BUSI 3250 Exam 1 Common Questions and Important Concepts

BUSI 3250 Exam 1Common Questions and Important Concepts BUSI 3250 Exam 1Common Questions and Important Concepts 1. International Business: Business that is carried out across national borders 2. Foreign Business: denotes the operations of a company outside its home or domestic market 3. International Company: A company with operations in multiple nations 4. enviroment: All of the forces influencing the life and development of the firm 5. Uncontrollable forces: external forces that management has no direct control over 6. external forces consist of the following: 1. competitive 2. distributive 3. economic 4. socioeconomic 5. financial 6. legal 7. physical 8. political 9. sociocultural 10. labor 11. technological 7. The domestic environment: all the uncontrollable forces originating in the home country that surround and influence the life and development of the firm 8. The foreign environment: All the uncontrollable forces originating outside the home country that surround and influence the firm 9. The international environment: includes the interactions between domestic and foreign environmental forces and between the foreign environmental forces of two countries 10. self-reference criterion: unconscious reference to your own cultural values when judging behaviors of others in a new and different environment 11. Foreign Direct Investment (FDI): 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 12. Exporting: The transportation of any domestic good or service to a destination outside a country or region (sending goods) 13. Importing: The transportation of any good or service into a country or region, from a foreign origination point (receiving goods) 14. 5 major kinds of drivers for internationalization of business: 1. political 2. technological 3. market 4. cost 5. competitive 15. Political Drivers: -Trends toward the unification and socialization of the global community - concerns about protectionism by host country markets still exist 16. technological drivers: -Advances in computers and communications technol- ogy permit an increased flow of ideas and information across borders -Smaller companies to communicate with customers abroad and compete globally -Computer-based communication may enhance virtual integration 17. Market drivers: -As firms internationalize, they also become global customers -Firms may go abroad to prevent foreign suppliers from gaining access to their customers -Mature home country markets may encourage companies to consider nations with rising GDP/capita, population growth, and higher rates of GDP growth. 18. Cost Drivers: -Going abroad can frequently lower the cost of goods sold. -Globalization of product lines reduce development, production, and inventory costs -some governments offer investments incentives to foreign business 19. Competitive Drivers: -defend home markets by distracting competitors -guarantee the supply of key raw materials -entry into downstream markets to protect existing business 20. Economical Globalization: The tendency toward an international integration and interdependency of goods, technology, information, labor and capital, or the process of making this integration happen. 21. Concerns with Globalization: - has produced uneven results across nations & people, - has had deleterious effects on labor & labor standards, - has contributed to a decline in environmental & health conditions 22. Arguments Supporting Globalization: 1. Free Trade Enhances Socioeconom- ic Development 2. Free Trade Promotes More and Better Jobs 23. Volume of International Trade: •Trade in services has been growing faster than trade in merchandise for the last 20 years. 24. An International company (IC) is a company headquartered in another nation? T/F: True 25. As used in the text, the term "environment" means all the forces influenc- ing the life and development of the firm? T/F: True 26. Lobbyist who advocate for new laws that will affect the production stan- dards of a business are an example of an internal force? T/F: False 27. Those who work in the international environment find that decision making is more complex than it is in a purely domestic environment? T/F: True 28. 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. T/F: false 29. the advent of globalization has had minimal affect on labor standards around the world. T/F: False 30. Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions. T/F: True 31. What is an example of an internal force that can affect a company's environment. T/F: Human resources 32. Gabriel industries is located near a port city which allows it to ship prod- ucts easily overseas to its international customers. The geographic location of the company is an example of an?: External force 33. Which of the environments associated with the company refers to uncon- trollable forces originating outside the home country.: International