IMS 3310 EXAM 1 UT DALLAS EXAM QUESTIONS AND ANSWERS
International Business - CORRECT ANSWER✅✅Business that is carried out across national borders
Foreign Business - CORRECT ANSWER✅✅The operations of a company outside its home or domestic
market
International Company (IC) - CORRECT ANSWER✅✅A company with operations in multiple nations
Environment - CORRECT ANSWER✅✅All the forces influencing the life and development of the firm
Uncontrollable forces - CORRECT ANSWER✅✅The External forces that management has no direct
control over
What are the 11 Uncontrollable Forces? - CORRECT ANSWER✅✅-competitive
-Distributive
-Economic
-Socioeconomic
-Financial
-Legal
-Physical
-Political
-Sociocultural
-Labor
-Technological
Controllable Forces - CORRECT 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 - CORRECT ANSWER✅✅All the uncontrollable forces originating in the home
country that surround and influence the life and development of the firm
Foreign Environment - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅Unconscious references to your own cultural values
when judging behaviors of others in environment
-Time Vs Money
Foreign Direct Investment (FDI) - CORRECT 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 - 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
economic globalization - CORRECT 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 - CORRECT ANSWER✅✅The amount by which by which the value of imports into a nation
exceeds the value of trade exports
Imports > Exports
Trade Surplus - CORRECT ANSWER✅✅Exports > Imports
Mercantilism - CORRECT 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
2. To increase wealth, government policies should promote exports and discourage imports
Absolute Advantage - CORRECT ANSWER✅✅a nation's ability to produce more of a good or service
than another country for the same or lower cost of inputs
Strategic behavior theory - CORRECT ANSWER✅✅suggests that strategic rivalry between firms in an
oligopolistic industry will result in firms closely following and imitating each other's international
investments in order to keep a competitor from gaining an advantage
International Business - CORRECT ANSWER✅✅Business that is carried out across national borders
Foreign Business - CORRECT ANSWER✅✅The operations of a company outside its home or domestic
market
International Company (IC) - CORRECT ANSWER✅✅A company with operations in multiple nations
Environment - CORRECT ANSWER✅✅All the forces influencing the life and development of the firm
Uncontrollable forces - CORRECT ANSWER✅✅The External forces that management has no direct
control over
What are the 11 Uncontrollable Forces? - CORRECT ANSWER✅✅-competitive
-Distributive
-Economic
-Socioeconomic
-Financial
-Legal
-Physical
-Political
-Sociocultural
-Labor
-Technological
Controllable Forces - CORRECT 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 - CORRECT ANSWER✅✅All the uncontrollable forces originating in the home
country that surround and influence the life and development of the firm
Foreign Environment - CORRECT 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 - CORRECT 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 - CORRECT ANSWER✅✅Unconscious references to your own cultural values
when judging behaviors of others in environment
-Time Vs Money
Foreign Direct Investment (FDI) - CORRECT 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 - 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
economic globalization - CORRECT 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 - CORRECT ANSWER✅✅The amount by which by which the value of imports into a nation
exceeds the value of trade exports
Imports > Exports
Trade Surplus - CORRECT ANSWER✅✅Exports > Imports
Mercantilism - CORRECT 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
2. To increase wealth, government policies should promote exports and discourage imports
Absolute Advantage - CORRECT ANSWER✅✅a nation's ability to produce more of a good or service
than another country for the same or lower cost of inputs
Strategic behavior theory - CORRECT ANSWER✅✅suggests that strategic rivalry between firms in an
oligopolistic industry will result in firms closely following and imitating each other's international
investments in order to keep a competitor from gaining an advantage
