International Management Session 2

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Questions and Answers

What is one implication of economic globalization for international managers?

They operate without the influence of technology.

They focus exclusively on domestic markets.

They need to consider events in distant countries. (correct)

They only manage local compliance issues.

How has information technology influenced the competition for small and medium-sized enterprises (SMEs)?

It has provided them with capabilities to compete globally. (correct)

It has decreased their operational efficiency.

It has limited their access to global markets.

It has made them reliant on traditional methods.

Which statement best summarizes globalization?

Globalization fosters isolation among economies.

Globalization describes the increasing connections across various spheres of activity. (correct)

Globalization is primarily driven by governmental regulations.

Only economies are interconnected, leaving cultures independent.

What role do political systems play in international business?

They influence the legal requirements and compliance for businesses. Signup and view all the answers

What must be assessed to determine if foreign trading is feasible?

Prospective benefits against potential risks Signup and view all the answers

What should be prioritized when planning for market expansion?

Developing a comprehensive worldwide business strategy Signup and view all the answers

What effect did free trade have on international business from the 1990s onward?

It contributed to economic and organizational interconnectedness. Signup and view all the answers

What is one characteristic of small and medium-sized enterprises (SMEs) as defined in the United States?

Companies with 500 employees or less. Signup and view all the answers

Which aspect is crucial for establishing successful market entrance tactics?

Investigating and evaluating potential entrance tactics and strategic alliances Signup and view all the answers

How does globalization affect transactions across borders?

It facilitates increased interactions in trade and investments. Signup and view all the answers

Why is cultural sensitivity important in global trade?

It allows for better adaptation of products and services Signup and view all the answers

Which of the following factors must international managers consider proactively?

Economic, political, and legal factors Signup and view all the answers

Which of the following is NOT a consequence of advanced information technology on globalization?

Limitation of resources to large firms only. Signup and view all the answers

What role does marketing play in international trade?

It generates demand that needs to be capitalized through a sales plan. Signup and view all the answers

When adapting products for specific international markets, what must managers be particularly aware of?

Regulatory compliances and cultural preferences Signup and view all the answers

What is the primary goal of major trade groups like the EU, NAFTA, and APEC?

To facilitate easier trade and reduce tariffs Signup and view all the answers

What is outsourcing primarily aimed at achieving for organizations?

Reducing operational costs and accessing expertise Signup and view all the answers

What should international managers familiarize themselves with when considering global morality and law?

The fundamental legal concepts of worldwide business Signup and view all the answers

What issue is commonly associated with outsourcing?

Cross-cultural problems and inefficiencies Signup and view all the answers

How does downsizing typically affect organizations in the context of globalization?

It results in layoffs due to economic pressures. Signup and view all the answers

Which of the following best describes protectionism?

Implementing taxes to protect domestic industries Signup and view all the answers

What does the term 'merger' specifically refer to?

The combination of two companies into a single entity Signup and view all the answers

What challenge can arise when organizations downsize due to globalization?

Employee dissatisfaction and reduced morale Signup and view all the answers

Which of the following accurately describes Business Process Outsourcing (BPO)?

Hiring external companies to handle services previously done in-house Signup and view all the answers

What is primarily required to demonstrate cultural empathy effectively?

Bracketing one’s assumptions Signup and view all the answers

Cognitive complexity is associated with all of the following EXCEPT:

Ability to take risks Signup and view all the answers

What is a significant benefit of cultural empathy in managerial contexts?

Facilitates understanding and acceptance Signup and view all the answers

What role does active listening play in demonstrating cultural empathy?

It is essential for perceiving multiple dimensions. Signup and view all the answers

Which of the following best describes the challenge of demonstrating cultural empathy?

It demands setting aside habitual ways of thinking. Signup and view all the answers

According to the content, what might a manager do to navigate cultural differences in communication?

Adapt their communication style to the other culture. Signup and view all the answers

The ability to empathize with individuals from different cultural backgrounds is linked to which cognitive skill?

Cognitive complexity Signup and view all the answers

What statement best captures the essence of active listening in the context of cultural empathy?

It helps to grasp multiple perspectives in a conversation. Signup and view all the answers

What role does family support play for managers in their professional lives?

It provides an environment for coping and regaining emotional energy. Signup and view all the answers

What is a characteristic of psychological maturity?

A clear and consistent way of seeing meaning in life. Signup and view all the answers

How do core values relate to psychological maturity?

They guide individuals in setting meaningful goals. Signup and view all the answers

What misconception does the content address regarding emotions in organizational life?

Expressions of emotion are essential for cognitive complexity. Signup and view all the answers

What is a result of the emotional bonds developed within families according to the content?

Improved ability to cope with professional challenges. Signup and view all the answers

What does having a unifying philosophy of life indicate about psychological maturity?

It evolves from a clear value system. Signup and view all the answers

Which of the following describes how emotional energy impacts managers?

It enables a more human interaction during engagements. Signup and view all the answers

Which aspect is typically seen as essential for successful management according to the content?

A robust and evolving value system. Signup and view all the answers

What is a significant aspect of curiosity to learn in international managers?

It motivates individuals to seek out new experiences. Signup and view all the answers

Which character trait is essential for a psychologically mature international manager?

Openness to new ideas and experiences. Signup and view all the answers

How does experiential learning contribute to the curiosity of managers?

It allows individuals to learn in real-world scenarios. Signup and view all the answers

What tendency do managers with a healthy personality exhibit regarding time orientation?

They appreciate the present moment fully. Signup and view all the answers

What is the primary motivator for many managers pursuing an international career?

Curiosity to seek out the new and unfamiliar. Signup and view all the answers

What can hinder an international manager from experiencing genuine learning?

A focus on theoretical understanding without practice. Signup and view all the answers

How do managers who live in the 'here and now' typically view their experiences?

As unique and worthy of appreciation. Signup and view all the answers

What aspect of curiosity facilitates effective learning in managers?

Active pursuit of relevant opportunities. Signup and view all the answers

Study Notes

Session 2: The International Manager

Globalization is the increasing interdependence of global economies, cultures and populations, driven by cross-border trade, technology, investment flows, and information.
Globalization creates a more interconnected world, impacting businesses and individuals.
International managers encounter economic, political, and legal factors affecting the global business environment.

Economic Globalization

Information technology has reduced communication costs, leading to a globalized trade.
Increased competition and sophistication of computing systems affect small and large organizations alike, enabling their access to information, resources, and markets.
Small and medium-sized businesses are now able to compete globally. Small/medium sized enterprise definitions vary around the world, e.g., in the US 500 employees or fewer; in the EU 250 or fewer.

Political Systems

International managers must understand and deal with political events in other countries, as these can heavily influence international business activities.
Increased rate of mergers and acquisitions may result, leading to reductions in workforce.

Legal Requirements and Compliance

All business activities today are impacted by international transactions and events occurring in other countries.
Global managers must comply with local legal requirements and adhere to international trade agreements.

Increased Use and Sophistication of Information Technology

Advances in information technology reduce the cost of communication and lead to a more globalized market.
Technological advancements now enable small organizations to compete with large multinationals.

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Description

Explore the complexities of international management in the context of globalization. This session delves into the economic, political, and legal factors that international managers face in a globalized business environment. Understanding these elements is crucial for small and medium-sized enterprises aiming to compete worldwide.