Deck 3: External Environment: Political Economic Forces

Question 1

When the U.S.dollar is weak,U.S.manufacturers tend to locate more of their plants abroad.

Answer 1

False

Question 2

External environmental analysis should first occur from the perspective of the organization.

Answer 2

False

Question 3

Firms operating in multiple distinct markets may be affected in different ways by macroenvironmental forces in each market.

Answer 3

True

Question 4

High inflation has negative implications for all industries.

Question 5

Which of the following is not an element within the macroenvironment?

A)industry forces
B)social forces
C)economic forces
D)political-legal forces

Question 6

Macroenvironmental analysis considers effects of forces on

A)a single firm.
B)industry leaders.
C)an entire industry.
D)None of the above.

Question 7

Less rigid governmental regulations for business activities are typically found in

A)China
B)France
C)the United States
D)Germany

Question 8

External environmental analysis includes an examination of industry forces.

Question 9

The Chinese economy has become more regulated in the past ten years.

Question 10

Outcomes of elections,legislation,and judicial court decisions are considered to be

A)political-legal forces.
B)economic forces.
C)arbitrary forces.
D)None of the above

Question 11

To foster free markets,the U.S.generally does not restrict the sale of nuclear and defense-related products to unfriendly nations.

Question 12

Leaders in an industry always prefer less government regulation.

Question 13

A recession occurs when GDP declines for four consecutive quarters.

Question 14

Economic forces include such factors as the outcomes of elections,legislation,and judicial court decisions,as well as the decisions rendered by various commissions and agencies at every level of government.

Question 15

At the global level,the period from World War II to the late 1980s was marked by increased trade protectionism.

Question 16

The Fair Labor Standards Act stops unfair methods of competition.

Question 17

Macroenvironmental forces are assessed in terms of their direct effects on a particular firm.

Question 18

A recession has negative implications for all industries.

Question 19

Which of the following is not an element within the macroenvironment?

A)social forces
B)technological forces
C)economic forces
D)None of the above

Question 20

GDP refers to the value of the world's annual total production of goods and services.

Question 21

The movement in North America toward free trade is associated with

A)the EEU.
B)NAFTA.
C)GATT.
D)the U.S.cartel.

Question 22

Opponents of anthropogenic climate change contend that

A)human activity is not a primary cause of changes in global climate patterns.
B)carbon dioxide produced by human activity results in substantial changes in global climate patterns.
C)U.S.manufacturers are primarily to blame for global warming.
D)None of the above

Question 23

What are four examples of economic forces that affect business activities? Do they affect all industries equally?

Question 24

A nation's economy is considered to be in a recession when

A)The number of unemployed workers does not decline for three consecutive quarters.
B)the Chairman of the Federal Reserve makes the distinction.
C)GDP declines for two consecutive quarters.
D)All of the above

Question 25

The U.S.regulation that requires accuracy in product warranties is known as the

A)Clayton Act.
B)Sherman Act.
C)Mangnuson-Moss Act.
D)Webb-Pomerene Act.

Question 26

Identify some examples of U.S.governmental regulation that have occurred in the past 50 years.

Question 27

Proponents of anthropogenic climate change contend that

A)sun spots are responsible for climate conditions.
B)carbon dioxide produced by human activity results in substantial changes in global climate patterns.
C)global cooling-not global warming-is a key concern.
D)None of the above

Question 28

U.S.legislation that increased regulation of financial markets and credit rating agencies is known as the

A)Car Allowance Rebate System (CARS).
B)Antitrust Verification Act (AVA).
C)Dodd-Frank Act.
D)Obama-Geithner Act.

Question 29

When the U.S.dollar is weak,

A)U.S.manufacturers tend to make more purchases from foreign sources.
B)U.S.manufacturers tend to limit purchases from foreign sources.
C)U.S.manufacturers are more likely to open plants abroad.
D)None of the above

Question 30

How have macroenvironmental forces affected the U.S.airline industry in recent years?

Question 31

Factors such as the growth or decline in GDP and changes in exchange rates are classified as

A)international forces.
B)economic forces.
C)social forces.
D)None of the above.

Question 32

When the U.S.dollar is strong,

A)U.S.manufacturers tend to make more purchases from foreign sources.
B)U.S.manufacturers tend to limit purchases from foreign sources.
C)U.S.manufacturers are more likely to close plants abroad.
D)None of the above

Question 33

Identify three major social forces that affect a number of industries in the U.S.Discuss these effects in detail.

Question 34

Identify and discuss the four categories of macroenvironmental forces.

Question 35

High inflation rates

A)hurt all industries,but some more than others.
B)hurt all industries equally.
C)may actually help some industries.
D)None of the above.

Question 36

The U.S.regulation that prohibits monopolistic activity is known as the

A)Clayton Act.
B)Sherman Act.
C)Mangnuson-Moss Act.
D)CAN-SPAM Act.

Question 37

A recession

A)hurts all industries,but some more than others.
B)hurts all industries equally.
C)may actually help some industries.
D)None of the above.

Question 38

The U.S.regulation that forbids contracts which tie the sale of one product to the sale of another is known as the

A)Clayton Act.
B)Sherman Act.
C)Mangnuson-Moss Act.
D)Webb-Pomerene Act.

Question 39

Since the 1990s,the Chinese economy has

A)become more regulated.
B)adopted a more free market approach.
C)has remained stagnant.
D)None of the above.

Question 40

A recession occurs when GDP declines for

A)one quarter.
B)two consecutive quarters.
C)three consecutive quarters.
D)four consecutive quarters.