ADMS 3960 Lecture Notes - Lecture 2: Risk Aversion, Individualism, Exchange Rate

• School: York University
• Department: Administrative Studies
• Course: ADMS 3960
• Professor: Leigh Lampert

Document Summary

Learned norms based on the values, attitudes and beliefs of a group of people. (cid:862)(cid:272)ultural (cid:272)ollisio(cid:374)(cid:863) takes pla(cid:272)e (cid:449)he(cid:374) di(cid:448)erge(cid:374)t (cid:272)ultures (cid:272)o(cid:373)e i(cid:374) (cid:272)o(cid:374)ta(cid:272)t. For firms, aim is to maximize effectiveness while operating in world of complex and dynamic cultural diversities. Ethnocentric foreign positions filled by home-country nationals. Headquarters makes key decisions; believes home practices are superior to subsidiaries. Polycentric host country nationals manage local subsidiaries. Broad decisions made at head office, local units adapt to local market. Least expensive operationally reduces global perspective. Multidomestic approach adapts to local differences. Geocentric seeks best people for key jobs throughout the organization, regardless of nationality. Headquarters and subsidiaries collaborate to identify best practices. Tough to develop, costly to run, hard to maintain. Global / transnational approach opens learning opportunities. Political system structural dimensions & power dynamics of prevailing government. Individualism rights, self-expression, freedom tied to democracy. Theocratic government is an expression of a deity.