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Key Terms, Concepts and Points from Chapter Four.
Globalization
The trend of the world economy toward becoming a more interdependent system.
Global Village
The concept that the world is becoming increasingly interconnected through communication, technology, and trade.
Global Economy
The increasing tendency of the economies of the world to interact as one market.
Competitiveness
How well countries manage their competencies to achieve long-term value creation.
Economic Performance
Refers to the overall economic health of a country, including GDP growth, inflation rates, and employment levels.
Government Efficiency
The ability of a government to manage public resources and deliver services effectively.
Business Efficiency
How well businesses operate within a country, including factors like productivity and regulatory environment.
Infrastructure
The fundamental facilities and systems that support a country's functioning, like transportation and utilities.
Ethnocentric Managers
Managers who prioritize their home country's culture over those of host countries.
Parochialism
A focus on one's own culture, limiting the ability to understand other cultures.
Global Outsourcing
Delegating certain business processes to external providers in other countries to reduce costs.
Licensing and Franchising
Methods allowing businesses to enter new markets by permitting local production and sales under their brand.
Joint Ventures
Collaboration between companies to share resources and risks while entering new markets.
Wholly Owned Subsidiary
A company fully owning and controlling its foreign operations.
Free Trade
The unrestricted exchange of goods and services between countries.
Trade Protectionism
Government regulations to limit imports of goods and services to protect domestic industries.
Tariffs
Taxes imposed on imported goods to increase their price.
Import Quotas
Limits set on the quantity of specific goods that can be imported.
Sanctions and Embargoes
Measures restricting trade with specific countries, often for political reasons.
Cultural Dimensions
Factors that define how cultures differ, encompassing beliefs, values, and behaviors.
Low-Context Culture
Cultures where communication is explicit and direct, such as in the US and Germany.
High-Context Culture
Cultures where communication relies on context and non-verbal cues, such as Japan.
Hofstede's Individualism vs. Collectivism
Examines whether cultures prioritize individual goals or group goals.
Uncertainty Avoidance
Measures how cultures cope with uncertainty and ambiguity.
Power Distance
Reflects the acceptance of hierarchical order within a society.
GLOBE Project
An ongoing cross-cultural investigation of nine cultural dimensions in leadership.
Countertrading
A trade in which goods and services are exchanged for other goods and services.
Diversity, Equity, and Inclusion Competency
The ability to understand and value diverse backgrounds and promote equity within organizations.
