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Chapter 1
Management:
process of completing activities
efficiently and effectively with and through other
people.
Globalization:
the process of social, political,
economic, cultural, and technological integration
among countries around the
world.
NAFTA: North American
Free Trade Agreement.
FTAA:
Free Trade Agreement of the Americas.
FDI: foreign direct investment
Global economic
systems:
1.
Market economy
2.
Command
economy
3.
Mixed economy
CHAPTER 2
Ideologies:
1.
Individualism:
the political philosophy
that people should be free to pursue economic
and political endeavors without
constraint.
2.
Collectivism:
the political philosophy
that views the needs or goals of society as a
whole
as more important than individual
desires.
3.
Socialism:
a
moderate form of collectivism in which there is
government ownership of
institutions,
and profit is not the ultimate goal.
Legal and regulatory
environment
There are three
foundations on which laws are based around the
world. Briefly summarized,
these
are:
1.
Islamic law:
law
that is derived from interpretation of
the Qur’an and the teachings of
the
Prophet Muhammad and is found in most Islamic
countries.
2.
Common law:
law
that derives from English law and is the
foundations of legislation in
the
United States, Canada, and England, among other
nations.
3.
Civil or code law:
law that is derived from Roman law and
is found in the non-Islamic
and
nonsocialist countries. The law
China
used is civil or code law.
Basic principles of international
law:
1.
Sovereignty and sovereign immunity:
principle of sovereignty:
an international
principle of law which holds that
governments have the right to rule themselves as
they
see fit.
2.
International
jurisdiction: which includes
nationality principle, territoriality
principle,
protective
principle.
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
principle:
a principle
which holds that every nation has the right of
jurisdiction within its legal
territory.
Protective
principle:
a jurisdictional
principle of law which holds that every country
has jurisdiction over behavior that
adversely affects its national security, even if
the
conduct occurred outside that
country.
3.
Doctrine of comity:
a jurisdictional principle of law which
holds that there must be
mutual respect
for the laws, institutions, and governments of
other countries in the
matter of
jurisdiction over their own citizens.
4.
Act of state
doctrine:
a
principle which holds that all acts of other
governments are
considered to be valid
by U.S. counts, even if such acts are illegal or
inappropriate
under U.S.
law.
5.
Treatment and rights of aliens:
countries have the legal
right to refuse admission of
foreign
citizens and to impose special restrictions on
their conduct, their right of travel,
where they can stay, and what business
they may conduct.
6.
Forum for
hearing and settling disputes:
this is a principle of U.S. as it
applies t
international law. U.S.
courts can dismiss cases brought before them by
foreigners.
Examples of legal and regulatory
issues:
1.
Financial services
regulation.
2.
Foreign corrupt practices act (FCPA):
an act that makes it
illegal to influence foreign
officials
through personal payment or political
contributions.
3.
Bureaucratization
Chapter 4
Culture:
acquired knowledge that people use to
interpret experience and generate social
behavior. This knowledge forms values,
creates attitudes, and influences
behavior.
Characteristics of
culture:
1.
Learned.
Culture is not inherited or
biologically based; it is acquired by learning
and experience.
2.
Shared:
people as members of q group,
organization, or society share culture; it is
not specific to single
individuals.
3.
Transgenerational:
culture is cumulative,
passed down from one generation to the
next.
4.
Symbolic:
culture is based on the
human capacity to symbolize or use one thing to
represent another.
5.
Patterned:
culture has structure and is
integrated; a change in one part will bring
changes in another.
6.
Adaptive:
Culture is based on the
human capacity to change or adapt, as opposed
to the more genetically driven adaptive
process of animals.
Cultural
diversity
In overall terms,
the cultural impact on international management is
reflected by basic
beliefs and
behaviors. Here are some specific examples where
the culture of a society
can directly
affect management approaches:
1.
Centralized
vs. decentralized
2.
Safety vs.
risk
3.
Individual vs. group
4.
Informal vs.
formal
5.
High vs. low organizational
loyalty
6.
Cooperation vs. competition
7.
Stability vs.
innovation
The
model of culture:
There are
three layers of culture:
1.
The
implicit, basic, assumptions that guide
people’s behavior;
2.
The norms and
values that guide the society;
3.
The explicit
artifacts and products of the society.
Values in culture
Values: basic convictions that people
have regarding what is right and wrong, good and
bad,
important and
unimportant.
Hofstede’s
cultural dimensions:
1.
Power
distance
:
the
extent to which less powerful members of
institutions and organizations
accept
that power is distributed unequally.
Lower-power-distance:
generally be decentralized and have
flatter organization structure;
High-power-distance:
have a large proportion of
supervisory personnel, centralized and have a
thinner structure.
2.
Uncertainty
avoidance:
the
extent to which people feel threatened by
ambiguous situations and
have created
beliefs and institution that try to avoid
these.
High-uncertainty-
avoidance:
have a great
deal of structuring of organizational activities,
more
written rules, less risk taking by
managers, lower labor turnover, and less ambitious
employees.
Low-uncertainty-
avoidance:
less structuring
of activities, fewer written rules, more risk
taking
by managers, higher
labor turnover, and ambitious
employees.
3.
Individualism; the tendency of people
to look after themselves and their immediate
family only.
Hofstede found
that wealthy countries have higher individualism
scores and poorer countries
and regions
higher collectivism.
4.
Masculinity:
a cultural characteristic in which the
dominant values in society are success,
money, and things.
Femininity:
a
cultural characteristic in which the dominant
values in society are caring for
others
and the quality of life.
5.
Time
orientation: present vs. future
6.
Indulgence
restraint
Trompenaar’s
cultural dimensions
1.
universalism vs.
particularism
universalism:
the belief that ideas and
practices can be applied everywhere in the world
without modification.
Particularism:
the belief that circumstance dictate
how ideas and practices should be
applied and that something cannot be
done the same everywhere.
2.
Individualism
vs. communitarianism
Communitarianism:
refers to people regarding
themselves as part of a group.
3.
Neutral vs.
emotional:
Neutral
culture:
culture which emotions are held in
check.
Emotional
culture:
culture in which emotions are expressed
openly and naturally.
4.
Specific vs.
diffuse:
Specific
culture:
culture
which individuals have a large public space they
readily share with
others and a small
private space they guard closely and share with
only close friends and
associates.
Diffuse culture:
culture which public space and private
space are similar in size and
individuals guard their public space
carefully, because entry into public space affords
entry
into private space as
well.
5.
Achievement vs. ascription:
Achievement culture;
culture
which people are accorded status based on how well
they
perform their
functions.
Ascription
culture:
culture which status is
attributed based on who or what a person
is.
6.
Time: present vs. future.
7.
The
environment: inner-directed environment vs. outer-
directed environment.
8.
Cultural
patterns or clusters.
Globe’s cultural dimensions:
1.
Uncertainty
avoidance
2.
Power distance
3.
Societal
collectivism
4.
In-group collectivism
5.
Gender
egalitarianism
6.
Assertiveness
7.
Future
orientation
8.
Performance orientation
9.
Human
orientation
Chapter
6
Organizational
culture:
shared values and beliefs that
enable members to understand their soles in
and the norms of the
organization.
Characteristic:
1.
Observed
behavioral regularities
2.
Norms
3.
Dominant
values
4.
Philosophy
5.
Rules
6.
Organizational climate
Dimensions of corporate
culture:
1.
Motivation: activities vs.
outputs
2.
Relationship: job vs. person
3.
Identity:
corporate vs. professional
4.
Communication:
open vs. closed
5.
Control: tight
vs. loose
6.
Conduct:
conventional vs. pragmatic
Four steps that are used in the process
of mergers or acquisition:
1.
The two groups
have to
establish the
purpose,
goal, and focus on their
merger;
2.
Develop mechanism
to
identify the most important organizational
structure and management
roles;
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