Global Business - Test 2

0.0(0) Reviews
Report Flashcard set

Spaced Repetition

spaced repetition





Practice Test



83 Terms
😃 Not studied yet (83)
Corporate Governance
The system of procedures and processes by which corporations are managed, directed and controlled.
meeting humanity's needs without harming the ability of future generations to meet their needs
Those who believe ethical truths are differ from group to group
The belief that ethical truths are universal and consistent
the abuse of power to achieve illegitimate or personal gain
In countries with minimal corruption
financial and accounting information is transparent
Corporate Social Responsibility
Operating a business to meet or exceed the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities.
A system of moral principles / rules regarding right and wrong
intellectual property
refers to ideas or works created by individuals or firms
intellectual property rights
are the legal claim through which proprietary assets are protected from unauthorized use by other parties, via trademarks, copyrights, and patents.
4 risk of international business
Cross-Cultural Risk Commercial Risk Country Currency
The learned, shared, and enduring orientation patterns in a society.
cross-cultural risk
A situation or event where a cultural miscommunication puts some human value at stake. It arises in environments characterized by unfamiliar languages and unique value systems, beliefs, and behaviors
The process of learning the rules and behavioral patterns appropriate to one's society
What can culture be described like
An iceberg
each person emphasizes his or her own self-interest
ties among individuals are important
generalizations that may or may not be factual, often overlooking real, deeper differences
Low context cultures
rely on explicit explanations, with emphasis on spoken words. Direct Communication
High Context Cultures
emphasize nonverbal or indirect language. Communication aims to promote smooth, harmonious relationships
How many dimensions are in Hofstede’s Typology
represent a person’s judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal
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.
focused on time schedules punctuality
A flexible, non-linear orientation to time in which the individual takes a long-term perspective; time is elastic, long delays are tolerated before taking action.
A system of common beliefs or attitudes regarding a being or system of thought that people consider sacred, divine, or the highest truth; and the associated moral values, traditions, and rituals
Ethnocentric Orientation
Using our own culture as the standard for judging other cultures
Polycentric Orientation
A mindset in which the manager develops a greater affinity for the country in which he or she works for than the home country
Geocentric Orientation
A global mindset in which the manager is able to understand a business or market without regard to national boundaries
The process of learning the rules and behavioral patterns appropriate to one's society
The process of adjusting and adapting to a culture other than one's own; commonly experienced by expatriate workers
Power Distance
describes how a society deals with inequalities in power that exist among people
Uncertainty Avoidance
refers to the extent to which people can tolerate risk and uncertainty in their lives
Masculine Culture
cultures value competitiveness, ambition, assertiveness, and the accumulation of wealth.
Feminine Cultures
nurturing roles, interdependence among people, and caring for less fortunate people – for both men and women
Long-term orientation
emphasizes the long view in planning and living, focusing on years and decades.
Short Term Orientation
Want Gratification now
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.
Self Reference Criterion
The tendency to view other cultures through the lens of one's own culture- understanding this is the first step
refers to offering giving receiving or soliciting anything of value to influence the actions of an government official or corporate manager
the process of reproducing assets without compensating those who originally created them is known as
Group of people who collaborate on related tasks toward a common goal
involves shared responsibility and collaboration toward a common outcome/ cooperative effort of a group of people seeking a common end
Teamwork Process
Transition Process Action Process Interpersonal Process
5 Characteristics of effective teamwork
Shared Values Mutual Trust Inspiring Vision Skills Rewards
Conflict Resolution
Working to resolve different opinions in an team environment
Friction, disagreement or discord arising between individuals or groups
Cross Function Teams
combine people with different areas of expertise from separate departments such as finance, human resources, and marketing. / Group of people from different dep in an org working towards a common goal
Consisting of many different elements variously
The extent to which a resource such as electricity is used for the intended purpose the ratio of useful work energy expended
6 types of virtual teams
networked teams parallel teams project development teams functional teams service teams offshore information-systems development teams.
uncomfortable with challenging others in a group
predicts the future
Asses the current state of business
Key Performance Indicators (KPI)
Values that measure your organizational success at meeting its objectives
KPI's provide insight into
Predictability, Early return on investment, Product quantity and etc
Knowledge applied
Data that has been cleaned
Data only applies to quantitative data
Data is best described as raw material
A good data visualization tool
What can create many challenges
International Business
Performance of trade and investment activities by firms across national borders
Development of IB
Existed for some centuries
International Investment
Transfer of assets to another country or the acquisition of assets in that country
Cross Border Purchase of Stocks
Not example of an FDI
Total value of products and services
Cost of Production
Not an example of cross cultural factors
Currency Risk
Fluctuating exchange rates
Focal Firms
Business that starts business transitions
Last decisions
Deciding how to best attack competitors
Visionary Leaders open a firm in India. What should they do 1st
Acquire managers with international mindset showing an openness
firms that emphasize global integration
Products that require minimal adaptation
Firm compelled to seek global integration should
Capitalize on converging customer trends and universal needs
Decentralized Approach
Substantial control over country operations
Product Structure
Management of international operations is organized by major product line
The disadvantage of Geographic Areas structures
Potential lack of global orientations for developing and managing products
Gradual Elimination
the firm starts with numerous prospective target countries and narrows the choices by examining increasingly specific information.
Market Potential Indications Index
Urban Population and electricity consumption
company planning to internationalize should
develop a 3 to 5 year forecast of industry sales
Company sales potential
estimate of the shares of annual industry sales the firm expects to generate in a particular target market
test marketing
Gauge long term sales potential w/o fully committing
global market opportunity
A favorable combination of circumstances, locations, or timing that offer prospects for exporting, investing, sourcing, or partnering in foreign markets