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1. ComparativeManagement is dedicated to exploring the landscape, contours, and national patterns of development 2. Cross-CulturalManagement gives analytical significance to national culture as the key variable when examining acceptable management practice 3. Globalisation(Friedman) described the wo...

1. ComparativeManagement is dedicated to exploring the landscape, contours, and national patterns of development 2. Cross-CulturalManagement gives analytical significance to national culture as the key variable when examining acceptable management practice 3. Globalisation(Friedman) described the world as one single globalised marketplace driven by the spread of free market capitalisation 4. Hyperglobalisation the convergence towards a global system 5. Intra-Firm is a MNC that trades between themselves and its subsidiaries 6. MNCCapabilities = organisation, technological, managerial, and international 7. BRIC = Brazil, Russia, India and China 8. Authoritarianism = rule by one or more individuals who have absolute power and no substantive accountability for citizens 9. DynamicCapabilityTheory =MNCS cannot rely on existing resources but must develop dynamic capabilities to create, deploy and upgrade resources in pursuit of maintaining competitive advantage 10. Democracy = system based on accountability of the voting public through regular, free, and fair elections 11. 2 key elements of Managing the Political Environment are political constraints and political risks 12. Politically Astute is having superior political intelligence and influence skills 13.Two-Party Systetem = two broadly based parties that dominate, alternating between government and opposition 14.Multi-Party System = many parties represent a wide spectrum of views and coalition is likely 15.Ownership Risk : government could change structure; firms could be forced to reduce stake by sharing ownership with local firm 16.Operational Risk = changes to rules or tax system 17.Transfer Risk = impediments to the transfer of FOPs 18.Common Law = independent judiciary relying on precedent 19.Civil Law relies on legal code 20.Theocratic Law is based on religious code 21.First to File System = right to patent 22. Culture is the collective programming of the human mind- shared and learned 23.Morrisons Facets of Culture are outward expressions, values and belief, communication, norms 24.Ethnic Groupings is people drawn together by a sense of common identity, belonging, religion or common descent 25.High Context Cultures = information is conveyed non-verbally, primary use of communication is to develop relationships 26.Low Context Culture = information is conveyed by explicit expression of words, primary use of communication is the exchange of information, facts, and opinions 27.Hofstede's Cultural Dimensions are power distance, indulgence vs restraint, long term orientation, masculinity vs femininity, uncertainty avoidance, individuality 28.Trompenaars’s Relational Dimensions are universalism vs particularism, individualism vs collectivism, neutral vs emotional, specific vs diffuse, achievement vs ascription 29.Culture Distance is the degree to which a firm is unfamiliar with the culture of a foreign business location 30. Ethnocentrism is the perspective of individuals and organisations that are completely involved in their own culture to the extent that they exclude other cultures 31. Polycentrism is perspective of individuals and organisations that recognize that their own culture is one of many and strive to understand differing cultures 32.Hetero stereotypes = how we are seen by others 33. Auto-stereotypes = how we see ourselves 34.Fatalistic Disposition is the belief that life is predetermined, and change is difficult to achieve 35.Convergence Hypothesis states technology and economics are making countries more alike 36.Divergence Hypothesis assumes countries will maintain their distinctive characteristics 37. Cross-Variance is mix between western-imported ideas and nationalistic, domestic styles 38.Reactive Internationalisation Motives are competitive pressures, overproduction, declining domestic sales, excess capacity, saturated domestic market 39.Proactive Internationalisation Motives are profit advantage, unique product, technological advancement, tax benefits, economies of scale 40. PEST = political, economic, social, technological 41.Trade Related Entry Modes are indirect exporting, direct exporting, counter trade 42.Counter Trade = seller and buyer from different countries exchange goods with little cash changing hands - barter 43.Buying House is similar to confirming house but more active in seeking out sellers to match buyers’ particular needs 44.Confirming House acts for foreign buyers and is paid on a commission basis 45.Export House buys products from domestic firms and sells them abroad on own account 46.Transfer Related Entry Modes are international licensing and franchising 47.International Licensing is the rights to production of goods are contracted out to another firm 48.International Franchising is the transfer of a business concept, with corresponding operational guidelines, to non-domestic parties for a fee. 49.Wholly Owned Subsidiary is 100% ownership of a facility in a new country 50. Global Strategic Alliance is cross border partnerships between two or more firms from different countries with an attempt to pursue mutual interests 51.Joint Ventures are commercial enterprise undertaken jointly by 2 or more parties who otherwise retain their separate identities 52.Equity JVs are legally and economically separate entities created by 2 or more parent firms 53.Co-Operative JVs are contractual agreements whereby profits, and responsibilities are assigned to each party according to contract without the creation of a new entity 54. Development Assignment = employees are sent to understand global operations and are required to have intercultural knowledge 55. Functional Assignment is when employees are sent to other countries for extended projects and return when done 56. Balance Sheet Approach iswhen package compensation equalises the cost between home country and international employees 57.Multinational Enterprise are an organisation that has operating units is some foreign countries 58. Co-determination is when union representatives are given seats on the board of directors in a business 59. Strategic Assignments is when employees are sent for strategic jobs having intercultural understanding 60.Tax Equalisation Plan aims to protect employees from the negative consequences of tax 61.TechnicalAssignments are when employees are sent to perform some limited tasks and then return home 62.Quantitative Easing is buying government bonds 63. Strategic Global Analysis are identifying firms with similar strategies or competing on a similar basis 64.Mobility Barrier prevents other firms from entering strategic group and threatening existing firms 65.Five Forces Model: competitive rivalry, supplier power, buyer power, threat of substitution, threat of new entry 66.Liability of Foreignness is the difficulties that arise because of different norms and rules that constrain human behaviour 67. Bear: sent to act as decision makers with high authority 68.Bumble bees guarantee close connections between subsidiaries and HQ 69. Spiders establish communication networks 70.Culture Psychic Distance Paradox is when expatriate underestimates culture difference and then experiences greater culture shock 71.Horizontal Merger is a merger between companies in the same industry 72.Vertical Merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations 73.De-internationalisation is a result of company failure or strategic decision making 74.Diversification alliance is a partnership between companies in different lines of business 75.Vertical integration alliance is an alliance between a supplier and buyer that agree to use and share skills and capabilities in the supply chain 76. Strategic Alliance partners should share strategic and cultural fit 77.Strategic Control: control over the means and methods on which the whole conduct of an organisation depends 78.Global Strategy is a single strategy for the entire global network for subsidiaries and partners 79.Multi-domestic strategy: attempt to achieve maximum local responsiveness by customising product and marketing strategy to match different national conditions 80.Globalisation Index measures levels of integration, personal contact, technology, and political engagement 81.Trompenaars relational dimensions sought to Present a theory of cultural dimensions designed to guide managers in practical situations 82.Trompenaars dimensions were published in 1997 83.Internal Political Risks are Corruption, Fragmented alliances, Weak elements of society, alienated groups, Risk of terrorism, Social unrest, Fragile coalition, Power centres. 84.International Risks are Military invasion, Global imbalance, Trading partner disputes, Spill over of regional conflict, Risk of terrorism, Dispute with neighbours, insecurity of resources, insecure borders 85."No two countries which both have McDonalds will go to war" - 30-45% less likely to go to war 86.Legal Issues for MNCs- 1. Rule of Origin Laws 2. Competition 3. Marketing and Distribution 4. Product Liability Laws 5. Patents 87.Trompenaars 7 relational dimensions are 1. Universalism V Particularism: the former emphasises socialcodes while thelatter emphasises personal relationships2. Individualism V communitarianism 3. Neutral V emotional; objective & instrumental or emotional 4. Specific V diffuse; focus on contract V whole person 5. Achievement V ascription; judged on achievement V status and connections 6. Sequential Vs Synchronic > view time in a sequential or linear fashion / several events are juggled at the same time 7. Internal Vs Outward directions > the extent to which people believe they control the environment, or the environment controls them 88.Levitt (1983) predicted That there would be a single global market where standardized products would be sold everywhere and Tastes and preferences would be homogenized Levitt failed to see persisting diversity of customers 89.Spill Over Effect: Opportunities for local firms to benefit from FDI, gaining technological competence which generates new local businesses and technological capacities 90.Polycentrism is the perspective of individuals and organisations which recognizes their own culture as one among many and strives to understand differing cultures 91.Fatalistic disposition is the belief that life is predetermined & change is relatively difficult to achieve 92.Convergence hypothesis: technology & economics are making countries more alike, and that with global integration of markets & diffusion of MNC practices convergence will increase 93.Divergence hypothesis: assumes countries will continue to maintain their distinctive characteristics and that these may increase over time. Cross-vergence may be a likely trend. 94. The concept of Cross-vergence is used to present the understanding that when different cultures are diverged or converged longitudinally over a given period, there will also be a noticed shift in the ranking of cultural differences between these cultures as they will merge to share certain cross-cultural similarities or dissimilarities 95.International staffing policies include: 1. Ethnocentric; appoint mostly parent country national (PCNs) to top positions in subsidiaries 2. Polycentric; appoint mostly host country national (HCNs) 3. Geocentric; appoint the best person regardless of nationality including third country nationals (TCNs) 4. Regio centric; transferred on a regional basis - midway between a pure 1&2 and 3. 96.The international assignment cycle consists of -Recruitment and Selection Hiring, Preparation, Expatriation, Repatriation 97.Cultural Risk occurs when An organisation encounters a new market or An event which puts some human value / activity at stake. Cultural understanding and appreciation are key for a manager 98.Cultural Risk is heightened by ethnocentrism (due to superiority complex) 99.Parent country national (PCN) Nationality of employee is the same as that of the headquarters of the multinational firm e.g., a German employee working at the Chinese subsidiary of Volkswagen. 100. Host country national (HCN) = Nationality of employee is the same as that of the local subsidiary e.g., a Chinese employee working at the Chinese subsidiary of Volkswagen.