1.. Identify the five cultural dimensions identified by Geert Hofstede and describe them indicating their importance in international business.
2.. Compare the advantages and disadvantages of various modes of entering foreign markets.
3.. Why do we have international strategic alliances? What are the forms and their respective advantages and disadvantages? ----------------
4.. Consider a firm facing a make-or-buy decision, Provide 2 potential benefits and 2 risks that the firm may face from outsourcing. Similarly, provide 2 potential advantages and 2 disadvantages of in-house production.
5.. Explain the Gini Index (or Coefficient) and discuss how it is calculated and used.
6.. When presented with a scenario, indicate how one might act according to various approaches to Social Responsibility.
7.. What are the five forms of economic integration and how do they differ?
8.. List and explain the 4 strategic alternatives multinational corporations may adopt in their attempt to balance the 3 sources of a firm's international competitive advantage. What determines which strategy is appropriate?
9.. What are the main structures of the EU and what are their functions?
1. What are the five dimensions of culture?
1. Social Orientation: Individualism vs Collectivism
Social Orientation is the person’s belief about the relative importance of of the individual and the group to which the person belongs. Individualism is the cultural belief that the individual comes first (ex. US, canada, UK…) * high self respect and independence
* own carreers before that of the company
* compensation according to the individuals achievement, the fairness of the compensation is determined by whether or not the objective is achieved * swithcing employers often
* search for higher paying jobs even if they are not as secure on the long term Collectivism is the belief that the group comes first (ex. Mexico, Taiwan, Pakistan) * People are expected to put the good of their company/group/tribe before their own * When the group fails all the members fells ashamed
* In Japan compensation is mostly based on the seniority of the employee (all the accountants with 3 years of seniority have the same pay) * Switching compagnies brands the person as untrustworthy.
2. Power Orientation: tolerance vs Repect
Power orientation refers to the belief that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organisation. Power Respect (ex. France, Japan, Spain, Italy)
* People tend to accept the power and authority of their superiors because of hierarchy * Implicit belief that higher-level position emplyees carry the right to take decisions and isue mandates * First task of a problem is to determine who is in charge * Bypassing a superior is a sign of insubordination not efficiency * The important work is only handed to those with high authority Power Tolerant (ex. US, Germany, Israel)
* Much less significance to a person’s position in hierarchy * More questionning of the decision taken from above
* First tak of a problem is to the define the tasks of the problem and assemble a team * Authority do not necessarily have all the info bypass hierarchical line
3. Uncertanty Orientaion: acceptance vs avoidance
Uncertanty Orientation is the feeling people have regarding uncertain and ambiguous situations. Uncertanty Acceptance (US, Australia, Canada, Singapour)
* Stimulated by change and thrive on new opportunities
* Tolerant of flexible hirarchies, rules and procedures
* Risk taking is highly valued
* More attuned with the new e-commerce economy
* Rely on the stock market
Uncertanty Avoidance (France, germany, Japan)
* Dislike ambiguity and will avoid it when possible
* Structured and routined life
* Rigid hierarchy and strict rules
* Low-risk strategy
* Rely on...
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