Management-Leading & Collaborating in a Competitive World–Chapter 6

Culture Shock
The disorientation and stress associated with being in a foreign environment.
Ethnocentrism
The tendency to judge others by the standards of one’s group or culture, which are seen as superior.
Expatriates
Parent-company nationals who are sent to work at a foreign subsidiary.
Failure Rate
The number of expatriate managers of an overseas operation who come home early.
Global Model
An organizational model consisting of a company’s overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations; typically adopted by organizations that base their global competitive strategy on cost considerations.
Host-Country Nationals
Natives of the country where an overseas subsidiary is located.
Inpatriate
A foreign national brought in to work at the parent company.
International Model
An organizational model that is composed or a company’s overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model.
Multinational Model
An organizational model that consists of the subsidiaries in each country in which a company does business, with ultimate control exercised by the parent company.
North American Free Trade Agreement (NAFTA)
A economic pact that combined the economies of United States, Canada, and Mexico into one of the World’s largest trading blocs
Off-Shoring
Moving work to other countries.
Outsourcing
Contracting with an outside provider to produce one or more of an organization’s goods or services.
Third-Country Nationals
Natives of a country other than the home country or the host country of an overseas subsidiary.
Transnational Model
An organizational model characterized by centralizing certain functions in locations that best achieve cost economies; basing other functions in the company’s national subsidiaries to facilitate greater local responsiveness and fostering communication among subsidiaries to permit transfer to technological expertise and skills.