MGMT4613 Final (Aime)

Code of Ethics

what is a company's formal statement of ethical priorities?

Trademarks

design and names by which merchants or manufacturers designate and differentiate their products

Arbitrage

exploits differences in labor costs, tax regimes, and other factors between national and regional markets

CPI (Corruption Perception Index)

A country's _______ score indicated the degree of public sector corruption as perceived by business people and country analyst, and ranges between 10 and 0

Market Economic System

In which type of economic system are all productive activities privately owned

Globalization

the shift toward a more integrated and interdependent world economy

Globalization of Markets

the merging of historically distinct and separate national markets into one huge global marketplace

Large

Firms that are involved in global business tend to be____

True

(T/F) the first step in a high-pressure situation that's outside your cultural comfort zone is to understand the code and the rules of the game

Collectivism

A political system that stresses the primacy of collective goals over individual goals

Totalitarianism

A form of government in which one person or political party exercise complete control over all human life and prohibits opposing political parties

Theocratic Totalitarianism

where political power is monopolized by a party according to religious principles

Market Economy

a type of economic system in which production of goods and services are privately owned

Common Law

based on tradition, precedent, and custom

Norway

one of the least corrupt countries

Values

abstract ideas about what a group believes to be good, right, and desirable

Low managerial mobility

not a characteristic of individualism

power distance

Focuses on how society deals with the facts that people are unequal in physical and intellectual capabilities

Trade regulations

an area where multinational firms are NOT concerned about ethics

National culture

All the following except____ contribute to unethical behavior by international managers

Right theories

recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures

Characteristics of a competent team leader

High level of cultural flexibility, robust ambiguity tolerance

Deliberate moments for meeting virtually

Feedback in routine interactions, unstructured time and time to disagree are_____

False

(T/F) emails and certain social media formats are always the best way of communication for multicultural teams

exchange rate

The rate at which one currency is converted into another

A country's arbitrage opportunities

does not impact future exchange rate movements

Multilingual

A ____ approach could increase a company's chances of finding new markets

global standardization strategy

makes sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal

False

(T/F) Exporting is NOT a common first step in the international expansion process for many manufacturing firms

True

(T/F) first mover disadvantages are disadvantages associated with entering a foreign market before other international business

Greenfield market expansion

it's goal is to use the firms operational skills to establish a market-leading position in a region of long term interest

Drivers of Globalization

1. Declining trade and investment barriers

2. Technological change

Culture

Expresses goals through values and beliefs and guided activity through shares assumptions and group norms

False

(T/F) culture refers to the customs of people, or other social groups through shares assumptions and norms

political system

system of government in a nation

political economy

the political, economic, and legal systems of a country

1) the degree to which they emphasize collectivism vs individualism

2) the degree to which they emphasize democratic or totalitarian

You asses political systems by two dimensions:

Collectivism

A political system that stresses the primacy of collective goals over individual goals

Communism

A theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state.

Social democrats

those committed to achieving socialism by democratic means

Individualism

The philosophy that an individual should have freedom in his own economic and political pursuits

Democracy

A political system in which the supreme power lies in a body of citizens who can elect people to represent them

Communist Totalitarianism

found in states where the communist party monopolizes power

Tribal Totalitarianism

found in states where a political party that represents the interests of a particular tribe monopolizes power

Right-Wing Totalitarianism

permits some individual economic freedom, but restricts individual political freedom

market economy

Economic decisions are made by individuals or the open market.

command economy

An economic system in which the government controls a country's economy.

mixed economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.

Civic Law

based on detailed set of laws organized into codes

Theocratic Law

law is based on religious teachings

property rights

the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it

intellectual property

property that is the product of intellectual activity

Norms

social rules and guidelines that prescribe appropriate behavior in particular situations

Values

the ideas, beliefs, and attitudes about what is important that help guide the way you live

social structure

a society's basic social organizations

Rule-centered societies

Feel that general rules should have global application and that all comers should compete on a level playing field

Relationship-centered countries

value bonds with family and friends above abstract rules

language

The spoken and unspoken means of communication

uncertainty avoidance

measures the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguity

Confucian Dynamism

captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors

Ethics

accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization

Ethical Strategy

a course of action that does not violate a company's business ethics

Ethical Obligations

Covenants that define a moral course of action and draw a line between right and wrong.

ethical dilemma

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

Personal Ethics

the generally accepted principles of right and wrong governing the conduct of individuals

Right Theories

recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures

organizational culture

the values, beliefs, and attitudes shared by organizational members

Moral Courage

the will to stand up for what is right, regardless of personal cost

Purchasing Power Parity (PPP)

The amount of money needed in one country to purchase the same goods and services in another country

English-ization

Term used to describe the transformation which takes place in non-English cultures and languages as a result of exposure to the English language

Profit Growth

the percentage increase in net profits over time

Exporting

selling domestically produced products to buyers in other countries

turnkey project

A project in which a firm agrees to set up an operating plant for a foreign client and hand over the "key" when the plant is fully operational.

Licensing

selling the right to use some process, trademark, patent, or other right for a fee or royalty

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

joint venture

an agreement between two or more companies to share a business project

wholly owned subsidiary

a fully operational, independent entity that a firm sets up in a foreign country to conduct business in that market

Industry category: workhorses

Small companies sell to domestic customers and compete with one another using a normal business strategy seeking competitive advantage through product differentiation, operational efficiency, marketing, and HR development.

Industry category: cluster builders

Companies compete with one another in export business as often as supply chain partners large foreign corporations serving developed markets

Industry category: powerbrokers

Serve the domestic market and operate in industries where political influence has a big role

Industry category: rentiers

Export oriented companies but their terms of their operation, including taxes, royalties, and other obligations are spelled out in contracts with the government

Product redesign

The company could enhance the product to meet additional needs and boost the overall value proposition. The goal is to capture greater market share

Distribution extension

Harness existing non traditional channels that could quickly reach possible consumers

new channel creation

Build a parallel distribution and sales channel that can penetrate hard-to-reach rural areas

New products development

Goal is to create a competitive advantage by designing a product to be affordable and robust

Conquest of competitor's market

Objective is to use company's economies of scale to outstrip local competitors and capture the market share

New business model development

The goal is to establish first-moved advantage in a large, latent market by scouting and securing choice assets and limited partnerships

New market creation

The objective is to nurture the creation of a new market intimately tied to the firm, placing the company's brand in a powerful position

Four dimensions of culture

Power distance, individualism vs collectivism, uncertainty avoidance, masculinity vs femininity