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Born globals
Companies that operate internationally from the day that they are created.
Christianity
Faith based on the life, teachings, death, and resurrection of Jesus.
Clusters
Representing countries that share similar cultural characteristics.
Cultural intelligence
Refers to the individuals’ capabilities to function and manage effectively in culturally diverse settings.
Cultural paradox
Insights from an understanding of culture may not necessarily coincide with reality in that culture.
Cultural stereotyping
Occurs when one assumes that all people within a culture act, think, and behave the same way.
DHL Global Connected Index
Index tracking the flow of capital, information, trade, and human resources and representing the degree of globalization.
E-commerce
Buying and selling of products using the Internet.
Education
Socializing experiences that prepare individuals to act in society.
Emerging market multinationals
Influential companies from emerging markets that are competing head-on with established multinationals and rewriting the rules of competition by using new business models.
Emerging markets
Those markets in countries that present tremendous potential for multinationals.
Expatriate
Foreign employee who moves and works in another country for an extended period of time.
Exporting
International entry mode where a company sends a product to an international market and fills the order like a domestic order.
Foreign direct investment (FDI)
Involves a company investing in another country through the construction of facilities and buildings in another country.
Foreign direct investment (FDI)
Refers to deliberate efforts of a country or company to invest in another country through the form of ownership positions in companies in another country.
Global strategy
Where all operations and activities are managed fairly similarly worldwide.
Globalization
Worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing.
GLOBE project
More recent cultural project involving 170 researchers who collected data on 17,000 managers from 62 countries around the world.
High-rigor cross-cultural training
Methods of training where participants are much more actively engaged in the training process and can learn some tacit aspects of cross-cultural differences.
Hinduism
Represented by all those who honor the ancient scriptures called the Vedas.
Hofstede model of national culture
Project involving survey of over 88,000 employees in IBM subsidiaries from 72 countries.
Immigration
Movement of people from their home country to other countries; will continue to grow worldwide.
Individualism
Degree to which a society focuses on the relationship of the individual to the group.
International franchising
Where a company will license the complete business model.
International strategic alliances
Two or more companies from different countries enter into an agreement to conduct joint business activities.
Islam
Religion whose essence is described in the Qur’an as the submission to the will of Allah (God).
Licensing
Contractual agreement whereby a company is given the right to another company’s trademarks, know-how, and other intangible assets in return for a royalty or a fee.
Local strategy
Company’s operations are adapted to fit some specific countries.
Low-rigor cross-cultural training
Training where individuals are exposed to critical information to help them understand the realities of a different culture but are not actively engaged in their learning.
Masculinity
Degree to which a society emphasizes traditional masculine qualities, such as advancement and earnings.
Political risk
Degree to which political decisions can impact a business’s ability to survive in a country.
Postarrival cross-cultural training
Training provided after the expatriate has arrived to the intended destination.
Power distance
Refers to the degree to which societies accept power differences and authority in society.
Predeparture cross-cultural training
Learning opportunities provided prior to departure.
Regional strategy
Where the multinational adapts activities and operations to regional requirements.
Religion
Shared set of beliefs, activities, and institutions based on faith in supernatural forces.
Social institution
Complex of positions, roles, norms, and values lodged in particular types of social structures and organizing relatively stable patterns of human resources with respect to fundamental problems in . . . sustaining viable societal structures within a given environment.
Social stratification
Degree to which social benefits are unequally distributed; those patterns are perpetuated for life.
Tariffs
Extra charges that are added to the price of international products in the form of additional taxes or higher prices as a way to give domestic companies a price advantage while also protecting these companies from foreign competition.
Trade agreements
Popular policy instruments that countries agree on to eliminate cross-border barriers to trade and to promote global integration.
Uncertainty avoidance
Refers to the degree to which people in a society are comfortable with uncertainty and unpredictable situations.
Uppsala model of internationalization
Model that argues that as firms learn more about a specific market, they become more committed by investing more resources into that market.
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