International Management – Comprehensive Review Flashcards

Fill-in-the-blank flashcards covering major topics from Chapters 1–11 of the International Management lecture notes, including globalization, political and economic risk, cultural dimensions, strategy, staffing, motivation, and leadership.

The process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage is called __.

International Management

__ competition is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent world economy.

Global

One of the top two risks cited for firms operating in Russia was the possibility of __-based retaliatory measures.

sanctions

According to the notes, five key global trends include an increasing gap between supply and demand of natural resources and increasing global __.

interconnectivity

The main types of foreign direct investment include acquisition of a subsidiary, joint ventures, licensing, and investing in new __.

facilities or expansion

A __ against capitalism and rekindling of nationalism is listed as a challenge to globalism.

backlash

Small and medium-sized enterprises are defined as firms with fewer than __ employees.

500

While many firms still offshore manufacturing, some are now __ jobs to reduce shipping costs.

reshoring

The speed and accuracy of information transmission are changing the nature of an international manager’s job due to the globalization of __.

information technology

Much of today’s world trade is grouped around three dominant currencies collectively called __.

the Triad

A customs union not only eliminates internal tariffs but also establishes a common __ policy with non-members.

trade

The European Union’s internal market is characterized by the free movement of goods and __ among member countries.

people

China is often referred to as the world’s __ because of its large population of low-wage manufacturing workers.

factory

India is known as the world’s services supplier and global leader in __ services.

outsourced back-office/high-tech

NAFTA is a free-trading bloc among the United States, Canada, and __.

Mexico

When a local government seizes foreign-owned assets and provides inadequate compensation, the event is called __.

expropriation

Gradual and subtle governmental actions against foreign firms are referred to as __ expropriation.

creeping

The use of political risk insurance and local debt financing are examples of __ measures.

hedging

The subjective assessment of leaders and their likely policies to gauge economic risk is called the __ method.

qualitative

Common law relies on past court decisions as __.

precedents

Appropriability refers to a firm’s ability to __ from its own technology.

profit

E-business is defined as the integration of systems, processes, organizations, and value chains using __-based technologies.

Internet

Corporate social responsibility centers on the benefits versus harm wrought by __, especially in LDCs.

multinational corporations (MNCs)

The ethical approach that adopts the local moral code of the host country is called __.

ethical relativism

The Foreign __ Practices Act prohibits U.S. firms from bribing foreign officials.

Corrupt

Payments made to expedite routine governmental transactions are often labeled __ money.

grease

Nationalism, protectionism, and governmentalism are identified as risks of corporate __.

interdependence

In cultural terms, a set of shared values, understandings, and assumptions passed to succeeding generations defines __.

culture

The ability to understand the limits of one’s knowledge and adapt it in new environments is called __ intelligence.

contextual

The phenomenon of shifting individual management styles to become similar worldwide is termed __.

convergence

Hofstede’s dimension describing acceptance of unequal power distribution is __.

power distance

Cultures in which communication relies heavily on unspoken cues are labeled __-context cultures.

high

Kinesic behavior involves communication through body __.

movements

In polychronic cultures, people tend to handle __ things simultaneously.

many

The first stage of the negotiation process outlined in the notes is __.

preparation

In Chinese business culture, the network of personal relationships cultivated for mutual benefit is called __.

guanxi

Successful negotiators are described as knowing when to __ but standing firm at the beginning.

compromise

The strategic planning process begins with establishing the firm’s mission and __.

objectives

All additional costs a foreign firm faces versus a local firm are referred to as the liability of __.

foreignness

Exporting, licensing, joint ventures, and fully owned subsidiaries are all examples of market __ strategies.

entry

A partnership that combines resources and distinctive advantages to pursue mutual goals is termed a strategic __.

alliance

A joint venture that creates a new, separately incorporated entity is categorized as an __ joint venture.

equity

ABB rotates managers worldwide to develop leaders called __.

transpatriates

The staffing approach that hires the best person for the job regardless of nationality is the __ staffing approach.

global (geocentric)

The psychological, intellectual, and social resources necessary for global success constitute a manager’s global __.

mind-set

Culture shock typically begins with a euphoria stage followed by __ and hostility.

irritation

The balance-sheet approach to expatriate compensation seeks to equalize the __ of living between host and home countries.

standard

A key reason many expatriate assignments fail is inadequate __ for the spouse and family.

adjustment/support

A collection of managers from several countries who must rely on collaboration is called a global management __.

team

High __ avoidance cultures tend to value job security as a motivator.

uncertainty

According to Islamic work ethic, dedication to __ is a virtue.

work

In Mexico, an authoritative and __ management style is often viewed as effective due to cultural expectations.

paternalistic

Hofstede’s masculinity dimension suggests that in feminine cultures, work-family conflict tends to be __.

less

Trustworthiness and being visionary are cited as __ facilitators of leadership effectiveness.

universal

Being dictatorial is listed as a universal __ to leadership effectiveness.

impediment

The process by which managers and workers determine their workplace relationship is called collective __.

bargaining

Codetermination (Mitbestimmung) gives German union work councils a role as corporate __.

co-managers

In developing global strategies, the __ model helps gauge Cultural, Administrative, Geographic, and Economic distances.

CAGE

Choosing a manufacturing location for each product based on best cost, quality, and technology is known as __.

rationalization

The structural form most common for organizing foreign operations around geographic areas is the global __ structure.

geographic (area)

A company combining virtual Internet exchanges with physical supply chains exemplifies a global __-corporation.

e

Direct control mechanisms include periodic visits to subsidiaries by __ from headquarters.

executives

Three separate financial statements are often required of foreign subsidiaries to accommodate differing __ standards.

accounting

Visible signs that a firm values international experience are part of effective __ programs.

repatriation

High cultural quotient (CQ) and openness are attributes of a successful __ leader.

global

A key labor-relations constraint on multinational firms is limits on their ability to vary __ levels.

employment

Work centrality refers to the degree of importance that __ has in an individual’s life.

working

In Franco-German comparisons, French leaders tend to make decisions __, whereas German leaders seek consensus.

unilaterally

An expatriate who adapts well and can function effectively in two cultures has reached the stage of __.

biculturalism

Third-country nationals are employees who are citizens of a country __ the parent or host country.

other than

__ integration involves combining all stages of production, such as McDonald’s building its own Moscow processing plant.

Vertical

Trust in communication creates an implicit __ within cross-cultural interactions.

understanding

In low-context cultures, communication is explicit because relationships are more __.

compartmentalized

The term for gradual lowering of cultural barriers due to global IT is cultural __.

convergence

Training host-country nationals facilitates the long-term policy of __ in a subsidiary.

indigenization

__ occur when a manager is transferred within his or her own country but into a different subculture.

Subculture shocks

In performance management research, U.S. firms rely more on formal communication, reflecting their cultural __.

individualism

The Islamic ban on charging interest affects business because __ law prohibits riba.

Sharia/Islamic

‘Wa,’ meaning peace and harmony, is the foundation of __ management philosophy.

Japanese

__ barriers, such as tariffs or quotas, are removed in a free trade area.

Tariff and non-tariff

A product division that operates as a self-contained business unit within a global structure is called a __.

strategic business unit (SBU)

Currency translation exposure occurs when consolidation of financial statements causes a negative __ flow.

cash

Lead indicators such as signs of riots are used in early __ systems for political risk.

warning

The first test of ethical corporate action asks: ‘Is it __?’

legal

The global services location index ranks countries for outsourcing potential based on financial attractiveness, people skills, and __ environment.

business

The international code created by companies like HP and Dell to monitor overseas suppliers is the __.

Electronic Industry Code of Conduct (EICC)

High-contact cultures prefer closer __ distance during interaction.

personal

The practice of using both input and market control to keep a subsidiary dependent is a form of __ management.

dependency

__ is the process of sharing meaning by transmitting messages through media such as words or behavior.

Communication

In global alliances, incompatible national cultures often cause conflicts in __ making and control.

decision

__ companies are becoming less tied to specific locations due to globalization.

Global

In Hofstede’s research, the U.S. scores high on individualism but medium on __ avoidance.

uncertainty

The global integration-local responsiveness dilemma is described as ‘Be __ – Act Local.’

Global

A technologically driven information theft that is hard to detect and combat is called __.

cybertheft

Under PRISM, American Can screens potential investments by synthesizing information on about __ variables.

200

According to the notes, the checklist approach to economic risk relies on easily measurable and timely __.

indicators

__ law is used in roughly 70 countries and is based on comprehensive codes.

Civil

A permanent end to tariffs and customs barriers within the EU exemplifies the creation of an internal __.

market

A company with a global product structure enjoys market concentration and rapid __.

innovation/growth

When exchange-rate changes are radical, worldwide __ are felt.

repercussions