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Why is it impossible for managers to isolate themselves from international forces?

a) International forces are not relevant to businesses
b) International forces do not affect managerial decisions
c) Businesses operate in a global context
d) Managers can choose to ignore international forces

User Syed Priom
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1 Answer

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Final answer:

Managers cannot isolate themselves from international forces because businesses are part of a global economy affected by international supply chains, regulations, and market dynamics. Multinational firms illustrate the complexities and environmental considerations managers must account for, while foreign policy issues add layers of complexity and unpredictability. Hence, the correct answer is option (c).

Step-by-step explanation:

It is impossible for managers to isolate themselves from international forces because businesses operate in a global context. No company is an island in today's interconnected world economy, and even domestic businesses are affected by international events, trends, and policies. As evidenced by multinational corporations, businesses frequently span across borders and are influenced by international supply chains, trade regulations, and global market dynamics.

The concern over multinational firms potentially evading environmental laws in some countries is an example of how international considerations can impact managerial decisions. Furthermore, a country's dependence on imported goods, such as oil, showcases the necessity for managers to be aware of international trade's influence on both national security and business operations.

Foreign policy issues complicate this further as they are inherently more complex than domestic policy issues due to unpredictability and overarching economic implications, which are beyond the control of individual managers. Therefore, understanding concepts like demand and supply in the context of international trade is crucial for effective management.

User Abraham Vegh
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