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Solution Manual for International Business, 3rd Edition Geringer Chapter 1-13

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Solution Manual for International Business, 3rd Edition Geringer Chapter 1-13 Chapter 1 Module 1: The Challenging Context of International Business Your Content Summary Learning Objectives Key Terms and Definitions Content Outline Engagement and Application Boxed Text Discussion Question...

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Solution Manual for
International Business, 3rd Edition Geringer
Chapter 1-13

Chapter 1



Module 1: The Challenging Context of International
Business
Your Content
Summary
Learning Objectives
Key Terms and Definitions
Content Outline
Engagement and Application
Boxed Text Discussion Questions With Suggested Answers
IB in Practice
Global Debate
Get That Job! From Backpack to Briefcase
End of Module Exercises
Critical Thinking Questions
globalEDGE Research Task
MiniCase
Bonus Activities
Video Suggestions
Team Exercises
Supplemental Activities
Controversial Issues
Teaching Suggestions
Connect Tools for Assessment of Learning
Connect Content Matrix
01-1

©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw Hill LLC.

, Connect Activities


Your Content
Summary
This module provides an overview of international business (IB) and some of the ways that IB
differs from domestic business, including the three environments of IB: domestic, foreign, and
international. Although the kinds of forces are the same in the domestic and foreign
environments, their values often differ and changes in the values of the foreign forces can be at
times more difficult to assess. In addition to providing a brief review of the history of IB, the
module discusses the internationalization of business in recent decades and the driving forces
that are leading firms to internationalize their operations. The increasing internationalization of
business requires managers to have a global perspective gained through experience and
education. Because global competition continues to increase at a rapid pace, both in terms of
trade and foreign direct investment, we also present key arguments for and against the
globalization of business, helping to foster a more balanced view on this important topic.


Learning Objectives
LO 1-1 Show how international business differs from domestic business.
LO 1-2 Describe the history and future of international business.
LO 1-3 Discuss the dramatic internationalization of business.
LO 1-4 Identify the kinds of drivers that are leading firms to internationalize their
operations.
LO 1-5 Compare the key arguments for and against the globalization of business.


Key Terms and Definitions
controllable forces (p. 6) Internal forces that management administers to adapt to
changes in the uncontrollable forces
domestic environment (p. 6) All the uncontrollable forces originating in the home
country that surround and influence the life and
development of the firm
economic globalization (p. 17) The tendency toward an international integration and
interdependency of goods, technology, information, labor
and capital, or the process of making this integration
happen
environment (p. 5) All the forces influencing the life and development of the
firm

01-2

©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw Hill LLC.

,exporting (p. 12) The transportation of any domestic good or service to a
destination outside a country or region
foreign affiliate (p. 6) A company controlled by another company that is located
in a foreign land, and this control may be exercised by a
variety of means, both those involving stock ownership
and those involving nonownership mechanisms
foreign business (p. 5) The operations of a company outside its home or domestic
market
foreign direct investment Direct investments in equipment, structures, and
(FDI) (p. 12) organizations in a foreign country at a level sufficient to
obtain significant management control; does not include
mere foreign investment in stock markets
foreign environment (p. 6) All the uncontrollable forces originating outside the home
country that surround and influence the firm
importing (p. 12) The transportation of any good or service into a country or
region, from a foreign origination point
international business (p. 4) Business that is carried out across national borders
international company (IC) A company with operations in multiple nations
(p. 5)
international environment (p. Interaction between domestic and foreign environmental
7) forces, as well as interactions between the foreign
environmental forces of two countries
multinational corporation (p. A corporation that owns or controls the production of
10) goods or services in at least one nation outside its home
nation
An enterprise made up of entities in more than one nation,
multinational enterprise (p. operating under a decision-making system that allows a
11) common strategy and coherent policies
self-reference criterion (p. 8) Unconscious reference to your own cultural values when
judging behaviors of others in a new and different
environment


uncontrollable forces (p. 5) The external forces that management has no direct control
over




01-3

©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw Hill LLC.

, Content Outline
The following section provides the flow of information using the Learning Objectives as a guide,
Key Terms learners will need to take away from the course, and Lecture Notes to drive home
teaching points.
LO 1- Show how international business differs from domestic Key Terms:
1 business  international business
 Introduction
 foreign business
 What Is International Business and What Is
 international company
Different about It?
(IC)
 The Influence of External and Internal
 environment
Environmental Forces
 uncontrollable forces
 The Domestic Environment
 controllable forces
 The Foreign Environment
 domestic environment
 The International Environment
 foreign environment
 international
environment
 self-reference
criterion
I. Introduction
A. Our lives are fundamentally intertwined with international business (IB), and all
managers need to have a basic knowledge of IB in order to meet the growing
challenges of global competition.
II. What Is International Business and What Is Different About It?
1. IB is business that is carried out across national borders, including international
trade, foreign manufacturing, and the growing service industries.
2. Foreign business refers to the operations of a company outside its home or
domestic market.
3. An international company is a company with operations in multiple nations.
4. IB differs from domestic business because firms operating across borders must deal
with forces of three kinds of environments—domestic, foreign, and international.
5. Although firms that only operate within the domestic environment must essentially
be concerned with the domestic environment, no domestic firm is entirely free
from foreign or international forces due to the potential for competition from
foreign imports or foreign competitors setting up operations in the firm‘s domestic
market.

01-4

©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw Hill LLC.

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