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1、International Management:Culture, Strategy and Behavior 1. T/F 10*1 mark=10marks2. Multiple Choice 10*2 mark=20marks 3. Short-answer 3(5)*10 mark=30marks4. Essay 3(2)*20 mark=40marksHint:The final exam grades only take up the 40% of the real last grades,20%discussion,40%the mid-term exam gradesKey p
2、ointChapter 1 Globalization and International Linkages1. International Management1) International management process: Applying management concepts and techniques in a multinational environment; Adapting management practices to different economic, political, and cultural environments.2) Multinational
3、 corporation (MNC): Operations in more than one country International sales Nationality mix of managers and owners2. Globalization and Internationalization1) Outsourcing The subcontracting or contracting out of activities to endogenous organizations that had previously been performed by the firm.2)
4、Offshoring The process by which companies undertake some activities at offshore locations instead of in their countries of origin.3)Benefits of Globalization: wealth, jobs, technology, lower prices.4)Criticisms of Globalization: off-shoring of business service jobs to lower-wage countries; growing t
5、rade deficits; slow wage growth; environmental and social impacts.3. Global and Regional Integration(TForCH)1) Global Agreements: World Trade Organization (WTO) (General Agreement on Tariffs and Trade (GATT)2) Regional Agreements: North American Free Trade Agreement (NAFTA) U.S.-Central American Fre
6、e Trade Agreement (CAFTA) European Union (EU) Association of Southeast Asian Nations (ASEAN) Free Trade Agreement of the Americas (FTAA) 3) Shifting landscape due to:Economic integrationEconomic potential of emerging markets4. Trends in International Investments and Trade1) International investment2
7、) International trade5. International Economic Power in the Global Economy1) Market Economy A market economy exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient p
8、ractices.2) Command EconomyA command economy is comparable to a monopoly in the sense that the organization, in this case the government, has explicit control over the price and supply of a good or service.3) Mixed Economy A mixed economy is a combination of a market and command economy. While some
9、aspects of this system include private ownership and the freedom and flexibility of the law of demand, other sectors are subject to government planning.6. Economic Performance by Major World Region1) North America:United States: purchasing power, free market based, a lucrative market for expansion.C
10、anada: USs largest trading partner, most foreign companies owned by US, legal & business environment. Mexico: maquiladora, largest LA eco, trade with EU & Asia is on the rise.2) South AmericaHeavy foreign debt obligations and experienced severe inflationInter-country trade.3) Europe (EU, Central and
11、 Eastern Europe)EU: privatization, operational economic union, the EU and newly emerging Central and Eastern European countries, absorb communist bloc countries.Foreign MNCs gain foothold in EU by: Acquisitions, Alliances, Cooperative R&D efforts4) Asia (Japan, China, the four tiger, emerging market
12、s of Asia)Japan: 1970-80s, MITI(Ministry of international trade and industry) Keiretsu: Vertically integrated industries; Holdings provide assistance needed in providing goods and services to end users. Decade long recession in 1990s China: high growth GDP piratingBaby tiger: -Large population base
13、Inexpensive labor Considerable natural resources Attractive to outside investors5) Other developing and emerging countries (India, Middle East, Central Asia, Africa) Poverty ; large population, large oppotunitiesChapter 2 The Political, Legal and Technological Environment1. Political Environment1) I
14、deologies (ideas reflecting beliefs and values influencing behavior/culture of nations and political systems) underlie the actions of governments.Individualism: People should be free to pursue economic and political endeavors without constraint. Collectivism: does not value individual as much.Social
15、ism: government ownership of institutions ; profit is not the ultimate goal2) Evaluate a political system along two dimensions:(1) rights of citizens based on a system of government (range democratic to totalitarian); (2) Focus of political system on individualism vs. collectivism.Democracy: governm
16、ent is controlled by citizens at least a two-party system Accountable to electorateTotalitarianism: only one representative party ; suppression of opposition; denial of rights, media censorship2. Legal and Regulatory Environment(E.G.)1) Islamic lawLaw that is derived from interpretation of Quran and
17、 teachings of Prophet MuhammadAnd is found in most Islamic countries: Middle East and Central Asia2) Socialist lawLaw that Origins in Marxist socialist system and Continues to influence regulations in former communist countries formerly associated with the Soviet Union as well as China.(Requires mos
18、t property to be owned by state or state enterprises)Members of former Soviet Union Peoples Republic of ChinaVietnamNorth KoreaCuba3) Common lawLaw that derives from (Origins in) English law and is the foundation of legal system for:United StatesCanadaEnglandAustraliaNew Zealand4) Civil or code lawL
19、aw that is derived from Roman law and isFound in non-Islamic and non-socialist countries:FranceSome Latin American countriesLouisiana in the U.S.2. Basic Principles of International Law1) Sovereignty and sovereign immunityAn international principle of law which holds that governments have the right
20、to rule themselves as they see fit.2) International Jurisdiction: Nationality principle: A jurisdictional principle of international law which holds that every country has jurisdiction over its citizens no matter where they are located.Territoriality principleProtective principle3) Doctrine of comit
21、y4) Act of state doctrine5) Treatment and rights of aliens6) Forum for hearing and settling disputes3. Legal and regulatory issues Foreign corrupt practices act(FCPA) Bureaucratization Privatization4. Technological environment and global shift in productionl Biotechnology Nanotechnology Satellites A
22、utomatic translation telephone l Artificial intelligence and embedded learning technology l Advancements in computer chip technology Supercomputers E-business: B2B B2C E-tailing E-cashTelecommunications Technology, outsourcing and offshoring: Technology has reduced and eliminated Chapter4 The Meanin
23、gs and Dimensions of Culture 1. The Nature of Culture(6)Culture defined: Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.1) LearnedCulture is not inherited or biologically based；It is acq
24、uired by learning and experience.2) SharedPeople as members of a group, organization, or society share culture; it is not specific to single individuals.3) TransgenerationalCulture is cumulative, passed down from one generation to the next.4) SymbolicCulture is based on the human capacity to symboli
25、ze or use one thing to represent another.5) PatternedCulture has structure and is integrated; a change in one part will bring changes in another.6) AdaptiveCulture is based on the human capacity to change or adapt, as opposed to the more genetically driven adaptive process of animals.2. Values in cu
26、ltureBasic convictions that people have about right and wrong; good and bad; important and unimportant.3. Hofstedes Cultural Dimensions(4)1) Power distance: Less powerful members accept that power is distributed unequallyHigh power distance countries: people blindly obey superiors; centralized, tall
27、 structures (e.g., Mexico, South Korea, India)Low power distance countries: flatter, decentralized structures, smaller ratio of supervisor to employee (e.g., Austria, Finland, Ireland)2) Uncertainty avoidance: people feel threatened by ambiguous situations; create beliefs/institutions to avoid such
28、situationsHigh uncertainty avoidance countries: high need for security, strong belief in experts and their knowledge; structure organizational activities, more written rules, less managerial risk taking (e.g., Germany, Japan, Spain) Low uncertainty avoidance countries: people more willing to accept
29、risks of the unknown, less structured organizational activities, fewer written rules, more managerial risk taking, higher employee turnover, more ambitious employees (e.g., Denmark and Great Britain)3) Individualism: People look after selves and immediate family onlyHigh individualism countries: wea
30、lthier, protestant work ethic, greater individual initiative, promotions based on market value (e.g., U.S., Canada, Sweden)High collectivism countries: poorer, less support of Protestant work ethic, less individual initiative, promotions based on seniority (e.g., Indonesia, Pakistan)4) Masculinity:
31、dominant social values are success, money, and thingsHigh masculine countries: stress earnings, recognition, advancement, challenge, wealth; high job stress (e.g., Germanic countries)High feminine countries: emphasize caring for others and quality of life; cooperation, friendly atmosphere., employme
32、nt security, group decision making; low job stress (e.g., Norway)4. Trompenaarss Cultural Dimensions(5)1) Universalism vs. Particularism2) Individualism vs. Communitarianism3) Neutral vs. Emotional4) Specific vs. Diffuse5) Achievement vs. Ascription6) Time 7) Environment Chapter 5 Managing Across Cu
33、ltures1.Strategic Predispositions(4)Four distinct predispositions toward doing things in a particular way:1)EthnocentricA nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions.2)PolycentricA philosophy of management whereby strategic
34、decisions are tailored to suit the cultures of the countries where the MNC operates.3)RegiocentricA philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.4)GeocentricA philosophy of management whereby the company tries to integr
35、ate a global systems approach to decision making.2. Cross-Cultural Differences and Similarities Parochialism and Simplification1) Parochialism: view world through own eyes and perspectives2) Simplification: exhibit same orientation toward different cultural groups3. Cultural Differences in Selected
36、Countries and Regions(Ea)Doing Business in China1) The Chinese place values and principles above money and expediency.2) Business meetings typically start with pleasantries such as tea and general conversation about the guests trip to the country, local accommodations, and family. 3) The Chinese hos
37、t will give the appropriate indication for when a meeting is to begin and when the meeting is over.4) Once the Chinese decide who and what is best, they tend to stick with these decisions. Although slow in formulating a plan of action, once they get started, they make fairly good progress. 5) In neg
38、otiations, reciprocity is important. If the Chinese give concessions, they expect some in return.6) Because negotiating can involve a loss of face, it is common to find Chinese carrying out the whole process through intermediaries.7) During negotiations, it is important not to show excessive emotion
39、 of any kind. Anger or frustration is viewed as antisocial and unseemly.8) Negotiations should be viewed with a long-term perspective. Those who will do best are the ones who realize they are investing in a long-term relationship.IN RUSSIAIN INDIAIN FRANCEIN BRAZILIN ARAB COUNTRIESChapter 6 Organiza
40、tional Cultures and Diversity1. The Nature of Organizational Culture Shared value and beliefs enabling members to understand their roles and the norms of the organization.2. Organizational Cultures in MNCs(4)Mean:Shaped by numerous factors including cultural preferences of leaders and employeesSome
41、MNCs have subsidiaries that (aside from logo and reporting procedures) wouldnt be easily recognizable as belonging to same MNCFamily cultureFamily Culture: Strong emphasis on hierarchy and orientation to personsThe result is a family-type environment that is 1)power oriented and headed by leader reg
42、arded as a caring parent.2)Management takes care of employees, ensures theyre treated well, and have continued employment.3)Catalyze and multiply energies of personnel or end up supporting leader who is ineffective and drains energy and loyalties.Eiffel Tower:Eiffel Tower culture is characterized by
43、 1)strong emphasis on hierarchy and orientation to task2)Jobs well defined; coordination from top3)Culture narrow at top; broad at base4)Relationships specific and status remains with job5)Few off-the-job relationships between manager and employee6)Formal hierarchy is impersonal and efficientGuided
44、Missile:Guided Missile culture is characterized by1)Strong emphasis on equality in workplace and in task2)Culture oriented to work3)Work undertaken by teams or project groups4)All team members equal5)Treat each other with respect6)Egalitarian and task-driven organizational cultureIncubator Culture:1
45、)Strong emphasis on equality and personal orientation2)Organization as incubator for self-expression and self-fulfillment3)Participants confirm, criticize, develop, find resources for, or help complete development of innovative product or service(E.G.COUNTRY)3. Types of Multiculturalism(EA)Domestic
46、MulticulturalismMulticultural and diverse workforce operating in MNC home countryGroup Multiculturalism1) Homogenous groupsA group in which members have similar backgrounds and generally perceive,interpret,and evaluate events in similar ways.2) Token groupsA group in which all members but one have t
47、he same background,such as a group of Japanese retailers and a British attorney.3) Bicultural groupsIn which two or more members represent each of two distinct cultures.An example would be a group of four Mexicans and four Canadians who have formed a team to investigate the possibility of investing in Russia.4) Multicultural groupsA group in which there are individuals from three or more different ethnic backgrounds,such as three U.S.,three German,three Uruguayan,and three Chinese managers who are looking into