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

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

Cultural shock

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

Planning and preparation

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

Biculturalism Signup and view all the answers

Which of the following is a challenge of international business?

Ethnocentrism and extreme nationalism 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?

Repatriation Signup and view all the answers

In a collectivist society, what is expected from individuals?

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

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

Encouraging debate and individual expression Signup and view all the answers

What is the primary difference between masculine and feminine societies?

The distribution of roles between men and women Signup and view all the answers

In low IDV societies, what is the primary concern?

Maintaining harmony among group members Signup and view all the answers

What is valued in masculine societies?

Success, assertiveness, and strength Signup and view all the answers

What is the opposite of high IDV societies?

Low IDV societies Signup and view all the answers

In feminine societies, what is valued?

Modesty and good relationships with direct supervisors Signup and view all the answers

What is the primary characteristic of power distance?

The level of hierarchy and authority within a society Signup and view all the answers

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

Degree of power distribution and acceptance Signup and view all the answers

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

Centralized organizations with large gaps in compensation 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?

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

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

Four Signup and view all the answers

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

Tolerance for uncertainty and ambiguity Signup and view all the answers

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

Role distribution between genders Signup and view all the answers

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

Societal norms regarding indulgence and restraint Signup and view all the answers

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

Societal norms regarding pragmatism and normativity Signup and view all the answers

What is the primary focus of international organisations?

To solve problems of development across multiple countries Signup and view all the answers

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

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

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

One has direct foreign investment while the other does not Signup and view all the answers

What is a transnational corporation (TNC) characterized by?

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

What type of organisation is Doctors Without Borders?

A non-governmental organisation (NGO) Signup and view all the answers

What is international management?

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

What is a characteristic of a high UAI society?

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

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

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

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

Long-Term versus Short-term Orientation Signup and view all the answers

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

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

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

Encouraging creative thinking and dialogue. Signup and view all the answers

What is a characteristic of a low UAI society?

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

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

They tend to value principles, consistency, and truth. Signup and view all the answers

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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