INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL BEHAVIOR Review Questions 1. Identify and describe the stages of development for global corporate evolution. Global corporate evolution experiences four stages, which are domestic phase, multi-domestic phase, multinational phase, and global phase.
In domestic phase, corporations in one country usually neglect the need to decrease inconvenience aroused by cultural diversity, which may makes it difficult to broaden their business or win market share in other countries with different cultural contexts.
In multi-domestic phase, firms begin to cater to the needs of each market segment with different cultural backgrounds since they realize that cultural diversity is a huge challenge in business expansion.
Multinational phase witnesses the expansion of global market, where a large majority of multinational firms providing identical products emerge. Thus, the need to differentiate subtle cultural differences is weakened since cost control becomes an effective way to gain profits.
In global phase, cultural difference is again emphasized. The way to quickly respond to customers’ needs in any market segment in a cost-efficient production mode dominates, which makes the ability to handle multicultural interaction essential for multinational firms.

2. Identify and describe Hofstede's dimensions of cultural differences. According to Hofstede, the five important dimensions of cultural differences include individualism/collectivism, power distance, uncertainty avoidance, career success/quality of life, and Confucian dynamism.
Individualism, influencing individuals through external moral bounds, is contrary to collectivism that exerts influence via inner pressures. In individual culture, people value personal freedom, advocate individualism and behave with their personal thinking and