BUS-390 Midterm Study Guide
Question and answers rated A+
2025/2026
Drivers of Globalization - correct answer ✔Five major kinds of drivers, all based on change, are leading
firms to internationalize their operations: political, technological, market, cost, and competitive
Controllable Forces - correct answer ✔Internal forces management does have some control over and
can manage in response to changes in uncontrollable forces, such as human resources, finance,
production, and marketing
Uncontrollable Forces - correct answer ✔External forces management has no control over, although it
can exert influence such as lobbying for a change in a law or heavily promoting a new product that
requires a change in a cultural attitude
External Forces - correct answer ✔competitive, distribution, economic, socioeconomic, financial, legal,
physical, political, sociocultural, labor, and technological forces
Environment Domestic - correct answer ✔all the uncontrollable forces originating in the home country
that surround and influence the life and development of the firm
Environment Foreign - correct answer ✔refers to all the uncontrollable forces originating outside the
home country that surround and influence the firm
Environment International - correct answer ✔consists of the interactions between the domestic
environmental forces and the foreign environmental forces, as well as interactions between the foreign
environmental forces of two countries, such as when an affiliate in one country does business with
customers in another
, Exporting - correct answer ✔The transportation of any domestic good or service to a destination
outside a country or region
Importing - correct answer ✔The transportation of any good or service into a country or region, from a
foreign origination point
Foreign Business - correct answer ✔Denotes the operations of a company outside its home or domestic
market; many refer to this as business conducted within a foreign country
International Business - correct answer ✔Business that is carried out across national boarders.
Examples: transportation, tourism, advertising, consulting, construction, retailing, wholesale, and mass
communication
Foreign Direct Investment (FDI) - correct answer ✔Refers to direct investments in equipment,
structures, and organizations in a foreign country at a level sufficient to obtain significant management
control
Association of Southeast Asian Nations (ASEAN) - correct answer ✔Agreement among Southeast Asian
nations that began as a security agreement, grew to a free trade agreement, and is continuing toward a
common market, known as AFTA.
Bretton Woods - correct answer ✔1944 conference at which allied nations' treasury and central bank
representatives met to establish the International Monetary Fund and the World Bank.
European Union (EU) - correct answer ✔A body of 28 European countries committed to economic and
political integration.
Common market - correct answer ✔Customs union that includes mobility of services, people, and
capital within the union.
Question and answers rated A+
2025/2026
Drivers of Globalization - correct answer ✔Five major kinds of drivers, all based on change, are leading
firms to internationalize their operations: political, technological, market, cost, and competitive
Controllable Forces - correct answer ✔Internal forces management does have some control over and
can manage in response to changes in uncontrollable forces, such as human resources, finance,
production, and marketing
Uncontrollable Forces - correct answer ✔External forces management has no control over, although it
can exert influence such as lobbying for a change in a law or heavily promoting a new product that
requires a change in a cultural attitude
External Forces - correct answer ✔competitive, distribution, economic, socioeconomic, financial, legal,
physical, political, sociocultural, labor, and technological forces
Environment Domestic - correct answer ✔all the uncontrollable forces originating in the home country
that surround and influence the life and development of the firm
Environment Foreign - correct answer ✔refers to all the uncontrollable forces originating outside the
home country that surround and influence the firm
Environment International - correct answer ✔consists of the interactions between the domestic
environmental forces and the foreign environmental forces, as well as interactions between the foreign
environmental forces of two countries, such as when an affiliate in one country does business with
customers in another
, Exporting - correct answer ✔The transportation of any domestic good or service to a destination
outside a country or region
Importing - correct answer ✔The transportation of any good or service into a country or region, from a
foreign origination point
Foreign Business - correct answer ✔Denotes the operations of a company outside its home or domestic
market; many refer to this as business conducted within a foreign country
International Business - correct answer ✔Business that is carried out across national boarders.
Examples: transportation, tourism, advertising, consulting, construction, retailing, wholesale, and mass
communication
Foreign Direct Investment (FDI) - correct answer ✔Refers to direct investments in equipment,
structures, and organizations in a foreign country at a level sufficient to obtain significant management
control
Association of Southeast Asian Nations (ASEAN) - correct answer ✔Agreement among Southeast Asian
nations that began as a security agreement, grew to a free trade agreement, and is continuing toward a
common market, known as AFTA.
Bretton Woods - correct answer ✔1944 conference at which allied nations' treasury and central bank
representatives met to establish the International Monetary Fund and the World Bank.
European Union (EU) - correct answer ✔A body of 28 European countries committed to economic and
political integration.
Common market - correct answer ✔Customs union that includes mobility of services, people, and
capital within the union.
