Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization.

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Presentation transcript:

Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization Ethnocentric attitude Exporting Geocentric attitude Host country Importing International joint venture International management International market agreement International organization License agreement Multinational corporation Parent company Polycentric attitude Repatriation Transnational organizations

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary A culture is the set of characteristics of a given group of people and their environment.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary Direct investing is using the assets of one company to purchase the operating assets of another company.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary A domestic organization is a company that essentially operates within a single country.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary The ethnocentric attitude reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary Exporting is selling goods or services to another country.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary The geocentric attitude reflects the belief that the overall quality of management recommendations, rather than the location of managers, should determine the acceptability of management practices used to guide multinational corporations. The geocentric attitude is considered most appropriate for long-term organizational success.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary The host country is the country in which an investment is made by a foreign company.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary Importing is buying goods or services from another country.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary An international joint venture is a partnership formed by a company in one country with a company in another country for the purpose of pursuing some mutually desirable business undertaking.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary International management is the performance of management activities across national borders.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary An international market agreement is an arrangement among a cluster of countries that facilitates a high level of trade among these countries.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary An international organization is a company primarily based within a single country but having continuing, meaningful transactions in other countries.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary A license agreement is a right granted by one company to another to use its brand name, technology, product specifications, and so on in the manufacture or sale of goods and services.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary A multinational corporation (MNC) is a company that has significant operations in more than one country.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary The parent company is the company investing in international operations.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary The polycentric attitude reflects the belief that because foreign managers are closer to foreign organizational units, they probably understand them better, and therefore foreign management practices should generally be viewed as more insightful than home-country management practices.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary Repatriation is the process of bringing individuals who have been working abroad back to their home country and reintegrating them into the organization’s home-country operations.

© Prentice Hall, 2002 RETURN to Chapter termsEXIT Glossary Transnational organizations also called global organizations, take the entire world as their business arena.