This document discusses the global financial crisis that began in 2007-2008 and its impacts. It provides background on how the crisis started with the US housing market collapse and spread globally. It then summarizes recent news headlines reflecting ongoing issues and debates around global economic recovery efforts. Charts on international trade flows and GDP statistics by country are also presented.
34. Distance Attribute Change in International Trade % Income level: GDP per capita (1% increase) +0.7 Economic size: GDP (1% increase) +0.8 Physical distance (1% increase) -1.1 Physical size (1% increase)* -0.2 Access to ocean* +50 Common border +80 Common language +200 Common regional trading bloc +330 Colony-colonizer relationship +900 Common colonizer +190 Common polity +300 Common currency +340
54. Environment (Geographic & Technological) Cultural Values Institutions (Family, Church, School, Media, Government) Peers Person (individual values and behaviors)
55. Types of Behavior UNIVERSAL Eating CULTURAL Eating from your own plate PERSONAL Eating in front of the television
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60. Why Does Culture Matter? “ Although misunderstandings are blameless artifacts of the way two very different systems work, accidents of culture are seldom understood for what they really are.” --Edward Hall
61. Hall’s “Context” Content (implicit) Information (explicit) Meaning High Context (Japan) Low Context (U.S.)
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63. Contextual Background of Various Countries Swiss North American (US) French English (UK) Italian Latin American Arabian Spanish Japanese German Scandinavian Low Context Explicit High Context Explicit
73. Culture and Negotiation Strategies High Low High Low Integrate “ Scripts” Induce to Follow Your “Script” Involve Mediator Follow Counterpart “ Script” Your Familiarity with Their Culture Their Familiarity with Your Culture
98. The Extreme Global Value Chain Country Activities A B C D E F G H R & D Design Purch- asing Manu- facturing Marketing Selling Distrib- ution Service Design Purchasing Manu- facturing Etc.
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101. The Fully Multi-local Value Chain Country Activities A B C * * * * Z R & D Design Service Distrib- ution Selling Market-ing Manu- facturing Purch- asing R & D R & D R & D Design Design Design Purch- asing Purch- asing Purch- asing Manu- facturing Manu- facturing Manu- facturing Market-ing Market-ing Market-ing Selling Selling Selling Distrib- ution Distrib- ution Distrib- ution Service Service Service
120. Question 3: Why do you think some of these ten combinations are more widely used than others? Exhibit 2 Exchange Rate Fluctuations and Management Control in UK-based MNCs
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124. Principal-Agent Model Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
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127. Principal-Agent Model The Real World Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management
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Hinweis der Redaktion
Netherlands 11.8%, France 8.5%, Belgium 7.2%, China 5.9%, UK 5.7%, Italy 5.6%, US 5.3%, Austria 4.3%
US 17.8%, Argentina 8.5%, China 6.1%, Netherlands 4.2%, Germany 4.1% (2006)
US 16.2%, Argentina 8.8%, China 8.7%, Germany 7.1%, Nigeria 4.3%, Japan 4.2% (2006)
US 17%, UAE 8.3%, China 7.7%, UK 4.3% (2006)
China 8.7%, US 6%, Germany 4.7%, Singapore 4.6% (2006)
