Deck 6: Managing in the Global Environment

Question 1

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

Answer 1

True
Explanation: One result of globalization is that nations and people have become increasingly interdependent because the same forces affect them in similar ways.

Question 2

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

Answer 2

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

Question 3

The establishment of free-trade areas is not beneficial for manufacturing organizations since it increases their costs.

Answer 3

False
Explanation: The establishment of free-trade areas creates an opportunity for manufacturing organizations because it lets them reduce their costs.

Question 4

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

Question 5

According to Hofstede's model of national culture, individualist societies adhere to the principle that people should be judged by their individual achievements rather than by their social background.

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

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

Question 8

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

Question 9

According to Hofstede, the gap between the rich and poor in high-power-distance societies grows very large.

Question 10

What benefits does the global environment offer organizations?

A)The global environment provides organizations with several 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 never 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 internationally seldom compete for scarce and valuable resources.

Question 11

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

Question 12

Which of the following is true about the task environment?

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

Question 13

Organizations with culturally homogeneous management teams are best equipped to tailor their management systems to meet the requirements of different cultures.

Question 14

Which of the following is true about the general environment?

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

Question 15

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 16

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

Question 17

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

Question 18

In what way does the task environment differ 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

In what way is the task environment 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 20

Norms are written codes of conduct that prescribe appropriate behavior in particular situations and are considered important by most members of a group or organization.

Question 21

Companies that provide other organizations with input resources are known as

A)suppliers.
B)competitors.
C)distributors.
D)processors.
E)consumers.

Question 22

Which of the following can be defined as 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 23

Apple Inc.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

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

Question 24

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

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

Question 25

Which of the following statements supports the fact that Toy Track operates in a task environment with a low barrier to entry?

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

Question 26

The more difficult it is to enter the task environment

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

Question 27

An organization that is not presently in a task environment but has the resources to enter if it so chooses is called a

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

Question 28

Amethyst, an Italian house of high fashion, designs and creates luxury items like jewelry and hair accessories.It sells its merchandise only through Fiesta, a multinational retail store.Fiesta acts as Amethyst's

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

Question 29

As the only store to design and sell curtains in the suburb of Oakland, the merchandise sold by Plush Parade is overpriced.Noticing this, Diana's Draperies sets up a showroom in the same suburb, reasoning that with lower prices, they would be able to attract more customers.Diana's Draperies is Plush Parade's

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

Question 30

Jeremy has a personal library with over 5,000 novels of various genres, most of them bought from Benison's Book House.He is an example of a Benison Book House's

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

Question 31

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

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

Question 32

Leo wants to improve the costs for his business, so he chooses to buy inputs in bulk and manufacture products in larger quantities.This is an example of

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

Question 33

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

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

Question 34

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

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

Question 35

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

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

Question 36

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 a fundamental component of the organization's product.
D)is found freely and can be accessed by people with little effort.
E)is not protected by any patent.

Question 37

Which of the following statements supports the fact that Candlewick Inc.operates in a task environment with a high barrier to entry?

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

Question 38

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

A)Cultural imperialism
B)Cultural pluralism
C)National culture
D)Social structure
E)Social relativism

Question 39

Dolphin's Diner, a famous seafood chain, has opened its newest restaurant in a small town.It soon finds that the only customers it attracts are tourists, because the locals prefer to go to The Clam Café-an older but more expensive restaurant.The Clam Café enjoys significant

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

Question 40

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

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

Question 41

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

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

Question 42

Which of the following is the result of globalization?

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

Question 43

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 in the general environment.

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

Question 44

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 45

_____ 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 46

Nadine belongs to an egalitarian society, one in which few distinctions are made between individuals and groups.Her society is low on

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

Question 47

Which of the following is true about political capital?

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

Question 48

Deregulation, privatization, and the removal of legal barriers to trade are examples of changing _____ forces.

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

Question 49

Which of the following is true about regional trade agreements?

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

Question 50

The Republic of Karibo has been losing capital steadily over the last five years.As a result of this

A)its rate of unemployment has decreased.
B)the standard of living has fallen.
C)the impact of the recession has lessened.
D)the gap between the rich and poor has narrowed.
E)its economy has stabilized.

Question 51

All of the following are principal forms of capital that flow between countries except

A)human capital.
B)virtual capital.
C)political capital.
D)resource capital.
E)financial capital.

Question 52

Which of the following factors played an important role in speeding up globalization?

A)the imposition of government-enforced import tariffs that protected the domestic economy
B)the 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)the rejection of the free-trade doctrine, which increased global outsourcing
E)the fortification of trade and investment barriers between each country

Question 53

Which of the following is an advantage of the establishment 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 54

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

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

Question 55

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

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

Question 56

Greg belongs to a society which makes very few distinctions between people and groups.This is reflected in his company, Sonata DCM, the managers of which represent several different classes and cultures.The society to which he 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 57

Jean is the CEO of Creative Tribune, an advertising firm in Winchester.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 society in Winchester has a high degree of

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

Question 58

Which of the following contributed to the lowering of barriers of distance and culture that affected global organizations?

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

Question 59

Which of the following is true about values?

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

Question 60

Which of the following 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 61

Which of the following is an example of a folkway?

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 62

Which of the following is an example of a supplier?

A)a retail store
B)a package delivery company
C)a small company that subscribes to services
D)a bank or financial institution
E)a vendor

Question 63

Max belongs to a society which 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, which of the following is true about his society?

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

Question 64

Which of the following is true about folkways?

A)They bring about serious retribution when violated.
B)They are the norms upon which fundamental laws are based.
C)They concern the routine social conventions of everyday life.
D)They do not differ between societies.
E)They are central to the functioning of society.

Question 65

Holly belongs to a culture which values the subordination of individuals to the group.The national culture also values personal stability and living for the present.Which of the following, according to Hofstede, is true about Holly'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 66

Which of the following, according to Hofstede, is characteristic of societies with high power distance?

A)Inequalities between different classes in society are not 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 work achievements.
D)The gap between the rich and poor is very large.
E)Resources are communal and accessible to all members of society.

Question 67

Clara belongs to a society which 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, which of the following is true about her society?

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

Question 68

According to Hofstede, which of the following is true about countries with a long-term orientation?

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

Question 69

Lobo belongs to a society which values the subordination of the individual to the group and discourages individual expressions of thought.Inequality in the power and well-being of people is believed to be due to differences in their physical and intellectual capabilities, and heritage.According to Hofstede's model of national culture, Lobo'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 70

Superior Power is a new company in the electrical industry, and the company has shown success and is building a strong reputation.What impact will this company 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 71

_____ are norms that are considered to be of central importance to the functioning of society and to social life, the violation of which brings serious retribution.

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

Question 72

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 73

Which of the following, according to Hofstede, is characteristic of societies with low power distance?

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.

Question 74

Which of the following is an example of a more?

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 75

_____ are unwritten, informal codes of conduct that shape the behavior of people toward one another and are held important by most members of society.

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

Question 76

Which of the following is an example of individualism values?

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

Question 77

Which of the following is true about mores?

A)They do not bring about serious retribution when violated.
B)They are many difference in mores from one society to another.
C)They are identical across all societies.
D)They concern routine social conventions of everyday life.
E)They comprise the body of folklore handed down over generations.

Question 78

According to Hofstede, collectivist societies

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 79

Which of the following is potentially the most threatening force that managers must deal with in the task environment?

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 80

The aim of tariffs is to

A)sanction countries that break global agreements.
B)free the flow of goods, services, and capital between countries.
C)make the best use of capital resources.
D)protect domestic industries and jobs.
E)decline barriers to trade and investment.