Principles of Management- 6th edition Kinicki + Williams

Globalization:
the trend of the world economy toward becoming a more interdependent system
Global village:
refers to the “shrinking” of time and space(distance) as air travel and the electronic media have made it easier for the people around the globe to communicate with one another
E-commerce/electronic commerce:
the buying and selling of products and services through computer networks
Global economy:
refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets
Multinational corporation:
is a business firm with operations in several countries
Multinational organization:
is a nonprofit organization with operations in several countries
Ethnocentric managers or parochialism:
believe that their native country, culture, language, and behavior are superior to all other
Parochialism:
a narrow view in which people see things solely through their own perspective
Polycentric managers:
take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
Geocentric managers:
accept that there are differences and similarities between home anf foreign practice
Why do companies expand internationally:
1- Availability of supplies
2- New markets
3- Lower Labor costs
4- Access to finance capital
5- Avoidance of Tariff & Import Quotas