Organizational Marketing Terms Ch 4

Viewing the world solely through one’s own eyes and perspectives and not recognizing that others have different ways of living and working. It leads to an inability to recognize differences between people.
ethnocentric attitude
The parochialistic belief that the best work approaches and practices are those of the home country.
polycentric attitude
The view that the managers in the host country know the best work approaches and practices for running their business.
geocentric attitude
A world-oriented view that focuses on using the best approaches and people from around the globe.
European Union (EU)
An economic and political partnership of 27 democratic European countries created as a unified economic and trade entity. Three additional countries have applied for membership.
A single common European currency.
North American Free Trade Agreement
What does NAFTA stand for?
An agreement among the Mexican, Canadian, and U.S. governments that has eliminated barriers to trade. (abrv)
Association of Southeast Asian Nations
What does ASEAN stand for?
A trading alliance of 10 Southeast Asian nations. (abrv)
World Trade Organization
What does WTO stand for?
A global organization of 153 countries that deal with the rules of trade among nations. (abrv)
Central America Free Trade Agreement
What does CAFTA stand for?
What agreement promotes trade liberalization between the United States and five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua? (Only El Salvador and Costa Rica have joined; the other countries have yet to change laws to be in line with the agreement) (abrv)
Free Trade Area of the Americas
What does FTAA stand for?
Negotiators from 34 countries in the Western Hemisphere continue to work on what agreement, which was to have been operational no later than 2005? (However, leaders can’t come to any real agreement) (abrv)
multinational corporation
What does MNC stand for?
MNC (multinational corporation)
A broad term that refers to any and all types of international companies that maintain operations in multiple countries. (abrv)
multidomestic corporation
An international company that decentralizes management and other decisions to the local country.
global company
An international company that centralizes management and other decisions in the home country.
transnational organization (or borderless organization)
A type of international company in which artificial barriers are eliminated.
global sourcing (or global outsourcing)
Purchasing materials or labor from around the world based on lowest cost.
Making products domestically and selling them abroad.
Acquiring products made abroad and selling them domestically.
An agreement in which an organization gives another the right to make or sell its products, using its technology or product specifications.
An agreement in which an organization gives another organization the right to use its name and operating methods.
strategic alliance
A partnership between an organization and a foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities.
Server software that allows users to freely create and edit Web page content using any Web browser.
Web logs or online diaries
joint venture
A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
foreign subsidiary
A direct investment in a foreign country that involves setting up a separate and independent facility or office.
free market
An economic system in which resources are primarily owned and controlled by the private sector.
planned economy
An economic system in which all economic decisions are planned by a central government
national culture
The values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important.
Geert Hofstede
Who developed one of the most widely referenced approaches to helping managers better understand differences between national cultures? His research found that countries vary on five dimensions of national culture.
Global Leadership and Organizational Behavior Effectiveness
What does GLOBE stand for?
What organization research program extended Hofstede’s work by investigating cross-cultural leadership behaviors? It gives managers additional information to help them identify and manage cultural differences. *It is a program that studies cross-cultural leadership behaviors.
power distance
The degree to which members of a society expect power to be unequally shared.
uncertainty avoidance
A society’s reliance on social norms and procedures to alleviate the unpredictability of future events.
The extent to which a society encourages people to be tough, confrontational, assertive, and competitive rather than modest and tender.
humane orientation
The degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others.
future orientation
The extent to which a society encourages and rewards future-oriented behaviors such as planning, investing in the future, and delaying gratification.
institutional collectivism
The degree to which individuals are encouraged by societal institutions to be integrated into groups in organizations and society.
gender differentiation
The extent to which a society maximizes gender role differences as measured by how much status and decision-making responsibilities women have.
in-group collectivism
The extent to which members of a society take pride in membership in small groups, such as their families, their circles of close friends, and the organizations in which they’re employed.
performance orientation
The degree to which a society encourages and rewards group members for performance improvement and excellence.

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