Question 1

Global trade has suffered because of increased problems with the Internet.

Accepted Answer

The statement is false. While the Internet can sometimes cause issues with global trade, it has also greatly aided and expanded global trade.

Question 2

Globalization has greatly increased living standards around the world.

Accepted Answer

Globalization has brought about increased economic growth, job opportunities, and access to goods and services, which have led to overall improvements in living standards worldwide.

Question 3

Elizabeth is a single mother of small children. Her employer is considering providing family leave. Since she is a single mom with two young children, she is unlikely to benefit from this program.

Accepted Answer

Family leave allows workers to take time off to attend to a sick child and should be quite beneficial to Elizabeth since she has two small children.

Question 4

War and terrorism have had a significant effect in drawing many resources away from the U.S. economy and led to many additional costs for businesses.

Accepted Answer

War and terrorism have led to increased government spending on military operations, which diverts resources away from other areas such as infrastructure, education, and healthcare. Additionally, businesses may face increased costs for security measures and insurance, and may be negatively impacted by disruptions to supply chains and consumer confidence.

Question 5

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Accepted Answer

The current Social Security system means that today's workers pay for today's retirees. To date this has worked since there are more workers supporting each retiree. However, soon, less money will be coming into Social Security than will be going out and there will be a shortfall, suggesting that today's young people will not have Social Security benefits in the future.

Question 6

Jorge, a recent college graduate, is thinking of investing in a home health care business. He believes this will be a profitable venture because of the increasing number of people in the U.S. that will be over 65 years of age in the near future and more likely to need this type of service. This accurately describes a demographic trend that will affect his business choice.

Accepted Answer

When scanning the social environment for opportunities and threats, business professionals study demographic changes in their respective markets. Demographic changes like age can have a significant impact on business choices and career opportunities.

Question 7

One of the problems with globalization is that distribution systems and communication systems lack efficiency.

Accepted Answer

Distribution systems and communication systems have improved dramatically, and have contributed to world trade.

Question 8

Improved distribution systems have led to more global trade.

Accepted Answer

Improved distribution systems such as modern transportation and communication technologies have made global trade more efficient and feasible, leading to increased volume of international trade.

Question 9

Jeff is an emergency room nurse at a regional hospital in Arizona. On a weekly basis, he will serve a number of patients who are not legally U.S. citizens. Fortunately, he speaks enough Spanish to communicate with the patients. Jeff is experiencing the realities of the social environment in some states.

Accepted Answer

There is a sizeable Spanish-speaking population that lives in this state. The social environment in many states and many countries can differ. Both for-profit and nonprofit companies must adjust to accommodate for changes in the social environment.

Question 10

Companies that participate in the defense industry by making weapons and other companies that make armored vehicles and even food companies do well when the U.S. is at war.

Accepted Answer

Although wars are quite costly for most companies, there are some whose revenues and profits grow. These are usually companies with government contracts that support the war effort.

Question 11

Globalization has increased among nations.

Accepted Answer

Globalization refers to the increasing interconnectedness and interdependence of countries, and it has been observed to increase among nations in recent years due to factors such as advances in technology, transportation, and trade liberalization policies.

Question 12

An important environmental change in the global environment is the growth of international competition.

Accepted Answer

As globalization continues to expand, companies are facing increased competition from around the world, particularly in industries like manufacturing and technology. This competition can have both positive and negative effects on the environment, depending on how it is managed. For example, increased international competition could lead to more innovation, better environmental practices, and greater efficiency in resource use. On the other hand, it could also lead to companies cutting corners on environmental protection in order to stay competitive, or to an overall increase in environmental degradation as more companies compete for the same limited natural resources.

Question 13

Diversity management would not be an issue if firms would treat all of their employees the same.

Accepted Answer

A diverse workforce can consist of minorities, women, people with disabilities, people with different sexual orientations, and with different religious beliefs. These differences can be a strength only if management works to meet the needs of each group while achieving the organizational goals. The interaction of these different views can encourage new perspectives and creative approaches to solving problems.

Question 14

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

Accepted Answer

Demography is the statistical study of the human population to learn its size, density, and characteristics. Since many goods and services appeal to customers with specific demographic characteristics (such as age or income), studying demographic trends can help businesses determine whether the demand for a good is likely to rise or fall.

Question 15

The threat of terrorism increases the costs of operating most businesses.

Accepted Answer

The threat of terrorism increases the costs of operating most businesses due to the need for increased security measures and insurance, as well as potential damage to infrastructure and loss of business.

Question 16

Demographic trends suggest that businesses will benefit from offering flexible work schedules, elder care, and child care to help employees balance the demands of job and family.

Accepted Answer

The increase in the number of single-parent families is a powerful demographic trend. Successful organizations will adjust and accommodate these changes in their social environment.

Question 17

In most industries, the only producers that pose a serious threat to U.S. manufacturers are those in Japan and Western Europe.

Accepted Answer

Producers in countries like China and India have become major U.S. competitors.

Question 18

China and India have become major U.S. competitors.

Accepted Answer

China and India have experienced significant economic growth and have emerged as major competitors in the global marketplace, including in competition with the United States.

Question 19

According to the box, "Hollywood Climbs the Great Wall," casting American actors of Chinese descent attracts larger audiences in China rather than casting a Chinese actor.

Accepted Answer

Though more than half of the top ten grossing films in China are from Hollywood, producers are looking to cast Chinese actors in their movies to appeal to audiences in China. Most recently the producers of the "Jumanji" remake were seeking a Chinese actor to feature in their film.

Question 20

Wars are costly to all companies.

Accepted Answer

Wars can have varying impacts on companies; while they may be costly for some, others, particularly those in defense, security, and certain commodities, can experience growth or profit due to increased demand for their products or services.

Quiz 1: Taking Risks and Making Profits Within the Dynamic Business Environment