IMS 3310: Chapter 1
International Environment
Interaction between domestic and foreign environmental forces, as well as interactions between the foreign environmental forces of two countries.
Foreign Business
The operations of a company outside its home or domestic market
International Company
A company with operations in multiple nations
Environment
All the forces influencing the life and development of the firm
Domestic Environment
All the uncontrollable forces originating in the home country that surround and influence the life and development of the firm.
Foreign Environment
All the uncontrollable forces originating outside the home country that surround and influence the firm
Transnational Corporation
An enterprise made up of entities in more than one nation, operating under a decision-making system that allows a common strategy and coherent policies.
International Business
Business that is carried out across national borders. Firm must deal with the forces of three kinds of environments-domestic, foreign, and international.
Foreign Direct Investment
Direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain sufficient management control
Uncontrollable Forces
The external forces that management has no direct control over
Controllable Forces
The internal forces over which management does have some control and that the management adminsters to adapt to changes in the uncontrollable forces
Economic Globalization
The tendency toward an international integration and interdependency of goods, technology, information, labor, and capital, or the process of making this tendency happen.
Exporting
The transportation of any domestic good or service to a destination outside a country or region
Importing
The transportation of any good or service into a country or region, from a foregin origination point
Self-Reference Criterion
Unconscious reference to your own cultural values when judging behaviors of others ina new and different environment
