D270 Midterm (1)

the relocation of business processes and services to a lower-cost foreign location particularly white-collar, technical, professional, and clerical services

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

A company sets a contract with a company abroad, trains local personnel, and then turns the key over to local management for a fee. allows host country to use their trademark, brand

home country hires a host country to hire, train, manage workers for their work and pays them a fee for dealing with operations overseas. less risk, less costly, less complex

investor takes controlling investment in foreign country

an agreement between two or more companies to share an FDI

someone who is a catalyst in helping organizations to deal with old problems in new ways. can also be brands changing culture/brands in a country

individuals who exert direct or indirect social influence over others. influencers

moves jobs back from foreign to domestic locations

The central processing unit that is generally made from a single integrated circuit.

Clumping together of industries for mutual advantage.

an agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties

A percentage of actual sales that a licensee pays to a licensor, usually anywhere from 5 to 15 percent

a high standing achieved through success or influence or wealth etc.

Defined by choice (political, professional, religion)

Civil War

small, high per capita income, lots of imports

Founded as international company ex. soundcloud

1. Threats to national sovereignty

2. Environmental stress

3. Growing income inequality and personal stress

4. Local businesses hurt

5.Poor working conditions

ex. Cristiano Ronaldo, make so so much money, way more than the average pro player in less popular sports

-increases profits by having more people to sell to -can use foreign resources which can be cheaper/better -risks are reduced (when 1 country is doing poorly, another might be ok) -increases competition -middle class increased

a non-controlling financial interest in another entity

Companies work together—in joint ventures, licensing agreements, management contracts, minority ownership, and long-term contractual arrangements

same as collaborative arrangement, but is an agreement with a critical importance to a partner or does not involve a joint ownership

serve a narrow niche better than other firms

-less import restrictions -more foreign ownership of assets -more democracies -more world trade

Africa, Cuba, North Korea, Iran. have only one (or none) major trade partners

200BC-1700AD, silk road/start of trade between East and West

1500-1945, European colonization, world wars

1950-1998, world war recovery, MNE expansion, democracy expansion

1999-present, anti-globalization movement with financial crises, income inequality, terrorism, new nationalism

Asia: increased a ton from 1980 US: barely changed, but top 1% gets wealthier

a company that is completely controlled by another company

A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

when divergent cultures come in contact and creates problems

people are primarily task-oriented, Ex. US, Britain

A culture where people put dealings with friends ahead of business dealings ex. Saudi Arabia

Domination of one culture over another

The spread of ideas, customs, and technologies from one people to another

foreign influences are absorbed and integrated with local meanings

a system by which a society ranks categories of people in a hierarchy

theory that predominately protestant countries were most economically developed

Defined by birth (gender, ethnic, family, nation)

live to work

work to live

people fulfill lower level needs before higher

measurement of employee preferences of interactions with superiors/subordinates HIGH: little consultation with boss/workers LOW: lots of consultation between boss/workers

rule by one person with unlimited power

the policy or practice of treating or governing people in the manner of a father dealing with his children. supplying their needs

a willingness to delay gratification in order to reap more in the future

the belief that all events are predetermined and therefore inevitable

a culture in which people are expected to be direct and to say what they mean, not lots of small talk

a culture in which people are taught to speak in an indirect, inexplicit way, likes to know a lot of indirect info. ex. japan

The use of time that emphasizes punctuality, schedules, and completing one task at a time.

the use of time that emphasizes flexible schedules in which multiple tasks are pursued at the same time

establish overall principles before resolving small issues

larger focus on details/abstract principles

Nonverbal clues that differ from culture to culture, may include color associations, distance during conversation, time or punctuality, body language, and prestige.

the average number of countries they are apart on the dimensions

company that adjusts to the country they're in

Belief in the superiority of one's nation or ethnic group.

mix of ethnocentric and polycentric

A relationship between countries in which they rely on one another for resources, goods, or services

Reasonable Price + Reasonable Product + Customer's Trust = Sale

A democracy sharing some features of full democracy but marred by voter fraud, uneven enforcement of civil and political rights, patronage politics, and corruption

A procedural democracy, with elections, but without real competition, and lacking some civil rights and liberties. ex. China

fair/competitive elections; ability to disagree and express thoughts

Risk associated with political changes that may negatively impact domestic and foreign firms.

A risk that influences a large number of assets. Also, market risk.

constraints flexibility of local operations, profit reperation, tax discrimination, etc

Rock-Bottom Price + Bell-Ringer Product = Sale

A result of the profits generated by foreign companies in the local economy. If the host country questions the distributive justice of the rewards of operating in its market, it may wonder whether, as the business grows more successful, it is receiving its "fair" share of the growing profits. can eliminate local property rights

risk of an unpredictable event that causes severe loss to many people at the same time. nationalism, war, civil strike, insurrection

rebellion

A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.

one party system, approved officials protect people and have their consent, authoritarian capitalism guides system, not iron fist, trade is separate from politics

Political competition is a right, has political and economic freedom, rule of law, property and human rights are sacred, trade policy used to advance political/human rights

A legal system based on a written code of laws ex. germany, mexico, japan, 150+ others

lead foreign company; "caught in the middle - can't please everybody"