Chapter 1Management: 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 investmentGlobal economic systems:1.Market economymand economy3.Mixed economyCHAPTER 2Ideologies:1.Individualism: the political philosophy that peopleshould be free to pursue economic and political endeavorswithout constraint.2.Collectivism: the political philosophy that views theneeds or goals of society as a whole as more important thanindividual desires.3.Socialism: a moderate form of collectivism in whichthere is government ownership of institutions, and profit is not the ultimate goal.Legal and regulatory environmentThere are three foundations on which laws are based around the world. Briefly summarized, these are:1.Islamic law: law that is derived from interpretation ofthe Qur’an and the teachings of the Prophet Muhammad and is found in most Islamic countries.mon law: law that derives from English law andis 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 lawand 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 ofsovereignty: an international principle of law which holdsthat governments have the right to rule themselves as theysee 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 thelegal right to refuse admission of foreign citizens and toimpose special restrictions on their conduct, their right oftravel, where they can stay, and what business they mayconduct.6.Forum for hearing and settling disputes: this is aprinciple 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 thatmakes it illegal to influence foreign officials through personal payment or political contributions.3.BureaucratizationChapter 4Culture: 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 biologicallybased; it is acquired by learning and experience.2.Shared:people as members of q group,organization, or society share culture; it is not specific tosingle individuals.3.Transgenerational:culture is cumulative, passeddown from one generation to the next.4.Symbolic: culture is based on the human capacityto 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 capacityto change or adapt, as opposed to the more geneticallydriven adaptive process of animals.Cultural diversityIn 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. decentralized2.Safety vs. risk3.Individual vs. grouprmal vs. formal5.High vs. low organizational loyalty6.Cooperation vs. competition7.Stability vs. innovationThe model of culture:There are three layers of culture:1.The implicit, basic, assumptions that guide people’sbehavior;2.The norms and values that guide the society;3.The explicit artifacts and products of the society.Values in cultureValues: 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 membersof institutions and organizations accept that power is distributedunequally.Lower-power-distance: generally be decentralized and have flatter organization structure;High-power-distance:have a large proportion of supervisorypersonnel, 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. future6.Indulgence restraintTrompenaar’s cultural dimensions1.universalism vs. particularismuniversalism: 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 bedone the same everywhere.2.Individualism vs. communitarianismCommunitarianism: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 avoidance2.Power distance3.Societal collectivism4.In-group collectivism5.Gender egalitarianism6.Assertiveness7.Future orientation8.Performance orientation9.Human orientationChapter 6Organizational culture: shared values and beliefs that enablemembers to understand their soles in and the norms of the organization.Characteristic:1.Observed behavioral regularities2.Norms3.Dominant values4.Philosophy5.Rulesanizational climateDimensions of corporate culture:1.Motivation: activities vs. outputs2.Relationship: job vs. person3.Identity: corporate vs. professionalmunication: open vs. closed5.Control: tight vs. loose6.Conduct: conventional vs. pragmaticFour steps that are used in the process of mergers or acquisition:1.The two groups have to establish the purpose, goal, andfocus on their merger;2.Develop mechanism to identify the most importantorganizational structure and management roles;3.Determin e who has the authority over the resources needfor getting things done.4.Identify the expectations of all involved parties andfacilitate communication between both departments.Three aspects of organizational functioning that seem to be especially important in determining MNC organizational culture:1.The general relationship between the employees and theirorganization;2.The hierarchical system of authority that defines the rolesof manager and subordinates;3.The general views that employees hold about the MNC’Spurpose, destiny, goals, and their place in them.Four types of organizational culture:1.Family culture: culture that is characterized by astrong emphasis on hierarchy and orientation to the person;2.Eiffel Tower culture: culture that is characterized bystrong emphasis on hierarchy and orientation to the task;3.Guided missile culture:culture that is characterizedby strong emphasis on quality in the workplace and orientationto the task;4.Incubator culture: culture that is characterized bystrong emphasis on quality and orientation to the person. Phases of multicultural development:1.Domestic firms2.International firms3.Multinational firms4.Global firmsTypes of group multiculturalism:1.Homogeneous group2.Token group3.Bicultural group4.Multicultural groupPotential problems associated with diversity:ck of cohesion2.Perceptual (可感知的) problem3.Stereotypes4.Inaccurate biases5.Miscommunicate6.Misinterpretedmunicational problems because of different perceptions fo time.Advantages of diversity:1.Generation of more and better ideas2.Prevent groupthink3.Enhances more than the internal operations but relationshipsto customers as well.Chapter 8Strategic management: the process of determining an organization’s basic mission, and long-term objectives, then implementing a plan of action for attaining these goals.Approaches to formulating and implementing strategy:1.Economic imperative: a worldwide strategy based on costleadership, differentiation, and segmentation.2.Political imperativ e: strategic formulation andimplementation utilizing strategies that are country-responsive and designed to protect local market niches.3.Quality imperative:strategy formulation and implementationutilizing strategic of total quality management to meet or exceedcustomers’ expectations and continuously improve products orservices.4.Administrative coordination: MNC makes strategic decisionsbased on the merits of the individual situation rather than using a predetermined economically or politically driven strategy.The basic steps in formulating strategy:1.External environmental scanning: the process of providing management with accurate forecasts of trends related to external changes in geographic areas where the firm currently is doing business or is considering setting up operations.2.Inter resources analysis: helps the firms to evaluate its current managerial, technical, material, and financial resources and capabilities to better assess its strengths and weakness;KSF: key success factor: factor necessary for a firm to effectively compete in a market niche.3.Goal setting for strategy formulation:Areas for formulation of MNC goals:1.profitability2.marketing3.operations4.finance5.human resources4.strategy implementationtwo steps to implement the strategy:1.chose the country2.local issuess trategies for the “base of the Pyramid”: strategy targetinglow-income customers in developing countries.Chapter 9Strategies for firms to entry international market:1.export/import:AD:1.less risk2.less investment3.easy to entry marketDISAD:It is transitional (过渡性的) in nature2.wholly owned subsidiary:AD:1.total control2.better efficiency without outside partners;3.higher profit4.clearer communication and shared visionsDISAD:1.high risk2.low international integration or multinational involvement3.host countries may try to gain economic control andrequire it to cooperate with local organization4.home-country sometimes oppose the creation of foreign subsidiaries3.mergers/acquisitionsAD:1.quickly expand resources or construct high-profitproduct in a new market2.cost saving3.avoid the home-country’s interpretationDISAD:1.cultural differences2.time constraints3.managers need to be wary of such commoncomplications and attempt t move forward by enhancingcommunication and operational efficiency4.alliances and joint ventures:AD:1.improvement of efficiency2.access to knowledge3.mitigating political factors4.overcoming collusion or restriction in competitionsuggestions that applied in strategic alliances include:1.know your partners well2.expect difference in alliance objectives amongpotential partners headquartered in different countries3.realize that having the desired resource profilesdoes not guarantee that they are complementary t yourfirm’s resources4.be sensitive t your alliance partner’s needs5.work on developing a relationship that built ontrust,5.licensing:AD:1.provides the licensor with a source of additionalrevenues2.low-cost way of gaining and exploiting foreign markets 6.franchisingBasic organizational structures:1.initial division structure2.international division structureAD:1.focus receives top management’s attention2.allows the company to develop an overall, unifiedapproach to international operationsDISAD:1.separate the domestic and international managers,which result in two different camps with divergent objectives2.the home office has difficult to think and act on aglobal basis3.ideas for products or processes in the internationalmarket are given low priority3. global structural arrangementsAD:1.product planning on a global basis2.direct line of communication from customers toexpertise, enabling research to meet customers’ needDISAD:1.duplicating division2.manager focus current profit instead of long-term profit3.manager focus on local market rather than international market4. global area divisionAD:1.reduce cost per unit2.allows managers to cater (迎合) local market and make rapid decisions3.The same level between domestic and international department4.Manager are responsible for all business operation5.Firm use mature business with narrow product line DISAD:1.Difficulty encountered to reconciling product emphasis with a geographic orientation2.Increased cost3.Duplication of effort on reign-by-reign basis6. global functional divisionAD:1.An emphasis on functional expertise2.Tight centralize control3.Relatively lean managerial staffDISAD:1.Difficult to coordinate of manufacturing and market2.Managing multiple product lines can be verychallenging3.Only the chief officer can be held accountable for theprofit7. mixed organization structuresOrganizational characteristics of MNCs1.Formalization2.Specialization3.Centralization4.Putting organizational characteristics in perspective。