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C h a p t e r 5 G L O S S A R Y 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

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

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Page 1: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

Chapter

5

G

L

O

S

S

A

R

Y

EXIT Glossary

Modern Management, 9th edition

Click on terms for definitions

Culture

Direct investingDomestic organization

Ethnocentric attitude

Exporting

Geocentric attitudeHost country

ImportingInternational joint venture

International management

International market agreement

International organization

License agreement

Multinational corporation

Parent companyPolycentric attitude

RepatriationTransnational organizations

Page 2: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

A culture is the set of characteristics of a given group of people and their

environment.

Page 3: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

Direct investing is using the assets of one company to purchase the operating assets

of another company.

Page 4: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

A domestic organization is a company that essentially operates within a single

country.

Page 5: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

The ethnocentric attitude reflects the belief that multinational corporations

should regard home-country management practices as superior to foreign-country

management practices.

Page 6: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

Exporting is selling goods or services to another country.

Page 7: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT 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.

Page 8: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

The host country is the country in which an investment is made by a foreign

company.

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

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

Importing is buying goods or services from another country.

Page 10: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT 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.

Page 11: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

International management is the performance of management activities

across national borders.

Page 12: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

An international market agreement is an arrangement among a cluster of countries that facilitates a high level of trade among

these countries.

Page 13: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

An international organization is a company primarily based within a single

country but having continuing, meaningful transactions in other countries.

Page 14: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT 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.

Page 15: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

A multinational corporation (MNC) is a company that has significant operations in

more than one country.

Page 16: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

The parent company is the company investing in international operations.

Page 17: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT 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.

Page 18: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT 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.

Page 19: Chapter5Chapter5 GLOSSARYGLOSSARY EXIT Glossary Modern Management, 9 th edition Click on terms for definitions Culture Direct investing Domestic organization

© Prentice Hall, 2002

RETURN to Chapter terms EXIT Glossary

Transnational organizations also called global organizations, take the entire world

as their business arena.


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