Deck 6: Managing in the Global Environment

Question 1

Nations forming unions, such as the EU, that allow free exchange of resources and capital are examples of the political and legal forces in the environment.

Answer 1

True

Question 2

________ are organizations that help other organizations sell their goods or services directly to customers.

A)Producers
B)Suppliers
C)Distributors
D)Manufacturers
E)Processors

Answer 2

C

Question 3

ABC Corp has developed economies of scale, which lower the barriers to entry for new competitors.

Answer 3

False

Question 4

What benefits does the global environment offer organizations?

A)The global environment provides organizations with opportunities to increase efficiency and effectiveness.
B)The global environment is easy to operate within and is constant, straightforward, and predictable.
C)Fluctuating sociocultural factors do not affect the performance of organizations that function at a global level.
D)Organizations are faced with fewer challenges and risks when they grow to prominence internationally.
E)Organizations that operate globally seldom need to compete for scarce and valuable resources.

Question 5

According to Hofstede, low-power-distance countries' societies prevent a large gap between rich and poor and minimize inequalities between different classes of citizens.

Question 6

The aging of the population of a country is an example of a demographic force that affects organizations in the country.

Question 7

The task environment includes

A)the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
B)the forces that have the least immediate effect on managers and their decisions.
C)opportunities and threats that are harder to identify than those in the general environment.
D)a framework of environmental policies that dictate the CSR policies of global organizations.
E)the set of forces that originate with global suppliers, distributors, customers, and competitors.

Question 8

Surrey Store gets its products directly from the manufacturer and sells them to consumers. In this case, the manufacturer is a

A)supplier.
B)competitor.
C)distributor.
D)processor.
E)consumer.

Question 9

The aim of import tariffs is to encourage the entry of foreign goods into a country's market.

Question 10

A company must operate in more than two countries around the world to be considered a global organization.

Question 11

Falling trade barriers pose a serious threat to the nation's domestic market because they increase competition in the task environment.

Question 12

Opportunities and threats that result from changes in the task environment are easier to identify and respond to than events in the general environment.

Question 13

The general environment includes

A)opportunities and threats that are easier to identify and respond to than those in the task environment.
B)the set of forces that originate with global suppliers, distributors, customers, and competitors.
C)the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
D)the forces that have the most immediate effect on managers and their decisions.
E)forces that have very little impact upon the performance of organizations.

Question 14

Johnson's Furniture Factory gets its raw material from the local timber yard. The timber yard acts as Johnson's

A)competitor.
B)distributor.
C)retailer.
D)supplier.
E)consumer.

Question 15

Which statement explains how the task environment is similar to the general environment?

A)They are both a set of geopolitical forces that are predictable and unchanging.
B)They both present managers with few opportunities and risks when operating at a global level.
C)They are both a set of forces and conditions that operate beyond an organization's boundaries.
D)They both contain challenges that are easily identified and anticipated.
E)They are both forces that are easy to control and have little impact on organizational performance.

Question 16

Apple contracts with companies in Taiwan to make inputs such as the chips, batteries, and LCD displays that power its digital devices at lower costs. This strategy is an example of global

A)exporting.
B)franchising.
C)importing.
D)networking.
E)outsourcing.

Question 17

Globalization has decreased the levels of interdependence between people and nations.

Question 18

Which statement explains how the task environment differs from the general environment?

A)Threats in the general environment are easier to respond to than threats in the task environment.
B)Forces in the task environment have a more immediate and direct effect on managers than forces in the general environment.
C)Opportunities in the task environment are less easy to identify than opportunities in the general environment.
D)Unlike the task environment, the general environment deals with conditions that affect an organization's ability to obtain inputs and dispose of outputs.
E)Unlike the general environment, the task environment includes the global, economic, sociocultural, political, and legal forces that affect an organization.

Question 19

A high level of rivalry typically results in price competition that increases existing prices.

Question 20

A supplier's bargaining position is especially strong when the input supplied

A)has multiple sources and channels of distribution.
B)has inexpensive and easily available substitutes.
C)is the sole source of that input.
D)is found freely and can be accessed by people with little effort.
E)is not protected by any patent.

Question 21

Standard Power is a new company in the electrical industry, and with the company's success, it is building a strong reputation. What impact will this company most likely have on the other companies in the electrical industry?

A)Prices and profits will increase.
B)Competition will decrease.
C)Competition will increase and prices and profits will decrease.
D)Competition will decrease and prices and profits will increase.
E)The new company will not have an impact on the other companies.

Question 22

________ are individuals and groups that buy the goods and services an organization produces.

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

Question 23

The more difficult it is to enter the task environment, the

A)easier it is to keep prices high.
B)lower is the barrier to entry.
C)harder it is to obtain customers.
D)more competitors an organization faces.
E)less expensive it is to enter the industry.

Question 24

Seafood Diner, a seafood restaurant chain, opened its newest restaurant in a small town. It soon found that the only customers it attracted were tourists because the locals preferred to go to The Clam Shack-an older but more expensive restaurant. The Clam Shack enjoyed significant brand

A)saturation.
B)emersion.
C)loyalty.
D)dilution.
E)acceleration.

Question 25

Gemstone designs and creates luxury items like jewelry and hair accessories. It sells its merchandise only through Francone's, a multinational retail store. Francone's acts as Gemstone's

A)producer.
B)supplier.
C)distributor.
D)manufacturer.
E)processor.

Question 26

Being a large powerful retailer, Walmart has done each of these, EXCEPT which one?

A)Walmart has controlled its suppliers' access to customers by demanding suppliers reduce their prices.
B)Walmart has demanded that their overseas suppliers pay their workers based on U.S. standards.
C)Walmart has bought only from competitors of a supplier, if the supplier refuses to reduce their prices.
D)Walmart has demanded additional fees from U.S. suppliers for using its distribution centers and warehouses.
E)Walmart has changed the frequency of payment to some vendors, typing payments to how quickly a supplier's inventory is bought.

Question 27

Inflation is an example of a(n)________ force in an organization's environment.

A)social
B)economic
C)demographic
D)ergonomic
E)legal

Question 28

Toy Truck operates in a task environment with a low barrier to entry; therefore,

A)it has few competitors and faces no challenges from other organizations.
B)it is able to sell its products easily, even though they are overpriced.
C)the task environment is expensive to enter.
D)the task environment is easy to enter.
E)it is unable to obtain customers, even though it has no rivals or competitors.

Question 29

________ is the set of values and the norms of behavior which are approved or sanctioned by a particular society.

A)National culture
B)Social stratification
C)Cultural pluralism
D)Organizational culture
E)Social structure

Question 30

Candlestone operates in a task environment with a high barrier to entry, which means

A)the task environment is inexpensive to enter.
B)Candlestone is able to sell its products easily, even if they are overpriced.
C)Candlestone has many competitors and faces challenges from them frequently.
D)the task environment is easy to enter.
E)Candlestone is unable to obtain customers, despite the excellent quality of its products.

Question 31

Unlike previous generations, salespeople today can work from home offices, communicate with colleagues in different parts of the world almost instantly, and commute electronically to work. This flexibility is due to changes in _______ forces.

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

Question 32

As the only store to design and sell curtains in the suburb of Oakland, the merchandise sold by Décor and More tends to be overpriced. Noticing this, The Curtain Corner set up a showroom in the same suburb, reasoning that with lower prices, it would be able to attract more customers. The Curtain Corner is Décor and More's Décor and More tends to be overpriced because it is the only store to design and sell curtains in the suburb of Oakland. The owners of Curtain Corner set up a showroom in the same suburb reasoning that with lower prices it would be able to attract more customers. Curtain Corner is Décor and More's

A)partner.
B)distributor.
C)competitor.
D)processor.
E)franchiser.

Question 33

The most potentially threatening force that managers must deal with in the task environment is

A)rivalry between competitors.
B)managing the global supply chain.
C)negotiating and administering agreements with unions and their representatives.
D)a reliable supply of input resources.
E)a distributor demands that the company reduces the prices of its goods and services.

Question 34

A ________ is an organization that is NOT presently in a task environment but has the resources to enter if it so chooses.

A)potential supplier
B)potential competitor
C)distributor
D)supplier
E)competitor

Question 35

Brand ________ refers to customers' preference for the products of organizations currently in the task environment.

A)recognition
B)positioning
C)loyalty
D)saturation
E)awareness

Question 36

Because Nadia wants to decrease the costs of her business, she uses ________ by choosing to buy inputs in bulk and manufacture products in large quantities

A)economic forces
B)demographic forces
C)potential competitors
D)brand positioning
E)economies of scale

Question 37

Justin has a personal library with over 5,000 novels, most of them bought from Barnes and Noble. He is an example of a Barnes and Noble

A)customer.
B)supplier.
C)distributor.
D)competitor.
E)processor.

Question 38

Caste systems in India are examples of

A)cultural imperialism.
B)cultural pluralism.
C)national culture.
D)social structure.
E)social relativism.

Question 39

________ forces are outcomes of changes in the skills and equipment managers use to design, produce, or distribute goods and services.

A)Cultural
B)Political
C)Demographic
D)Technological
E)Sociocultural

Question 40

Noreen is a member of an egalitarian culture, one in which few distinctions are made between individuals and groups. Her culture is low on

A)cultural diversity.
B)gender equality.
C)national culture.
D)social stratification.
E)cultural pluralism.

Question 41

The lowering of barriers of distance and culture affecting global organizations has been caused in part by the

A)imposition of government-enforced tariffs on imports.
B)advancements of communication and transportation technology.
C)rejection of the free-trade doctrine.
D)imposition of government-enforced tariffs on exports.
E)restrictions placed on the flow of capital between nations.

Question 42

What is an advantage of free-trade agreements?

A)They protect domestic industries and jobs by taxing goods imported from outlying regions.
B)They protect the well-being of people by restricting the flow of goods being exported from their country.
C)They reduce the impact of globalization by preventing the loss of capital from a country.
D)They provide managers with a threat-free environment to work within.
E)They provide manufacturing organizations with opportunities to reduce production costs.

Question 43

Which type of forces are outcomes of changes in or changing attitudes toward the characteristics of a population?

A)demographic
B)terminal
C)ethnographic
D)geopolitical
E)instrumental

Question 44

Political capital is the flow of

A)people around the world through immigration, migration, and emigration.
B)natural resources, parts, and components between companies and countries.
C)information and data across the world through the social media.
D)money across world markets through overseas investment, credit, lending, and aid.
E)power and influence around the world using diplomacy, persuasion, aggression, and force of arms.

Question 45

________ capital flows through the processes of overseas investment, credit, lending, and aid.

A)Human
B)Technological
C)Political
D)Resource
E)Financial

Question 46

Values are

A)static and resistant to change.
B)invested with emotional significance.
C)universally held beliefs and the same across all societies.
D)easily changed and the changes are easily accepted.
E)superficial in a society's belief system.

Question 47

________ forces are outcomes of the changes in the laws and regulations of a society.

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

Question 48

What factor played an important role in speeding up globalization?

A)increased government-enforced import tariffs that protected the domestic economy
B)export restrictions which ensured that the people of a country had access to their own products
C)declining barriers to trade and investment that eased the flow of capital throughout the world
D)rejection of the free-trade doctrine, which increased global outsourcing
E)fortification of trade and investment barriers between each country

Question 49

Violette is the CEO of Lafarge Advertising, based in Paris. Many distinctions exist between the different classes of people in her society. Most of the top managers in her organization, for example, come from the upper classes. This implies that French society has a high degree of

A)social stratification.
B)gender inequality.
C)cultural imperialism.
D)cultural pluralism.
E)economic equality.

Question 50

The Republic of Maribali has been losing capital to other countries steadily over the last five years. What is likely to happen as a result?

A)Its rate of unemployment will be decreased.
B)The standard of living will fall.
C)The impact of the recession will be lessened.
D)The gap between the rich and poor will narrow.
E)Its economy will stabilize.

Question 51

A decline in the number of young people joining the workforce and an increase in the number of active employees who are postponing retirement are examples of ________ forces affecting the workforce.

A)demographic
B)terminal
C)ethnographic
D)geopolitical
E)instrumental

Question 52

Garry is a member of a society that makes very few distinctions between people and groups. This is reflected in his company, the managers of which represent several different classes and cultures. The society to which Garry belongs is

A)low on cultural diversity.
B)low on social stratification.
C)high on economic inequality.
D)high on race discrimination.
E)low on cultural pluralism.

Question 53

When the United States sent military troops into Iraq, it was using ________ capital to influence policy.

A)power
B)natural resource
C)social
D)economic
E)political

Question 54

Due to changing ________ forces, Constantine's oil company benefited greatly from decreased regulation of his industry.

A)sociocultural
B)political and legal
C)technological
D)ethnographic
E)demographic

Question 55

The basic building blocks of national culture are

A)values and norms.
B)political and legal forces.
C)ethnographic forces.
D)corporate values and organizational culture.
E)the task and general environment.

Question 56

________ are beliefs about what a society considers to be good, right, desirable, or beautiful.

A)Folkways
B)Values
C)Laws
D)Traditions
E)Mores

Question 57

NAFTA is an example of a

A)regional free-trade agreement.
B)global financial institution.
C)collective bargaining agreement.
D)protective tariff agreement.
E)military alliance.

Question 58

An effect of globalization is it

A)increases similarities between members of nations.
B)prevents the economic systems of different countries from merging with each other.
C)decreases the interconnectedness of the world's markets and businesses.
D)decreases organizational efficiency and effectiveness.
E)hinders the flow of financial and resource capital between countries.

Question 59

________ capital is most affected by immigration and emigration.

A)Human
B)Virtual
C)Political
D)Resource
E)Financial

Question 60

Regional trade agreements may

A)enforce regional restrictions on the cross-border flow of resources and reinforce import tariffs.
B)expose companies based in one member country to increased competition from companies in other member countries.
C)hinder the spread of globalization by setting up trade barriers between different countries of the same region.
D)provide manufacturing organizations with fewer opportunities to reduce costs and provide managers with fewer threats.
E)be created to reduce overall tariffs on goods that flow within a country and increase tariffs on goods that flow between regions.

Question 61

Hofstede's model defined societies with high power distance as having

A)no inequalities between different classes in society.
B)a government that uses taxation and social welfare programs to reduce inequality.
C)inequalities in the well-being of individuals due to their work achievements.
D)a large gap between rich and poor.
E)resources that are accessible to all members of society.

Question 62

________ are unwritten, informal codes of conduct that shape the behavior of people toward one another and are held important by most members of a group or organization.

A)Laws
B)Policies
C)Norms
D)Values
E)Philosophies

Question 63

By ________, Hofstede was referring to the degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage.

A)power distance
B)individualism
C)collectivism
D)uncertainty avoidance
E)long-term orientation

Question 64

Hofstede's nurturing orientation values

A)diversity.
B)assertiveness.
C)warm personal friendships.
D)performance.
E)achievement.

Question 65

People who violate folkways are often thought to be

A)immoral.
B)unethical.
C)ill-mannered.
D)criminals.
E)mean.

Question 66

Batu belongs to a society that is rigid and skeptical about people whose behaviors or beliefs differ from the norm. His society also values warm, personal relationships over success and performance. According to Hofstede's model of national culture, what is true about his society?

A)It is low on uncertainty avoidance and has an achievement orientation.
B)It is high on uncertainty avoidance and has a nurturing orientation.
C)It is low on uncertainty avoidance and has a performance orientation.
D)It is high on uncertainty avoidance and has an achievement orientation.
E)It is low on uncertainty avoidance and has a nurturing orientation.

Question 67

Mr. Jones was caught stealing power tools from his next-door neighbor. What type of norm did Mr. Jones violate?

A)mores
B)folkways
C)values
D)morals
E)superstitions

Question 68

Hofstede defined collectivist societies as those that

A)emphasize self-expression, personal freedom, and individual rights.
B)adhere to the principle that people should be judged by their contribution to the group.
C)discourage individuals from placing societal welfare above their own.
D)encourage the pursuit of individual goals and individual entrepreneurship.
E)adhere to the principle that people should be judged by their individual achievements.

Question 69

Examples of folkways are

A)laws in a country which make divorce permissible.
B)societal taboos that prohibit murder, theft, and incest.
C)religious doctrines that forbid the consumption of particular types of food.
D)laws that prescribe punishments for different types of offenses.
E)societal conventions that concern gender-appropriate clothing.

Question 70

Chin-Mae belongs to a culture that values the subordination of individuals to the group. The national culture also values personal stability and doesn't focus on the future. According to Hofstede, what is true about Chin-Mae's culture?

A)It is high on individualism and has a long-term orientation.
B)It is low on collectivism and has a long-term orientation.
C)It is high on individualism and has a short-term orientation.
D)It is high on collectivism and has a short-term orientation.
E)It is low on collectivism and has a short-term orientation.

Question 71

Proscriptions against murder, theft and adultery are ________ that are central to the functioning of society.

A)mores
B)folkways
C)values
D)laws
E)superstitions

Question 72

Which organization demonstrates Hofstede's cultural dimension of a short-term orientation?

A)Mary's Magnets, with its large amount of cash on hand for future purchases
B)John's Tacos, with a strict policy of not spending time on anything that will not help the company achieve its goals
C)Barbara's Bangles, a company that encourages its employees to have a high rate of savings for retirement
D)Cho's Chalupas, a pop-up store that moves every two weeks to a new location (her employees love it!)
E)The Restoration Place, whose owner, Kylie, doesn't care if her employees are happy as long as they are productive and make her money

Question 73

Hayato was raised to believe that the individual is less important than the group as a whole. He also believes that physical and intellectual capabilities and heritage account for the inequality in the power and well-being of members of his society. Hayato's society is

A)high on power distance and low on individualism.
B)low on power distance and low on collectivism.
C)high on individualism and low on achievement orientation.
D)low on collectivism and low on achievement orientation.
E)low on power distance and low on individualism.

Question 74

Susie belongs to a society that values assertiveness, performance, competition, and results. Her society also encourages freedom of expression and personal success but makes few provisions for the welfare of the weak. According to Hofstede's model of national culture, what is true about her society?

A)It has an achievement orientation and is high on individualism.
B)It has an achievement orientation and is high on collectivism.
C)It has a nurturing orientation and is low on individualism.
D)It has a nurturing orientation and is low on performance orientation.
E)It has a performance orientation and is high on collectivism.

Question 75

Examples of mores are

A)societal taboos which censure murder, theft, and incest.
B)social conventions that dictate the usage of different types of cutlery.
C)customs that govern social interaction between neighbors.
D)traditions that prescribe gender-appropriate clothing in social gatherings.
E)superstitions held important by different members of a society.

Question 76

In Western cultures, an example of individualism values is

A)a tolerance of differences in personal beliefs.
B)warm personal relationships being important.
C)persistence in achieving goals.
D)the subordination of the individual to the goals of the group.
E)a high regard for individual entrepreneurs.

Question 77

According to Hofstede, countries with a long-term orientation

A)have a high rate of per capita savings.
B)have citizens who prioritize happiness over achievement and perseverance.
C)have citizens who live for the present and value personal stability.
D)have citizens who tend to spend more and save less.
E)foster organizations that emphasize immediate results over year-end goals.

Question 78

According to Hofstede, individualist societies

A)value societal welfare over that of individual members of society.
B)value personal freedom, personal success, and self-expression.
C)emphasize subordination of the individual to the goals of the group.
D)emphasize conformity to group norms and strong identification with the group.
E)require individuals to put the needs of the group before their own.

Question 79

Collectivism values include

A)assertiveness.
B)warm personal relationships.
C)persistence in achieving goals.
D)subordination of the individual to the goals of the group.
E)a high regard for self-expression.

Question 80

Societies with low power distance have been defined by Hofstede as those in which

A)large inequalities between different classes in society are allowed to develop.
B)the government uses taxation and social welfare programs to reduce inequality.
C)inequalities in the well-being of individuals are due to their birth and heritage.
D)the gap between the rich and poor grows very large.
E)professional workers amass wealth.