Chapter 1 Management: process of completing activities efficiently and effectively with and through other people.Globalization: the process of social， political， economic， cultural, and technological integration among countries around the world.NAFTA： North American Free Trade Agreement。FTAA： Free Trade Agreement of the Americas。FDI: foreign direct investment Global economic systems:1. Market economy 2. Command economy 3. Mixed economyCHAPTER 2Ideologies:1. Individualism: the political philosophy that people should be free to pursue economic and political endeavors without constraint.2. Collectivism： the political philosophy that views the needs or goals of society as a whole as more important than individual desires.3. Socialism: a moderate form of collectivism in which there is government ownership of institutions, and profit is not the ultimate goal。Legal and regulatory environmentThere are three foundations on which laws are based around the world。 Briefly summarized， these are：1. Islamic law: law that is derived from interpretation of the Qur'an and the teachings of the Prophet Muhammad and is found in most Islamic countries。2. Common law: law that derives from English law and is the foundations of legislation in the United States, Canada， and England, among other nations。3. Civil or code law: law that is derived from Roman law and is found in the non-Islamic and nonsocialist countries。 The law China used is civil or code law。Basic principles of international law:1. Sovereignty and sovereign immunity: principle of sovereignty: an international principle of law which holds that governments have the right to rule themselves as they see fit.2. International jurisdiction: which includes nationality principle, territoriality principle， protective principle。Nationality principle： a jurisdictional principle of international law which holds that every country has jurisdiction over its citizens no matter where they are located.Territoriality principle: a principle which holds that every nation has the right of jurisdiction within its legal territory.Protective principle: a jurisdictional principle of law which holds that every country has jurisdiction over behavior that adversely affects its national security， even if the conduct occurred outside that country.3. Doctrine of comity： a jurisdictional principle of law which holds that there must be mutual respect for the laws， institutions, and governments of other countries in the matter of jurisdiction over their own citizens。4. Act of state doctrine: a principle which holds that all acts of other governments are considered to be valid by U.S. counts, even if such acts are illegal or inappropriate under U。S。 law.5. Treatment and rights of aliens: countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on their conduct, their right of travel, where they can stay, and what business they may conduct。6. Forum for hearing and settling disputes： this is a principle of U。S。 as it applies t international law. U.S. courts can dismiss cases brought before them by foreigners.Examples of legal and regulatory issues:1. Financial services regulation.2. Foreign corrupt practices act (FCPA）: an act that makes it illegal to influence foreign officials through personal payment or political contributions。3. BureaucratizationChapter 4Culture： acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values， creates attitudes， and influences behavior.Characteristics of culture：1. Learned。 Culture is not inherited or biologically based； it is acquired by learning and experience.2. Shared: people as members of q group, organization， or society share culture； it is not specific to single individuals.3. Transgenerational: culture is cumulative, passed down from one generation to the next。4. Symbolic: culture is based on the human capacity to symbolize or use one thing to represent another.5. Patterned: culture has structure and is integrated； a change in one part will bring changes in another。6. Adaptive： Culture is based on the human capacity to change or adapt, as opposed to the more genetically driven adaptive process of animals.Cultural diversityIn overall terms, the cultural impact on international management is reflected by basic beliefs and behaviors. Here are some specific examples where the culture of a society can directly affect management approaches：1. Centralized vs。 decentralized2. Safety vs. risk3. Individual vs。 group4. Informal vs. formal5. High vs. low organizational loyalty6. Cooperation vs。 competition 7. Stability vs。 innovation The model of culture：There are three layers of culture：1. The implicit， basic， assumptions that guide peoples behavior;2. The norms and values that guide the society；3. The explicit artifacts and products of the society。Values in cultureValues: basic convictions that people have regarding what is right and wrong, good and bad， important and unimportant.Hofstede's cultural dimensions:1. Power distance： the extent to which less powerful members of institutions and organizations accept that power is distributed unequally.Lowerpowerdistance: generally be decentralized and have flatter organization structure;High-powerdistance： have a large proportion of supervisory personnel， centralized and have a thinner structure.2. Uncertainty avoidance: the extent to which people feel threatened by ambiguous situations and have created beliefs and institution that try to avoid these。High-uncertainty-avoidance： have a great deal of structuring of organizational activities, more written rules, less risk taking by managers， lower labor turnover, and less ambitious employees.Low-uncertaintyavoidance: less structuring of activities， fewer written rules， more risk taking by managers, higher labor turnover， and ambitious employees.3. Individualism； the tendency of people to look after themselves and their immediate family only。Hofstede found that wealthy countries have higher individualism scores and poorer countries and regions higher collectivism.4. Masculinity: a cultural characteristic in which the dominant values in society are success, money， and things。Femininity： a cultural characteristic in which the dominant values in society are caring for others and the quality of life.5. Time orientation: present vs. future6. Indulgence restraintTrompenaars cultural dimensions 1. universalism vs. particularismuniversalism： the belief that ideas and practices can be applied everywhere in the world without modification。Particularism： the belief that circumstance dictate how ideas and practices should be applied and that something cannot be done the same everywhere.2. Individualism vs. communitarianismCommunitarianism: refers to people regarding themselves as part of a group.3. Neutral vs. emotional：Neutral culture： culture which emotions are held in check.Emotional culture: culture in which emotions are expressed openly and naturally.4. Specific vs。 diffuse:Specific culture： culture which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates。Diffuse culture： culture which public space and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well。5. Achievement vs. ascription：Achievement culture; culture which people are accorded status based on how well they perform their functions.Ascription culture： culture which status is attributed based on who or what a person is。6. Time： present vs. future。7. The environment: inner-directed environment vs. outer-directed environment。8. Cultural patterns or clusters。Globes cultural dimensions：1. Uncertainty avoidance2. Power distance3. Societal collectivism4. In-group collectivism5. Gender egalitarianism6. Assertiveness7. Future orientation8. Performance orientation9. Human orientationChapter 6Organizational culture： shared values and beliefs that enable members to understand their soles in and the norms of the organization。Characteristic:1. Observed behavioral regularities2. Norms3. Dominant values4. Philosophy5. Rules 6. Organizational climateDimensions of corporate culture：1. Motivation: activities vs. outputs2. Relationship: job vs. person3. Identity： corporate vs。 professional4. Communication: open vs。 closed5. Control： tight vs。 loose6. Conduct： conventional vs。 pragmaticFour steps that are used in the process of mergers or acquisition:1. The two groups have to establish the purpose, goal, and focus on their merger；2. Develop mechanism to identify the most important organizational structure and management roles；3. Determine who has the authority over the resources need for getting things done.4. Identify the expectations of all involved parties and facilitate communication between both departments.Three aspects of organizational functioning that seem to be especially important in determining MNC organizational culture:1. The general relationship between the employees and their organization；2. The hierarchical system of authority that defines the roles of manager and subordinates;3. The general views that employees hold about the MNCS purpose， destiny， goals, and their place in them.Four types of organizational culture:1. Family culture: culture that is characterized by a strong emphasis on hierarchy and orientation to the person；2. Eiffel Tower culture: culture that is characterized by strong emphasis on hierarchy and orientation to the task;3. Guided missile culture： culture that is characterized by strong emphasis on quality in the workplace and orientation to the task；4. Incubator culture: culture that is characterized by strong emphasis on quality and orientation to the person。Phases of multicultural development: 1. Domestic firms2. International firms3. Multinational firms4. Global firmsTypes of group multiculturalism：1. Homogeneous group2. Token group3. Bicultural group 4. Multicultural groupPotential problems associated with diversity：1. Lack of cohesion2. Perceptual (可感知的) problem3. Stereotypes4. Inaccurate biases5. Miscommunicate6. Misinterpreted7. Communicational problems because of different perceptions fo time.Advantages of diversity:1. Generation of more and better ideas2. Prevent groupthink3. Enhances more than the internal operations but relationships to customers as well。Chapter 8Strategic management: the process of determining an organizations basic mission, and longterm objectives， then implementing a plan of action for attaining these goals.Approaches to formulating and implementing strategy：1. Economic imperative: a worldwide strategy based on cost leadership， differentiation, and segmentation。2. Political imperative: strategic formulation and implementation utilizing strategies that are country-responsive and designed to protect local market niches.3. Quality imperative: strategy formulation and implementation utilizing strategic of total quality management to meet or exceed customers expectations and continuously improve products or services。4. Administrative coordination： MNC makes strategic decisions based on the merits of the individual situation rather than using a predetermined economically or politically driven strategy.The basic steps in formulating strategy：1. External environmental scanning： the process of providing management with accurate forecasts of trends related to external changes in geographic areas where the firm currently is doing business or is considering setting up operations。2. Inter resources analysis： helps the firms to evaluate its current managerial, technical, material， and financial resources and capabilities to better assess its strengths and weakness；KSF： key success factor: factor necessary for a firm to effectively compete in a market niche。3. Goal setting for strategy formulation:Areas for formulation of MNC goals:1. profitability2. marketing3. operations4. finance5. human resources4. strategy implementationtwo steps to implement the strategy:1. chose the country2. local issuesstrategies for the “base of the Pyramid”: strategy targeting lowincome customers in developing countries. Chapter 9Strategies for firms to entry international market：1. export/import：AD：1. less risk2. less investment3. easy to entry marketDISAD：It is transitional (過渡性的) in nature2. wholly owned subsidiary：AD:1. total control2. better efficiency without outside partners;3. higher profit4. clearer communication and shared visionsDISAD：1. high risk2. low international integration or multinational involvement3. host countries may try to gain economic control and require it to cooperate with local organization4. home-country sometimes oppose the creation of foreign subsidiaries3. mergers/acquisitionsAD:1. quickly expand resources or construct highprofit product in a new market2. cost saving3. avoid the homecountry's interpretation DISAD:1. cultural differences2. time constraints3. managers need to be wary of such common complications and attempt t move forward by enhancing communication and operational efficiency4.alliances and joint ventures:AD：1. improvement of efficiency2. access to knowledge3. mitigating political factors4. overcoming collusion or restriction in competition suggestions that applied in strategic alliances include:1. know your partners well2. expect difference in alliance objectives among potential partners headquartered in different countries3. realize that having the desired resource profiles does not guarantee that they are complementary t your firm's resources4. be sensitive t your alliance partners needs5. work on developing a relationship that built on trust，5。licensing：AD：1. provides the licensor with a source of additional revenues2. lowcost way of gaining and exploiting foreign markets6.franchisingBasic organizational structures：1. initial division structure2. international division structureAD：1. focus receives top management's attention2. allows the company to develop an overall， unified approach to international operationsDISAD：1. separate the domestic and international managers, which result in two different camps with divergent objectives2. the home office has difficult to think and act on a global basis3. ideas for products or processes in the international market are given low priority3。 global structural arrangements AD:1. product planning on a global basis2. direct line of communication from customers to expertise, enabling research to meet customers need DISAD:1. duplicating division2. manager focus current profit instead of longterm profit3. manager focus on local market rather than international market4。 global area division AD：1. reduce cost per unit2. allows managers to cater (迎合) local market and make rapid decisions3. The same level between domestic and international department4. Manager are responsible for all business operation5. Firm use mature business with narrow product lineDISAD:1. Difficulty encountered to reconciling product emphasis with a geographic orientation2. Increased cost3. Duplication of effort on reignbyreign basis 6。 global functional division AD:1. An emphasis on functional expertise2. Tight centralize control3. Relatively lean managerial staffDISAD：1. Difficult to coordinate of manufacturing and market2. Managing multiple product lines can be very challenging3. Only the chief officer can be held accountable for the profit7。 mixed organization structuresOrganizational characteristics of MNCs1. Formalization2. Specialization3. Centralization4. Putting organizational characteristics in perspective