Chapter 3

• International management - the management of business operations conducted in more than one country
• Globalization - the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries
• Global mind-set - ability of managers to appreciate and influence individuals, groups, organizations, and systems that possess different social, cultural, political, institutional, intellectual, and psychological characteristics
• China - largest or second-largest market for a variety of products and services
• India - second only to China's population
• Multinational Corporation - receives more than 25% of its total sales revenues from operations outside parent's home country
• Ethnocentric companies - emphasis on their home countries
• Polycentric companies - oriented toward the markets of individual foreign host countries
• Geocentric companies - world-oriented and favor no specific countries
• Bottom of the Pyramid Concept - proposes that corporations can alleviate poverty and other social ills as well as make significant profits by selling to the world's poorest people
• Exporting - strategy in which the corporation maintains its production facilities within the home nation and transfers its products for sale in foreign countries
• Global outsourcing - engaging in the international division of labor so that work activities can be done in countries with the cheapest source of labor and supplies
• Partnerships - represent a higher level of involvement of international trade
• Joint venture - a company shares costs and risks with another firm. typically in the host country, to develop new products, build a manufacturing facility, or set up a sales and distribution network
• Political risk - the risk of loss of assets, earning power, or managerial control due to political changes or instability in a host country
• Political instability - includes riots, revolutions, civil disorders, and frequent change in government
• Ethnocentrism - natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values
• Hofstede's value dimensions - four dimensions of national value systems that influence organizational and employee working relationships
• GLOBE Project - nine dimensions that explain cultural differences
• Power distance - level of acceptance of inequality in power among institutions, organizations, and people
• Uncertainty avoidance - comfort level with uncertainty and ambiguity
• Individualism - value for a loosely knit social framework in which individuals are expected to take care of themselves
• Collectivism - preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests
• Masculinity - preference for achievement, heroism, assertiveness, work centrality, and material success

  Femininity - values relationships, cooperation, group decision making, and quality of life
• Long-term orientation - greater concern for the future and highly values thrift and perseverance

  Short-term orientation - more concerned with the past and the present and places a high value on tradition and meeting social obligations
• Assertiveness - extent to which a society encourages toughness, assertiveness, and competitiveness

  Future orientation - extent to which a society encourages planning for the future over short-term results

  Gender differentiation - extent to which a society maximizes gender role differences

  Performance orientation - extent to which a society places emphasis on performance and rewards people for improvement

  Humane orientation - degree to which a society encourages and rewards people for being fair, altruistic, generous and caring
• Implicit communication - people send and receive unspoken cues, such as tone of voice or body language, in addition to the explicit spoken words when talking with others
• High-context culture - people are sensitive to circumstances surrounding social exchange
• Low-context culture - people use communication primarily to exchange facts and information, meaning is derived primarily from words
• Cultural intelligence - a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses
• Euro - single european currency