CBA 300 CH 1 (Module 1)

Sanctions being placed on Russia and Russian companies in response to Russia's actions in Ukraine is an example of:

forces in the foreign environment having different values.

Political

Elements of nations' climates such as nationalism and forms of government

Physical

Elements of nature such as topography, climate, and natural resources

Domestic Business

the making, buying, and selling of goods and services within a country. -Many domestic companies face competition from foreign imports and foreign competitors.

Foreign Business

the operations of a company outside the home or domestic market -Domestic business denotes the operations of a company outside its home market. -Foreign business denotes the operations of a company, within a foreign country

Self-Reference Criterion

the tendency to view other cultures through the lens of our own culture -the biggest cause of international business blunders

Foreign business denotes the operations of a company

within a foreign country

Legal

The many foreign and domestic laws governing business operations

Domestic forces can also affect foreign operations.

True

Economic

Variables such as gross national income, unit labor cost, and personal consumption expenditure

Financial

Variables such as interest rates, inflation rates, and taxation

International Business

all business activities that involve exchanges across national boundaries -International business is business that is carried out across national -service, trade, manufacturing

Domestic Environment

all the uncontrollable forces originating in the home country that surround and influence the firm's life and development -A company's managers tend to be most familiar with the forces in this environment

Foreign forces are frequently difficult to

assess

Example of a domestic force affecting foreign operations?

-A home country suffers a shortage of foreign currency, so its government restricts overseas investment. -A union decides to call a strike at a domestic company, and the strike causes disruptions in the supply of parts to a company in another country.

Which of the following is an example of a domestic force affecting foreign operations?

-A union decides to call a strike at a domestic company, and the strike causes disruptions in the supply of parts to a company in another country. -A home country suffers a shortage of foreign currency, so its government restricts overseas investment.

What 3 forces does an International Business deal with?

-Domestic -Foreign -International

How does the foreign environment operate differently than the domestic environment?

-Forces in the foreign environment are interrelated. -Forces in the foreign environment have different values. -Forces in the foreign environment are difficult to assess.

Which of the following international organizations affect the international market?

-The European Union -The OPEC -The World Bank

Internal Forces (Controllable Forces)

-inside influences such as company culture and employee diversity -human resources, finance, production, and marketing

Which of the following foreign forces are especially difficult to assess?

-legal -political

International Company

A company with operations in multiple nations -A(n) international company is a company with operations in multiple nations.

Environment

All the forces influencing the life and development of the firm. (External or Internal) -The term environment , means all the forces influencing the life and development of the firm.

Foreign Environment

All the uncontrollable forces originating outside the home country that surround and influence the firm -The forces in the foreign environment are the same as those in the domestic environment except they occur outside the firm's home country Which environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm?

International Environment

Interaction between domestic and foreign environmental forces or between sets of foreign environmental forces of two countries -Ex: When an affiliate in one country does business with customers in another

Competitive

Kinds and number of competitors and their activities

External Forces (Uncontrollable Forces)

Outside influences such as competitors' actions and customers' changing preferences -Competitive -Financial -Economic -Legal -Political -Physical -Distributive -Technological -Sociocultural -Labor -Socioeconmic Management has no direct control over Uncontrollable forces, although it can exert influence over them

Barriers to the free movement of a nation's people, such as mountain ranges, help maintain pockets of distinct cultures within a country, thus affecting a company's decision making. This scenario is an example of foreign forces

being interrelated