Int B chap 1

international environment

interaction between domestic and foreign environmental forces or between sets of foreign environmental forces

controllable forces

internal forces that management administers to adapt to changes in the uncontrollable forces

Global company

is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas

Multi-domestic company

is an organization with multi country affiliates, each of which formulates its own business strategy based on perceived market differences.

international business

is business whose activities are carried out across national borders. This definition includes not only international trade and foreign manufacturing, but also the growing service industry in areas such as transportation, tourism, advertising, construction, retailing, wholesaling, and mass communications.

economic globalizaiton

the tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration 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 foreign origination point

self-reference criterion

unconscious reference to one's own cultural values when judging behaviors of others in a new and different environment

environment

all the forces surrounding the influencing the life and development of the firm

domestic environment

all the uncontrollable forces originating in the home country that surround and influence the firm's life and development

foreign environment

all the uncontrollable forces originating outside the home country that surround and influence the firm

foreign business

denotes the operations of a company outside its home or domestic market; many refer to this as business conducted within a foreign country.

foreign direct investment

direct investments in equipment, structures, and organizations in a foreign country at a level that is sufficient to obtain significant management control; does not include mere foreign investment in stock markets

international company

either a global or multi domestic company

uncontrollable forces

external forces over which management has no direct control, although it can exert an influence.