Question 1

When the U.S.dollar is weak,U.S.manufacturers tend to locate more of their plants abroad.

Accepted Answer

When the U.S. dollar is weak, U.S. manufacturers find exporting their goods more competitive due to the favorable exchange rate, making it less necessary to locate plants abroad to reduce costs.

Question 2

External environmental analysis should first occur from the perspective of the organization.

Accepted Answer

External environmental analysis should first occur from an objective, outside perspective to ensure a comprehensive understanding of the external factors affecting the organization.

Question 3

Firms operating in multiple distinct markets may be affected in different ways by macroenvironmental forces in each market.

Accepted Answer

Macroenvironmental forces such as economic conditions, societal trends, and government regulations can vary greatly across different markets. Therefore, firms operating in multiple markets may face different opportunities and challenges in each market due to these forces.

Question 4

High inflation has negative implications for all industries.

Accepted Answer

Different industries can be affected by high inflation in various ways. Some industries, like those dealing with essential goods or services, may be less negatively impacted as demand for their products remains stable. Others, particularly those considered luxury or non-essential, may face more significant challenges as consumers cut back on spending. Additionally, industries with pricing power can pass on higher costs to consumers, mitigating some negative effects of inflation.

Question 5

Which of the following is not an element within the macroenvironment?

Accepted Answer

Industry forces are part of the microenvironment, which includes the immediate company environment and its stakeholders, whereas the macroenvironment includes external factors such as social, economic, and political-legal forces.

Question 6

Macroenvironmental analysis considers effects of forces on

Accepted Answer

Macroenvironmental analysis considers the effects of external forces on an entire industry, not just a single firm or industry leaders. It looks at factors such as political, economic, social, technological, environmental, and legal trends that impact the industry as a whole.

Question 7

Less rigid governmental regulations for business activities are typically found in

Accepted Answer

The answer of Less rigid governmental regulations for business activities...

Question 8

External environmental analysis includes an examination of industry forces.

Accepted Answer

The answer of External environmental analysis includes an examination of...

Question 9

The Chinese economy has become more regulated in the past ten years.

Accepted Answer

The answer of The Chinese economy has become more regulated...

Question 10

Outcomes of elections,legislation,and judicial court decisions are considered to be

Accepted Answer

Outcomes of elections, legislation, and judicial court decisions are all related to the legal and political environment, making them political-legal forces. These forces can have a significant impact on businesses, such as changes in regulations or policies that may affect their operations or profitability.

Question 11

To foster free markets,the U.S.generally does not restrict the sale of nuclear and defense-related products to unfriendly nations.

Accepted Answer

To promote national security, the U.S. enacts restrictions on the sale of nuclear and defense-related products to unfriendly nations. These restrictions are enforced through various laws, regulations, and licensing requirements.

Question 12

Leaders in an industry always prefer less government regulation.

Accepted Answer

Leaders in an industry may have varying preferences regarding government regulation; some may prefer less to avoid compliance costs and increase flexibility, while others may welcome regulation that stabilizes the market, ensures fair competition, or enhances consumer trust.

Question 13

A recession occurs when GDP declines for four consecutive quarters.

Accepted Answer

A recession is defined as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. It does not necessarily require four consecutive quarters of negative growth, but rather a sustained contraction in the economy.

Question 14

Economic forces include such factors as the outcomes of elections,legislation,and judicial court decisions,as well as the decisions rendered by various commissions and agencies at every level of government.

Accepted Answer

Economic forces encompass factors such as supply and demand, market competition, inflation, interest rates, and employment levels. The outcomes of elections, legislation, and court decisions fall under political forces, which can affect the economy indirectly.

Question 15

At the global level,the period from World War II to the late 1980s was marked by increased trade protectionism.

Accepted Answer

After World War II, many countries implemented protectionist policies to protect their domestic industries and economies, including tariff barriers and import quotas. This trend towards protectionism continued until the late 1980s when many countries began to liberalize their trade policies and move towards free trade.

Question 16

The Fair Labor Standards Act stops unfair methods of competition.

Accepted Answer

The Fair Labor Standards Act (FLSA) primarily establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards—it does not address competition methods.

Question 17

Macroenvironmental forces are assessed in terms of their direct effects on a particular firm.

Accepted Answer

Macroenvironmental forces are assessed in terms of their indirect effects on a particular firm. These forces include demographic, economic, technological, political/legal, and sociocultural factors that can impact a firm's performance and overall industry trends.

Question 18

A recession has negative implications for all industries.

Accepted Answer

Some industries, such as discount retailers, repair services, and consumer staples, may perform relatively well or even benefit during a recession as consumers adjust their spending habits towards necessities and more affordable options.

Question 19

Which of the following is not an element within the macroenvironment?

Accepted Answer

All three choices (social forces, technological forces, and economic forces) are elements within the macroenvironment, so the correct answer is D, which means none of the above.

Question 20

GDP refers to the value of the world's annual total production of goods and services.

Accepted Answer

GDP refers to the value of all goods and services produced within a country's borders in a specific time period, not the world's total production.

Quiz 3: External Environment: Political Economic Forces

When the U.S.dollar is weak,U.S.manufacturers tend to locate more of their plants abroad.

External environmental analysis should first occur from the perspective of the organization.

Firms operating in multiple distinct markets may be affected in different ways by macroenvironmental forces in each market.

High inflation has negative implications for all industries.

Which of the following is not an element within the macroenvironment?

Macroenvironmental analysis considers effects of forces on

Less rigid governmental regulations for business activities are typically found in

External environmental analysis includes an examination of industry forces.

The Chinese economy has become more regulated in the past ten years.

Outcomes of elections,legislation,and judicial court decisions are considered to be

To foster free markets,the U.S.generally does not restrict the sale of nuclear and defense-related products to unfriendly nations.

Leaders in an industry always prefer less government regulation.

A recession occurs when GDP declines for four consecutive quarters.

Economic forces include such factors as the outcomes of elections,legislation,and judicial court decisions,as well as the decisions rendered by various commissions and agencies at every level of government.

At the global level,the period from World War II to the late 1980s was marked by increased trade protectionism.

The Fair Labor Standards Act stops unfair methods of competition.

Macroenvironmental forces are assessed in terms of their direct effects on a particular firm.

A recession has negative implications for all industries.

Which of the following is not an element within the macroenvironment?

GDP refers to the value of the world's annual total production of goods and services.