CBA Ch. 1 Hw

International Business

Business whose activities are carried out across national borders

Foreign Business

Operations of a company outside its home or domestic market

Which of the following is not true about uncontrollable forces? -Management can influence them by heavy promotion of new products to change cultural attitudes. -They include competitive and distributive forces. -Management can influence them by lobbying. -Management has no direct control over them. -They include political forces and human resource activities.

They include political forces and human resource activities

According to the text, an international business is -a company that exports. -a company that has foreign direct investment. -a company with both exports and foreign direct investment. -a company with operations in multiple nations. -a company from a foreign country.

a company with operations in multiple nations

Environment

all the forces influencing the life and development of the firm

International business really began -with the East India Company chartered in 1600. -when Singer Sewing Machine put up a factory in Scotland in 1868. -before the time of Christ. -when Colt Fire Arms set up a plant in England. -when the Ottoman Empire was established.

before the time of christ

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as -controllable and uncontrollable. -controllable and uncontrollable as well as internal and external. -domestic and foreign. -internal and external. -domestic and foreign as well as controllable and uncontrollable.

controllable and uncontrollable as well as internal and external

environment and health (globalization issue)

damage to environment; AGAINST

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

decline

cost driver

economies of scale

Market drivers

emergence of global customers; should new opportunities and new markets

jobs (globalization issue)

expanded trade is linked to the creation of more and better jobs; FOR

Competitive drivers

explosive growth in international business; should intense competition in world markets

Technological drivers

explosive growth of high-power, low-cost computing; should growth in services

Cost drivers

exporting or producing overseas; should lower cost of goods sold

Uncontrollable forces

external forces which management has no direct control

T/F: International experience is valuable for mid-career individuals who aspire to higher positions and greater responsibility but not for students seeking their first job beyond university.

false

Domestic environemnt

forces originating in the home country that surround and influence the firms life and development (forces in home country)

Foreign environment

forces originating outside the home nation that surround and influence the firms life and development (forces beyond home nation)

The _______ environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm.

foreign

The operations of a company outside its home or domestic market are known as ________ business.

foreign

Many opponents of globalization have claimed that there is a huge gap between the world's rich and poor and that _____ has caused that gap to increase.

globalization

According to opponents of the globalization of trade and investment, -globalization has contributed to an improvement in environmental and health conditions. -globalization benefits all nations and workers. -globalization has produced uneven results across nations and people. -citizens from more globally integrated countries have lower levels of civil liberties and lower economic prosperity. -globalization has increased the proportion of children in the labor force worldwide.

globalization has produced uneven results across nations and people

International environemnt

interaction between domestic and foreign environment forces or between sets of foreign environment forces (forces with interaction)

Controllable forces

internal forces that management administrators to adapt to changes in external forces

labor and labor standards (globalization issue)

jobs are migrating to countries with lower standards; AGAINST

The expanding importance of foreign-owned firms in local economies has been viewed by a number of governments as a threat to their autonomy. However, there has been a marked _______ of government policies and attitudes toward foreign investment in both developed and developing nations in recent years.

liberalization

Examples of the kinds of internal forces listed in the text are each of the following except -human resources. -finance. -raw materials. -labor. -natural resources.

natural resources

competitive driver

new entrants

International Company

operations in multiple countries either in a global or multi domestic country

When a government sees that local industry is threatened by imports, it can threaten to erect import barriers to stop or reduce these imports. This is an example of a ________ driver of international business activity. -technological -market -political -cost -competitive

political

Political driver

preferential trade agreements and privatization of industry

Political drivers

preferential trading arrangements and privatization of industries; should increased opportunities for trade and investment

market driver

saturated home market

technological driver

the internet

Socioeconomic development (globalization issue)

there is a link between free trade and economic growth; FOR

Results across nations and people (globalization issue)

there is a widening gap between rich and poor; AGAINST

A ___ corporation is an enterprise made up of entities in more than one nation, operating under a decision-making system that allows a common strategy and coherent polciies

transnational

T/F: Expanded international trade is linked with the creation of more and better jobs

true

T/F: International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments- domestic, foreign, and global

true

Self-reference criterion

unconscious reference to your own cultural values when judging behaviors in a new and different environment