International Trade
This refers to the worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing.
What is globalization?
According to Hofstede, this is the degree to which members of a society accept differences in power and authority.
What is power distance?
This describes a belief that corporations have a social responsibility beyond pure profit.
What is Corporate Social Responsibility (CSR)?
This remains the world’s dominant religion, representing around 31% of the world’s population.
What is Christianity?
This contractual agreement allows a company to expand internationally by granting a foreign entity the right to operate under its brand, using its established business model and processes, in exchange for fees and royalties.
What is franchising?
These are government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration.
What are trade agreements?
In societies with high scores in this dimension, individuals are valued for their achievements and are rewarded and recognized for such achievements.
What is individualism?
This describes when people trust online reviews of their companies more than what companies communicate.
What is the Glassdoor Effect?
This dimension of cultural intelligence focuses on the individual’s knowledge of values and practices inherent in the new culture acquired through education and personal experiences.
What is the cognitive dimension?
This is based on the assumption that the world is extremely interconnected, and that patterns of consumption and production are fairly homogeneous worldwide.
What is global strategy?
These are taxes that are added to the price of imported international products.
What are tariffs?
In societies with high scores in this dimension, people are seen as being part of a wider group, known as the in-group.
What is collectivism?
The 3 Ps of the Triple Bottom Line.
What are Profit, People and Planet?
This dimension of cultural intelligence reflects an individual’s ability to use cross-cultural knowledge to understand and adapt to the cultural environment they are exposed to.
What is meta-cognitive dimension?
This strategy is one in which a company adapts its products to meet the needs of the local market.
What is local strategy?
This is the only truly global organization that deals with the rules of trade around the world.
What is the WTO?
According to Hofstede, a very centralized organizational structure is an implication of this.
What is high power distance?
This describes someone who creates a new ethical norm.
What is moral entrepreneur?
This dimension of cultural intelligence is based on the ability of the individual to exhibit the appropriate forms of verbal and nonverbal behaviors when interacting with people from another culture.
What is the behavioral dimension?
This is one of the easiest ways to go international.
What is exporting?
This refers to deliberate efforts of a country or company to invest in another country through the form of ownership positions in companies in another country.
What is foreign direct investment?
According to Hofstede, weak loyalty to companies is an implication of this.
What is low uncertainty avoidance?
According to the GLOBE project, countries in this cluster tend to be more collective, have high power distance, and have high uncertainty avoidance.
What is the Latin American cluster?
This dimension of cultural intelligence reflects the ability and desire to continuously learn new aspects of cultures and adapt to them.
What is the motivational dimension?
This is a contractual agreement whereby, in exchange for a royalty or fee, a company gives the right to another company to use a trademark, know-how, or other proprietary technology.
What is licensing?