Deck 2: The Global Business Environment

Question 1

Which of the following statements about the various trade agreements is true?

A) MERCOSUR seeks to create an economic juggernaut in United Kingdom.
B) CACM comprises the countries of Canada,Mexico,and the United States.
C) ASEAN's primary goal is to promote social and cultural development.
D) NAFTA was originally known as the European Coal and Steel Community.

Answer 1

C

Question 2

Which of the following countries was admitted to MERCOSUR in 2012 and is likely to increase the importance of fuel trade both within and outside the region?

A) Venezuela
B) Argentina
C) Paraguay
D) Brazil

Answer 2

A

Question 3

Which of the following countries is one of the original members of ASEAN?

A) Canada
B) Philippines
C) Guatemala
D) Nigeria

Answer 3

B

Question 4

Which of the following statements is true about businesses and their leaders?

A) Some leaders focus their efforts on lobbying to influence the government's role in business.
B) Businesses and their leaders often operate in isolation.
C) Business leaders are often reactive to their changing environment but not proactive in adapting their strategies accordingly.
D) Successful business leaders usually do not try to influence the global business environment.

Question 5

The members of a particular society in Rhodia often find it hard to adapt themselves to the changing situations.Therefore,they prefer to follow standard rules and procedures in an attempt to reduce the occurrences of any anxiety causing situations.Which of the following Hofstede's social dimensions is described in the above example?

A) Uncertainty avoidance
B) Long- versus short-term orientation
C) Small versus large power distance
D) Individualism versus collectivism

Question 6

The fourth largest regional trading group,MERCOSUR,comprises the countries of:

A) Argentina,Brazil,Paraguay,Uruguay,and Venezuela.
B) Bahrain,Kuwait,Oman,and Qatar.
C) Canada,Mexico,and United States.
D) Costa Rica,El Salvador,Guatemala,Honduras,and Nicaragua.

Question 7

Which of the following trade agreements does Costa Rica belong to?

A) North American Free Trade Agreement
B) Gulf Cooperation Council
C) European Union
D) Central American Common Market

Question 8

The _____ was formed to deal with the rules of trade between nations and is responsible for negotiating and implementing new trade agreements and policing member countries' adherence to them.

A) General Agreement on Tariffs and Trade
B) World Trade Organization
C) Association of South East Asian Nations
D) European Union

Question 9

To remain competitive,companies:

A) shouldn't be proactive to its changing environment.
B) should not try to influence the global business environment.
C) can no longer sell exclusively in their domestic markets.
D) should not make any attempts to expand globally.

Question 10

Of the three main principles of GATT,the most favored nation principle meant that:

A) a tariff rate granted to one member of GATT would be extended to all members.
B) foreign firms would be subject to the same rules and regulations as a country's domestic firms.
C) trade disputes would be settled by the unanimous agreement of all parties to the dispute.
D) countries should specialize in producing goods for which they have the lowest opportunity cost of production.

Question 11

Which of the following is a best example of Hofstede's small versus large power distance dimension?

A) In an organization,it was mandatory for managers to make decisions by giving more importance to the future than the present.
B) The members of a particular society often prefer more rules and structure and are incapable to adapt to quick changes.
C) The host country employees of an organization prefer to unquestionably abide by the rules of the top management.
D) People in Erbia believe that competition,ambition,and accumulation of wealth are typical masculine qualities.

Question 12

Identify the country that is represented by NAFTA.

A) United Kingdom
B) Zimbabwe
C) Costa Rica
D) Mexico

Question 13

Which of the following is the best example of Hofstede's long- versus short-term orientation dimension?

A) People in Erbia believed that competition,ambition,and accumulation of wealth are typical masculine qualities.
B) The members of a particular society often prefer more rules and structure and are incapable to adapt to quick changes.
C) In an organization,it was mandatory for managers to make decisions by giving more importance to the future than the present.
D) The host country employees of an organization prefer to unquestionably abide by the rules of the top management.

Question 14

A firm's task environment includes:

A) owners and the board of directors.
B) competitors,suppliers,and customers.
C) employees and culture.
D) economic and socio-cultural factors.

Question 15

Which of the following is one of the primary goals of ASEAN?

A) Eliminating tariffs among countries
B) Easing travel of citizens and goods
C) Creating a single financial market
D) Ensuring peace and stability

Question 16

Which of the following entities belongs to the general environment of an organization?

A) Culture
B) Technology
C) Customers
D) Employees

Question 17

_____ refers to the integration and interdependence of economic,technological,socio-cultural,and political systems across diverse geographic regions.

A) Innovation
B) Globalization
C) Proliferation
D) Competition

Question 18

Identify the trade agreement that created a single market by a system of laws that apply in all member states,guaranteeing the freedom of movement of people,goods,services,and capital.

A) North American Free Trade Agreement
B) Economic Community of West African States
C) European Union
D) Central American Common Market

Question 19

The factor that distinguishes an internal environment of an organization from an external environment is that:

A) the internal environment consists of the general environment and the task environment.
B) the internal environment includes owners,the board of directors,employees,and culture.
C) the internal environment includes entities that directly affect a firm on a continuous basis.
D) the internal environment consists of the technological,economic,and socio-cultural factors.

Question 20

Sam,the top manager of TechPark,decides to expand his business globally and creates a new market in Erbia,a neighboring country.Eventually,the company faces issues related to unskilled labor and poor resource positions such as unreliable highway systems and improper communication networks.From this scenario it can be inferred that Sam failed to focus on the _____ dimension of the external environment affecting business.

A) socio-cultural
B) political
C) legal
D) economic

Question 21

Briefly describe the different dimensions of the general environment.

Question 22

Fuel and mining products are increasingly important components of MERCOSUR's export base.

Question 23

How do successful business leaders respond to the changing business environment?

Question 24

The responsibility of James and Henry in an organization is to direct and oversee managers to ensure that the jobs are properly done.Both were elected by the shareholders of the organization to serve as an intermediate group.From this scenario it can be inferred that James and Henry are the _____ of the organization.

A) employees
B) board of directors
C) institutional shareholders
D) owners

Question 25

Social values often pose a much lesser challenge than language barriers for a company wanting to expand globally.

Question 26

Successful business leaders not only respond to changes in the global business environment but also try to influence it.

Question 27

The consensus principle meant that foreign firms would be subject to the same rules and regulations as a country's domestic firms.

Question 28

Outline the components of a firm's internal environment.

Question 29

The theory of comparative advantage proclaims that countries should specialize in producing goods for which they have the lowest opportunity cost of production.

Question 30

In contrast to the dimensions of the task environment,the general environment has the ability to exert a greater influence over a firm.

Question 31

Explain the features of the European Union.

Question 32

The factor that distinguishes owners from the board of directors is that:

A) the owners serve as an intermediate group for shareholders.
B) the owners maintain legal control of the organization.
C) the owners are charged with overseeing the general direction of the firm.
D) the owners are elected by the shareholders.

Question 33

The socio-cultural dimension of a firm's environment includes interest rates of all the countries where it sells its products and services.

Question 34

Define task environment and its dimensions.

Question 35

The Uruguay Round is noteworthy because it created the successor to World Trade Organization.

Question 36

Which of the following entities belongs to the internal environment of an organization?

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

Question 37

Culture belongs to the _____ environment of an organization.

A) task
B) economic
C) internal
D) general

Question 38

A firm's employees are the people who make the products and provide the services that allow the firm to exist.

Question 39

Globalization has presented challenges including emergence of new,powerful competitors in many industries.

Question 40

Which of the following statements is true about the dimensions of internal environment?

A) Owners serve as an intermediate group for shareholders.
B) Employees cannot directly impact a firm's competitive position.
C) Legal control of an organization is maintained by the board of directors.
D) Cultures at firms develop over a long period of time.