1. Brainyll Sy Dheynie Santos Irene Marie Chua Lizette Tan

2.  Business is becoming a unified, global field  Companies that think globally have a competitive edge  Domestic markets are saturated for many companies  Consumers can no longer tell from which country they are buying

3.  the system of interaction among the countries of the world in order to develop the global economy  refers to the integration of economics and societies all over the world  involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure

5. Domestic stage:  market potential is limited to the home country  production and marketing facilities located at home

6. International stage:  exports increase  company usually adopts a multi-domestic approach Multinational stage:  marketing and production facilities located in many countries  more than 1/3 of its sales outside the home country

7. Global (or stateless) stage:  making sales and acquiring resources in whatever country offers the best opportunities and lowest cost ownership, control, and top management tend to be dispersed

8. International management  The management of business operations conducted in more than one country

9.  The fundamental tasks of business management, including the financing, production, and distribution of products and services, do not change substantially when a firm is transacting business across international borders

10.  The basic management functions of planning, organizing, leading, and Controlling are the same whether a company operates domestically or internationally.

12.  Countries categorized as “developing” or “developed”  Criterion used to classify is per capita income  Developing countries have low per capita incomes  LDCs located in Asia, Africa, and South America  Developed are North America, Europe, & Japan  Driving global growth in Asia, Eastern Europe, & Latin America

13.  a country’s physical facilities that support economic activities Includes: - transportation facilities - energy-producing facilities

14.  World Bank  Web - major asset - helping the world bank to be a leader in knowledge management  Site acts like a giant chat room with topics and data relating concepts like health care, education or urban planning.

15. o Company mangers must evaluate the market demand for their products. o If the market demand is high, they may choose to export products to that country.

16.  Changes in the exchange rate can have major implications for the profitability of international operations that exchange million of dollars into other currencies every day.

18. o Host governments have a myriad of laws concerning libel statues, consumer protection, information and labeling, employment and safety, wages.

19. o A nation’s culture includes the shared knowledge,beliefs,and values,as well as the common modes of behavior and ways of thinking,among members of a society. o Culture is intangible, pervasive,and difficult for outsiders to learn.

20. o Research done by Geert Hofstede on 116000 IBM employees in 40 countries Identified four dimensions of national value systems that influence organizational and employee working relationships.

21. o Power distance o The degree to which people accept inequality in power among institutions,organisations,and people. o Uncertainity avoidance o a value characterized by people’s intolerance for uncertainity and ambiguity and resulting support for beliefs that promise certainity and conformity o Individualism o a preference for a loosely knit social framework in which individuals are expected to care of themselves.

22. o Collectivism o A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests. o Masculinity o a cultural preference for achievement,heroism,assertiveness,work centrality, material success o Feminity o A cultural preference for relationships,cooperation,group decision making and quality of life.

23.  Market Entry Strategies -- An organizational strategy for entering a foreign market.  Global Outsourcing -- Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country.  Exporting -- With this, the corporation maintains its production facilities within the home nation and transfers its products for sale in foreign countries.

24.  must be sensitive to cultural subtleties  must be culturally flexible  can easily adapt to new situations and ways of doing things  understanding the ways to provide proper * leadership * decision making * motivation * and control vary in different cultures

25.  There are cultural differences in how people think and see the world and these differences affect working relationships.

26.  LEADING -leaders should be careful in criticizing others  DECISION MAKING -realized their culture is different, and they do not have to be like you.

27.  MOTIVATING -must fit the incentives within the culture  CONTROLLING -in foreign cultures, managers should not control the wrong things.

28. * PREPARING MANAGERS TO WORK IN FOREIGN CULTURES IS ESSENTIAL*

29.  1. Assertiveness a. High assertive- society encourages toughness, and competitiveness. b. Low assertive- people value tenderness and concern for others over being competitive. 2. Future orientation – refers to the extent to which a society encourages and rewards planning for the future over short term results and quick gratification.

30.  3. Uncertainty avoidance- degree of which people feel uncomfortable with uncertainty. 4. Gender differentiation- refers to the extent to which a society maximizes gender role differences. 5. Power distance- refers to the degrees which people expects and accept equality or inequality in relationships and institutions.  6. Societal collectivism - degree to which institutions encourage a tightly knit collectivism society, in which people are important part of a group, or a highly individualistic society.

31. 7. Individual collectivism-looks at the degree to which individual takes pride in being members of a family, friends and organizations. 8. Performance orientation a. High performance society orientation- high emphasis on performance and rewards people for performance improvement and excellence. b. Low performance society orientation- people pay less attention to performance and more on 9. Humane orientation- society encourages and rewards people for being fair, altruistic, generous, and caring. loyalty, belonging, and background.

32.  Ethnocentrism - natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

33.  Market Entry Strategies -- An organizational strategy for entering a foreign market. Global Outsourcing -- Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country. Exporting -- With this, the corporation maintains its production facilities within the home nation and transfers its products for sale in foreign countries.

34.  Managing in a Global Environment - must be sensitive to cultural subtleties - must be culturally flexible - can easily adapt to new situations and ways of doing things. - understanding the ways to provide proper * leadership * decision making * motivation * and control vary in different cultures

35.  Managing Cross-Culturally -- There are cultural differences in how people think and see the world and these differences affect working relationships. Cultural Differences can be significant for expatriate managers.. LEADING-- leaders should be careful in criticizing others. DECISION MAKING -- realized their culture is different, and they do not have to be like you.

36.  MOTIVATING -- must fit the incentives within the culture. CONTROLLING -- in foreign cultures, managers should not control the wrong things. *PREPARING MANAGERS TO WORK IN FOREIGN CULTURES IS ESSENTIAL*