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21 Cards in this Set
- Front
- Back
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Why you need experience in International Business? |
*Firms are more involved in international busi. *Employees should have a global busi. perspective *International busi. skills are important to all levels of employment |
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International Business
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A business whose activities are carried out across national borders |
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Foreign Business
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The operations of a company outside the home or domestic markets |
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Multidomestic Company (MDC)
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A organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences |
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Global Company (GC)
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An organization that attempts to standardize and integrate operations worldwide in most or all functional areas |
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International Company (IC)
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Either a global or multinational company
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International Busi. vs Domestic Busi.
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*International- deals with domestic, foreign, international *Domestic- deals with the domestic market but may face foreign competition |
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Influence of External and Internal Forces
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Environment, Uncontrollable Forces, and Controllable Forces |
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Environment
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All forces surrounding and influencing the life and development of the firm |
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Uncontrollable Forces
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External forces over which management has no direct control, although it can exert an influence |
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Controllable Forces
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Internal forces that management administrators to adapt to changes in the uncontrollable forces |
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External (Uncontrollable) Forces 1-5 |
*Competitive-competitors *Distributive-shipping *Economic-unit labor cost *Socioeconomic-nature & division of people *Financial- interest & inflation rates |
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External (Uncontrollable) Forces 6-10 |
*Legal- laws *Physical- weather *Political- government structure *Sociocultural- culture, values *Labor- skills *Technological- technical skills |
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Domestic Environment
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All uncontrollable forces originating in the home country that surround and influence the firm's life and development |
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Foreign Environment
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All uncontrollable forces originating outside the home country that surround and influence the firm |
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International Environment
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Interaction between domestic and foreign environmental forces or between sets of foreign environmental forces |
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Foreign Environment
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* they have different values * can be difficult to assess * interrelated environments |
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Organizations that affect the International Environment |
* World Bank, World Trade Organization * North American Free Trade agreement, European Union * Organization of Petroleum Exporting Countries |
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Complexity of decision making
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Managers must consider foreign forces and how they will affect interactions between countries. |
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Self-Reference Criteria
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* Managers tend to ascribe their own cultural opinions to the hosting country. * biggest cause of interrelation blunders |
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