Domestic business differs from international business in that a firm operating within the borders of one country
A) needs to be concerned solely with the domestic environment.
B) must be concerned with the international environment but not the foreign environment.
C) must be concerned with the foreign environment but not the international environment.
D) is not entirely free from the international and foreign environments.
E) cannot survive in a world that is globalizing.

Question

Quizplus · Accepted Answer

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments-domestic, foreign, and international. In contrast, a firm whose business activities are carried out within the borders of one country needs to be concerned essentially with only the domestic environment. However, no domestic firm is entirely free from foreign or international environmental forces because the possibility of having to face competition from foreign imports or from foreign competitors that set up operations in its own market is always present.

Domestic Business Differs from International Business in That a Firm