Global Management and Cultural Diversity Vocabulary

Flashcards covering global management concepts, market entry strategies, ethical considerations, cultural dimensions, and intercultural competencies based on the lecture material.

Global Economy

An economy in which resources, supplies, product markets, and business competition are worldwide in scope.

Globalization

The growing interdependence among elements in the global economy.

World 3.0

A perspective on globalization that balances economic cooperation in the global economy with national identities and interests.

Global Management

Management in businesses and organizations that have operational interests in more than one country.

Global Manager

A manager who possesses a global perspective, is culturally aware, and is informed on current international affairs.

International Businesses

Companies that sell goods or services across countries for profit.

Market-Entry Strategies

Ways to sell products in foreign countries without major investments.

Direct Investment Strategies

Investing large amounts of money to own and control businesses in foreign countries.

Forms of International Business

Ways companies enter foreign markets, from exporting to owning businesses abroad.

Global Sourcing

The process of purchasing materials, manufacturing components, or locating business services around the world.

Exporting

The process of selling locally made products in foreign markets.

Importing

The process of buying foreign-made products and selling them in domestic markets.

Licensing Agreement

Paying a fee for permission to make or sell another company’s products.

Franchising

A form of licensing in which a foreign firm pays a fee for the rights to locally operate using another company's name, branding, and methods.

Foreign Direct Investment (FDI)

Setting up or buying all or part of a business operation in another country.

Insourcing

Local job creation that results directly from foreign direct investment.

Joint Venture

When a foreign and a local company partner to share resources, risks, ownership, and control of a business.

Global Strategic Alliance

A partnership in which foreign and domestic firms share resources and knowledge for mutual competitive gains.

Foreign Subsidiary

A local operation that is completely owned and controlled by a foreign firm.

Greenfield Venture

When a company builds a completely new business or facility from scratch in another country instead of buying an existing one.

Reshoring

The shifting of foreign manufacturing and jobs back to domestic home locations.

Political Risk

The potential loss in value or managerial control over a foreign investment due to instability and political changes in the host country.

Political-Risk Analysis

A planning technique used to forecast political disruptions that could threaten the security and value of a foreign investment.

World Trade Organization (WTO)

A global organization established to promote free trade and open markets by negotiating and resolving disputes among member nations regarding tariffs and trade restrictions.

Most Favoured Nation Status

When a country gives another country the same favourable trade benefits, such as low tariffs, that it gives its other preferred trading partners.

Tariffs

Taxes that governments levy directly on imports from abroad.

Non-Tariff Barriers

Trade barriers that discourage imports through non-tax mechanisms, such as quotas, import restrictions, and government red tape.

Protectionism

When a government uses taxes (tariffs) and trade restrictions to protect domestic businesses from foreign competition.

Global Corporation

A multinational enterprise (MNE) or multinational corporation (MNC) with extensive business operations across multiple foreign countries.

Transnational Corporation

A global corporation that operates worldwide on a borderless basis without identifying with a single national home country.

MNC Host-Country Relationships

The relationship between multinational companies and the companies they operate in, where both benefit from jobs, income, and growth but may disagree over profits, control, and government restrictions.

Globalization Gap

The unequal benefits of globalization, where wealthy countries and large multinational corporations gain more than developing countries.

Tax Inversion

When a company buys or merges with a business in a country with lower taxes to reduce the taxes it pays.

Corruption

Illegal or unethical practices used to further personal or corporate business interests.

Corruption of Foreign Public Officials Act (CFPOA)

A Canadian federal law making it illegal for Canadian firms and their representatives to bribe foreign public officials or engage in corrupt practices overseas.

Child Labour

The employment of children to perform work otherwise done by adults.

Sweatshops

Business operations that employ workers at very low wages for long hours under poor or hazardous working conditions.

Conflict Minerals

Scarce natural minerals whose sale generates revenues used to finance armed violence in conflict areas, such as the Democratic Republic of Congo.

Culture

The shared set of beliefs, values, and patterns of behavior common to a group of people.

Culture Shock

The confusion and discomfort a person experiences when adjusting to an unfamiliar culture.

Ethnocentrism

The tendency to consider one's own culture as superior to all other cultures.

Cultural Intelligence (CQ)

The capacity to understand, adapt, adjust, and work effectively across different cultures.

Low-Context Cultures

Cultures where communication occurs primarily via explicit spoken or written words.

High-Context Cultures

Cultures where communication relies heavily on non-verbal cues, body language, physical setting, and situational context alongside spoken words.

Monochronic Cultures

Cultures in which people tend to focus on and perform one thing at a time.

Polychronic Cultures

Cultures in which people work on multiple tasks at once and view time flexibly.

Proxemics

The study of how individuals use interpersonal space to communicate.

Tight Culture

A culture characterized by strong social norms, clear behavioral expectations, and low tolerance for deviation.

Loose Culture

A culture characterized by relaxed social norms, high tolerance for individual expression, and variable conformity.

Power Distance

How comfortable people are with some individuals having more power than others.

Individualism-Collectivism

The degree to which a society values individual accomplishment and self-interest versus group harmony and collective interests.

Uncertainty Avoidance

How comfortable or uncomfortable a culture is with risk, change, and unpredictable situations.

Masculinity-Femininity

The degree to which a culture values assertiveness and materialism versus relationships, feelings, and overall quality of life.

Time Orientation

The degree to which a society emphasizes short-term goals and immediate gratification versus long-term goals, patience, and persistence.

Hofstede's Cultural Dimensions Spectrum

A framework used to understand how cultures differ in their values, beliefs, and behaviours.

Ecological Fallacy

The mistaken assumption that a generalized cultural value applies equally to every individual member of that culture.

Comparative Management

The study of how management perspectives and practices systematically differ across countries and cultures.

Intercultural Competencies

The skills and personal qualities needed to communicate, work, and build relationships successfully with people from different cultures.