
Pros and Cons of Globalisation
Pros: lower prices, new understanding of different cultures, job creation, diversity of products, help offset poverty and unemployment Cons: lower profit due to competition, lower wages, fewer job opportunities for the countries the companies leave, separates the class gap even further, trade barriers still exist, pay cuts to employees in for of exporting jobs
tendencies of russians, chinese, and swedes stage 5
Russians and Chinese generally open their bargaining with extreme positions, asking for more than they hope to gain, whereas Swedes usually start with what they are prepared to accept
Compensation strategy
Salary, Taxes, Allowances and benefits Eastern Europeans require more cash Compensation in Japan is becoming more Westernized. In Latin America an employees pay and title are associated with type of car
Sedona Inc. is an American firm that manufactures high-quality handbags, duffel bags, and leather belts at its facility in Arizona. Sedona's products have been featured in various fashion magazines and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should give its subsidiary managers significant autonomy?
Sedona has recently reorganized into a domestic structure plus foreign subsidiary.
The world's second largest religion is Islam. The word Islam means "submission to Allah" and the word Muslim means "one who submits to Allah." Devout Muslims let their religion determine acceptable goods and services (e.g., strict Muslims do not drink alcohol, eat pork, or charge interest on money lent)
Shinto is the native religion of Japan. It teaches sincere and ethical behavior, loyalty and respect toward others, and enjoyment of life. Manifests in the Japanese workplace through the practice of lifetime employment for workers and the high degree of trust between firms and customers. Shinto has also resulted in loyal workforces, low employee turnover, and good labor-management cooperation
Future orientation
Similar to Hofstede's time orientation. The extent to which a culture programs its members to accept delayed gratification of their material social and emotional needs. Example: China scores high, USA scores low
Optimal solution: strategic alliance
Situation: the firm needs to connect with an experienced partner already in the targeted market and to reduce its risk through the sharing of costs
Demand conditions: impact of market size
Size can lead to scale-efficient facilities
Specialised factors of production
Skilled personnel in specific industry (i.e. port specialised in handling bulk chemical materials)
________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages.
Strategic alliances
Kinesics
Study of body movement - Body movement in general - Facial aspects - how we attempt to send or receive information
_____ occurs when a manager is transferred to another part of a country where there are significant cultural differences
Subculture shock
Multi-domestic strategy
Suitable where need for local responsiveness is high and need for global integration is low. Strategic and operating decisions are decentralised to the strategic business units in individual countries for the purpose of allowing each unit the opportunity to tailor products to the local market.
Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should be prepared with specific details about the product specifications and technology that will be used?
The Chinese firm uses a two-stage negotiation process: the technical and the commercial.
Which of the following is true with regard to information systems in less-developed countries?
The accuracy and timeliness of information systems are often less than perfect in less-developed countries.
Humane orientation
The degree to which an organisation or society encourages and rewards individuals for being fair, altruistic, friendly, generous, caring and kind to others
Power Distance
The degree to which inequality is accepted - relative distance between power in a country • High in countries that let inequalities grow into inequalities of power and wealth • Low in countries that play this down
According to Lazarova and Tarique, which of the following conditions must be met for the successful transfer of knowledge between repatriates and firms?
The repatriates must have valuable knowledge to transfer.
Nationalisation
The sale of private sector businesses to the government. The sale may be voluntary, forced, coerced or the assets simply expropriated
Meaning of work aspects/ components
The significance, the direction and the coherence (linked towards morals) - Effort - persistence - Direction - Goals
Moral Relativism
The view that there is no absolute or universal moral law or truth, resulting in a morality determined by cultural factors or personal preference.
Social group:
Two or more people who identify and interact with each other
Political & economic risks
Types of interdependent risks in an international environment
Which of the following is true of Ueno and Sekaran's study of Japanese and U.S. firms with regard to monitoring and reporting systems?
U.S. firms tend to use communication and coordination processes more extensively than Japanese firms.
GLOBE dimensions
Uncertainty avoidance, power distance, future orientation, gender egalitarianism, collectivism 1: in-group, collectivism 2: institutional, assertiveness, performance orientation, human orientation
High power distance
Unequal distribution of power is well accepted. Readily accept superiors decisions. Usually results in a centralised structure and an autocratic leadership style. Example: Mexico
Trompenaar's Cultural Dimensions
Universalism vs. Particularism; Individualism vs. Communitarianism; Specific vs. Diffuse; Neutral vs. Affective; Achievement vs. Ascription; Sequential time vs. Synchronous time; Internal direction vs. External direction
Low assertive cultures
Value cooperation and warm relationships. Communicate indirectly to "save face". Try to be in harmony with environment. Expect subordinates to be loyal. Build trust on basis of predictability. Example: Sweden
Low ranking performance orientation cultures
Value societal and familial relationships. Value who one is more than what one does. View formal feedback as judgemental and discomforting. Prefers indirect, subtle communication. Example: Russia, Italy
Highly ranked performance orientation cultures
Value training, development, competition and materialism. View formal feedback as necessary for performance improvement. Value what one does more than who one is. Prefer direct and explicit communication. Example: USA
1. At Matsushita, selection criteria for staffing seem to be similar to those of _____ companies.
Western
Which of the following is a force that establishes or maintains divergent systems?
collective bargaining methods
29. The study of how order and pattern arise from very complicated, apparently chaotic systems is known as
complexity theory
Licensing
grants the rights to a firm in the host country to either produce or sell a product, or both.
1. The process through which managers and workers determine their workplace relationships is known as _____.
labor relations
Which of the following is a constraint frequently placed on management by organized labor?
limits on the firm's ability to vary employment levels when necessary
6. Creating, acquiring, and transferring knowledge are among the required activities for
learning organizations
power distance
level of acceptance by a society of the unequal distribution of power in institutions.
According to Trompenaars's value dimensions, if you are born and raised in an achievement society, your source of status will most likely be based upon your ________.
level of education
Which of the following is an area where the host government influences the strategic choices and implementations of foreign firms?
level of taxation
Environmental trends
liability of foreignness and regionalisation
Disadvantages of licensing
licensor's lack of control over licensee's activities and performance
In Chinese culture, the term ________ refers to a person's moral character; it is the most important thing defining that person and without it, one cannot function in society.
lien
two components of face in china
lien and mein-tzu
Which of the following factors adversely affects the accuracy and the timeliness of information systems in less-developed countries?
limited sources of data for decision making
A comparative study of European project groups in several countries by Sylvie Chevrie revealed three main strategies for dealing with the challenge of achieving cross-cultural collaboration in multinational horizontal projects. Which of the following is NOT one of those strategies?
linking rewards to individual achievement
e-business is an entry strategy at the ____ level
local
Where ownership is divided among several partners, the parent organizations are more likely to delegate the operational running of the IJV to ________.
local IJV management
Which of the following factors primarily determines how the Internet is used in different countries?
local attitude to information privacy
Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation?
location of the negotiation
most subtle behaviors in negotiation process
nonverbal messages: the use of voice intonation, facial and body expressions, eye contact, dress, and the timing of the discussions.
stereotyping
when a person assumes that every member of a society or subculture has the same characteristics or traits
Companies continue to look for opportunities around the world in search of:
profitable new markets, outsourcing facilities, acquisitions, and alliances
A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake?
projective cognitive similarity
In preparing for negotiations it is critical to avoid
projective cognitive similarity-the assumption that others perceive, judge, think, and reason in the same way when, in fact, they do not because of differential cultural and practical influences.
Herzberg's Two-Factor Theory
proposed that work satisfaction and dissatisfaction arise from two different factors - work satisfaction from so-called motivating factors and work dissatisfaction from so-called hygiene factors
14. Taylor called the tendency for people to deliberately work at less than full capacity
soldiering
team-oriented leader is
someone who exhibits diplomatic, integrative, and collaborative behaviors toward the team
Expropriation
when a domestic government seizes a foreign company's assets without any reimbursement
Kinesic Behavior
Ch4 Communication through body movements (ex: posture, gestures, facial expressions, and eye contact)
Negotiators approach issues in a holistic manner, deciding on the whole deal at the end
Ch5 Which of the following is most likely to be true about negotiators in the Far East?
Arab negotiators use mediators to settle disputes
Ch5 Which of the following is true about Arab negotiators?
5 Stages of the Negotiation Process
Ch5 1) Preparation 2) Relationship building 3) Exchange of task related information 4) Persuasion 5) Concessions and negotiation
Stays humble and trusts the opponent
Ch5 According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator?
Strategic Alliance
A firm collaborates with another company in a different setting in order to enter one or more international markets. Firms share the risks and resources required to enter international markets.
Contract Manufacturing
A firm contracts manufacturing to a foreign firm
Transnational Strategy
A firm seeks to achieve both global efficiency and local responsiveness
three phases of transition and adjustment that must be managed for successful socialization to a new culture and resocialization back to the old culture are
(1) the exit transition from the home country, the success of which will be determined largely by the quality of preparation the expatriate has received; (2) the entry transition to the host country, in which successful acculturation (or early exit) will depend largely on monitoring and support; and (3) the entry transition back to the home country or to a new host country, in which the level of reverse culture shock and the ease of re-acculturation will depend on previous stages of preparation and support.
three main dimensions of the labor-management relationship that the manager will consider are
(1) the participation of labor in the affairs of the firm, especially as this affects performance and well-being; (2) the role and impact of unions in the relationship; and (3) specific human resource policies in terms of recruitment, training, and compensation.
main causes of incongruence
(1) the receiver misinterprets the message, (2) the receiver encodes his or her return message incorrectly, or (3) the sender misinterprets the feedback.
Constraints take the form of
(1) wage levels that are set by union contracts and leave the foreign firm little flexibility to be globally competitive, (2) limits on the ability of the foreign firm to vary employment levels when necessary, and (3) limitations on the global integration of operations of the foreign firm because of incompatibility and the potential for industrial conflict.
high-context cultures, feelings expressed how?
(Asia, the Middle East, Africa, and the Mediterranean), feelings and thoughts are not explicitly expressed; instead, one has to read between the lines and interpret meaning from one's general understanding.
Low-context cultures communicate how?
(Germany, Switzerland, Scandinavia, and North America), where personal and business relationships are more compartmentalized, communication media have to be more explicit. Feelings and thoughts are expressed in words, and information is more readily available. Westerners focus more on the individual and therefore tend to view events as the result of specific agents, whereas Easterners view events in a broader and longer-term context.
Employees in countries that rank low on power distance
(Sweden and Israel) are more likely to prefer a consultative, participative leadership style, and they expect superiors to adhere to that style.
monochronic cultures
(Switzerland, Germany, and the United States), time is experienced in a linear way, with a past, a present, and a future, and time is treated as something to be spent, saved, made up, or wasted
Identify and briefly explain factors that lead to strong or weak bargaining power on the part of buyers.
-Buyers bargaining power is strong when switching costs to competing brands or substitute products are low. -When there is a large demand of buyers and can demand concessions when purchasing large quantities. - When buyer demand is weak or low. - When there are only a few buyers so that each one's business is important to the seller. Identity of buyer adds prestige to the product. - Buyer's have ability to postpone purchase of the product t'll later if they don't like the prices offered by the seller. Buyers bargaining power is weak when buyers purchase the items infrequently or in small quantities. - When buyers switching brands to competitors cost is high. - There is a surge in buyer demand that it creates a seller market. - A seller's brand reputation is important to the buyer or when a seller product or service can't be matched.
Identify and briefly describe common barriers to entering an industry.
-Common barriers of entry is the presence of economies of scale or other areas of operation. -Another is cost and resource disadvantages not related to the scale of operation. -Another is strong preferences and high degrees of customer loyalty. -High capital requirements. -Restrictive regulatory policies and tariffs and international trade restrictions. -Finally, is the ability and willingness of industry incumbents to launch vigorous initiatives to black a newcomers successful entry.
Weaknesses of Measuring Culture
-Culture changes over time - You cannot see most culture, inaccurate to conceptualise culture as objective - investigate cultural differences within a country - Hofstedes work - Most research uses an etic view - hands off (surveys). They should take a emic view, emersion and hands on research
Identify and describe the relevant factors and forces comprising the environmental context in which a company operates.
-Political Factors- Include political policies and processes, including the extent to which a government intervenes in the economy. Tax, fiscal, tariffs etc. -Economic Conditions- Include the general economic climate and specific factors such as interest rates, exchange rates, inflation, and unemployment. Also, include conditions in markets such as stocks and bonds, which can affect consumer confidence. -Sociocultural Factors- include societal factors, attitude, culture factors, and lifestyles that impact business, as well as demographic factors. Social forces are very locale and change over time. -Technological Factors- The pace of technological change and developments that have potential wide ranging effects on society. Can encourage birth of new industries. -Environmental Factors- ecological and enviromental forces such as weather, climate, climate change. These factors can directly impact industries, and have a substantive effects on other industries. -Legal Forces- Include regulations and laws with which companies must comply.
Identify factors that tend to intensify competitive rivalry among an industry's member firms.
-Rivalry intensifies when when competing sellers regularly launch fresh actions to boost their markets standing and business performance. - Rivalry is stronger in industries where competitors are equal in size and capabilities. - Rivalry intensifies faster in slow-growing markets. When it becomes less costly to switch brands. -Rivalry intensifies when industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume. -Finally, when a competitor becomes dissatisfied with their market position.
Identify and briefly explain factors that influence the strength of competition from substitute products.
-Strength of competition for substitute products is stronger when good substitutes are readily available or new ones are emerging. -They are attractively priced. -They have comparable or better performance feature. -End users have low cost in switching to substitute and are more comfortable with substitute. They are weaker when good substitutes are not readily available or do not exist. -The substitutes are higher priced relative to performance they deliver. End users have high costs in switching.
Identify and briefly explain factors that influence the bargaining strength or weakness of suppliers.
-Supplier bargaining power is stronger when industry members incur higher costs in switching their purchases to alternative suppliers. -Needed inputs are in short supply. -Only a few suppliers of the particular input. Bargaining power is weaker when the item supplied is a commodity that is readily available from a lot of suppliers. - Seller switching costs to alternative supplier is low. -Good substitute inputs exist or new ones emerge. -There is a surge available in suppliers. -When industry members account for a big fraction of supplier's total sales and continued high volume purchases are important to the well-being of suppliers.
Trends affecting global business
1. Increasing global interconnectivity 2. Increasing gap between supply and demand of natural resources 3. Changing balance of growth favouring emerging markets and their increasing middle class 4. Need for increased productivity and consumption in developed countries 5. Challenge for governments to develop policies for economic growth and financial stability
Ex-Pat cycle of Adaptation
1. Initial anxiety/ elation 2. Honeymoon 3. Anger/ disillusionment 4. Initial Culture shock 5. Acceptance of host culture 6. Process of adjustment 7. Repatriation 8. Reverse Shock 9. Reintegration
Two types of International Strategies
1. International Business-Level Strategy; 2. International Corporate-Level Strategy
61) Which of the following is a characteristic of the Japanese ningensei style?
A) reciprocity
1. Which of the following is correct about women in the Japanese workplace?
All of the above a. The workplace has traditionally been dominated by men as far as managerial careers are concerned. b. Women were usually allowed only clerical positions. c. For the older generation, a working married woman represented a loss of face to the husband because it implied that he was unable to support her.
1. According to research done by Black and Gregersen, which of the following was a practice used by companies that reported high degrees of job satisfaction and strong performance?
All of the above a. They focused on knowledge creation and global leadership development. b. They assign overseas posts to managers who have both technical skills and cross cultural abilities. c. They end expatriate assignments with a deliberate repatriation process.
1. Which of the following does not accurately characterize workers in the Mexican culture?
All of the above characterize Mexican workers. a. They rank high on power distance. b. They rank high on uncertainty avoidance. They rank low on individualism
1. Which of the following is correct about repatriation?
All of the above: - Few good managers will take international assignments if they see those assignments resulting in lost promotions at home. - In many U.S. multinationals, employees commonly see overseas assignments as negative career moves. - In many European, Japanese, and Australian companies, overseas assignments are viewed positively.
Relationship building
Ch5 In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the ___________ stage.
Extreme positions
Ch5 Research in the United States indicates that during the final stage of negotiations, it is best to start with ___________.
Informal Institutions
Attitudes that guide how we interact/ do business - Socio-cultural - Norms -Environmental - Values - Perceptions - technological
Attitudes
Attitudes underlie our behaviour, communication, and interpretation. Ethnocentric attitudes are a particular source of noise. Stereotyping occurs when a person assumes that every member of a society or subculture has the same characteristics. Astute managers deal with people as individuals.
Universalism
Applies ideas, rules and systems objectively without consideration of individual circumstances. Uses one definition to determine right and wrong. Business meetings are rational and based on professional arguments. Example: USA
Which of the following is true about Arab negotiators?
Arab negotiators use mediators to settle disputes.
18) If you assume that every member of a society or subculture has the same characteristics or traits, you are guilty of ________.
B) stereotyping
Negotiation
Ch5 The process by which two or more parties meet to try to reach agreement regarding conflicting interests.
Autocratic
Ch5 Which of the following types of decision making is generally used in China, Germany, Turkey and India?
Stereotyping
Ch4 In an interview, a British journalist asked a German athlete, "Are you a typical German?" When asked to clarify, the journalist explained that a typical German loved machines, worked hard, and was dependable. This is an example of ___________.
Confiscation
Ch1 Expropriation occurs when a local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC; when no compensation is provided, it is ____.
Local Debt Financing
Ch1 If a foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firm is managing political risk with ____.
Nationalization
Ch1 The forced sale of an MNC's assets to local buyers with some compensation to the firm, perhaps leaving a minority ownership with the MNC; often involves the takeover of an entire industry, such as the oil industry.
Quotas
Ch1 Which of the following is a form of protectionist policies?
The Creditworthiness of a Country
Ch1 Which of the following is analyzed through the quantitative approach, qualitative approach, and the checklist approach?
Adaptation
Ch1 Which of the following means of political risk reduction is best suited for firms that decide a high-risk environment is worth the potential returns?
E-Business
Ch1 Which of the following terms refers to the integration of systems, processes, organizations, value chains, and entire markets using Internet-based technologies?
Micropolitical Risk
Ch1 Zagreb Inc., a transnational energy company, negotiates a multimillion-dollar contract with the government to provide electricity to Pilladia. The government is voted out of power shortly after. The new government cancels all contracts it has with all oil companies but not contracts with firms in other industries. This is an example of ____.
Economic Integration
Ch1 ____ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.
Political
Ch1 ____ risk is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.
Protectionism
Ch1 A country's use of tariff and nontariff barriers to close its borders partially or completely to various imported products that would compete with domestic products.
Creeping Expropriation
Ch1 Intelligentia does business in Bazania, but the Bazanian government purposely delays granting Intelligentia the necessary licenses and permissions required to conduct its business in the country. Which of the following best describes this situation?
Elador is currently experiencing a very high rate of unemployment.
Ch1 Robert is a technology officer in an Umerian firm and he manages the firm's operations at its facility in Elador. Robert is considering the ideas of installing new technology in the facility that would significantly improve productivity and reduce labor costs. Which of the following undermines the argument that Robert should install the new technology?
Globalization
Ch1 The global strategy of the integration of worldwide operations and the development of standardized products and marketing approaches.
MERCOSUR
Ch1 Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?
Human Rights
Ch2 According to international codes of conduct, which of the following guides the MNE behavior toward individual persons?
Primo becomes SA8000 certified.
Ch2 Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world. A Primo manufacturing subsidiary in China employs over 20,000 locals. Primo executives recently learned of human rights violations at the firm's China subsidiary. Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored. As a result, Primo executives need to decide if operations in China should be discontinued. Which of the following, if true, would best support a decision by Primo to remain in China?
Ethnocentric Approach
Ch2 An approach in which a company applies the morality used in its home country - regardless of the host country's system of ethics.
The benefits that the local Chinese community might have
Ch2 Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world. A Primo manufacturing subsidiary in China employs over 20,000 locals. Primo executives recently learned of human rights violations at the firm's China subsidiary. Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored. As a result, Primo executives need to decide if operations in China should be discontinued. Of the following, which is MOST relevant to the decision by Primo to remain in China?
Corporate Social Responsibility
Ch2 The belief that corporate activities should take into consideration the welfare of the various stakeholders affected by those activities.
Governmentalism
Ch2 The tendency of a government to use its policy-setting role to favor national interests rather than relying on market forces.
Nongovernmental organization that fights corruption
Ch2 Transparency International is best described as a(n) ________.
Contract manufacturers should follow some basic environmental requirements.
Ch2 Which of the following is a policy of the Electronic Industry Code of Conduct (EICC)?
Consulting the laws of both the host and the home countries
Ch2 Which of the following is the first step of making an ethical decision?
Weak regulations and low costs
Ch2 Which of the following is the main reason why companies dispose hazardous wastes in less developed countries?
Foreign Corrupt Practices Act
Ch2 Which of the following prohibits U.S. companies from making illegal payments or other gifts or political contributions to foreign government officials for the purposes of influencing them in business transactions?
Additional stakeholders associated with the firm's activities
Ch2 Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs?
Nationalism
Ch2 Which of the following terms refers to the practice by a country of rallying public opinion in favor of national goals and against foreign influences?
Sustainability
Ch2 ____ lies at the intersection of financial, social, and environmental health - sometimes described as the "triple bottom line."
Specific-Oriented
Ch3 Based on Trompenaar's value dimensions, in which of the following cultures do managers separate their work and private lives, and tend to be open and direct when communicating with coworkers?
Neutral vs. Affective
Ch3 Managers from Italy and Mexico would most likely express their emotions openly during a business situation, while managers from England and Japan would most likely consider such behavior unprofessional. Which of the following Trompenaar's value dimensions explains this difference in behavior and attitude?
Ethnocentrism
Ch3 The belief that the management techniques used in one's own country are best no matter where or with whom they are applied.
Culture
Ch3 The shared values, understandings, assumptions, and goals that over time are passed on and imposed by members of a group or society.
Collectivism
Ch3 The tendency of a society toward tight social frameworks, emotional dependence on belonging to an organization, and a strong belief in group decisions.
Self-Reference Criterion
Ch3 The unconscious reference point of one's own cultural values is called a(n) _____
Creolization
Ch3 When immigrants adopt some aspects of the local culture while keeping aspects of their culture of origin, this process is called ____.
Resistance to Change
Ch3 Which of the following is a drawback of organizational culture? a) Reduced Cooperation b) Lack of Commitment c) Dishonesty toward Organization d) Resistance to Change
More women in high-level jobs
Ch3 Which of the following is true of countries with low masculinity?
Parochialism
Ch3 Which of the following terms refers to the expectation that foreigners should automatically fall into host-country patterns of behavior?
Network of relationships centered on mutual obligations and favors
Ch3 With regard to small family businesses in China, a "guanxi" can be best described as a __________.
Autocratic Leadership
Ch3 Workplaces in high power distance cultures will most likely be characterized by ____
Uncertainty Avoidance
Ch3 Which of the following Hofstede variables is associated with a strong sense of nationalism?
Level of Education
Ch3 According to Trompenaar's value dimensions, if you are born and raised in an achievement society, your source of status will most likely be based upon your ___________.
Assertive
Ch3 Austria and Germany value competition and have a "can-do" attitude. Therefore, according to the GLOBE project, Austria and Germany are most likely to be ____ societies.
Economy
Ch3 Which of the following is NOT categorized as a sociocultural variable of culture? a) Education b) Economy c) Language d) Religion
Arabs believe important decisions can't be rushed
Ch3 Which of the following might appear in a cultural profile regarding the way Arabs view time?
Religious System
Ch3 Which of the following subsystems is most likely to underlie (affect) both moral and economic norms?
Cultural Empathy
Ch3 ____ is the awareness of and an honest caring about another individual's culture.
A two-way dialogue
Ch4 According to the GLOBE project, a coworker or subordinate from Sweden, a country ranking low on assertiveness, would most likely prefer ____________.
High-context culture
Ch4 Larry is a top level manager at Smart-Tech, an American semiconductor firm. Larry is involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. Larry arrives in Saudi Arabia hoping to quickly conclude the business deal. However, to his surprise the Arabs show no great interest in coming to a decision, despite several rounds of discussion. This type of behavior from the Saudi Arabian financial group is most likely attributed toward its _____________.
Oculesics
Ch4 Subtle differences in eye behavior are known as _____________.
Encouraging the open exchange of ideas and information
Ch4 Trust improves cross-cultural communication by ___________.
Practicing projective listening
Ch4 What is the best method for avoiding miscommunication?
Controlled flow of information
Ch4 Which of the following is most likely a characteristic of communication channels in low-context cultures?
One has to "read between the lines" and interpret meaning from one's general understanding
Ch4 Which of the following is true about high-context cultures?
Monochronic cultures treat time as a tool for bringing order to life; Polychronic cultures tolerate many events occurring simultaneously
Ch4 Which of the following is true about monochronic and polychronic cultures?
Coworkers putting an arm over their colleague's back
Ch4 Which of the following will a person working in a high-contact culture most likely experience?
Attribution
Ch4 _________ is the process in which people look for the explanation of another person's behavior.
Kinesic behavior
Ch4 ____________ is one of the elements of nonverbal communication.
Paralanguage
Ch4 How something is said rather than the content - the rate of speech, the tone and inflection of voice, other noises, laughing, or yawning.
Giving speeches at conferences
Ch4 Which of the following does NOT constitute a normal interpersonal communication task for managers?
Communication
Ch4 _______ describes the process of sharing meaning by transmitting messages through media such as words, behaviors, or material artifacts.
Beijing
Ch5 According to the research by Tung et al., people in ___________ are bureaucratic, educated, diversified, highly relationship-oriented, and more direct.
Shanghai
Ch5 According to the research conducted by Tung et al., which of the following cities in China has people who are business-savvy, confident, career-oriented, and materialistic?
Houmani
Ch5 Details that are likely to be worked out ahead of time using a "back door" approach
Kevin is the oldest and the most experienced person on the negotiating team
Ch5 Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following best supports Kevin's argument that he should be the primary negotiator?
The Chinese uses a two-stage negotiation process: the technical and the commercial
Ch5 Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should be prepared with specific details about the product specifications and technology that will be used?
Fizzy executives hope to have other business deals with the Chinese Firm in the future
Ch5 Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should make token concessions to the Chinese throughout the negotiation process?
Reach a settlement that benefits all parties
Ch5 For long-term positive relations, the goal of negotiations should most likely be to _____.
Sweden
Ch5 In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions?
America
Ch5 Research shows that managers from _________ have the highest tolerance for risk.
Instrumental-Oriented
Ch5 The ____________ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis.
Avoid criticizing the other party in a personal way
Ch5 Using a problem-solving approach during cross-cultural negotiations requires a negotiator to _______________.
Personal commitments to individuals
Ch5 What forms the basis for the enforcement of most business contracts in Mexico and China?
Japanese
Ch5 Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust?
Corporate Social Responsibility
Companies' acknowledged responsibility to society and moral expectations
Characteristics of FDI/wholly owned subsidiary
Complex, often costly, time consuming, high risk, maximum control, potential above-average returns
________ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone.
Cooperative strategies
Costs and Benefits of MNCs to host countries?
Costs • Industrial dominance princess • Exploitation • Cultural homogenisation Benefits • Improves GDP • Increases export opportunities • Political advantages • Creates competition • Economies of scale • Job creation
33) Josh, a tourist from the United States, goes on a five-day trip to Japan. Apart from learning their rich history and heritage, he notices that people do not shake hands, but bow to each other. He is most likely to conclude that the Japanese have a ________.
D) low-contact culture
Exporting
Entry mode through which the firm sends products produced in its domestic market to international markets. It's a popular entry mode choice for small businesses to initiate an international strategy.
Influences of IHRM
Environmental factors Corporate strategy IHRM policies and practices
A global strategy is inherently more vulnerable to what type of risk?
Environmental. Reasons: high level of coordination required and the required need for a common corporate values and loyalties
________ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis.
Factual appeals
In an ascription-oriented society, the source of status and influence is based on how well one performs the job and what level of education and experience one has to offer. True or False?
False
In specific-oriented cultures, work spills over into personal relationships and vice versa. True or False?
False
Describe the first and the second GLOBE studies
First one examined nine dimensions to determine cultural values and differences, second one examined leadership styles, the elements of different styles and which is more appropriate for different cultures
Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team recently arrived in China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should make token concessions to the Chinese throughout the negotiation process?
Fizzy executives hope to have other business deals with the Chinese firm in the future
Long-term orientation
Focused on the future, willing to delay short term emotional gratification and material or social success in order to prepare for the future. Strives towards long-term goals. Adaptation and circumstantial, pragmatic problem-solving are necessities. Values persistence, perseverance, saving and being able to adapt. Example: China
Short-term orientation
Focused on the present or past and considers them more important than the future. Traditions are honoured and kept, while steadfastness is valued. Cares more about short-term gratification than long-term fulfilment. Example: USA
International Corporate-Level Strategy
Focuses on scope of operations [product & geographic diversification], required when the firm operates in multiple industries in multiple countries/regions. Headquarters guides strategy, but business/country-level managers can have substantial strategic input.
Regionalisation
Focusing on particular region(s) rather than global markets because where a firm chooses to compete can affect its strategic competitiveness. Results in better understanding of the cultures, legal and social norms. Managing businesses by regions helps MNEs deal with the complexities and challenges of operating in multiple international markets.
how is stage 3 exchanging task-related information taken in each country?
From an American perspective, this represents a straightforward, objective, efficient, and understandable stage. However, negotiators from other countries continue to take a more indirect approach at this stage. Mexican negotiators are usually suspicious and indirect, presenting little substantive material and more lengthy, evasive conversation. French negotiators enjoy debate and conflict and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented. The Chinese also ask many questions of their counterparts and delve specifically and repeatedly into the details at hand; conversely, Chinese presentations contain only vague and ambiguous material.
Sequential Time vs. Synchronous Time
How cultures value time: chronological vs. interwoven
E Business development Training Internationally
How to develop a business plan How to develop partnerships Addressing securities
sychronous
Human body has its own rhythm People often work on several things at a time
________ refers to the processes that management puts in place in order to direct the success of the joint venture's goals.
IJV control
Values
Ideas, beliefs, and customs to which people are emotionally attached
indian negotiators
Indians have traditionally followed Gandhi's approach to negotiation, which Gandhi called satyagraha, "firmness in a good cause." This combines strength with the love of truth. Therefore, successful Indian negotiator acts as follows: • They are humble and truthful and act in good faith, at the same time trusting that the ¬opponent will act similarly. • They act with self-control and attempt to come to a win-win outcome for all parties, in the spirit of satyagraha, thus putting the negotiation process on a spiritual level. • They respect the other parties, are very patient in explaining and negotiating, do not insult others, and keep the big picture in mind. • They will meditate and trust their instincts to consider the opponents' viewpoints, do not keep secrets, and are willing to change their minds.
Linear-active cultures
Individuals are task-oriented, highly-organised planners, who complete actions chains by doing one thing at a time, preferably in accordance with a linear agenda. Example: New Zealand
kinesic behavior
Kinesic behavior is communication through body movement—e.g., posture, gestures, facial expressions and eye contact. The meaning of such behavior varies across countries. For example, in China sticking out the tongue indicates surprise, whereas widening one's eyes indicates anger. Occulesics are a form of kinesics that includes eye contact and the use of the eyes to convey messages. For example, the British will look away from you while speaking in order to keep your attention. When they have finished speaking, they will signal it is your turn to talk by looking at you.
________ is the conscious and active management of creating, disseminating, evolving, and applying facts, information, or skills acquired through experience or education, to strategic ends.
Knowledge management
multi-active
cultures that are warm, emotional, loquacious and impulsive - like to do many things at a time, speak a lot and are uncomfortable with silence
Liability of Foreignness
Legitimate concerns about the attractiveness of global strategies; a set of costs associated with various issues firms face when entering foreign (and unfamiliar) markets. Four types of distances commonly associated are cultural, administrative, geographic, and economic. Firms using an international strategy must be aware of distances to determine actions to take to reduce potentially negative affects.
Market Depth
Level of commitment and operating mode - requires resources, risk, control and flexibility implications - are you exporting just to the country or factories around the world? - Joint venture? - reduce risk and connect with local partner - Franchise? - local partner
Impact of environmental trends
Liability of foreignness and regionalisation influence a firm's choice and use of international strategies, particularly international corporate-level strategies
Exchance of Task-related information - Negotiation
Long term Strategic - Price, movement, business practices Transactional - Product, resources, distribution, liability
Location Advantages
Low cost markets aid in developing competitive advantage by providing access to: • raw materials • transportation • lower costs for labor • key customers • energy
Characteristics of Licensing
Low cost, low risk, little return, low returns -- potential loss of knowledge
Strategic objective
Relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality and future business prospects. Keeps company competitive
High collectivism 2 (institutional) cultures
Members assume they are highly interdependent. Group loyalty encouraged even if it undermines pursuit of individual goals. Economic systems maximise interests of collectives. Critical decisions are made by groups. Example: Sweden
Diffuse culture
Public space and private space are interwoven. Work spills over into personal relationships and vice versa. Attach great value to formality. Example: China
Characteristics of mergers & acquisitions
Quick access to new markets, high costs, complex negotiations, problems merging with domestic operations (different corporate cultures, social cultures and practices)
Concessions
Refer to the 'give and take' involved in negotiations - help to move a negotiation towards some agreement. Best Alternative To a Negotiated Agreement (BATNA).
Self-restraint
Refers to a society that controls gratification of needs and regulates it by means of strict social control. Restrained societies believe other factors dictate their life and emotions. Example: Russia
Gender Egalitarianism
Refers to gender inequalities being minimised at home, in the workplace, and in the community. Asks whether opportunities for men and women are similar.
Global integration
Refers to the control and co-ordination of activities across most or all of a firm's markets
Masculinity
Refers to the degree of traditionally masculine values, such as achievement, heroism, assertiveness and material rewards for success, prevail in a society. Women are somewhat assertive/competitive but less so than men; are expected to raise family. Example: Japan
Collectivism
Refers to the desire for tight social frameworks, emotional dependence on belonging to the organisation and a strong emphasis on group decisions. People believe in the will of the group rather than of the individual. Place focus on paternalistic practices (social class or familial ties) rather than personal achievement or capabilities. Example: Japan
Uncertainty avoidance
Refers to the extent to which people in a society feel threatened by ambiguous situations
Femininity
Refers to the preference for female values such as cooperation, modesty, caring for the weak and quality of life. Women share modest and caring views equally with men. Example: Denmark, Sweden
Individualism
Refers to the tendency of people to look after themselves and their immediate families with less emphasis on the needs of society. Democracy, individual initiative, and achievement are highly valued. Example: New Zealand, USA
80) Proxemics deals with the influence of space on communication—both personal space and office space or layout.
TRUE
Enforcing an agreement
Researchers have made a number of observations - • 1) Americans prefer formal contracts in which everything is within the four corners of the document. • 2) Russians generally use contracts but often renege on terms that are within the four corners of the document. • 3) The Japanese are not fond of contracts. Agreements are about trust not legal provisions.
Incentives decrease ____ and increase ______
Risk; Profits
Sedona Inc. is an American firm that manufactures high-quality handbags, duffel bags, and leather belts at its facility in Arizona. Sedona's products have been featured in various fashion magazines and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a global functional structure?
Sedona serves a narrow spectrum of customers and has a product line that uses similar technology.
Communitarianism
Sees humans as part of a group, traditionally linked to Eastern societies (e.g. Japan)
Importance of Convergence in management
Shifting management style/approach to suit the cultural environment is important for responsiveness from local employees. It is important for international managers as it allows them to affectively manage within a different cultural environment and account for any cultural differences
72) Anything that serves to undermine the communication of the intended meaning is typically referred to as noise.
TRUE
73) Cultural noise is the cultural variables that undermine the communication of intended meaning.
TRUE
76) Stereotyping occurs when a person assumes that every member of a society or subculture has the same characteristics or traits.
TRUE
78) The term kinesic behavior refers to communication through body movements—posture, gestures, facial expressions, and eye contact.
TRUE
Acculturation:
The process of adjusting and adapting to a culture other than one's own; commonly experienced by expatriate workers
________ is described by Miles et al. as a collaborative, multi-firm network along with community-based structures, used by innovative firms such as Taiwan's Acer.
The I-form
Environmental assessment
The process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm
Environmental scanning
The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest.
Socialization:
The process of learning the rules and behavioral patterns appropriate to one's society
thought patterns
The logical progression of reasoning varies widely across cultures. Managers cannot assume others use the same reasoning processes. The text provides an example of a Canadian who misunderstood the meaning of double lines on the road in Thailand. He automatically assumed the lines meant "no passing"—just as they do in Canada.
Firm strategy, structure, and rivalry
The pattern of strategy, structure and rivalry among firms; includes factors such as common technical training, methodological product and process improvement, and cooperative or competitive systems. The conditions governing how companies are created, organised, and managed, and the nature of domestic rivalry; varies greatly from country to country
Arabs avoid open admission of error at all costs because weakness is a failure to be manly. True or False?
True
careful encoding
Ways to avoid problems are to speak slowly and clearly, avoid long sentences and colloquial expressions, and explain things in several ways and through several media if possible.
Barton & Green is an MNC based in the U.S. that makes a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to TMC Enterprises, a firm in India?
What is the financial health of TMC Enterprises?
What is benchmarking and why is it a strategically important analytical tool?
When a company compares how different companies perform various value chain activities and making cross comparisons of costs and effectiveness of these activities. Identifies best practices. EXAMPLE: Southwest reduced the turnaround times of its aircrafts at each schedules stop by studying pit crews on the auto-racing circuit. Important because gives you a competitive advantage
Assume a firm is at a cost disadvantage with rivals because its internal costs are higher than rivals. Identify strategic moves that it can make to restore cost parity
a. Implement the use of best practices through the company, particularly for activities that are important for creating customer value b. Adopt best practices for marketing, branch management, and customer relationship management to improve brand image and customer loyalty Reallocate resources to activities having a significant impact on value delivered to customers such as larger R&D budgets and enhanced budgets for marketing campaigns
What are the remedies for an internal cost disadvantage?
a. Implement the use of best practices: throughout the company, especially high-cost activities b. Eliminate cost-producing activities: by revamping the value chain c. Relocate high-cost activities (such as manufacturing): to areas like china where they can be performed more cheaply d. Outsource certain internally performed activities to vendors if it can perform them more cheaply than in house e. Invest in productivity-enhancing, cost-saving technological improvements f. Find ways to detour around activities where costs are high g. Redesign the product h. Make up the internal cost disadvantage by reducing costs in the supplier or forward channel portions
How does Toyota prepare its executives to enter the leadership at the company?
a. It sends them to the Toyota Institute
What are Porter's generic strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving
a. Low-cost provider strategy: lower cost than rivals i. Competitive Advantage: appeal to a broad spectrum of customers b. Broad differentiation strategy: offer unique products i. CA: appeal to a broad spectrum of buyers c. Focused low-cost strategy: concentrate on a narrow buyer market (niche) and outcompeting rivals by having a lower cost. i. CA: serving niche members at a lower price d. Focused differentiation strategy: concentrate on a narrow buyer market (niche) and outcompeting rivals i. CA: outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals' products e. Best-cost provider strategy: giving customers more value for their money i. CA: satisfying buyers' expectations on key quality / features / performance / service attributes while beating their price expectations
What are the distinctive features of a low-cost leadership strategy?
a. Price competition among rival sellers is especially vigorous b. The products of rival sellers are essentially identical and are readily available c. There are few ways to achieve product differentiation that have value to buyers d. Buyers incur low costs in switching their purchases from one seller to another e. The majority of industry sales made to a few, large-volume buyers f. Industry newcomers use introductory low prices to attract buyers and build a customer base
Explain the difference between primary activities and support activities
a. Primary: activities that are foremost in creating value for customers b. Support: activities that facilitate and enhance the performance of the primary activities. EXAMPLE: the primary activities and cost drivers for a big-box retailer such as Target include merchandise selection and buying, store layout and product display, advertising, and customer service; its support activities that affect customer value include site selection, hiring and training, store maintenance
The _____ leader is someone who is, for example, a visionary, an inspiration to subordinates, and performance-oriented
charismatic
The European view of information privacy most likely stems from its ________.
culture and history
1. Which of the following are components of developing an international cadre?
d. all of the above - preparation - adaptation - repatriation
1. Which of the following are examples of the irritation and hostility stage of culture shock?
d. all of the above: - homesickness - disorientation - lashing out
1. Which of the following is a disadvantage of an ethnocentric staffing approach?
d. all of the above: - lack of opportunities for advancement for local staff - poor adaptation and effectiveness of expatriates in foreign countries - lack of access to worldwide pool of managerial talent
1. Most MNCs, with time, move to a polycentric or regiocentric staffing approach because _____.
d. all of the above: - local governments put pressure to hire local nationals - there is greater cost to hiring expatriates - local managers have increased their level of managerial and technical competence
1. Which of the following is/are (a) training technique(s) classified by Tung?
d. all of the above: - sensitivity training - cultural assimilator - field experiences
Which of the following is a part of the rational decision-making process?
gathering and analyzing relevant data
Non-task sounding
general, polite conversation and informal communication before meetings
nontask sounding
general, polite conversation and informal communication before meetings—while all parties get to know one another.
National culture
generalizes across groups living within a nation (e.g., British culture consists of English, Scottish, and Welsh influences)
Clustering
geographic concentrations of related, interdependent companies within an industry that use the same suppliers, labor, and distribution channels. Done as a way to increase efficiencies and lower costs
1. The most difficult challenge for women working overseas seems to be _____.
getting the overseas assignment in the first place
In which of the following is a firm's foreign operations integrated into the activities and responsibilities of each department to gain operative specialization and economies of scale?
global functional structure
Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?
global geographic structure
Effective _____ involves the ability to inspire and influence the thinking, attitudes, and behavior of people anywhere in the world
global leadership
For sharing resources and managing the transnational transfer of knowledge, it is essential for MNCs to maximize their human assets in the form of ________ teams.
global management
The term ________ describes a collection of managers in or from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement.
global management team
1. The term _____ describes collections of managers from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement.
global management teams
A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________.
globalization
Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
globalization and localization
Mexico, Saudi Arabia, and China value in relationships?
personal commitments to individuals, rather than to the legal system, form the basis for the enforcement of contracts.
organizational culture
represents those expectations, norms, and goals held in common by members of that group.
Which of the following is the most likely reason for falling union membership in industrialized countries?
rising proportion of temporary and part-time workers
1. In _____, collective bargaining takes place between a local labor union and management.
the U.S. and Canada
1. Premature return of expatriates or the unwillingness of managers to take overseas assignments is often due to _____.
the assignment being detrimental to them financially and to their career progression
The content of leadership comprises
the attributes of the leader and the decisions to be made
Strategy
the basic means by which a company competes; the choice of business or businesses in which it operates and how it differentiates itself from its competitors in those businesses
The reasons for the different opportunities for women among various countries can often be traced to ________.
the cultural expectations of the host countries
cultural noise
the cultural variables that undermine the communication of intended meaning—will enable us to take steps to minimize that noise and so improve communication
work centrality
the degree of general importance that working has in the life of an individual at any given point in time.
Europe, collective bargaining takes place between
the employer's organization and a trade union at the industry level
Internal sources of information are preferred because
the information is up-to-date and relevant to the firm. Also, it helps eliminate unreliable information from secondary sources that may be misleading, tampered with for propaganda purposes, or restricted.
Related and supporting industries
the presence, absence, and quality in the nation of supplier industries and other related industries that supply services, support, or technology to firms in the industry value chain
In spite of the potential problems with local partners, many firms rush the process of partner selection because ________.
they are anxious to get into an attractive market
1. Chinese recruits at Starbucks have stated that_______.
they are looking for training opportunities and to advance in a global company
To reconcile accounting statements, MNCs usually require ________ different sets of financial statements from subsidiaries.
three
1. Which of the following is not one of the four personal development strategies (four "t's") through which companies and managers can meet the requirements of effective global leadership?
through technology
Polycentric Orientation
when the culture of the country in which the strategy is to be implemented is allowed to dominate a company's international decision-making process
Leader with global mindset must have what qualities?
• "Intellectual capital: the general knowledge and capacity to learn, including global business savvy • Psychological capital: the openness to differences and capacity to change, such as a thirst for adventure • Social capital: the ability to build trusting relationships with and among people who are different from you, including intercultural empathy and diplomacy"
Useful guidelines for effective communication in Middle East
• Be patient. Recognize the Arab attitude toward time and hospitality—take time to develop friendship and trust because these are prerequisites for any social or business transactions. • Recognize that people and relationships matter more to Arabs than the job, company, or ¬contract—conduct business personally, not by correspondence or telephone. • Avoid expressing doubts or criticism when others are present—recognize the importance of honor and dignity to Arabs. • Adapt to the norms of body language, flowery speech, and circuitous verbal patterns in the Middle East and don't be impatient to get to the point. • Expect many interruptions in meetings, delays in schedules, and changes in plans
negotiating styles in China
• Beijing (capital) "Political, bureaucratic, educated, diversified, high relationship orientation, more direct, high 'face.'"41 • Shanghai (commercial center) "Business savvy, focus on details, bottom line, career-¬oriented younger people, materialistic, confident."42 • Guangzhou/Shenzhen (south, near Hong Kong) "Entrepreneurial, hard-working, manufacturing center, outside the norm, more risk-taking, like Hong Kong, more informal."43 • Western China (Chengdu/Chongqing) "Traditional 'People's' mentality, less experience with international business/negotiations, socializing importance.
John Child suggests the following guidelines for cultivating trust:
• Create a clear and calculated basis for mutual benefit. There must be realistic commitments and good intentions to honor them. • Improve predictability: Strive to resolve conflicts and keep communication open. • Develop mutual bonding through regular socializing and friendly contact
general recommendations the researchers make for improving global teamwork.
• Cultivate a culture of trust; one way to do this is by scheduling face-to-face meetings early on, even if later meetings will be virtual. • Rotate meeting locations; this develops global exposure for all team members and -legitimizes each person's position. • Rotate and diffuse team leadership. • Link rewards to team performance. • Build social networks among managers from different countries
five types of knowledge gained abroad Berthoin discusses
• Knowledge about what (such as differences in customer preferences) • Knowledge about why (e.g., understanding how cultural differences affect cross-cultural understanding) • Knowledge about how (e.g., management skills such as delegating responsibilities) • Knowledge about when (e.g., knowledge about the effect of timing) • Knowledge about who (e.g., relationships created over the life of an assignment
10. What are the common criticisms of MNC subsidiary activities?
• MNCs locally raise their needed capital, contributing to a rise in interest rates in host countries. • The majority of the stock of subsidiaries is owned by the parent company. Host-country people have little control over the operations within their borders. • MNCs reserve the key managerial and technical positions for expatriates, instead of developing host-country personnel.
acquired skills from expatriates
• Managerial skills, not technical skills: Learning how to deal with a wide range of -people, to adapt to their cultures through compromise, and not to be a dictator • Tolerance for ambiguity: Making decisions with less information and more uncertainty about the process and the outcome • Multiple perspectives: Learning to understand situations from the perspective of local employees and businesspeople • Ability to work with and manage others: Learning patience and tolerance—realizing that managers abroad are in the minority among local people; learning to communicate more with others and empathize with them
Theories of motivation
• Maslow's hierarchy of needs, once one is achieved you more onto the next (western ideas) • Hertzberg's two factor theory - job satisfaction (motivating) and job dissatisfaction (hygiene) • McClelland - people have three needs. Achievement, Affiliation, Power - Most theories are based off western culture - Most process theories are more complementary with cultural values/ cross-cultural differences
IHR managers and others must develop and maintain. in particular it is essential for them to
• Maximize long-term retention and benefits of an international cadre through career management so that the company can develop a top management team with global experience. • Develop effective global management teams. • Understand, value, and promote the role of women in international management to -maximize those underused resources. • Work with the host-country labor relations system to effect strategic implementation and employee productivity.
Concept of work ethic
• Protestant work ethic - consistent with western civilisation. Grounded in protestant ethics and capitalism • Confucian work ethic - representative by eastern societies - sense of fulfilment - drive to perform/ compete. Whilst following instructions, understanding your place in society, respect/ willingness to serve. Workplace behaviour
How to be a better sender?
• Read a map Familiarize yourself with the local geography to avoid making insulting mistakes. • Dress up In some countries, casual dress is a sign of disrespect. • Talk small Talking about wealth, power, or status—corporate or personal—can create resentment. • No slang Even casual profanity is unacceptable. • Slow down Americans talk fast, eat fast, move fast, live fast. Many cultures do not. • Listen as much as you talk Ask people you're visiting about themselves and their way of life. • Speak lower and slower A loud voice is often perceived as bragging. • Religious restraint In many countries, religion is not a subject for public discussion. • Political restraint Steer clear of this subject. If someone is attacking U.S. politicians or policies, agree to disagree
Behaviors that researchers indicate to be most important to intercultural communication effectiveness (ICE) are listed here, as reviewed by Ruben.
• Respect (conveyed through eye contact, body posture, voice tone, and pitch) • Interaction posture (the ability to respond to others in a descriptive, nonevaluative, and nonjudgmental way) • Orientation to knowledge (recognizing that one's knowledge, perception, and beliefs are valid only for oneself and not for everyone else) • Empathy • Interaction management • Tolerance for ambiguity • Other-oriented role behavior (one's capacity to be flexible and adopt different roles for the sake of greater group cohesion and group communication)
tips for negotiating in china
• Some time before the trip, establish a contact in China who will act as a reference; be your interpreter; and navigate you through the bureaucracy, legal system, and local business networks. • Be very prepared before doing business in China. The Chinese plan meticulously and will know your business, and possibly you, inside out. • Send some literature about your company in advance and convey a set agenda before each meeting. Be punctual, or you will insult them before you start; begin with small, polite social talk but avoid politics. • Expect initial meetings to involve long, convoluted discussions that are really intended to get to know one another, establish trust, and find out the actual goals of your team. • The Chinese are not confrontational and will not say "no." You will need to be observant and recognize that perhaps those items are not negotiable. • Practice patience. Introducing delays and obstacles is a Chinese negotiating tactic. They will wait until the deadline has passed and demand another concession, knowing that the Westerners are focused on their deadline for departure, so let them know your schedule is open and keep calm. • Expect prolonged periods of stalemate; hang loose and don't say anything about the point in question. Try to change the momentum by, say, suggesting going to dinner. • Refrain from exaggerated expectations and discount Chinese rhetoric about future prospects. • Remember at all times to save face for everyone and keep in mind the importance of trust and guanxi in negotiations.
5. concessions and agreement
• Starting with extremes may be most effective • Russians and Chinese with extreme positions • Swede start with what they will accept Importance of contracts
italian negotiators
• They are dramatic, do not hide emotions, and use and read nonverbal gestures - typical of the Italian culture. • They use flattery in negotiation communications and - always mindful of creating a good impression (the bella figura) - are helpful and simpatico to keep up their reputation. • They are tactful in handling confrontations and tend not to be opinionated, but they also are creative in finding ways to come out ahead of the opponents in negotiations.
american negotiators
• They are respectful, courteous, and honest in negotiations but operate from a firm stand from the beginning, without revealing the options that are open to negotiation. • They are generally well-versed in the issues at hand and how to time the interactions and so wait for the other party to make the first move in negotiating. • They are explicit about their position and will only reveal their compromises when negotiations have come to a stalemate.
arab negotiators
• They possess a level of respect, trust, and prestige to be able to be a mediator. • They maintain 'face' for all the parties by respecting their dignity, minimizing confllicts among opponents, and avoiding situations which would make any party feel inferior. • They use persuasive techniques such as referring to other respected people and what those people would want, and use conferences to mediate issues. • They retain their impartiality and look for honorable solutions for all parties.
Like between motivation and leadership
• Type of motivation, and type of leadership • Leadership focuses on goals and motivating employees - Management focuses on the context and tasks at hand - Both are trying to accomplish a goal Leaders can motivate by being a role model
successful relationship with expatriates
• Visible signs that the company values international experience • Career planning sessions • Communications with home office of details of the repatriation process • Continuous communications with the home office • Agreement about position upon repatriation
