[Solution] Step I: Organizational Environment
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Author: Sarah Bennett
Globalization is an important trend that is impacting most businesses.
Levels of Internationalism
US companies increasingly operate in industries with numerous competitors based in other countries. US firms compete with these other companies for resources and customers abroad and at home.
Managers find it helpful to describe organizations in terms of four levels of international presence, distinguished by the proportion of resources and customers a business has in different countries.
Levels of International Business Activity
- A domestic business operates entirely within a single country. Examples include family-owned businesses and farms.
- An international business is based mostly in one country but does business in others, either by buying resources or by selling goods/services.
- A multinational business (multinational corporation, or MNC) acquires resources from all over the world and sells its products globally as well.
- A global business operates so internationally that it no longer considers itself as having a home country. While there are no global businesses today, some multinational businesses are evolving toward a truly global stance.
Managing Globalization
As organizations expand internationally, they face challenges in managing operations across diverse cultural, legal, and economic environments.
Select the words that best complete the following sentences.
A company with a perspective that is so completely global that it no longer has a home country is a .
View Explanation
A firm that operates so internationally that it no longer has a sense of having a "home country" is a global business.
Managers focus on when they operate an international organization as a collection of independent businesses in different parts of the world.
View Explanation
Managers of international organizations may choose to manage the organization as a collection of independent businesses in different parts of the world. This is called a focus on regionalism.
