Globalization and Management Concepts - Video Notes

Flashcards cover key terms and definitions related to globalization, global organization types, and ethics in management as presented in the notes.

Global village

A boundaryless world where goods and services are produced and marketed worldwide, with geographic borders having little practical impact.

Globalization

The process by which industries and businesses operate across borders, influenced by global forces such as laws, supply chains, competition, and labor markets.

Global sourcing (global outsourcing)

Purchasing materials or labor from around the world wherever it is cheapest to gain a competitive advantage.

Exporting

Making products domestically and selling them abroad.

Importing

Acquiring products made abroad and selling them domestically.

Licensing

Giving another organization the right to use your brand name, technology, or product specifications in return for a lump-sum payment or fees.

Franchising

Allowing another organization to use your company’s name and operating methods (typically service-oriented) in return for fees or royalties.

Global strategic alliance

A partnership between your organization and a foreign company sharing resources and knowledge to develop new products or build production facilities.

Joint venture

A specific type of strategic alliance where the partners form a separate, independent organization for a business purpose.

Foreign subsidiary

A directly invested, independent facility or office in a foreign country, managed as either multidomestic (local control) or global (centralized control) and entailing high commitment and risk.

Multidomestic corporation

An MNC that decentralizes decisions to local units and relies on local employees, tailoring strategies to each country.

Transnational (borderless) organization

An MNC where artificial geographic boundaries are eliminated and country of origin becomes less relevant, improving global efficiency.

Global corporation

An MNC with centralized home-country decisions and a focus on treating the world market as an integrated whole.

MNC (multinational corporation)

A company that operates in multiple countries with a corporate structure spanning national borders.

Offshoring/Onshoring/Nearshoring

Offshoring: relocating processes to another country; onshoring: keeping processes at home; nearshoring: moving to nearby countries.

Offshore, onshore, nearshore (location strategies)

Descriptors for where a company conducts its production or services relative to its home country.

Hofstede's dimensions

A framework outlining cultural differences across countries, including power distance, uncertainty avoidance, long-term vs. short-term orientation, individualism vs. collectivism, and masculinity (gender differentiation).

GLOBE study

Global Leadership and Organizational Behavior Effectiveness; a cross-cultural project identifying nine dimensions of national culture across 62 societies.

Social responsibility (CSR)

A firm’s commitment to contribute to societal welfare beyond legal and economic obligations, balancing ethical, environmental, and social concerns.

Social obligations

Activities a business undertakes to meet economic and legal responsibilities; the minimum required by law.

Social responsiveness

Actions taken in response to social needs, guided by norms and values and aimed at market-oriented outcomes.

Sustainability

A company’s ability to pursue its goals and long-term shareholder value by integrating economic, environmental, and social opportunities into strategy.

Codes of ethics

Formal documents stating an organization’s core values and ethical rules for employees to follow; effectiveness depends on leadership support and enforcement.

Ethical leadership

Leadership that models ethical behavior, emphasizes supply chain ethics, and communicates a commitment to ethical standards and corporate responsibility.

Ethics training

Programs to educate employees about ethics; effectiveness is debated, but training can raise awareness and problem-solving abilities.

Parochialism

A narrow, country-centered view that fails to recognize other cultures or ways of doing business, hindering global effectiveness.

Utilitarian ethics

Ethical decisions based on achieving the greatest good for the greatest number.

Rights view

Ethics focused on respecting and protecting individual liberties and rights.

Justice view

Ethics focused on applying fair, impartial rules and equal treatment in decision-making.