International Management and Global Business Vocabulary

A comprehensive vocabulary list covering international business management terms, entry strategies, and ethical considerations.

Globalization

The process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.

International management

The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments.

Multinational corporation (MNC)

A firm that has operations in more than one country, with a decentralized management system and a strong presence in foreign markets.

Transnational organization

An organization that operates worldwide without being identified with a single home country, maintaining a global presence and approach.

Headquarters

The main administrative center and location of the central branch or primary offices of an international organization.

Subsidiary

A company that is completely or partly owned and controlled by another company, often located in a foreign or host country.

Home country

The country in which the headquarters of a multinational corporation is located.

Host country

A nation in which a subsidiary or facility of a foreign multinational corporation is located and operates.

Third country

A country other than the home or host country that may provide resources, such as labor or materials, to an international organization.

Cross-border

Activities, operations, or movements that occur across the boundaries between two or more countries.

Competitive advantage

The unique set of features, benefits, or attributes that allows a company to outperform its international and domestic competitors.

Market expansion

The strategic process of increasing the reach of a business by entering new foreign or overseas markets.

Exchange rate

The value of one nation's currency for the purpose of conversion to another, which is subject to currency fluctuation.

Trade barrier

A government-imposed restraint on the flow of international goods or services, such as tariffs or quotas.

Trade agreement

A formal treaty or pact between two or more nations to regulate trade and reduce barriers.

Expatriate

An employee who is sent by their company to work and live in a foreign country for a period of time.

Host-country national

An employee who is a citizen of the country where a foreign subsidiary is located.

Third-country national

An employee who is not a citizen of the home country or the host country, but is working for the organization.

Cultural adaptation

The process of adjusting one's behavior and expectations to fit the cultural values and local customs of a host country.

Licensing

A business arrangement where a company grants another firm the right to use its intellectual property or produce its products for a fee.

Franchising

A system in which a company (franchisor) grants an individual or group (franchisee) the right to run a business using their brand and system.

Joint venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project abroad.

Strategic alliance

An agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Foreign direct investment (FDI)

An investment made by a firm or individual in one country into business interests located in another country, often involving building a factory.

Strategic planning

The managerial process of developing and maintaining a strategic fit between the organization's goals and its changing global environment.

Resource allocation

The distribution of an organization's assets and workforce across various departments or international subsidiaries to meet objectives.

Social responsibility

The obligation of a business to act in ways that benefit or protect the interests of society and the local community.

Ethical dilemma

A complex situation that involves a mental conflict between moral imperatives, where following one would result in transgressing another.

Code of conduct

A set of rules outlining the social norms, religious rules, and responsibilities of, or proper practices for, an individual, party, or organization.

Performance evaluation

The systematic assessment of an employee's or subsidiary's work relative to established organizational objectives.