Deck 4: Managing in the Global Environment

Question 1

The norms of a society are written rules of codes of conduct that tell people how they are supposed to act in given situations.

Answer 1

False
Explanation: Norms are unwritten, informal codes of conduct that prescribe appropriate behavior in particular situations and are considered important by most members of a group or organization. They shape the behavior of people toward one another.

Question 2

A tax that a government imposes on an imported good is known as a tariff.

Answer 2

True
Explanation: A tariff is a tax that a government imposes on goods imported into one country from another.

Question 3

Low levels of unemployment and falling interest rates give people less money to spend.

Answer 3

False
Explanation: Low levels of unemployment and falling interest rates give people more money to spend, and as a result organizations can sell more goods and services.

Question 4

A government imposes tariffs on imports to protect its industries and workers from inflation.

Question 5

Today global exchanges are becoming so complex that some companies specialize solely in managing other companies' global supply chains.

Question 6

Compared to the changes in the task environment, those in the general environment are often ________.

A) harder to identify
B) easier to respond to
C) threats, not opportunities
D) of less consequence

Question 7

Which of the following is part of an organization's task environment?

A) Culture
B) Economy
C) Politics
D) Competition

Question 8

Societies that are high on uncertainty avoidance, such as the United States, value diversity and tolerate differences between people in their actions.

Question 9

While the typical organization in the United States emphasizes the importance of the group, the typical organization in Japan emphasizes the importance of the individual.

Question 10

Cost advantages associated with large operations are called economies of scale.

Question 11

Governments of countries that resort to raising tariff barriers ultimately increase employment.

Question 12

A shift in the age distribution of the population of the United States is an example of a sociocultural force that affects organizations in the United States.

Question 13

Which of the following is part of an organization's general environment?

A) Customers
B) Technology
C) Competitors
D) Suppliers

Question 14

The wide-ranging global, economic, technological, sociocultural, and political forces that affect the organization and its task environment is the ________ environment.

A) competitive
B) near
C) task
D) general

Question 15

The set of forces and conditions that originate with global suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs is the ________ environment.

A) demographic
B) legal
C) task
D) societal

Question 16

The higher the barriers to entry in an industry, the more difficult it is to enter the task environment of that industry.

Question 17

In a society, a folkway violation can lead to serious retribution.

Question 18

When new competitors enter an industry, prices in the industry typically increase.

Question 19

Most profit-oriented organizations are threatened during economic downturns, but not-for-profit organizations tend to flourish.

Question 20

The greater the economies of scale of existing organizations, the lower are the barriers to entry for new competitors.

Question 21

Organizations that are not currently selling goods in a particular task environment but may choose to enter this environment in the future are called potential ________.

A) suppliers
B) competitors
C) distributors
D) consumers

Question 22

Vlanco Electronics and Highway Computers both make laptop computers in the same price range for the European market. Thus each would see the other as a ________.

A) supplier
B) competitor
C) distributor
D) customer

Question 23

An organization's major customer puts pressure on the organization to reduce prices on its products. This is an example of influence exerted by the organization's ________ environment.

A) demographic
B) task
C) legal
D) sociocultural

Question 24

The routine data entry tasks for a California-based software company are done by a company based in the Philippines. This is an example of ________.

A) global outsourcing
B) power distance
C) inverted sourcing
D) shared services

Question 25

A supplier's bargaining position is strong when ________.

A) the input is vital to the organization
B) there are a large number of suppliers for an input
C) the supply is free
D) the supply is not protected by a patent

Question 26

When a company contracts with suppliers in other countries to make the various inputs that go into its products or to assemble the final products to reduce costs, ________ occurs.

A) inverted sourcing
B) power distance
C) global outsourcing
D) shared services

Question 27

With Dell Computer, the actions of suppliers, distributors, customers, and competitors affect their managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on Dell's ________.

A) political environment
B) short-term decision making
C) demographics
D) sociocultural environment

Question 28

The cost advantages that are associated with large operations are known as ________.

A) brand loyalty
B) economies of scale
C) boundary spanning
D) power distance

Question 29

Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a ________.

A) supplier, not a competitor
B) competitor, not a distributor
C) distributor, not a supplier
D) supplier, not a distributor

Question 30

For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment, ________.

A) the higher will be the barriers to entry
B) the smaller will be the investment
C) the easier it will be to create brand loyalty
D) the higher will be tariff rates

Question 31

Factors that make it difficult and costly for a company to enter a particular task environment or industry are ________.

A) political forces
B) barriers to entry
C) barriers to exit
D) free trade agreements

Question 32

Heartz Ltd. provides Glayton Technologies with input resources that it needs to produce its products. In this context, which of the following categories does Heartz Ltd. belong to?

A) Suppliers
B) Competitors
C) Distributors
D) Customers

Question 33

Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create ______________.

A) global outsourcing
B) power distance
C) barriers to entry
D) barriers to exit

Question 34

Organizations that help other organizations to sell their goods to customers are known as ________.

A) competitors
B) distributors
C) customers
D) suppliers

Question 35

It is easier to obtain customers and keep prices high in a task environment where there are few ________.

A) competitors
B) customers
C) suppliers
D) distributors

Question 36

Caltronix helps Gen Marco sell Marco washing machines. Caltronix does not use the machines. Which of the following describes either company correctly?

A) Caltronix is a distributor.
B) Caltronix is a customer.
C) Gen Marco is a supplier.
D) Gen Marco is a customer.

Question 37

In a task environment where there are few competitors, it is ________.

A) harder to reach economies of scale
B) harder to create brand loyalty
C) easier to obtain customers
D) harder to keep prices high

Question 38

Economies of scale result from actions such as ________.

A) manufacturing products in small quantities
B) keeping the demand high by cutting supply
C) creating products that are exclusive
D) buying inputs for the products in bulk

Question 39

A firm that has not traditionally been a competitor of EcoPro suddenly creates a new type of product that makes EcoPro products obsolete. This is an example of ________.

A) demographic forces in the general environment
B) competitors in the task environment
C) suppliers in the task environment
D) politics in the general environment

Question 40

For Dell Computer, the educational institutions that train future Dell employees are its ________.

A) distributors
B) customers
C) suppliers
D) representatives

Question 41

By fully utilizing its employees' skills and knowledge, Pelican Gadgets is making more effective use of organizational resources than do its competitors. It is thus increasing ________.

A) economies of scale
B) brand loyalty
C) compliance with regulations
D) barriers to exit

Question 42

The U.S. government imposes a 25 percent tax on the selling price of any four-wheel-drive SUV that is brought into the U.S. by a foreign car manufacturer to be sold in the U.S. What type of tax is being imposed by the U.S. government?

A) An export tariff
B) An import tariff
C) A franchise tax
D) A licensing tax

Question 43

Customers repeatedly choose to purchase Max Drive products instead of several less expensive substitutes produced by competitors. We can thus attribute a high level of ________ to Max Drive.

A) demographic force
B) brand loyalty
C) potential competition
D) distributor loyalty

Question 44

Which of the following statements accurately defines brand loyalty?

A) It is the repurchase behavior shown by customers due to the fear of trying a new brand.
B) It is the customers' preference for the products currently in the task environment.
C) It is the perception of customers that some brands are equivalent.
D) It implies that the brand delivers what it promises.

Question 45

If established organizations enjoy significant brand loyalty, a new entrant will ________.

A) find it neither difficult nor costly to obtain a share of the market
B) easily establish itself as another company enjoying brand loyalty
C) bear huge costs to build customer awareness of its products
D) deter potential competitors from entering the task environment

Question 46

The population of the United States is shifting from the Northeast to the Southwest. This is an example of which type of force in the general environment?

A) Political
B) Legal
C) Sociocultural
D) Demographic

Question 47

Building customer awareness of the newcomer's product is very costly in the face of which of the following sources of barriers to entry?

A) Economies of scale
B) Technological barriers
C) Government regulations
D) Brand loyalty

Question 48

Today in most industrialized nations, as a consequence of falling birth and death rates, the absolute number of older people has increased substantially. This is an example of ________ change.

A) sociocultural
B) economic
C) political
D) demographic

Question 49

Deregulation and privatization are a part of which of the following forces in the general environment?

A) Political and legal
B) Technological
C) Sociocultural
D) Economic

Question 50

The collection of values that a society considers important and the norms of behavior that are approved by the society are known as ________.

A) sociocultural forces
B) economies of scale
C) the national culture
D) demographic forces

Question 51

In an organization's general environment, inflation is an example of a(n) ________ force.

A) sociocultural
B) economic
C) demographic
D) political

Question 52

In the United States individualism is highly valued, and in Japan individuals are expected to conform to group expectations. The two countries differ in terms of their ________ force.

A) demographic
B) economic
C) sociocultural
D) political

Question 53

Karen, an executive at Brandon's Department Store, finds that the median age of the population in the chain's region is increasing by about three years every decade. This is an example of which type of force in the general environment?

A) Political
B) Economic
C) Demographic
D) Sociocultural

Question 54

The combination of equipment and skills that a manager uses in the production and distribution of goods is known as ________.

A) economies of scale
B) competitive advantage
C) technology
D) national culture

Question 55

A tax that a government imposes on goods imported into the country is known as a(n) ________.

A) sanction
B) quota
C) embargo
D) tariff

Question 56

In the drug manufacturing industry, Gateway Labs is a company operating at massive economies of scale in the production of many drugs. Thus a potential entrant into the industry will have a ________.

A) much wider customer base
B) higher level of production costs
C) competitive advantage in pricing
D) cheaper distribution system

Question 57

A high percentage of the customers of Action Sport purchase Action Sport shoes at least three-fourths of the time that they purchase shoes. In the context of barriers to entry, this product has a large degree of ________.

A) distributor loyalty
B) demographic force
C) brand loyalty
D) potential competition

Question 58

In the context of the global general environment, which of the following accurately defines economic forces?

A) Laws ensuring fair distribution of resources among the people
B) Pressures from the social structure of a society or from the national culture
C) Skills impacting the process of designing and producing goods and services
D) Factors such as interest rates, inflation, unemployment, and economic growth

Question 59

If it is difficult and costly to enter a task environment, then for companies already within a task environment or industry ________.

A) the barriers to entry are low
B) threat of competition is high
C) it is easier to obtain customers
D) it is harder to keep prices high

Question 60

Social structure is the traditional system of relationships established between ________ in a society.

A) people and values
B) people and groups
C) attitudes and values
D) modernity and tradition

Question 61

The values, norms, knowledge, beliefs, moral principles, laws, customs, and other practices that unite the citizens of a country are known as ________.

A) representative democracy
B) a free-trade economy
C) the national culture
D) culture shock

Question 62

The society of the nation of Atlantis has commonly accepted laws against driving while intoxicated. This is an example of which type of norm?

A) Mores
B) Sanctions
C) Folkways
D) Rituals

Question 63

When workers in a society become wealthy and pass their wealth to their children, thereby increasing the gap between the rich and the poor in that society, the society is said to have high ________.

A) power distance
B) individualism
C) achievement orientation
D) short-term orientation

Question 64

Values are deeply embedded in society and ________.

A) change through a slow and painful process
B) are static and remain unchanged
C) change quickly via smooth transitions
D) are the same across all societies

Question 65

Since 1948, the decline in tariff barriers achieved among the governments of developed countries fell from over 40 percent to about ________ percent in 2000, causing a dramatic increase in world trade.

A) 20
B) 14
C) 7
D) 3

Question 66

People who violate folkways are often thought to be ________.

A) powerful and socially refined
B) immoral or wicked
C) eccentric or ill-mannered
D) ungodly and social outcasts

Question 67

Norms that are central to the functioning of a society and whose violation brings serious retribution are known as ________.

A) sanctions
B) folkways
C) mores
D) rituals

Question 68

If a society values the group more than the individual, and believes that people should be judged by the quality of their contribution to the group instead of their individual achievement, then the society is said to value ________.

A) individualism
B) power distance
C) collectivism
D) objectivism

Question 69

In the context of social norms, the customs and practices related to correct dress and social manners are known as ________.

A) folkways
B) artifacts
C) values
D) rites

Question 70

Ideas about what a society believes to be good, right, desirable, or beautiful are called ________.

A) values
B) mores
C) rites
D) folkways

Question 71

In the North American Free Trade Agreement (NAFTA), what percentage of the tariffs on the goods traded between Mexico, Canada, and the United States were to be abolished by the year 2004?

A) 30 percent
B) 99 percent
C) 70 percent
D) 90 percent

Question 72

If a society believes that self-expression is important to the people in that society, then the society is said to value ________.

A) collectivism
B) individualism
C) nurturing orientation
D) uncertainty avoidance

Question 73

The degree to which people in a society accept the idea that inequalities in the well-being of its citizens are due to differences in people's intellectual capabilities is known as ________.

A) referent power
B) absolute power
C) free-market power
D) power distance

Question 74

Val comes from a culture that values equality works for the improvement of the welfare of the less fortunate and values warm personal relationships more than goal achievement. Val's culture has ________.

A) high collectivism and short-term orientation
B) low power distance and strong nurturing orientation
C) high power distance and nurturing orientation
D) low uncertainty avoidance and high individualism

Question 75

The government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate in ________ countries.

A) low-power-distance
B) high-power-distance
C) long-term-orientation
D) short-term-orientation

Question 76

A society has a common practice that men should remove their hats whenever they ride in elevators that are also carrying women. This is an example of which type of norm?

A) Mores
B) Folkways
C) Rites
D) Beliefs

Question 77

Companies from the nation of Atlantis are more efficient in the production of certain types of apparel, while companies from the U.S. are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Atlantis to be invested there in the apparel industry, and to the United States to be invested in its computer companies?

A) Brand loyalty
B) NAFTA
C) The free-trade doctrine
D) Collectivism

Question 78

Which of the following trade agreements was passed by the U.S. House of Representatives to eliminate tariffs on products between the United States and all countries in Central America?

A) General Agreement on Tariffs and Trade (GATT)
B) North American Free Trade Agreement (NAFTA)
C) Central American Free Trade Agreement (CAFTA)
D) Free Trade Area of the Americas (FTAA)

Question 79

Which of the following statements best defines uncertainty avoidance?

A) It is the belief that inequalities are due to differences in physical and intellectual capabilities.
B) It is a worldview that subordinates the individual to the goals of the group.
C) It is behavior considered important by most members of a group or an organization.
D) It is the degree to which societies tolerate differences in personal beliefs and actions.

Question 80

In a society, the unwritten rules of conduct that state how people should act in particular situations in that society are known as ________.

A) values
B) norms
C) rituals
D) goals