Term
| International Marketplace challenges: |
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Definition
- cultural differences among workers from different countries,
- different technology levels from country to country,
- laws and political systems that can vary immensely from one nation to the next. |
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Term
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Definition
| The performance of management activities across national borders. |
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Term
| International Management Entails: |
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Definition
| Reaching organizational objectives by extending management activities to include an emphasis on organizations in foreign countries. |
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Term
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Definition
| The trend toward increased international management. |
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Term
| Forms of Int. Management: |
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Definition
- analyzing and fighting competition in foreign markets,
- establishing a formal partnership with a foreign company. |
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Term
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Definition
| U.S. investment in foreign countries and investment by foreign countries in the US have grown and are expected to keep growing. Foreign countries investments in the US are growing faster. |
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Term
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Definition
- European countries
- all other western hemisphere countries |
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Term
| Other country investment focus in the U.S. (from greatest to least): |
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Definition
- Europe
- Middle East
- Asia and Pacific
- Latin America and Other Western Hemisphere
- Canada |
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Term
| Managers & Educators insist that: |
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Definition
| knowledge of international management is necessary for a thorough understanding of the contemporary fundamentals of management. |
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Term
| Categories of involvement in the international arena: |
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Definition
- domestic organizations (LVL 1)
- international organizations (LVL 2)
- multinational organizations (LVL 3)
- transnational or global organizations (LVL 4) |
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Term
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Definition
| organizations that essentially operate within a single country. Normally acquire resources and sell goods within same country. |
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Term
| International organizations: |
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Definition
| based primarily within a single country, but have continuing, meaningful international transactions - such as making sales and purchases of materials - in other countries. |
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Term
| International organizations: |
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Definition
| are more extensively involved in the international arena than domestic orgs, but less so than multinational or transnational orgs. |
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Term
| Multinational Orgs. (Multinational Corporation): |
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Definition
| a company that has significant operations in more than one country. It carries out its activities on an international scale that disregards national boundaries, and it is guided by a common strategy from a corporation center. |
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Term
| 6 stages of becoming a multinational corporation: |
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Definition
1. Exports its products to foreign countries
2. Establishes sales organizations abroad
3. Licenses use of its patterns and know how to foreign firms that make and sell its products
4. Establishes foreign manufacturing facilities
5. Multinationalizes management from top to bottom
6. Multinationalizes ownership of corporate stock. |
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Term
| International mangmt differs from domestic mngmt because it involves operating: |
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Definition
1. within different national sovereignties
2. under widely disparate economic conditions
3. among people living within different value systems and institutions
4. in places experiencing the industrial revolution at different times
5. often over greater geographical distance
6. in national markets varying greatly in population and area. |
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Term
| Mngmt implications of multinational corporations: |
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Definition
| - Different national sovereignties generate different legal systems, which have a unique set of rights and obligations involving property, taxation, antitrust (control of monopoly) law, corporate law, and contract law. These rights and obligations require the firm to acquire skills to assess international legal considerations. |
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Term
| Multinational Corporation investors expect: |
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Definition
1. reduce or eliminate high transportation costs
2.allow participation in the rapid expansion of a market abroad
3. provide foreign technical, design,and marketing skill
4. earn higher profits |
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Term
| Multinational Corporation risks: |
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Definition
| - political complications involving the parent company and various factions within the host country could prevent the parent company from realizing any desirable outcomes. |
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Term
| International system variable 1: |
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Definition
Different national sovereignties generate:
1. international political systems leading to differences in perceived national power and pressures against aliens that require the firm to: build new defenses, assess political vulnerability, consider new organizational relationships.
2. Different legal systems, leading to differences in: property rights, taxation, antitrust law, corporate law, and contract law that require the firm to: acquire new skills, consider new accounting procedures, and consider new credit instruments.
3. Different monetary systems, that generate: currency exchange control, financial policy, monetary policy, and financial institutions that require the firm to: acquire new skills,consider new accounting procedures, and consider new credit instruments.
4. Different political systems that generate: controls over business, that require the firm to: Assess the political vulnerability of its enterprise. |
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Term
| International system variable 2: |
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Definition
Disparate national economic conditions generate:
1. Different monetary systems, that generate: currency exchange control, financial policy, monetary policy, and financial institutions that require the firm to: acquire new skills,consider new accounting procedures, and consider new credit instruments.
2. Different political systems that generate: controls over business, that require the firm to: Assess the political vulnerability of its enterprise.
3. Different economic systems,leading to differences in: import and export controls, property rights, effectiveness of market economy, elasticities of supply and demand, that require the firm to: Use new methods of market analysis. |
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Term
| International system variable 3: |
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Definition
Different national values and institutions generate:
1. Different political systems that generate: controls over business, that require the firm to: Assess the political vulnerability of its enterprise.
2. Different economic systems,leading to differences in: import and export controls, property rights, effectiveness of market economy, elasticities of supply and demand, that require the firm to: Use new methods of market analysis.
3. Elite mass differentiation,leading to differences in: institutional paternalism, incentives, urbanization and growth rates, pressure for high rate of investment, and role of government in planning control, that require the firm to: consider organizational and personnel policies in a new light, assess inflation vulnerability, assess vulnerability to state control or competition.
4. Authoritarianism, leading to differences in: growth rates, pressure for high rate of investment, role of government in planning, control, that requires the firm to: assess inflation vulnerability, assess vulnerability to sate control or competition.
5.Different communication systems, leading to differences in: borrowing of technology, that require the firm to: consider new processes and processes mixer (plants). |
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Term
| International system variable 4: |
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Definition
Difference in timing of national industrial revolution generates:
1. Different economic systems,leading to differences in: import and export controls, property rights, effectiveness of market economy, elasticities of supply and demand, that require the firm to: Use new methods of market analysis.
2. Agrarian-based society, leading to differences in: value of time, degree of traditionalism, factor mix, regionalism, education and skill levels, that require the firm to: use new methods of market analysis, consider production, marketing, and training problems - new mixes, and reconsider substance of sales.
3. National poverty-relative, leading to differences in: value of time, degree of traditionalism, factor mix, regionalism, education and skill levels, that require the firm to: use new methods of market analysis, consider production, marketing, and training problems - new mixes, and reconsider substance of sales.
4. Drive for catch-up economic development, leading to differences in: institutional paternalism, incentives, urbanization, growth rates, pressure for high rate of investment, role of government in planning and control, pressure for immediate consumption, that require the firm to: consider organizational and personnel policies in a new light, assess inflation vulnerability, assess vulnerability to state control or competition, and deal with market controls.
5. Foreign reference models leading to differences in: pressure for immediate consumption, borrowing of political and social concepts, and borrowing of technology, that require the firm to: deal with market controls, institute new patterns of labor-management relations, and consider new processes and processes mixer (plants). |
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Term
| International system variable 5: |
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Definition
Geographical distance generates:
1. Different communications systems, leading to differences in: language communications media, that require the firm to: acquire new skills, incur added costs, and face new problems of control.
2. Time difference, leading to differences in: inventory levels or means of support, that require the firm to: incur higher costs. |
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Term
| International system variable 6: |
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Definition
Different areas and population generate:
1. Different market size, leading to differences in: control of monopoly and competition, that require the firm to: consider new operating policies. |
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Term
| Multinational Corporation workforce: |
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Definition
| challenged to build a competitive business team of people of different races who speak different languages and come from different parts of the world. |
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Term
| Multinational Corporation workforce: |
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Definition
Types of workers:
- expatriates - live and work in a country where they do not have citizenship.
- host-country nationals - are citizens of the country in which the facility of a foreign-based organization is located.
- third-country nationals - are citizens of one country and work in another country for an org headquartered in yet another country. |
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Term
| Multinational Corporation workforce: |
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Definition
Workforce adjustments:
Mostly pertain to expatriates and third-country nationals is adjusting to a new culture and repatriation. |
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Term
| Multinational Corporation workforce: |
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Definition
Adjusting to a new culture:
Personal: anxiety to culture adjustments
business: different attitudes toward work and perceptions of time. |
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Term
| Multinational Corporation workforce: |
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Definition
Repatriation:
the process of bringing individuals who have been working abroad back to their home country and reintegrating them into the orgs home-country operations. |
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Term
| Multinational Corporation Management Functions: |
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Definition
There are 4 major management functions:
1. planning
2. organizing
3. influencing
4. controlling |
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Term
| Multinational Corporation Management Planning Function: |
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Definition
Planning: determining how an org will achieve its objectives:
1. multinational org includes components that focus on the international arena. Components include: establishing a new sales force in a foreign country, developing new manufacturing plants in other countries through purchase or construction, financing international expansion, determining which countries represent the most suitable candidates for international expansion
- Multinational corporations components: imports/exports: emphasize reaching org objectives by importing or exporting, license agreements: a right granted by one company to another to use its brand name, technology, product specifications,and so on, in the manufacture or sale of goods and services, direct investing: uses the assets of one company to purchase the operating assets (e.g., factories) of another company, joint ventures: international joint venture is a partnership formed by company in one country with a company in another country for the purpose of pursuing some mutually desirable business undertaking.
2. Planning and international market agreements: an arrangement among a cluster of countries that facilitates a high level of trade among these countries.
- the European union (EU): is an international market agreement est. in 1994 dedicated to facilitating trade among member nations.
- NAFTA: is an international market agreement aimed at facilitating trade among member nations.
- Asian-Pacific Economic Cooperation (APEC): est. 1989 to further economic growth and prosperity of the Asia-Pacific community. APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region. Based on the concept that free and open trade creates greater opportunities for international trade and related prosperity among member nations. |
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Term
| Multinational Corporation Management Organizing Function: |
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Definition
Organizing: process of establishing orderly uses for all resources within the org.
Multinational specific topics: org structure and selection of managers. Org. structure is the sum of all established relationships among resources within the org.
- Org. structure based on business function: Vice President International Division, then laterally: Production, Marketing, and Finance.
- Org. structure based on Company Products: Vice President Production, then laterally: Brake Division Mexico, Diesel Motor Division France, and Electrical Parts Division Brazil.
- Org. structure based on Territory Served: President, then laterally: Vice President North America, Vice President South America, Vice President Europe. |
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Term
| Multinational Corporation Management: |
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Definition
Selection of Managers: primary determinant of competent manager is their attitude toward how orgs should operate.
- ethnocentric attitude: reflects the belief that multinational corps should regard home-country management practices as superior to foreign-country management practices.
- polycentric attitude: reflects the belief that because foreign managers are closer to foreign org units they probably understand them better.
- geocentric attitude: believe that the overall quality of management recommendations, rather than the location of managers, should determine the acceptability of management practices used to guide multinational corps. |
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Term
| Multinational Corporation Management Influencing Function: |
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Definition
Influencing: guiding the activities of org members in appropriate directions through communicating, leading, motivating, and managing groups.
Biggest challenge is culture, which is the set of characteristics of a given group of people and their environment.
- norms
- values
- customs
- beliefs
- attitudes
- habits
- skills
- state of technology
- level of education
- religion |
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Term
| Multinational Corporation Management Influencing Function: |
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Definition
To influence employees, managers in multinational corporations should:
1. acquire a working knowledge of the languages used in countries that house foreign operations
2. understand the attitudes of people in countries that house foreign operations
3. understand the needs that motivate people in countries housing foreign operations |
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Term
| Multinational Corporation Management Controlling Function: |
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Definition
Controlling: making something happen the way it was planned to happen.
Multinational difficulties:
1. different currencies, management must decide how to compare profits generated by org units located in different countries/currencies.
2. geographical separation makes it difficult for managers to keep a close watch on operations in foreign countries. |
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Term
| Transnational Organizations (global): |
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Definition
Doing business wherever it makes sense is primary; national borders are inconsequential.
Two special issues:
1) maintaining ethics in international management by: respecting core human rights, respecting local traditions, determining right from wrong by examining context.
2) preparing expatriates for foreign assignments by: helping them find homes and health care,career planning for expatriates and spouse, and better counseling. Special training programs include:
- Culture profiles, cultural adaptation, logistical information, application |
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