IMS 3310 EXAM 1 UT DALLAS QUESTIONS WITH
CORRECT ANSWERS
International Business - ANSWER Business that is carried out across national borders
Foreign Business - ANSWER The operations of a company outside its home or domestic
market
International Company (IC) - ANSWER A company with operations in multiple nations
Environment - ANSWER All the forces influencing the life and development of the firm
Uncontrollable forces - ANSWER The External forces that management has no direct
control over
What are the 11 Uncontrollable Forces? - ANSWER -competitive
-Distributive
-Economic
-Socioeconomic
-Financial
-Legal
-Physical
-Political
-Sociocultural
-Labor
-Technological
,Controllable Forces - ANSWER Internal forces that management administers to adapt to
changes in the uncontrollable forces
1. Human Resources
2. Finance
3. Production
4. Marketing
Domestic Environment - ANSWER All the uncontrollable forces originating in the home
country that surround and influence the life and development of the firm
Foreign Environment - ANSWER All the uncontrollable forces originating outside the
home country that surround and influence the firm
-values often differ widely
-difficult to asses, especially legal and political forces
-forces interrelated
International Environment - ANSWER Interactions between domestic and foreign
environmental forces, as well as interactions between the foreign environmental forces
of two countries
-Decision making is more complex
-Managers in home office overseeing subsidiaries in 10 different nations must consider
not only domestic forces but also the influence of 10 foreign national environments, both
individually and collectively since there may be some interaction
Self Reference Orientation - ANSWER Unconscious references to your own cultural
values when judging behaviors of others in environment
, -Time Vs Money
Foreign Direct Investment (FDI) - ANSWER Direct investments in equipment, structures,
and organizations in a foreign country at a level sufficient to obtain significant
management control;
Note: does not include mere foreign investment in stocks
Exporting - ANSWER The transportation of any domestic good or service to a
destination outside a country or region
Importing - ANSWER The transportation of any good or service into a country or region,
from a foreign origination point
economic globalization - ANSWER The tendency toward an international integration and
interdependency of good, technology, info, labor, and capital, or the process of making
this integration happen
Trade Defecit - ANSWER The amount by which by which the value of imports into a
nation exceeds the value of trade exports
Imports > Exports
Trade Surplus - ANSWER Exports > Imports
Mercantilism - ANSWER An economic philosophy based on the beleif that
1. a nation's wealth depends on accumulated treasure, usually precious metals such as
gold or silver
CORRECT ANSWERS
International Business - ANSWER Business that is carried out across national borders
Foreign Business - ANSWER The operations of a company outside its home or domestic
market
International Company (IC) - ANSWER A company with operations in multiple nations
Environment - ANSWER All the forces influencing the life and development of the firm
Uncontrollable forces - ANSWER The External forces that management has no direct
control over
What are the 11 Uncontrollable Forces? - ANSWER -competitive
-Distributive
-Economic
-Socioeconomic
-Financial
-Legal
-Physical
-Political
-Sociocultural
-Labor
-Technological
,Controllable Forces - ANSWER Internal forces that management administers to adapt to
changes in the uncontrollable forces
1. Human Resources
2. Finance
3. Production
4. Marketing
Domestic Environment - ANSWER All the uncontrollable forces originating in the home
country that surround and influence the life and development of the firm
Foreign Environment - ANSWER All the uncontrollable forces originating outside the
home country that surround and influence the firm
-values often differ widely
-difficult to asses, especially legal and political forces
-forces interrelated
International Environment - ANSWER Interactions between domestic and foreign
environmental forces, as well as interactions between the foreign environmental forces
of two countries
-Decision making is more complex
-Managers in home office overseeing subsidiaries in 10 different nations must consider
not only domestic forces but also the influence of 10 foreign national environments, both
individually and collectively since there may be some interaction
Self Reference Orientation - ANSWER Unconscious references to your own cultural
values when judging behaviors of others in environment
, -Time Vs Money
Foreign Direct Investment (FDI) - ANSWER Direct investments in equipment, structures,
and organizations in a foreign country at a level sufficient to obtain significant
management control;
Note: does not include mere foreign investment in stocks
Exporting - ANSWER The transportation of any domestic good or service to a
destination outside a country or region
Importing - ANSWER The transportation of any good or service into a country or region,
from a foreign origination point
economic globalization - ANSWER The tendency toward an international integration and
interdependency of good, technology, info, labor, and capital, or the process of making
this integration happen
Trade Defecit - ANSWER The amount by which by which the value of imports into a
nation exceeds the value of trade exports
Imports > Exports
Trade Surplus - ANSWER Exports > Imports
Mercantilism - ANSWER An economic philosophy based on the beleif that
1. a nation's wealth depends on accumulated treasure, usually precious metals such as
gold or silver
