IBC Midterm

What is internationalization?

A company's progressive increase in international business operations.

Why do companies internationalize?

Increase sales, gain resources and knowledge, and reduce risk.

What are the 3 internationalization stages?

Pre-involvement, initial/low involvement, advanced/high involvement.

What happens in pre-involvement?

The company researches markets and designs its international strategy.

What happens in initial/low involvement?

The company conducts occasional international business activities.

What happens in advanced/high involvement?

The company conducts intense, regular international activities.

What decisions come before internationalization?

Why expand, where to expand, partner selection, staffing, and funding.

What is Hall's cultural model about?

How communication and relationships differ between high- and low-context cultures.

What defines high-context communication?

Implicit messages, personal relationships, loyalty, and shared context.

What defines low-context communication?

Explicit messages, less reliance on personal ties, and formal contracts.

How do contracts differ by context?

High-context: flexible oral agreements. Low-context: rigid legal contracts.

Why does culture influence communication?

It shapes how people interpret messages, relationships, and behavior.

What is psychological distance?

Cultural, linguistic, and political differences that hinder communication.

What is cultural awareness?

Recognizing cultural influences and avoiding stereotypes.

What is cultural intelligence (CQ)?

The ability to adapt and respond effectively in new cultural contexts.

What is nonverbal communication?

Communicating without words, through gestures, expressions, posture, or silence.

Why does nonverbal communication matter internationally?

The same gesture or behavior can have different cultural meanings.

What is chronemics?

How perceptions and uses of time affect communication.

How can different time perceptions cause problems?

Different expectations about punctuality, waiting, and schedules create misunderstandings.

What are the 7 Cs of business communication?

Clear, concise, concrete, correct, coherent, complete, courteous.

What does clear communication mean?

A message that is easy to understand.

What does concise communication mean?

Using only the words needed to express the message.

What does concrete communication mean?

Giving specific, definite information rather than vague statements.

What does correct communication mean?

Providing accurate information and appropriate language.

What does coherent communication mean?

Organizing ideas logically so they make sense together.

What does complete communication mean?

Including all information the recipient needs.

What does courteous communication mean?

Communicating respectfully and politely.

Which C could you argue is most important?

Clarity, because unclear messages can create misunderstandings in international business.

What are 5 main communication barriers?

Formality, dialogue structure, implicit messages, nonverbal cues, and dialogue approaches.

How can formality become a barrier?

Different expectations of politeness and hierarchy can cause offense.

How can dialogue structure become a barrier?

Different turn-taking and interruption norms can create misunderstandings.

How can implicit messages become a barrier?

Listeners may miss meanings that are not stated directly.

How can nonverbal behavior become a barrier?

Gestures, silence, and body language may be interpreted differently.

What characterizes Anglo-Saxon negotiation?

Organized dialogue with regular turn-taking and some interruptions.

What characterizes Mediterranean negotiation?

Simultaneous speech, interruptions, and changing tones.

What characterizes Oriental negotiation in the slides?

Measured, deliberate dialogue, harmonious turns, and reflective silence.

What is the goal of business ethics?

Building trust between businesses through appropriate behavior.

What is a code of ethics?

A set of behavioral rules guiding business conduct.

Are business ethics identical worldwide?

No. Standards can vary across countries and legal systems.

What are three risky dialogue approaches?

Haste, aggressiveness, and playing with verbal or nonverbal language.