International Business Module 1

An international company (IC) is a company headquartered in another nation.

False

Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States at the end of the 1800s.

False

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.

False

The advent of globalization has had minimal effect on labor standards around the world.

False

As used in the text, the term environment means all the forces influencing the life and development of the firm.

True

Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions.

True

Those who work in the international environment find that decision making is more complex than it is in a purely domestic environment.

True

What is an example of an internal force that can affect a company's environment?

availability of natural resources

Gabriel Industries is located near a port city which allows it to ship products easily overseas to its international customers. The geographic location of the company is an example of an

external force

Which of the environments associated with a company refers to the uncontrollable forces originating outside the home country?

foreign