Question 1

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

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

The aim of import tariffs is to protect domestic industries and jobs from overseas competition by raising the price of these products from abroad.

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.

Accepted Answer

Individualism is a worldview that values individual freedom and self-expression and adherence 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.

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 7

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 smartphones and other mobile devices to orchestrate "face-to-face" meetings with coworkers across the country or globe.

Question 8

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

Accepted Answer

By allowing overseas companies to compete in a nation's domestic market for customers, falling trade barriers pose a serious threat 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.

Accepted Answer

In high-power-distance societies, workers who are professionally successful amass wealth and pass it on to their children, and, as a result, inequalities may grow over time.In such societies, the gap between rich and poor, with all the attendant political and social consequences, grows very large.

Question 10

What benefits does the global environment offer organizations?

Accepted Answer

Some changes in the global environment, such as the development of efficient new production technology, the availability of lower-cost components, or the opening of new global markets, create opportunities for managers to make and sell more products, obtain more resources and capital, and thereby strengthen their organization.

Question 11

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 12

Which of the following is true about the task environment?

Accepted Answer

The task environment is the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors; these forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs.

Question 13

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

Accepted Answer

Compared to organizations with culturally homogeneous management teams, organizations that employ managers from a variety of cultures have a better appreciation of how national cultures differ, and they tailor their management systems and behaviors to the differences.

Question 14

Which of the following is true about the general environment?

Accepted Answer

The general environment includes the wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect the organization and its task environment.For the individual manager, 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

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 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.

Accepted Answer

According to Hofstede, in low-power-distance countries, large inequalities between citizens are not allowed to develop.The government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate.

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.

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 18

In what way does the task environment differ from the general environment?

Accepted Answer

The task environment is the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors; these forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs.It contains the forces that have the most immediate and direct effect on managers because they pressure and influence managers daily.

Question 19

In what way is the task environment similar to the general environment?

Accepted Answer

The task environment is the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors; these forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs.The general environment includes the wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect the organization and its task environment.

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.

Accepted Answer

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

Quiz 6: Managing in the Global Environment