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Chapter 16 Study Guide for Exam 4
For Final Exam in International Business
38
Business
Undergraduate 2
04/21/2015

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Term
Meaning of Expatriate
Definition
Citizens of one country who are living and working in another
Term
Expatriate
Definition
  • Could last several years
  • Some of these issue are related to the inconvenience and stress of living in an unfamiliar cutlure 
  • Espeically if they have climbed the corporate ladder in the home office, expartriate managers tend to infuse branch offices with the corporate culture 
  • Managers sometimes fail to integrate themselves into the local cutlure 
Term
Expatriate
Definition
  • This benefits can be extremly helpful for small and medium size business that cannot afford the exponse associated with 
  • Expatriate manager must be able to adapt to new way of life in the host country 
  • Cultural differences between home country and host country are improtant factors in their potential success
  • The ability of a family member to adapt to a new cultural can be a key factor in the success or failure of an 
Term
Expatriate
Definition

Set down in the midset of new cultures, many expatriates experience 

clutural shock 

Expatriate failure 

the high cost of expatriate failure is convincing many companies to invest in cultural traning programs for employees sent abroad

Term
Culture Shock
Definition
a psycholgoical process affecting people living abroad that is characterized by homesicness, irritabilty, confusion, aggracvation, and depression
Term
Expatriate failure
Definition
the early return by an employee from an international assignment because of inadequate job performance--often results form cultural stress
Term
Ethnocentric Staffing
Definition
individuals from the home country manager operations abroad
Term
Advantages of Ethnocentric Staffing
Definition
  1. locally qualified people are not always avaiable 
  2. companies use ethnocitric staffing to re-create local operations in the image of home-country operations 
  3. This policy is important for companies that need a strong set of share values among the people in each international office--such as firms implementing global strategies 
  4. By the same token, a system of shared values is important when a company's international units are highly indterdependent 
  5. Finally, some companies feel that managers sent from the home country will look out for the company's interest more earnestly than will host-country natives 
Term
Disadvantages of Ethnocentric Staffing
Definition
  • Relocating managers from the home country is expensive 
  • can create barriers for the host country office 
Term
Polycentric Staffing (Advantages)
Definition
  • In the hands of people intimately familiar with the local business environment 
  • Manages with deep cultural understanding of the local market can be enormous advantage
  • They need not to overcome any cultural barrier created by an image of being an outsider, and they tend to have a better feel for the needs of employeess, customer and suppliers 
  • Elimination of the high cost of relocating expatriate managers and families 
Term
Polycentric Staffing (Disadvantages)
Definition
  • The potential for losing control of the host country operation 
  • When a company employs native of each country to manage local operations, its runs the risk of becoming a collection of discrete national business
Term
Geocentric Staffing
Definition
  • The best qualified individuals, regardless of nationality, manager operations abroad 
  • The choice depends on the operation's specific need
  • Reserved for top level managers
  • Helps company develop global manages who can adjust easily to any business environment particularly to cultural differences
  • Downside--- is the expense 
Term
First Phase  of HR planning
Definition
involves taking an inventory of a company's current human resource--that is collecting data on every employees, including educational background, special job skills, previous jobs, language skills, and experience living abroad
Term
Second Phase of HR Planning
Definition
is estimating the company's future HR needs
Term
Thrid phase of HR planning
Definition
managers develop a plan for recruitng and selecting people to fill vacant and anticipated new positions, both managerial and non-managerial
Term
Clutural Shock
Definition
Set down in the midst of new clutures, many expatriates exprience culture shock---a psychological process affecting people living abroad that is characterized by homesickness
Term
First Stage of Cultur Shock
Definition
"honeymoon" typically last from a few days to few weeks
Term
Second Stage of Culture Shock
Definition
Last from a few weeks to a few month's in fact some people never move on to Stage 3
Term
Last from a few weeks to a few month's in fact some people never move on to Stage 3
Definition
Unpredictable quirks of the culture become annoying, even maddening
Term
Third Stage of Culture Shock
Definition
Emotion hit bottom and recovery begins
Term
Emotion hit bottom and recovery begins
Definition
Cynical remarks cease as vistors begin to learn more a out the local culture, interact more with locals, and form friendshipss
Term
Forth Stage of Culture Shock
Definition
Vistors not only better understand local customs and behavior but actually appreciate many of them. They now treat differences as "unique" solitions to familiar problems in different cultural contexts.
Term
Reverse Culture Shock
Definition
Ironically, expatriates who successfully adapt to new cultures often undero an
Term
Meaning of Reverse Cultural Shock
Definition
the psychological process of readapting to one's home culture
Term
Reverse culture shock
Definition
  • Companies often do not know how to take full advantages of the cross-culturaal abilities  developed by managers who have spent several potentially valuable years abroad 
  • Moreover, spouses and children have difficulty leaving the adopted culture and returning home 
Term
Expatriate failure
Definition
  • The higher cost of expatriate failure is convinicing many companies to invest in cultural training programs for employees sent abroad 
  • Training for them is a good investment becasue the alternatives--an international "commuter marriage" or an expatrate failure--are both psychologically and financially expensive options 
Term
Expatriate failure
Definition
  • In other words, they have trouble adjusting to the new environment in which they find themselves.
  • the early return by an employee(s) from an international assigment because of inadequate job performance--often result from cultural stress

 

Term
Training for expatriates
Definition
  • Ideally, everyone invovled in buisness should be culturally literate and prepared to go anywhere  in the world at a moment's notice 
  • Realistically, many employees and many companies do not need or cannot afford to be entirely literate in another culture
  • The extent of a company's international involvement demands a correspondisng level of cultural knowledge from its employees
Term
Training for Expatriates
Definition
  • Companies whose activities are highly international need employees with lanugage fluency and in-depth experience in other countries 
  • Meanwhile, small companies or those new international business can begin with some basic cutural training 
  • As a company increase its international involvement and cross-clutural contact, employees' cutlural knowledge must keep pace 
Term
Types of Training
Definition

Environment Briefings and Cultural Orientation 

Cutural Assimilation and Sensitivity Training 

Language Training 

Culture Orientation 

Field Expreience 

Term
Environmental Briefings
Definition

onsitute the most basic level of training--often the starting point for studying other cultures 

Including informaiton on local housing, health care, transportation, school, and climate 

Term
Cultural Assimilation
Definition

teches the culture's values, attitudes, manners and customs

so-called guerrilla linguistics, which involves learning some phrases in the local lanugage is often used at this stage 

Term
Sensitivity Training
Definition

Teaches people to be considerate and understanding of other  people's  feelings and emotions. 

It gets the trainee "under the skin" of the local people 

Term
Language Training
Definition
  • The need for more thorough cultural preparedness brings us to intensive lanugage training 
  • It gets trainee "into the mind" of local people 
Term
Culture Orientation
Definition

Offer insight into social, political, legal and economic institutionss 

Their purpose is to add depth and substance to environmental breifings 

Term
Field Experience
Definition
experience means visiting the culture, walking the streets of its cities and villages and becoming absorbed by it for a short time
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