1. PCN- parent-country national-or expatriate. In an international firm, a PCN is a person
whose nationality is the same as that of the firm, but different from the country in which
they are working. For example, a Japanese manager working for a UK- based subsidiary
of a Japanese company. Where the firm is headquartered and other countries that may be
the source of labor, finance, and other inputs.
2. HCN- host-country national-these employees are hired for jobs in their own country. For
example, a UK citizen who is employed at Coca Cola’s UK subsidiary is a local national.
Where a subsidiary may be located. Expats (who are transferred into parent-country
operations outside their own home country. HCNs only become inpatriates when they
are transferred into the parent-country operations as expats. An impediment to hiring
HCNs is that such employees may not understand the parent company's culture.
3. TCN- third-country national. A term often used in the context of migration, referring to
individuals who are in transit and/or applying for visa in countries that are not their
country of origin (i.e. country of transit), in order to go to destination countries that is
likewise not their country of origin. Expats
4. MNE- Multinational Enterprises- is a business entity which conducts business
operations in various countries with its subsidiaries and affiliates. MNEs possess
considerable and wide human resources, finance, expertise and technology as well as
enjoy substantial competitive advantage
5. SME- Small and Medium Enterprises- are non-subsidiary, independent firms which
employ fewer than a given number of employees. This number varies across countries.
The most frequent upper limit designating an SME is 250 employees, as in the European
Union. Financial assets are also used to define SMEs
6. Index of Transnationality- is an average of the ratios of foreign assets to total assets;
foreign employment to total employment
7. Inpatriate- refers to the transfer of subsidiary staff into the parent country (headquarters)
operations
8. Multidomestic Industry- One in which competition in each country is essentially
independent of competition in other countries. Traditional examples include retailing,
distribution and insurance
9. Organizational Culture- is defined as the sense of common identity and purpose
across the whole organization.
10. Tax Equalization- firms withhold an amount equal to the home-country tax obligation of
the expatriate, and pay all taxes in the host country
11. Asymmetric Events- have been described as threats that our political, strategic, and
military cultures regard as unusual
12. Artefacts- are described as visible organization structures and processes
, 13. Communitarianism- is about the rights of the group or society. It seeks to put the family,
group, company, and country before the individual. It sees individualism as selfish and
short-sighted
14. Diffuse Culture- is characterized by: a large private life that includes a relatively large
number of people; a small public space that is difficult to enter (e.g. an outsider needs a
formal introduction from a mutual friend in order to do business with a particular
manager); indirect communication that does not always say what is really meant; and no
clear distinction bwt work and private life.
15. High Context Communication- in high context cultures, a more indirect form of
expression is common, where the receiver must decipher the content of the message
from its context.
16. Particularism- pays more attention to individual cases, deciding what is good and
correct depending on relationship and special friendship arrangements
17. Power Distance-
a. GLOBE- is defined as “the phase to which members of a collective expect power
to be distributed equally”
b. Hofstede- represents the scale on which the members of a culture accept that
power is not distributed equally in institutions. It expresses the emotional
distance bwt employees and superiors. Power inequality exists in many cultures
but may be more or less pronounced from culture to culture
18. Spatial Distance- the focus of the dimension is on the distance bwt people of various
cultures when communicating. Distance is that adequate for members of one culture,
may feel intrusive for members of another culture
19. Uncertainty Avoidance-
a. GLOBE-includes “the extent to which a society, organization, or group relies on
social norms, rules, and procedures to alleviate the unpredictability of future
events
b. Hofstede- represents the extent to which the members of a culture feel
threatened by certain, ambiguous, and/or unstructured situations, and try to avoid
them. Cultures with strong uncertainty avoidance are characterized by strict
beliefs and behavioral codes and do not tolerate people and ideas that deviate
from these. In cultures with weak uncertainty avoidance, significance of practice
exceeds the significance of principles and there is a high tolerance for deviations.
20. Agents of Socialization- An approach is based on assumptions that appropriate
behavior will have been instilled in the local workforce through training programs and
hiring practices, and that the multinational's way of operating has been accepted by the
local staff in the manner intended. In this way, the multinational’s corporate culture will
operate as a subtle, informal control mechanism-a substitution of direct supervision
21. Chaebols- Korean conglomerates
22. Greenfield- is a type of venture where finances are employed to create a new physical
facility for a business in a location where no existing facilities are currently present
whose nationality is the same as that of the firm, but different from the country in which
they are working. For example, a Japanese manager working for a UK- based subsidiary
of a Japanese company. Where the firm is headquartered and other countries that may be
the source of labor, finance, and other inputs.
2. HCN- host-country national-these employees are hired for jobs in their own country. For
example, a UK citizen who is employed at Coca Cola’s UK subsidiary is a local national.
Where a subsidiary may be located. Expats (who are transferred into parent-country
operations outside their own home country. HCNs only become inpatriates when they
are transferred into the parent-country operations as expats. An impediment to hiring
HCNs is that such employees may not understand the parent company's culture.
3. TCN- third-country national. A term often used in the context of migration, referring to
individuals who are in transit and/or applying for visa in countries that are not their
country of origin (i.e. country of transit), in order to go to destination countries that is
likewise not their country of origin. Expats
4. MNE- Multinational Enterprises- is a business entity which conducts business
operations in various countries with its subsidiaries and affiliates. MNEs possess
considerable and wide human resources, finance, expertise and technology as well as
enjoy substantial competitive advantage
5. SME- Small and Medium Enterprises- are non-subsidiary, independent firms which
employ fewer than a given number of employees. This number varies across countries.
The most frequent upper limit designating an SME is 250 employees, as in the European
Union. Financial assets are also used to define SMEs
6. Index of Transnationality- is an average of the ratios of foreign assets to total assets;
foreign employment to total employment
7. Inpatriate- refers to the transfer of subsidiary staff into the parent country (headquarters)
operations
8. Multidomestic Industry- One in which competition in each country is essentially
independent of competition in other countries. Traditional examples include retailing,
distribution and insurance
9. Organizational Culture- is defined as the sense of common identity and purpose
across the whole organization.
10. Tax Equalization- firms withhold an amount equal to the home-country tax obligation of
the expatriate, and pay all taxes in the host country
11. Asymmetric Events- have been described as threats that our political, strategic, and
military cultures regard as unusual
12. Artefacts- are described as visible organization structures and processes
, 13. Communitarianism- is about the rights of the group or society. It seeks to put the family,
group, company, and country before the individual. It sees individualism as selfish and
short-sighted
14. Diffuse Culture- is characterized by: a large private life that includes a relatively large
number of people; a small public space that is difficult to enter (e.g. an outsider needs a
formal introduction from a mutual friend in order to do business with a particular
manager); indirect communication that does not always say what is really meant; and no
clear distinction bwt work and private life.
15. High Context Communication- in high context cultures, a more indirect form of
expression is common, where the receiver must decipher the content of the message
from its context.
16. Particularism- pays more attention to individual cases, deciding what is good and
correct depending on relationship and special friendship arrangements
17. Power Distance-
a. GLOBE- is defined as “the phase to which members of a collective expect power
to be distributed equally”
b. Hofstede- represents the scale on which the members of a culture accept that
power is not distributed equally in institutions. It expresses the emotional
distance bwt employees and superiors. Power inequality exists in many cultures
but may be more or less pronounced from culture to culture
18. Spatial Distance- the focus of the dimension is on the distance bwt people of various
cultures when communicating. Distance is that adequate for members of one culture,
may feel intrusive for members of another culture
19. Uncertainty Avoidance-
a. GLOBE-includes “the extent to which a society, organization, or group relies on
social norms, rules, and procedures to alleviate the unpredictability of future
events
b. Hofstede- represents the extent to which the members of a culture feel
threatened by certain, ambiguous, and/or unstructured situations, and try to avoid
them. Cultures with strong uncertainty avoidance are characterized by strict
beliefs and behavioral codes and do not tolerate people and ideas that deviate
from these. In cultures with weak uncertainty avoidance, significance of practice
exceeds the significance of principles and there is a high tolerance for deviations.
20. Agents of Socialization- An approach is based on assumptions that appropriate
behavior will have been instilled in the local workforce through training programs and
hiring practices, and that the multinational's way of operating has been accepted by the
local staff in the manner intended. In this way, the multinational’s corporate culture will
operate as a subtle, informal control mechanism-a substitution of direct supervision
21. Chaebols- Korean conglomerates
22. Greenfield- is a type of venture where finances are employed to create a new physical
facility for a business in a location where no existing facilities are currently present
