GBS Exam 2

Sapir-Whorf Hypothesis

language imposes a structure on our way of thinking that leads to different ways of experiencing the world and, as a result, different worldviews

high context cultures

subtle message content, nonverbal and contextual; China, India, Japan, Korea

low context cultures

overt message context, very verbal; USA, Australia, Germany, Russia

communication protocols

opening convo, ending convo, presenting ideas, apologies, disagreements, emotional displays; what is appropriate for you to do? WHO TALKS?

communication formalities

is there different language for authority context; some languages have a dramatic difference in formality

the GLOBE studies

global leadership and organizational business effectiveness; concept across all cultures is servant leadership

Western logic of leadership

logic of application; delineating an action plan based on a et of agreed upon objectives

Eastern logic of leadership

logic of exploitation; assessing favorable and unfavorable elements, the evolution of the situation leads naturally to the desired end state, practically without the need for action

leadership in mexico

everything is a personal matter; to get anything done, the leader mut be more of an instructor and teacher than a boss

leadership in malaysia

leaders behave in a way that is humble and dignified

peruvian leadership

decisive and authoritative leadership

leadership in egypt

they worship their leaders

leadership in china

personal relationship, dignified and aloof but sympathetic, treat employees interests like their own

leadership in nigeria

leaders must replicate organizations with the same social patterns in villages

french leadership

cultivated and highly intelligent leaders

japanese leadership

symbolic leadership, healthy relationships, managing by leading

american leadership

schizophrenic in their choice of leaders

dutch leadership

egalitarian and sketched out by the term “leader”

Common leadership preference across all regions

servant leadership

power distance

expectation of differences in authority

Formal institutions of a country

laws, regulations, and rules - may be imposed by home countries and host countries

Informal institutions of a country

norms, cultures, and ethics; normative and cognitive

political system

rules of the game on how a country is governed politically; democracy, totalitarian

legal system

rules of the game on how a country’s laws are enacted and enforced; civil law (statutes), common law (legal precedent), theocratic law

economic system

rules of the game on how a country is governed economically; market economy, command economy, mixed economy

copyright

exclusive legal rights of authors and publishers to publish and disseminate their work

trademarks

exclusive legal rights of firms to use specific names, brands, and desings to differentiate their products from others

patents

legal rights awarded by government authorities to inventors of new products or processes

tangible resources of a firm

financial, physical, technological; assets that are observable and easily quantified 

intangible resources of a firm

human, innovation, reputational; assets that are hard to observe and difficult (if not impossible) to quantify

VRIO

resource-based view focusing on the value, rarity, imitability, organizational aspects of resources and capabilities

original brand manufacturers

firm that executes manufacturing based on their own design blueprints and sells the product under their own brand name

original equipment manufacturers

firm that executes design blueprints provided by Western firms

value chain

series of activities used in the production of goods and services to make a product or service more valuable

Foreign Direct Investment (FDI)

putting money in activities that control and manage value-added activities in other countries

FDI flow

amount of FDI moving in a given period (usually a year) in a certain direction

FDI stock

total accumulation of inbound FDI in a country or outbound FDI from a country

vertical FDI

firm moves upstream or downstream in different value chain stages in a host country through FDI

horizontal FDI

producing the same products or offering the ame services in a host country as firms do at home

explicit knowledge

formal, documented, and easily communicated

tacit knowledge

personal, intuitive, and experience based

trade deficits

when a nation imports more than it exports

trade surplus

when a nation exports more than it imports

mercantilism

colbert: governments should protect domestic industries and promote exports; international trade is a zero-sum game - trade deficit is dangerous

absolute advantage

smith: the wealth of all trading nations, and the world, increases; nations should specialize in economic activities in which they have an absolute advantage and trade with others

comparative advantage

Ricardo, Heckscher, Ohlin: even if one nation is absolutely inferior than another, the two nations can still gainfully trade; nations should specialize in economic activities in which they have a comparative advantage and trade with others

product life cycle theory

Vernon: comparative advantage first resides in the lead innovation nation, which exports to other nations; production migrates to other advanced nations and then developing nations in different product life cycle stages

factor endowments can include

underlying assets that you have to draw on to be productive