Ch.4 BUSN

Ethnocentric Attitude

Belief that the best work approaches are those of the home country, dismissing foreign skills.

Polycentric Attitude

View that managers in the host country know the best practices for running businesses there.

Geocentric Attitude

World-oriented view focusing on using the best approaches and people from around the globe.

Parochialism

Viewing the world solely through one's own eyes and not recognizing other perspectives.

Regional Trading Alliances

Agreements among countries to promote trade and stimulate economic growth, such as EU, NAFTA.

World Trade Organization (WTO)

Global organization that deals with the rules of trade among nations, formed in 1995.

Multinational Corporation (MNC)

Company with operations in multiple countries, actively participating in international business.

Multidomestic Corporation

MNC that maintains significant operations in many countries but decentralizes management locally.

Global Company

MNC that centralizes management decisions in the home country and treats world markets as integrated.

Transnational Organization

A business approach that eliminates geographical barriers and uses global best practices.

Cultural Intelligence

The ability to understand and adapt to cultural differences in international environments.

Legal-Political Environment

The political climate and legal systems of a country that affect business operations internationally.

Economic Environment

Elements such as currency exchange rates, inflation, and tax policies that influence international business.

GLOBE Framework

A research program that extends Hofstede's dimensions with additional cultural dimensions for global managers.

Global Sourcing

Purchasing materials or labor from around the world to take advantage of lower costs.

Exporting

Making products in the home country and selling them in foreign markets.

Importing

Acquiring products made abroad and selling them in the home country.

Licensing

Granting another organization the right to use a brand name or technology for a fee.

Franchising

Allowing another organization to use a brand and operating methods, typically in services.

Strategic Alliance

Partnership between a domestic and foreign company to share resources and develop products.

Joint Venture

A specific type of strategic alliance where partners create a separate, independent organization.

Foreign Subsidiary

A direct investment in a foreign country by a company establishing a separate facility.