FIRST PUBLISH OCTOBER 2024
IMS 3310 Test I Study Guide Solutions
International business - ANSWER✔✔-A business whose activities are carried out across national borders
Foreign business - ANSWER✔✔-The operations of a company outside the home or domestic market
Multidomestic company (MDC) - ANSWER✔✔-An organization with multicountry affiliates, each of which
formulates its own business strategy based on perceived market differences
Global company (GC) - ANSWER✔✔-An organization that attempts to standardize and integrate
operations worldwide in most or all functional areas
International company (IC) - ANSWER✔✔-Either a global or multinational company
International business - ANSWER✔✔-Domestic, foreign, and international forces
Domestic business - ANSWER✔✔-Deals with the domestic market, faces foreign competition in domestic
market
Environment - ANSWER✔✔-All forces surrounding and influencing the life and development of a firm
Uncontrollable forces - ANSWER✔✔-External forces over which management has no direct control,
although it can exert influence
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Controllable forces - ANSWER✔✔-Internal forces that management administers to adapt to chances in
the uncontrollable forces
Competitive forces - ANSWER✔✔-Competitors, their number, locations, activities
Distributive forces - ANSWER✔✔-Agencies available for distributing goods and services
Economic forces - ANSWER✔✔-GNP, GNI, unit labor cost
Socioeconomic forces - ANSWER✔✔-Characteristics and distribution of populations
Financial forces - ANSWER✔✔-Interest and inflation rates, taxation, etc.
Legal forces - ANSWER✔✔-Laws governing international operations of MNCs
Physical forces - ANSWER✔✔-Topography, climate, natural resources
Political forces - ANSWER✔✔-Local political climate, government structure, international organizations
Sociocultural forces - ANSWER✔✔-Culture, attitudes, values, beliefs of the local environment
Labor forces - ANSWER✔✔-Composition, skills, and attitudes of local labor
Technological forces - ANSWER✔✔-Technical skills and equipment converting resources into products
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