International Business CH 1
1. International Business: A business whose activities are carried out across
national borders
2. Foreign Business: The operations of a company outside its home or domestic
market
3. Multidomestic Company (MDC): An organization with multicountry affiliates,
each of which formulates its own business strategy based on perceived market
and differences
4. Global Company (GC): An organization that attempts to standardize and
integrate operations worldwide in all functional areas
5. International Company (IC): Either a global or a multidomestic company
6. Environment: All the forces surrounding and influencing the life and
development of the firm
7. Uncontrollable Forces: External forces over which management has no direct
control, although it can exert an influence
8. Controllable Forces: Internal forces that management administers adapt to
changes in the uncontrollable forces
9. Domestic Environment: All the uncontrollable forces originating in the home
country that surround and influence the firm's life and development
10. Foreign Environment: All the uncontrollable forces originating outside the
home country that surround and influence the firm
11. International Environment: Interaction between domestic and foreign
environmental forces or between sets of foreign environmental forces
12. Self-Reference Criterion: Unconscious reference to one's own cultural
values when judging behaviors of others in a new and different environment
13. 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 14. Exporting: The transportation of any domestic good or
service to a destination outside a country or region
15. Importing: The transportation of any good or service into a country or
region, from a foreign origination point
16. Economic Globalization: The tendency toward an international integration
of goods, technology, information, labor and capital, or the process of making this
integration happen
1. International Business: A business whose activities are carried out across
national borders
2. Foreign Business: The operations of a company outside its home or domestic
market
3. Multidomestic Company (MDC): An organization with multicountry affiliates,
each of which formulates its own business strategy based on perceived market
and differences
4. Global Company (GC): An organization that attempts to standardize and
integrate operations worldwide in all functional areas
5. International Company (IC): Either a global or a multidomestic company
6. Environment: All the forces surrounding and influencing the life and
development of the firm
7. Uncontrollable Forces: External forces over which management has no direct
control, although it can exert an influence
8. Controllable Forces: Internal forces that management administers adapt to
changes in the uncontrollable forces
9. Domestic Environment: All the uncontrollable forces originating in the home
country that surround and influence the firm's life and development
10. Foreign Environment: All the uncontrollable forces originating outside the
home country that surround and influence the firm
11. International Environment: Interaction between domestic and foreign
environmental forces or between sets of foreign environmental forces
12. Self-Reference Criterion: Unconscious reference to one's own cultural
values when judging behaviors of others in a new and different environment
13. 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 14. Exporting: The transportation of any domestic good or
service to a destination outside a country or region
15. Importing: The transportation of any good or service into a country or
region, from a foreign origination point
16. Economic Globalization: The tendency toward an international integration
of goods, technology, information, labor and capital, or the process of making this
integration happen
