Chapter 16

Occupational subcultures- form among people during doing the same kinds of work
Ethnic or national subcultures- form among people from the same races, language groupings,
regions, and nations
Gender subcultures- form among people of the same gender
Generational subcultures- form among people in similar age groups
Biculturalism- is when minority members adopt characteristics of majority cultures in order to
succeed
Managing diversity- is building an inclusive work environment that allows everyone to reach his
or her potential
Culture shock- is the confusion and discomfort that a person experiences when in an unfamiliar
culture
Confusion, small victories, honeymoon, irritation and anger, realities
Cultural intelligence- is the ability to adapt to new cultures
Low-context cultures- emphasize communication via spoken or written words
High-context cultures- rely on nonverbal and situational cues as well as spoken or written words
and communication.
In monochromic cultures people tend to do one thing at a time
In polychromic cultures people accomplish many different things at once
Power distance- is the degree to which a society accepts unequal distribution of power
Uncertainty avoidance- is the degree to which a society tolerate risk and uncertainty
Individualism-collectivism- is the degree to which a society emphasizes individuals and their self
interest
Masculinity-femininity- is the degree to which of society values assertiveness and materialism
Time orientation is the degree to which a society emphasizes short-term and long-term goals
The ecological fallacy assumes that a generalized culture value applies equally well to all
members of culture
Ch.17
global economy -resources, markets, and competition are world wide in scope
globalization -is the process of growing interdependence among elements of the global economy
insourcing -the creation of domestic jobs by foreign employers
outsourcing -shifts local jobs to foreign locations to take advantage of lower-wage labor in other
countries
international business -conducts commercial transactions across national boundaries
global sourcing -firms purchase materials or services around he world for local use
exporting -local products are sold abroad
importing -is the process of acquiring products abroad and selling them in domestic markets
licensing -one firm pays a fee for rights to make or sell another companies products
franchising -a firm pays a fee for rights to use another companies name and operating methods
joint venture -operates in a foreign country through co-ownership with local partners
global strategic alliance -each partner hopes to achieve through cooperation things they couldn't
do along
foreign subsidiary -is a local operation completely owned by a foreign firm
greenfield venture -establishes a foreign subsidiary by building an entirely new operation in
foreign country
World Trade Organization -is a global institution established to promote free trade and open
markets around the world
most favored nation status -gives a trading partner to most favorable treatment for imports and
exports

tariffs -are taxes governments levy on imports from abroad

nontariff barriers -are non tax policies that gov enact to discourage imports, such as quotas and
import restrictions
protectionism -is a call for tariffs and favorable treatments to protect domestic firms from foreign
competition
global corporation or multinational corporation -has extensive international business dealings in
many foreign countries
transnational corporation -a MNC that operates worldwide on a borderless basis
globalization gap -involves large global firms gaining disproportionately from the global
economic versus smaller firms and many countries
corruption -involves illegal practices to further ones business interests
foreign corrupt practices act -makes it illegal for us firms and their reps to engage in corrupt
practices overseas
sweatshops -employ workers at very low wages, for long hours, and in poor working conditions
child labor -is the full-time employment of children for work otherwise done by adults
currency risk -is possible loss because of fluctuating exchange rates
political risk -is possible loss because of instability and political changes in feign countries
political-risk analysis -forecasts how political events may impact foreign investments
global manager -is culturally aware and informed on international affairs
CH. 18
Entrepreneurship-Risk-taking behavior
Entrepreneur-Willing to pursue opportunities that others won't
First Mover Advantage-Exploiting new market option before others
Intrapreneurs-Employees of a larger firm
Necessity-Based entrepreneurship where people start business because there is no other
work
Social Entrepreneurs-Driven by a social mission
Business Incubator-Helps businesses get started
Small Business Development Centers-Help to set up and manage
Business Plans-Describes goals, plans and financing
Sole Proprietorship-Individual or Married Couple
Partnership-2 or More people
General Partnership-Owners share responsibilities
Limited Partnership-General Manages business
Limited Liability Partnership-Professional Partnership
Corporation-Legal entity existing separately from owners
Limited Liability Company-Combination of Sole Proprietorship, Partnership, and
Corporation
Debt-Borrowing from another financially
Equity-Exchanging ownership shares
Venture Capitalists-Large investments for new ventures
Angel Investor-Wealthy person willing to invest
Initial Public Offering-Selling of shares to Public