understanding management-chapter 3

Globalization
refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries.
Belgium, Austria, the Netherlands, Switzerland, and Sweden.
The most globalized countries according to one ranking are
Four Stages of Globalization
1. Domestic 2. International 3. Multinational 4. Global
Exporting is also called
a market entry strategy
Global outsourcing
sometimes called offshoring, means engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country.
countertrade
the barter/ exchange of products for other products rather than the sale of products for currency.
china
strong in manufacturing
india
major provider of services
International management
means the management of business operations conducted in more than one country
the sociocultural environment
social values, beliefs
language
religion, (holidays, taboos)
kinship patterns–family
formal education, literacy
time orientation
key factors of international environment
economic,
legal political
sociocultural
Ethnocentrism
natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values, can be found in all countries.
Cultural intelligence (CQ)
refers to a person’s ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately.
culture shock
feelings of confusion, disorientation, and anxiety that result from being constantly confronted with unfamiliar cues about how to behave.
North American Free Trade Agreement (NAFTA)
went into effect on January 1, 1994, merged the United States, Canada, and Mexico into a single market. Intended to spur growth and investment, increase exports, and expand jobs in all three nations
China-ASEAN Free Trade Area
member countries by 2015, with China, Indonesia, Thailand, the Philippines, Malaysia, Singapore, and Brunei
The bottom of the pyramid (BOP) concept
proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world’s poor