Cross-Cultural Management
What is Hofstede’s cultural dimensions theory?
A framework for understanding cultural differences in the workplace.
What is the difference between multinational and global strategy?
Multinational strategy tailors products to local markets, while global strategy offers standardized products worldwide.
What is standardization versus adaptation in international marketing?
Standardization uses a uniform marketing strategy, while adaptation modifies the strategy to fit local markets.
What is expatriate management?
Managing employees who are sent to work in foreign countries.
What is foreign exchange risk?
The risk of financial loss due to fluctuations in exchange rates.
Which country is known for its high-context communication style?
Japan
Which strategy focuses on cost leadership across international markets?
Global standardization strategy
Name a brand known for using a localized marketing strategy.
McDonald’s
What is repatriation?
The process of returning an expatriate to their home country after an assignment abroad.
What is hedging?
A financial strategy to reduce the risk of adverse price movements.
What is cultural intelligence?
The ability to relate and work effectively across cultures.
What is transnational strategy?
A strategy that combines global efficiency with local responsiveness.
What is glocalization?
Combining global and local strategies for maximum effectiveness.
What is cross-cultural training?
Training designed to prepare employees to work effectively in foreign cultures.
What is a forward contract?
An agreement to buy or sell an asset at a future date at a predetermined price.
What is the difference between individualism and collectivism?
Individualism focuses on personal achievements while collectivism emphasizes group loyalty.
Define licensing in international business.
Granting permission to use intellectual property for a fee.
What is market segmentation?
Dividing a market into distinct groups of buyers with different needs.
What is a polycentric staffing approach?
Hiring local employees to fill management positions in foreign subsidiaries.
What is the difference between fixed and floating exchange rates?
Fixed rates are government-controlled, while floating rates fluctuate based on the market.
Which cultural dimension focuses on long-term orientation?
Confucian dynamism or Long-term vs. Short-term orientation.
What is the role of subsidiaries in a global strategy?
They adapt strategies to local markets while contributing to global objectives.
What is the purpose of a global marketing mix?
To create value by blending product, price, place, and promotion strategies.
What is cultural shock?
The confusion or anxiety experienced when exposed to an unfamiliar culture.
What is the International Monetary Fund (IMF)?
An organization that promotes global monetary cooperation and financial stability.