MGT 320: EXAM 5 SG STUDY GUIDE
International management - Answers - Managing business operations in more than one
country.
Globalization - Answers - The extent to which trade and investments, information, ideas,
and political cooperation flow between countries.
global mind-set - Answers - The ability to appreciate and influence individuals, groups,
organizations, and systems that represent different social, cultural, political, institutional,
intellectual, and psychological characteristics.
Global mind-set dimension (List & Explain 3) - Answers - Cognitive
knowing about the global environment and global business, mentally understanding how
cultures differ, and having the ability to interpret complex global changes
Psychological
a liking for diverse ways of thinking and acting, a willingness to take risks, and the
energy and self-confidence to deal with the unpredictable and uncertain
Social
the ability to behave in ways that build trusting relationships with people who are
different from yourself
T/F
India is strong in manufacturing, whereas China is a major provider of services. -
Answers - False
China is strong in manufacturing, whereas India is a major provider of services.
multinational corporation (MNC) - Answers - An organization that receives more than 25
percent of its total sales revenues from operations outside the parent company's home
country and has a number of distinctive managerial characteristics.
Types of Multinational Corporations (List & Explain 3) - Answers - Ethnocentric
place emphasis on their home countries
Polycentric
oriented toward the markets of individual foreign host countries
Geocentric
truly world-oriented and favor no specific country
, bottom of the pyramid (BOP) - Answers - Proposes that corporations can alleviate
poverty and other social ills, as well as make significant profits, by selling to the world's
poor.
International Business Approaches (List & Explain 3) - Answers - Exporting
A market entry strategy in which a company maintains production facilities within its
home country and transfers products for sale in foreign countries.
Global Outsourcing (AKA offshoring)
Engaging in the international division of labor so as to obtain the cheapest sources of
labor and supplies, regardless of country.
Partnerships (AKA Joint Venture)
A strategic alliance or program by two or more organizations.
Political Risk - Answers - A company's risk of loss of assets, earning power, or
managerial control due to politically based events or actions by host governments.
Political Instability - Answers - Events such as riots, revolutions, or government
upheavals that can affect the operations of an international company.
Ethnocentrism - Answers - The natural tendency among people to regard their own
culture as superior to others
Hofstede's Value Dimensions - Answers - Power distance
The degree to which people accept inequality in power among institutions,
organizations, and people.
Uncertainty avoidance
Characterized by people's intolerance for uncertainty and ambiguity and resulting
support for beliefs that promise certainty and conformity.
Individualism and collectivism
A preference for a loosely knit social framework in which individuals are expected to
take care of themselves.
A preference for a tightly knit social framework in which individuals look after one
another and organizations protect their members' interests.
Masculinity and femininity
A cultural preference for achievement, heroism, assertiveness, work centrality, and
material success.
A cultural preference for relationships, cooperation, group decision making, and quality
of life.
Long-term orientation and short-term orientation
Reflects a greater concern for the future and a high value on thrift and perseverance.
International management - Answers - Managing business operations in more than one
country.
Globalization - Answers - The extent to which trade and investments, information, ideas,
and political cooperation flow between countries.
global mind-set - Answers - The ability to appreciate and influence individuals, groups,
organizations, and systems that represent different social, cultural, political, institutional,
intellectual, and psychological characteristics.
Global mind-set dimension (List & Explain 3) - Answers - Cognitive
knowing about the global environment and global business, mentally understanding how
cultures differ, and having the ability to interpret complex global changes
Psychological
a liking for diverse ways of thinking and acting, a willingness to take risks, and the
energy and self-confidence to deal with the unpredictable and uncertain
Social
the ability to behave in ways that build trusting relationships with people who are
different from yourself
T/F
India is strong in manufacturing, whereas China is a major provider of services. -
Answers - False
China is strong in manufacturing, whereas India is a major provider of services.
multinational corporation (MNC) - Answers - An organization that receives more than 25
percent of its total sales revenues from operations outside the parent company's home
country and has a number of distinctive managerial characteristics.
Types of Multinational Corporations (List & Explain 3) - Answers - Ethnocentric
place emphasis on their home countries
Polycentric
oriented toward the markets of individual foreign host countries
Geocentric
truly world-oriented and favor no specific country
, bottom of the pyramid (BOP) - Answers - Proposes that corporations can alleviate
poverty and other social ills, as well as make significant profits, by selling to the world's
poor.
International Business Approaches (List & Explain 3) - Answers - Exporting
A market entry strategy in which a company maintains production facilities within its
home country and transfers products for sale in foreign countries.
Global Outsourcing (AKA offshoring)
Engaging in the international division of labor so as to obtain the cheapest sources of
labor and supplies, regardless of country.
Partnerships (AKA Joint Venture)
A strategic alliance or program by two or more organizations.
Political Risk - Answers - A company's risk of loss of assets, earning power, or
managerial control due to politically based events or actions by host governments.
Political Instability - Answers - Events such as riots, revolutions, or government
upheavals that can affect the operations of an international company.
Ethnocentrism - Answers - The natural tendency among people to regard their own
culture as superior to others
Hofstede's Value Dimensions - Answers - Power distance
The degree to which people accept inequality in power among institutions,
organizations, and people.
Uncertainty avoidance
Characterized by people's intolerance for uncertainty and ambiguity and resulting
support for beliefs that promise certainty and conformity.
Individualism and collectivism
A preference for a loosely knit social framework in which individuals are expected to
take care of themselves.
A preference for a tightly knit social framework in which individuals look after one
another and organizations protect their members' interests.
Masculinity and femininity
A cultural preference for achievement, heroism, assertiveness, work centrality, and
material success.
A cultural preference for relationships, cooperation, group decision making, and quality
of life.
Long-term orientation and short-term orientation
Reflects a greater concern for the future and a high value on thrift and perseverance.
