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Fichier Détails
Cartes-fiches | 239 |
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Langue | English |
Catégorie | Gestion d'entreprise |
Niveau | Autres |
Crée / Actualisé | 09.01.2017 / 24.07.2018 |
Lien de web |
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Economic Feedom (5)
1. Size of Government (state involvement into free market)
2. Legal System and Property Rights (independent institutions, corruption)
3. Sound Money (money growth, inflation)
4. Freedom to trade internationally (trade barriers, free movement of money)
5. Regulation (credit market, labor market)
--> driver for: GDP per capita and Income of the poorest 10%
BUT only has llittle impact on economic growth!
Political Freedom (6)
1 free & fair elections
2 fair electoral laws
3 the right to form poliitical parties
4 existence of a parloiament or other legislative body
5 freedrom from dominant military or religous power
6 okay with cultrual, ethic minorities
--> Political Freedom leads to Economic Freedom
the 3 major legal systems
1. Continental legal system (civil law)
2. Anglo-American legal system (common law)
3. Religious legal system (Sharia, Halkah, Canon)
Common law:
(6)
- are looking for older similar cases, since the judge has to follow the same rules as the one in the past, you can win a case.
- CASE law (USA, UK)
- based on tradition and past rulings
- not always written constitution (Gesetz)
- contracts tend to be very detailed, usally more costly to draft
- act of God are the only justifiable excuses for noncompliance (Nichteinhaltung)
Civil Law =
(7)
- there is for each case an article (eg OR)
- CODE law (EU, Japan, Latin America)
- Laws are clearly written and accessible
- ALWAYS written constitution
- commercial agreements become enforcable only if propertly notarized
- short contracts bc many potential problems are already covered by the civil code
- Noncompliance is extended to include unforseeable human acts such as labor strikes and riots (Unruhen)
problems with doingt business abroad with different legal law systems:
- no clear regulation how contract should be drafted
- to understand more legal systems is very complicated and complex
- the two legal systems might even contradict each other (leaves the choice in which country to break the law)
Rule of law =
refers to a legal system in which rules are clear, fairly enforced and widely respected by all
In the absence of rule of law, firms must contend (kämpfen) with great uncertainity --> economic activity can be impeded (behindert).
Why harms corruption economic development?
(3)
1. black market (not included in GDP)
2. no real law/rules
3. its not the company with the best product that wins, it is more the company who knows how to bribe and has connections to politicians.
Types of country Risks (6)
1. Government takeover of Corporate Assets
2. Embargoes (Beschlagnahmung) and Sanctions
3. Boycotts against firms or Nations
4. War & Terrorism
5. Host-country Legal Environment
6. Home -country Legal Environment
1. Government takeover or Corporate Assets (Types of country risks)
1. Confiscation = take a foreign mining company and give it to a legal mining guy without compensation for the foreign firm
2. Expropriation = seizure (Pfändung) with compensation. eg force s/o to sell a major stake in its oil business to the national gas monopoly
3. Nationalization = corporate assets are taken away by government with or without compensation. eg abrupt termination of contracts and the creation of new laws that favor local firms
2. Embargoes and Sanctions
1. Embargoes = official ban on exports to or imports from a particular country to isolate it & punish its government.
usually more serious than a sanction and is used as a political punishment for some disapproval policies or acts.
2. Sanctions = you stopp the trade in certain areas
a sanction is a type of trade penalty imposed on one or more countries by one or more other countries.
Sanctions = tariffs, trade barriers, import duties and import / export quotas
3. Boycotts against Firms or Nations
Boycott is voluntary (vorsätzlich) refusal to engage in commercial dealings with a nation or a company.
Boycotts and public protests result in lost sales & increased costs (for public relation activities needed to restore the firms image)
4. War & Terrorism
Terrorism is the threat or actual use of force or violence to attain a politival goal ghrough fear or intimidation (Einschüchterung). transportation, retailing industries are partiularly affected
To minimize losses from violent acts, firms can purchase risk insurance.
5. Host-country Legal Environment
--> country risk arise from the host-country Legal environment. Government in host countries impose various laws and regulations on foeign companies doingt business here: (8)
1. Foreign investment Laws (many nations impose restrictions on inward FDI)
2. Controls on operating forms and practices (regulations how firms can do marketing, distri, production, eg china only joint vent. possible with local firms)
3. Marketing & distri Laws (eg no cigarette advertisement on TV)
4. Laws on income repatriation (companies want to transfer their revenue back in their country but the government can restrct sucht transfers -->preserve hard currencies)
5. Environmental laws (eg DE companies must folllow strict recycling laws, government tries to balance env. laws bc they have an impact on employment, economic development)
6. Contract laws (large sales, distri of the firm products trough foreign distributors, Licensing, FCI, Joint vent)
7. Internet/E-Commerce regulations: new in legal system, still develops. protect private date from criminal eyes)
8. Inadequate or underdeveloped legal systems (too many law regulations have an impact on business but not enough as well. eg regulations protect intellectual property, it may exist on paper but it is not enforced.
6. Home-country Legal Environment (4)
1. the foreign corrupt practices act (FCPA): US firms are forced not to pay bribes and show it in their accounting systems
2. Anti-boycott regulations
3. Accounting and reporting laws (differenct accounting systems, some are allowed to write off some not)
4. Transparency in financial reporting: how often the firms have to show his accountings transprenetly (US quarterly)
-->extraterritoriality: Application of home-country laws to person or conduct outside national borders
eg Frankreich kann yahoo sagen, dass es auf der franz. yahoo seite keine Nazi Bilder geben darf
Intellectual Property Rights
1. Copyright: Exclusive Right of holder to control reproduction, 10-30yrs, creative works (books, music)
2. Patent : right to prevent others from copying the invention without a license (20yrs)
3. Trademark: a distincitive (unverkennbar) symbol to distinguish the produts of diff. business
Managing Country Risk (what should mngt do before going IB)
1. Proactive Environmental Scanning
- understand political & legal environment of the target country
- scan and assess (bewerten) potential risks & threats for the firm
- best way is to have workers in the target market who know the market
- develop & implement important contacts in the target market
- take steps to minimize its expsoure(Bloslegung) to country risks that threathen its performance
2- follow strict Ethical Standards
3. Involve a qualified local partner (Alliances with qualified local partners)
- enter new market in collaboration with a knowledgeable and reliable local partneer
4. Look for protection through legal contracts (Protection througn Legal Contracts) (must adhere to local standards)
3 types of Legal Disputes:
1. Between governments
2. Betweent a government and a company
3. Between two companies
--> Internatinal Court of Justices resolves distputes betweend countries
4 Questions should be asked to have a dispute resolved:
1. Which countrys law applies?
2. in which country should the issue be resolved
3. Which techhnique should be used to resolve the conflict
4. How will the settlement be enforced?
Cross-cultural competence is...
... the ABILITY TO ADJUST one's behavior, strategy and tactic to the changing cultural environment
Basics of cross-cultural competencee:
(3 mngt must have:)
1. Awareness (be open)
2. Knowledge (be inquisitive)
3. Skills (agile mind)
How to acquire Cross-Cultural Competences:
1. Acquire factual knowlege aboout the other culture and try to speak their language
2. Avoid cultural biases (Voreingenommenheit)
- self-reference (dont look at threi culture through your own lenses)
- critical incident (Vorfall) analyze akward situations in cross-cultrual encounters, eg ask local friend
3. Develop cross-cultural skills
- Tolerance
- Percepiveness (Wahnehmungsvermögen) oberve closely
- Valuing personal relationships: recognize the importance of interpersonal relationships
- Flexibility and adaptability
Which managers are better at understanding and dealing with differencies among cultures?
those with a geocentric (Welt ist im Zenter) or cosmopolitan (weltoffen) view
3 Layers of SOCIAL BEHAVIOR
1. Universal (all are the same)
2. Cultural (mix of both)
3. Personal (individual)
1. Universal
- the human nature
- universal values
- commonly shared world view
2. Cultural diversity
(why are there diff. cultures)
- bc people live in diff. places under diff. circumstances they develop diff. cultures
psychic or psychological level =
internalized norms, values, behavior of individuals from a particular culture
institutional level =
national culture embodied (verkörpert) in institutions: government, education, business organization
3. Personal Layer
(universal, personal, cultural =?)
- Individual
- Having the same cultural roots doesnt mean all are identical
- Every person is unique
The visible world
- the outer layer
- the evident
- the objective
--> iceberg concept with 3 layers of awareness: high culture, folk culture, deep culture
The invisible world
- the inner layer
- the implicit
- the subjective
Social identity =
a person's sense of who they are based on their goup membership
group identity has an emotional significance
Group membership:
source of pride and self-esteem, source of sense of belonging
Stereotyping =
- the tendency to group things together. in doing so we exaggerate when it comes to similarities/differencies
- based on a normal cognitive process
The Power / Danger of Preconceptions (Vorurteil):
Pygmalion Effect:
Higher expectations lead to an increase in performance and vv
--> Preconceptions are rigidly (starr) held attitudes usually unfavorable aimed at particular groups of people.
Stereotypes vs Generalization
Stereotypes = clichés
- Categorizing ALL members of a group as having the SAME characteristics
- Each and every member of a group of people
- Selective and inflexible perception (Erkenntnis) --> no new info into consideration
- generalizing from one to a whole group
- are jugmental, SUBJECTIVE
Generalization = Tendencies
- Categorizing MANY members of a group as having SIMILAR characteristics
- flexible perception (Erkenntnis) --> new info into consideration
- a generalization is only an average value, there is room for exceptions
- neutral and OBJECTIVE
Hofstede's Research (10)
1. Low power: gaps between powerful and weak are small (Denmark, Sweden), coorporate to achieve organisational goals
2. High power distance: dont care about inequalitties (Middle East), autocratic (selbstherrliches) Mngt
3. High uncertainty avoidance: stable careers, many rules, mngt might be slow to make decisions (France, Japan)
4. Low undertainty avoidance: Mngt are entrepreneurial, decisions are made quickly (USA. India)
5. Masculinity: based on traditional male & female values
6. Feminine culture: women = nurturing roles, (scandinavian countries)
7. Long term: loyalty, hard wordk = Japan
8. Short term = USA
9. Indulgence (Luxus)= individual happiness, enjoying life
10. Restraint societies: less emotions, avoid personal optinions (China)
Universalism vs. Particularism
Univeralism:
- all are equal
- can overburden with rules
- high importance on laws, rules come before relationships
Particularism
- everyone is unique
- their response to a situation may change, based on whats happening in the moment and who's involved.
Universalist business behavior
DEAL oriented
- mngt focus on the task
- just want to get down to business
carefully prepare the legal ground with a lawyer (bc rules over relationship)
- treating all employees the same way
- uniform procedurees
Particularist business behavior
RELATIONSHIP oriented
- trust is highly valued
- focus more on relationships than rules
- treating all employees according to their special merits (Leistung)