International Business Chapter 1

Front 1

International Business

Back 1

A business whose activities are carried out across national borders

Front 2

Foreign Business

Back 2

The operations of a company outside its home or domestic market

Front 3

Multidomestic Company (MDC)

Back 3

An organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences

Front 4

Global Company (GC)

Back 4

An organization that attempts to standardize and integrate operations worldwide in all functional areas

Front 5

International Company (IC)

Back 5

Either a global or multidomestic company

Front 6

Environment

Back 6

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

Front 7

Uncontrollable Forces

Back 7

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

Front 8

Controllable Forces

Back 8

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

Front 9

Domestic Environment

Back 9

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

Front 10

Foreign Environment

Back 10

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

Front 11

International Environment

Back 11

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

Front 12

Self - reference criterion

Back 12

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

Front 13

Foreign Direct Investment (FDI)

Back 13

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

Front 14

Exporting

Back 14

The transportation of any domestic good or service to a destination outside a country or region

Front 15

Importing

Back 15

The transportation of any good or service into a country or region, from a foreign origination point

Front 16

Economic Globalization

Back 16

The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen