28 Questions
What is the key variable emphasized in Cross-Cultural Management?
National culture
What does Hyperglobalisation refer to?
Convergence towards a global system
What does Authoritarianism entail?
Rule by one or more individuals with absolute power
What is the key element of Managing the Political Environment?
Political constraints and political risks
What is the perspective of individuals and organisations which recognizes their own culture as one among many and strives to understand differing cultures?
Polycentrism
Which staffing policy appoints mostly host country nationals (HCNs)?
Polycentric
What is the belief that life is predetermined and change is relatively difficult to achieve?
Fatalistic disposition
Which dimension of Trompenaars' relational dimensions emphasizes personal relationships over social codes?
Universalism V Particularism
What is the perspective that appoints the best person regardless of nationality, including third country nationals (TCNs)?
Geocentric
What does the spill over effect refer to?
Opportunities for local firms to benefit from FDI
What is the measure of levels of integration, personal contact, technology, and political engagement?
Globalisation Index
Which staffing policy transfers employees on a regional basis, midway between ethnocentric and polycentric perspectives?
Regiocentric
What are the international staffing policies that include appointing the best person regardless of nationality, including third country nationals (TCNs)?
Geocentric and Regiocentric
What are the dimensions of Trompenaars' relational dimensions that focus on the extent to which people believe they control the environment, or the environment controls them?
Sequential Vs Synchronic and Internal Vs Outward directions
What are the legal issues for MNCs according to the text?
Rule of Origin Laws, Competition, Marketing and Distribution, Product Liability Laws, Patents
What is the measure of levels of integration, personal contact, technology, and political engagement?
Globalisation Index
Which entry modes involve goods exchange with little cash changing hands?
Counter trade
What is the term for a perspective deeply rooted in one's own culture and excludes others?
Ethnocentrism
What is the term for the difficulties arising from different norms and rules in foreign markets?
Liability of foreignness
What is the term for the mix of western-imported ideas and nationalistic, domestic styles?
Cross-variance
Which system grants the right to patent to the first entity to file for it?
First to File System
What are the cultural dimensions included in Hofstede's and Trompenaars’s frameworks?
Power distance and uncertainty avoidance
What motives for internationalization can include competitive pressures and declining domestic sales?
Reactive motives
What entry modes involve contracting out production or transferring a business concept to non-domestic parties?
Franchising
What kind of partnerships are global strategic alliances and joint ventures?
Cross-border partnerships
What is the term for a firm's unfamiliarity with the culture of a foreign business location?
Culture distance
What risk includes potential changes to rules and tax systems in foreign business locations?
Operational risk
What barriers can prevent other firms from entering a strategic group and threatening existing firms?
Mobility barriers
Study Notes
International Business Management: Key Concepts and Strategies
- Ownership risk can arise from government-induced changes in ownership structure or the requirement to share ownership with local firms.
- Operational risk includes potential changes to rules and tax systems in foreign business locations.
- The First to File System grants the right to patent to the first entity to file for it.
- Cultural dimensions, such as power distance and uncertainty avoidance, are part of Hofstede's Cultural Dimensions and Trompenaars’s Relational Dimensions.
- Culture distance measures a firm's unfamiliarity with the culture of a foreign business location.
- Ethnocentrism refers to a perspective that is deeply rooted in one's own culture and excludes others, while polycentrism recognizes and seeks to understand differing cultures.
- Cross-variance involves a mix of western-imported ideas and nationalistic, domestic styles.
- Reactive internationalization motives can include competitive pressures and declining domestic sales, while proactive motives can include profit advantage and technological advancement.
- Trade-related entry modes include indirect exporting, direct exporting, and counter trade, which involves goods exchange with little cash changing hands.
- Transfer-related entry modes encompass international licensing and franchising, which involve contracting out production or transferring a business concept to non-domestic parties.
- Global strategic alliances and joint ventures are cross-border partnerships between firms, with the former pursuing mutual interests and the latter being commercial enterprises undertaken jointly by two or more parties.
- Mobility barriers can prevent other firms from entering a strategic group and threatening existing firms, while liability of foreignness refers to the difficulties arising from different norms and rules in foreign markets.
Test your knowledge of key concepts and strategies in international business management with this quiz. Explore topics such as ownership risk, cultural dimensions, entry modes, and strategic alliances, and understand the challenges and opportunities of operating in a global market.
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