lect 2

• The international dimension of the external environment represents events originating in foreign countries
• What are the three types of organizational environments?

  General, Task, Internal
• The international dimension impacts all aspects of the external environment for U.S. companies.
• What are some examples of technological advances that impact organizations?

  Desktop computers, Internet access
• The socio-cultural dimension includes demographic characteristics, norms, customs, and values
• Demographic trends affect organizations globally.
• What are some factors included in the economic dimension of the general environment?

  Consumer purchasing power, interest rates
• The task environment includes customers, competitors, suppliers, and the labor market
• Match the environmental dimension with its description:

  Legal-Political Dimension ↔️ Government regulations

  Natural Dimension ↔️ Concern for the environment

  Economic Dimension ↔️ Consumer purchasing power
• What are some strategies organizations use to adapt to environmental uncertainty?

  1️⃣ Boundary-Spanning Roles

  2️⃣ Interorganizational Partnerships

  3️⃣ Mergers

  4️⃣ Joint Ventures
• Corporate culture is a pattern of shared values within an organization.
• Match the type of corporate culture with its description:

  Adaptive Culture ↔️ Encourages innovation and change

  Unadaptive Culture ↔️ Resists change and innovation
• The external environment influences corporate culture
• What are some examples of cultural elements within an organization?

  Symbols, stories, slogans
• What are some benefits of a strong corporate culture?

  Attracts and motivates talent
• Cultural leaders reinforce cultural values through words and actions.
• What is the primary driver of the borderless world phenomenon?

  Trade barriers are falling
• Isolation from international forces is still possible in today's business environment.

  False
• Exporting involves transferring products for sale in foreign
• Match the market entry strategy with its description:

  Exporting ↔️ Selling products abroad

  Licensing ↔️ Allowing foreign production

  Franchising ↔️ Providing materials and services

  Direct Investing ↔️ Creating foreign production facility
• What is global outsourcing primarily focused on?

  Labor of specific tasks
• The phenomenon of China and India being attractive for different business activities is called Chindia
• Which country is attractive for software design and services?

  India
• What is a key factor in the economic environment that businesses must consider?

  Economic development
• Volatility in exchange rates can negatively impact a business's bottom line.
• Values and behaviors from the United States always translate effectively to other cultures.

  False
• The sociocultural environment includes shared knowledge, beliefs, values, and modes of behavior
• What are three key elements of the legal-political environment?

  Government supervision, political instability, laws and regulations
• What are four dimensions of Hofstede's value systems?

  Individualism, uncertainty avoidance, masculinity/femininity, power distance
• Match the GLOBE value dimension with its example:

  Assertiveness ↔️ Competition in business

  Uncertainty Avoidance ↔️ Reliance on rules and procedures

  Power Distance ↔️ Respect for authority
• What does the GLOBE project extend from Hofstede's work?

  National value systems
• High-context cultures focus primarily on exchanging facts and information.

  False
• What do low-context cultures prioritize in communication?

  Exchanging facts and information
• What are three other cultural characteristics that influence international business?

  Language, religion, social organization
• Arrange the following international trade alliances chronologically:

  1️⃣ General Agreement on Tariffs and Trade (GATT)

  2️⃣ World Trade Organization (WTO)

  3️⃣ European Union (EU)

  4️⃣ North American Free Trade Agreement (NAFTA)
• NAFTA includes the United States, Canada, and Mexico.
• One of the key concerns driving the globalization backlash is job loss
• What percentage of US multinational sales came from their foreign affiliates in 2007?

  42%
• Multinational corporations are managed as integrated business systems.
• What are three dimensions of cultural intelligence?

  Cognitive, emotional, physical