International Business Negotiation and Expatriate Management
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Questions and Answers

What is the primary goal of developing a negotiation strategy in international business?

  • To establish a problem-solving approach (correct)
  • To compromise on cultural differences
  • To achieve a competitive advantage
  • To build personal relationships with partners

    • What is the term used to describe the psychological adjustment process that expatriates experience when adapting to a new culture?

  • Cultural shock (correct)
  • Acculturation
  • Cultural maintenance
  • Biculturalism

    • Which of the following is a key consideration for managing global projects and assignments?

  • Economic development
  • Child labor laws
  • Planning and preparation (correct)
  • Cultural adaptation

    • What is the term used to describe the process of adapting to a new culture while maintaining one's original culture?

    <p>Biculturalism</p> Signup and view all the answers

    Which of the following is a challenge of international business?

    <p>Ethnocentrism and extreme nationalism</p> Signup and view all the answers

    What is the term used to describe the process of returning to one's home country after an international assignment?

    <p>Repatriation</p> Signup and view all the answers

    In a collectivist society, what is expected from individuals?

    <p>To be loyal to the group and take responsibility for one another's wellbeing</p> Signup and view all the answers

    Which of the following is a characteristic of high IDV societies?

    <p>Encouraging debate and individual expression</p> Signup and view all the answers

    What is the primary difference between masculine and feminine societies?

    <p>The distribution of roles between men and women</p> Signup and view all the answers

    In low IDV societies, what is the primary concern?

    <p>Maintaining harmony among group members</p> Signup and view all the answers

    What is valued in masculine societies?

    <p>Success, assertiveness, and strength</p> Signup and view all the answers

    What is the opposite of high IDV societies?

    <p>Low IDV societies</p> Signup and view all the answers

    In feminine societies, what is valued?

    <p>Modesty and good relationships with direct supervisors</p> Signup and view all the answers

    What is the primary characteristic of power distance?

    <p>The level of hierarchy and authority within a society</p> Signup and view all the answers

    What is the primary aspect of culture that the Power Distance Index (PDI) measures?

    <p>Degree of power distribution and acceptance</p> Signup and view all the answers

    According to the Power Distance Index, what is a characteristic of a high PDI score?

    <p>Centralized organizations with large gaps in compensation</p> Signup and view all the answers

    In a society with a high Individualism Versus Collectivism (IDV) score, what is the primary characteristic of interpersonal connections?

    <p>Weak interpersonal connections among those who are not part of a core 'family'</p> Signup and view all the answers

    How many dimensions of culture were initially identified by the researcher?

    <p>Four</p> Signup and view all the answers

    What is the primary aspect of culture that the Uncertainty Avoidance Index (UAI) measures?

    <p>Tolerance for uncertainty and ambiguity</p> Signup and view all the answers

    What is the primary aspect of culture that the Masculinity Versus Femininity dimension measures?

    <p>Role distribution between genders</p> Signup and view all the answers

    What is the primary aspect of culture that the Indulgence Versus Restraint dimension measures?

    <p>Societal norms regarding indulgence and restraint</p> Signup and view all the answers

    What is the primary aspect of culture that the Pragmatic Versus Normative dimension measures?

    <p>Societal norms regarding pragmatism and normativity</p> Signup and view all the answers

    What is the primary focus of international organisations?

    <p>To solve problems of development across multiple countries</p> Signup and view all the answers

    What is a characteristic of a multinational corporation (MNC)?

    <p>Has significant direct foreign investment in at least one foreign nation</p> Signup and view all the answers

    What is the main difference between an international firm and a multinational corporation?

    <p>One has direct foreign investment while the other does not</p> Signup and view all the answers

    What is a transnational corporation (TNC) characterized by?

    <p>Being a globally integrated organisation with expansive interests and interdependent management systems</p> Signup and view all the answers

    What type of organisation is Doctors Without Borders?

    <p>A non-governmental organisation (NGO)</p> Signup and view all the answers

    What is international management?

    <p>The practice of managing business operations in more than one country</p> Signup and view all the answers

    What is a characteristic of a high UAI society?

    <p>People are expressive and allowed to show anger or emotions.</p> Signup and view all the answers

    In a low UAI society, what is a key aspect of respect?

    <p>Respect is given to those who can cope under all circumstances.</p> Signup and view all the answers

    What is another name for the Pragmatic Versus Normative (PRA) dimension?

    <p>Long-Term versus Short-term Orientation</p> Signup and view all the answers

    In a high-scoring PRA country, what is a characteristic of the people?

    <p>They tend to be more pragmatic, modest, and long-term oriented.</p> Signup and view all the answers

    In a high UAI society, what is a key aspect of communication?

    <p>Encouraging creative thinking and dialogue.</p> Signup and view all the answers

    What is a characteristic of a low UAI society?

    <p>People tend to be more inclined to open-ended learning.</p> Signup and view all the answers

    In a low-scoring PRA country, what is a characteristic of the people's values?

    <p>They tend to value principles, consistency, and truth.</p> Signup and view all the answers

    Study Notes

    Selecting the Right Partner

    • Developing a negotiation strategy: competitive versus problem-solving strategy
    • Managing the negotiation process: personal and contextual characteristics

    Global Assignments

    • Long-term and short-term assignments
    • Business trips and expatriates
    • Personal, family, and career considerations
    • Culture shock - psychological adjustment: honeymoon, disillusionment, adaptation, and biculturalism
    • Acculturation strategies: cultural adaptation, cultural maintenance, cultural assimilation
    • Rotation and repatriation
    • Managing global projects and assignments: IBA exchange program, requires planning and preparation in both entry and re-entry stages

    Challenges of International Business

    • Intercultural/multicultural understanding
    • Cultural differences
    • Communication
    • Bribery and corruption
    • Child labor
    • Treatment of women
    • Ethnocentrism and extreme nationalism
    • Discrimination and social injustice
    • Economic development and sustainability

    Hofstede's Cultural Dimensions

    Power Distance Index (PDI)

    • High PDI: centralized organizations, large gaps in compensation, supervisors and employees are not considered equals
    • Low PDI: flatter organizations, supervisors and employees are considered almost as equals

    Individualism Versus Collectivism (IDV)

    • High IDV: high value placed on people's time and privacy, enjoyment of challenges, expectation of individual rewards
    • Low IDV: high value placed on group harmony, people take responsibility for one another's wellbeing

    Masculinity Versus Femininity (MAS)

    • Masculine societies: distinct roles for men and women, success and strength are seen as positive characteristics
    • Feminine societies: overlap between male and female roles, modesty is perceived as a virtue

    Uncertainty Avoidance Index (UAI)

    • High UAI: conservative, rigid, and structured, express emotions openly
    • Low UAI: open to change, more flexible, inclined to open-ended learning

    Pragmatic Versus Normative (PRA)

    • High PRA: pragmatic, modest, long-term oriented, thrifty
    • Low PRA: emphasis on principles, consistency, and truth, more religious and nationalistic

    Global Organisations

    • International organisations (IGOs): economic and political IGOs, e.g. UN, IMF, The World Bank, WHO
    • Non-governmental organisations (NGOs): non-profit, address social or political issues, e.g. Doctors without borders, WWF, Greenpeace
    • Multinational corporation (MNC): significant direct foreign investment, e.g. Nike, Volkswagen
    • Transnational corporation (TNC): globally integrated, expansive markets and transactions, interdependent management systems

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    Description

    This quiz assesses your understanding of negotiation strategies, managing the negotiation process, and expatriate management. It covers topics such as competitive versus problem-solving strategies, personal and contextual characteristics, and cultural adaptation.

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