01-1
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
,SOLUTION MANUAL FOR fe fe
International Business, 3rd Edition Geringer fe fe fe fe
Chapter 1-13 fe
Chapter 1 fe
Module 1: The Challenging Context of International f e f e f e f e f e f e
Business
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Your Content
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Summary
Learning Objectives fe
Key Terms and Definitions
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Content Outline
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Engagement and Application fe fe
Boxed Text Discussion Questions With Suggested Answers
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IB in Practice fe fe
Global Debate
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Get That Job! From Backpack to Briefcase
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End of Module Exercises
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Critical Thinking Questions
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globalEDGE Research Task
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MiniCase
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Bonus Activities fe
Video Suggestions
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Team Exercises
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Supplemental Activities fe
Controversial Issues
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Teaching Suggestions
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Connect Tools for Assessment of Learning
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Connect Content Matrix fe fe
01-2
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
, Connect Activities fe
Your Content fe
Summary
This module provides an overview of international business (IB) and some of the ways that IB
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
differs from domestic business, including the three environments of IB: domestic, foreign, and
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international. Although the kinds of forces are the same in the domestic and foreign
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environments, their values often differ and changes in the values of the foreign forces can be at
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
times more difficult to assess. In addition to providing a brief review of the history of IB, the
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
module discusses the internationalization of business in recent decades and the driving forces
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that are leading firms to internationalize their operations. The increasing internationalization of
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business requires managers to have a global perspective gained through experience and
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education. Because global competition continues to increase at a rapid pace, both in terms of
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
trade and foreign direct investment, we also present key arguments for and against the
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globalization of business, helping to foster a more balanced view on this important topic.
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Learning Objectives fe
LO 1-1 fe Show how international business differs from domestic business.
fe fe fe fe fe fe fe
LO 1-2 fe Describe the history and future of international business.
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LO 1-3 fe Discuss the dramatic internationalization of business.
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LO 1-4 fe Identify the kinds of drivers that are leading firms to internationalize their
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operations.
fe
LO 1-5 fe Compare the key arguments for and against the globalization of business.
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Key Terms and Definitions
fe fe fe
controllable forces (p. 6) fe fe fe Internal forces that management administers to adapt to
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changes in the uncontrollable forces
fe fe fe fe fe
domestic environment (p. 6) fe fe fe All the uncontrollable forces originating in the home
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country that surround and influence the life and
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development of the firm
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economic globalization (p. 17) fe fe fe The tendency toward an international integration and
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interdependency of goods, technology, information, labor
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and capital, or the process of making this integration
fe fe fe fe fe fe fe fe fe
happen
fe
environment (p. 5) fe fe All the forces influencing the life and development of the
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firm
fe
01-3
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
, exporting (p. 12) fe fe The transportation of any domestic good or service to a
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destination outside a country or region
fe fe fe fe fe fe
fe foreign affiliate (p. 6)
fe fe fe
A company controlled by another company that is located
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in a foreign land, and this control may be exercised by a
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variety of means, both those involving stock ownership
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and those involving nonownership mechanisms
f e fe fe fe fe
foreign business (p. 5)
fe fe fe The operations of a company outside its home or domestic
fe fe fe fe fe fe fe fe fe
market
fe
foreign direct investment Direct investments in equipment, structures, and fe fe fe fe fe
(FDI) (p. 12)
fe fe fe organizations in a foreign country at a level sufficient to
fe fe fe fe fe fe fe fe fe fe
obtain significant management control; does not include
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mere foreign investment in stock markets
fe fe fe fe fe fe
foreign environment (p. 6)
fe fe fe All the uncontrollable forces originating outside the home
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country that surround and influence the firm
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importing (p. 12) fe fe The transportation of any good or service into a country or
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region, from a foreign origination point
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international business (p. 4) fe fe fe Business that is carried out across national borders fe fe fe fe fe fe fe
international f e company A company with operations in multiple nations
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f (IC) (p. 5)
e fe fe
international environment Interaction between domestic and foreign environmental
f e fe fe fe fe fe
(p. 7)
f e fe forces, as well as interactions between the foreign fe fe fe fe fe fe fe fe
environmental forces of two countries fe fe fe fe fe
multinational corporation (p. A corporation that owns or controls the production of
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fe fe fe fe fe fe fe fe
10)
fe
goods or services in at least one nation outside its home fe fe fe fe fe fe fe fe fe fe fe
nation fe
An enterprise made up of entities in more than one nation, fe fe fe fe fe fe fe fe fe fe
multinational enterprise (p. operating under a decision-making system that allows a fe fe fe fe fe fe fe fe
11)
fe
common strategy and coherent policies fe fe fe fe fe
self-reference criterion (p. 8) fe fe fe Unconscious reference to your own cultural values when fe fe fe fe fe fe fe
judging behaviors of others in a new and different
fe fe fe fe fe fe fe fe fe
environment
fe
uncontrollable forces (p. 5) fe fe fe The external forces that management has no direct control
fe fe fe fe fe fe fe fe
over
fe
01-4
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
,SOLUTION MANUAL FOR fe fe
International Business, 3rd Edition Geringer fe fe fe fe
Chapter 1-13 fe
Chapter 1 fe
Module 1: The Challenging Context of International f e f e f e f e f e f e
Business
fe
Your Content
fe
Summary
Learning Objectives fe
Key Terms and Definitions
fe fe fe
Content Outline
fe fe
Engagement and Application fe fe
Boxed Text Discussion Questions With Suggested Answers
fe fe fe fe fe fe
IB in Practice fe fe
Global Debate
fe fe
Get That Job! From Backpack to Briefcase
fe fe fe fe fe fe
End of Module Exercises
fe fe fe
Critical Thinking Questions
fe fe fe
globalEDGE Research Task
fe fe fe
MiniCase
fe
Bonus Activities fe
Video Suggestions
fe fe
Team Exercises
fe fe
Supplemental Activities fe
Controversial Issues
fe fe
Teaching Suggestions
fe fe
Connect Tools for Assessment of Learning
fe fe fe fe fe
Connect Content Matrix fe fe
01-2
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
, Connect Activities fe
Your Content fe
Summary
This module provides an overview of international business (IB) and some of the ways that IB
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
differs from domestic business, including the three environments of IB: domestic, foreign, and
fe fe fe fe fe fe fe fe fe fe fe fe fe
international. Although the kinds of forces are the same in the domestic and foreign
fe fe fe fe fe fe fe fe fe fe fe fe fe fe
environments, their values often differ and changes in the values of the foreign forces can be at
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
times more difficult to assess. In addition to providing a brief review of the history of IB, the
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
module discusses the internationalization of business in recent decades and the driving forces
fe fe fe fe fe fe fe fe fe fe fe fe fe
that are leading firms to internationalize their operations. The increasing internationalization of
fe fe fe fe fe fe fe fe fe fe fe fe
business requires managers to have a global perspective gained through experience and
fe fe fe fe fe fe fe fe fe fe fe fe
education. Because global competition continues to increase at a rapid pace, both in terms of
fe fe fe fe fe fe fe fe fe fe fe fe fe fe fe
trade and foreign direct investment, we also present key arguments for and against the
fe fe fe fe fe fe fe fe fe fe fe fe fe fe
globalization of business, helping to foster a more balanced view on this important topic.
fe fe fe fe fe fe fe fe fe fe fe fe fe fe
Learning Objectives fe
LO 1-1 fe Show how international business differs from domestic business.
fe fe fe fe fe fe fe
LO 1-2 fe Describe the history and future of international business.
fe fe fe fe fe fe fe
LO 1-3 fe Discuss the dramatic internationalization of business.
fe fe fe fe fe
LO 1-4 fe Identify the kinds of drivers that are leading firms to internationalize their
fe fe fe fe fe fe fe fe fe fe fe
operations.
fe
LO 1-5 fe Compare the key arguments for and against the globalization of business.
fe fe fe fe fe fe fe fe fe fe
Key Terms and Definitions
fe fe fe
controllable forces (p. 6) fe fe fe Internal forces that management administers to adapt to
fe fe fe fe fe fe fe
changes in the uncontrollable forces
fe fe fe fe fe
domestic environment (p. 6) fe fe fe All the uncontrollable forces originating in the home
fe fe fe fe fe fe fe
country that surround and influence the life and
fe fe fe fe fe fe fe fe
development of the firm
fe fe fe fe
economic globalization (p. 17) fe fe fe The tendency toward an international integration and
fe fe fe fe fe fe
interdependency of goods, technology, information, labor
fe fe fe fe fe fe
and capital, or the process of making this integration
fe fe fe fe fe fe fe fe fe
happen
fe
environment (p. 5) fe fe All the forces influencing the life and development of the
fe fe fe fe fe fe fe fe fe
firm
fe
01-3
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
, exporting (p. 12) fe fe The transportation of any domestic good or service to a
fe fe fe fe fe fe fe fe fe
destination outside a country or region
fe fe fe fe fe fe
fe foreign affiliate (p. 6)
fe fe fe
A company controlled by another company that is located
fe fe fe fe fe fe fe fe
in a foreign land, and this control may be exercised by a
fe fe fe fe fe fe fe fe fe fe fe fe
variety of means, both those involving stock ownership
fe fe fe fe fe fe fe fe
and those involving nonownership mechanisms
f e fe fe fe fe
foreign business (p. 5)
fe fe fe The operations of a company outside its home or domestic
fe fe fe fe fe fe fe fe fe
market
fe
foreign direct investment Direct investments in equipment, structures, and fe fe fe fe fe
(FDI) (p. 12)
fe fe fe organizations in a foreign country at a level sufficient to
fe fe fe fe fe fe fe fe fe fe
obtain significant management control; does not include
fe fe fe fe fe fe fe
mere foreign investment in stock markets
fe fe fe fe fe fe
foreign environment (p. 6)
fe fe fe All the uncontrollable forces originating outside the home
fe fe fe fe fe fe fe
country that surround and influence the firm
fe fe fe fe fe fe fe
importing (p. 12) fe fe The transportation of any good or service into a country or
fe fe fe fe fe fe fe fe fe fe
region, from a foreign origination point
fe fe fe fe fe fe
international business (p. 4) fe fe fe Business that is carried out across national borders fe fe fe fe fe fe fe
international f e company A company with operations in multiple nations
fe fe fe fe fe fe
f (IC) (p. 5)
e fe fe
international environment Interaction between domestic and foreign environmental
f e fe fe fe fe fe
(p. 7)
f e fe forces, as well as interactions between the foreign fe fe fe fe fe fe fe fe
environmental forces of two countries fe fe fe fe fe
multinational corporation (p. A corporation that owns or controls the production of
f e f e
fe fe fe fe fe fe fe fe
10)
fe
goods or services in at least one nation outside its home fe fe fe fe fe fe fe fe fe fe fe
nation fe
An enterprise made up of entities in more than one nation, fe fe fe fe fe fe fe fe fe fe
multinational enterprise (p. operating under a decision-making system that allows a fe fe fe fe fe fe fe fe
11)
fe
common strategy and coherent policies fe fe fe fe fe
self-reference criterion (p. 8) fe fe fe Unconscious reference to your own cultural values when fe fe fe fe fe fe fe
judging behaviors of others in a new and different
fe fe fe fe fe fe fe fe fe
environment
fe
uncontrollable forces (p. 5) fe fe fe The external forces that management has no direct control
fe fe fe fe fe fe fe fe
over
fe
01-4
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
fe fe fe fe fe fe fe fe fe fe fe fe fe
consent of McGraw Hill LLC.
fe fe fe fe fe
