Question 1

Economic forces are outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

Accepted Answer

Demographic forces are outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

Question 2

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

Accepted Answer

Economies of scale are the cost advantages associated with large operations.

Question 3

Forces in the task environment have little impact on short-term decision making.

Accepted Answer

Forces in the task environment result from the actions of suppliers, distributors, customers, and competitors and have a significant impact on short-term decision making.

Question 4

Forces in the general environment do not require continuous monitoring because they do not affect ongoing decision making and planning.

Accepted Answer

Managers must continuously analyze forces in the general environment because these forces affect ongoing decision making and planning.

Question 5

Low rivalry results in a task environment where competitive pressures are intense and managers have few opportunities to acquire the resources they need to make their organizations effective.

Accepted Answer

Low rivalry results in a task environment where competitive pressures are more moderate and managers have greater opportunities to acquire the resources they need to make their organizations effective.

Question 6

Global outsourcing has grown enormously to take advantage of differences in the cost and quality of resources available in different countries.

Accepted Answer

Global outsourcing has grown enormously to take advantage of national differences in the cost and quality of resources such as labor or raw materials that can significantly reduce manufacturing costs or increase product quality or reliability.

Question 7

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

Accepted Answer

The aging of the population has several implications for the workplace. Most significant are a relative decline in the number of young people joining the workforce and an increase in the number of active employees who are postponing retirement

Question 8

Managers today have fewer ways to supervise and coordinate geographically dispersed employees.

Accepted Answer

Today telecommuting, videoconferencing, and text messaging are everyday activities that let managers supervise and coordinate geographically dispersed employees. Salespeople in many companies work from home offices and commute electronically to work. They communicate with other employees through companywide electronic communication networks using tablet PCs and smartphones to orchestrate "face-to-face" meetings with coworkers across the country or globe.

Question 9

Economic forces affect the general health and well-being of a country or world region.

Accepted Answer

Economic forces affect the general health and well-being of a country or world region.

Question 10

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

Accepted Answer

If organizations already in the task environment are large and enjoy significant economies of scale, their costs are lower than the costs that potential entrants will face, and newcomers will find it expensive to enter the industry.

Question 11

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

Accepted Answer

A high level of rivalry typically results in price competition, and falling prices reduce company revenues and profits.

Question 12

National culture is the traditional system of relationships established between people and groups in a society.

Accepted Answer

Social structure is the traditional system of relationships established between people and groups in a society.

Question 13

The global environment is a set of forces and conditions in the world outside an organization's boundary that affect how it operates and shape its behavior.

Accepted Answer

The global environment is a set of forces and conditions in the world outside an organization's boundary that affect how it operates and shape its behavior.

Question 14

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

Accepted Answer

Opportunities and threats resulting from changes in the general environment are often more difficult to identify and respond to than are events in the task environment.

Question 15

Competitors are organizations that produce goods and services that are similar and comparable to a particular organization's goods and services.

Accepted Answer

Competitors are organizations that produce goods and services that are similar and comparable to a particular organization's goods and services.

Question 16

The quality of managers' understanding of forces in the global environment and their ability to respond appropriately to those forces are critical factors affecting organizational performance.

Accepted Answer

The quality of managers' understanding of forces in the global environment and their ability to respond appropriately to those forces are critical factors affecting organizational performance.

Question 17

Distributors are the individuals and companies that provide an organization with the input resources it needs to produce goods and services.

Accepted Answer

Suppliers are the individuals and companies that provide an organization with the input resources (such as raw materials, component parts, or employees) it needs to produce goods and services.

Question 18

Potential competitors are organizations that are not presently in a task environment but have the resources to enter if they so choose.

Accepted Answer

Potential competitors are organizations that are not presently in a task environment but have the resources to enter if they so choose.

Question 19

Nations forming political unions that allow free exchange of resources and capital is an example of the political and legal forces in the environment.

Accepted Answer

Political and legal forces are outcomes of changes in laws and regulations. Some nations are forming political unions that allow free exchange of resources and capital.

Question 20

Economic, technological, sociocultural, demographic, political, and legal forces in the general environment often have important effects on forces in the task environment that determine an organization's ability to obtain resources.

Accepted Answer

Economic, technological, sociocultural, demographic, political, and legal forces in the general environment often have important effects on forces in the task environment that determine an organization's ability to obtain resources.

Quiz 6: Managing in the Global Environment

Economic forces are outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

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

Forces in the task environment have little impact on short-term decision making.

Forces in the general environment do not require continuous monitoring because they do not affect ongoing decision making and planning.

Low rivalry results in a task environment where competitive pressures are intense and managers have few opportunities to acquire the resources they need to make their organizations effective.

Global outsourcing has grown enormously to take advantage of differences in the cost and quality of resources available in different countries.

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

Managers today have fewer ways to supervise and coordinate geographically dispersed employees.

Economic forces affect the general health and well-being of a country or world region.

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

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

National culture is the traditional system of relationships established between people and groups in a society.

The global environment is a set of forces and conditions in the world outside an organization's boundary that affect how it operates and shape its behavior.

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

Competitors are organizations that produce goods and services that are similar and comparable to a particular organization's goods and services.

The quality of managers' understanding of forces in the global environment and their ability to respond appropriately to those forces are critical factors affecting organizational performance.

Distributors are the individuals and companies that provide an organization with the input resources it needs to produce goods and services.

Potential competitors are organizations that are not presently in a task environment but have the resources to enter if they so choose.

Nations forming political unions that allow free exchange of resources and capital is an example of the political and legal forces in the environment.

Economic, technological, sociocultural, demographic, political, and legal forces in the general environment often have important effects on forces in the task environment that determine an organization's ability to obtain resources.