Deck 5: Natural Resources and Environmental Sustainability

Question 1

With globally networked transportation, location does not matter as a basic factor condition.

Answer 1

False

Question 2

Porter's diamond model suggests that Switzerland should not be competitively successful.

Answer 2

False

Question 3

The largest portion of proven oil reserves can be categorized as being at the highest level of investment risk.

Answer 3

True

Question 4

China and India combined are using more marketed energy than is the United States, and this trend is projected to increase.

Question 5

Because Austria sided with the West in the Cold War, it became a favored location for offices of international firms servicing eastern European operations.

Question 6

Saudi Arabia and Canada have the largest proven oil reserves.

Question 7

Heavy oil is oil weighted down with an extra carbon molecule, and it can be gasified using the Fischer-Tropsch process.

Question 8

Every coast between 20 and 30 degrees of the equator (north or south) is dry.

Question 9

Mountain barriers found in the area of the Pakistan-Afghanistan border impede travel and separate populations.

Question 10

Nonrenewable energy sources include coal, fossil fuels, and ocean thermal energy conversion.

Question 11

Porter's diamond can be used to explain the importance of the environment and natural resources.

Question 12

Bodies of water, much like deserts and mountains, also serve as barriers to trade.

Question 13

Switzerland exports cheese and chocolate because one of its factor endowments is lots of rich agricultural land.

Question 14

Geographical proximity is rarely a major reason for trade.

Question 15

Switzerland, China, and Colombia are nations that present topographic challenges to marketers because their markets are divided by mountain ranges.

Question 16

Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.

Question 17

Nuclear power is a leading contributor to the French energy grid.

Question 18

Porter suggests that adverse conditions can motivate innovation, which may lead to the development of a competitive advantage.

Question 19

Through 2035, fossil fuels are expected to remain the world's dominant energy source.

Question 20

Climate differences explain differences in human and economic development because the less temperate climates limit mental powers.

Question 21

Sustainable business practices have three characteristics: limits, interdependence, and equity.

Question 22

Stakeholder theory pushes managers to be clear about how they want to do business, so it encourages:

A) recognition of and transparency with values and underlying principles.
B) discussion of profit center margins.
C) Stakeholder theory forces businesses to recognize their underlying values, including what kind of relationships they want to create with their stakeholders.
C) strategy development from the top down.
D) B and

Question 23

Chouinard, the founder of Patagonia, observed that:

A) triple-bottom-line accounting is the way to build sustainability.
B) compassion is the first step in sustainability.
C) our approach to fossil fuel consumption is clearly unsustainable.
D) no business can be done on a dead planet.

Question 24

The stakeholder model for environmentally sustainable business has failed because we don't have an accounting system to measure the present costs of environmental irresponsibility.

Question 25

Sustainable approaches in business usually involve trade-offs such as lower profits compensated by reduced marketing costs and improved image/reputation.

Question 26

Limits, interdependence, and equity are characteristics of sustainable business practices.

Question 27

Environmental sustainability is about maintaining the environment, and it is both local and global.

Question 28

Physical barriers that have led to the development of separate languages in the same country are known as:

A) political and cultural patterns.
B) topographical barriers.
C) linguistic tariffs.
D) differentiating borders.

Question 29

The relationships among ecological, social, and economic systems in sustainable environments need to be:

A) discreet.
B) renewable.
C) positive.
D) interdependent.

Question 30

Compassion has nothing to do with sustainable business. Business is business.

Question 31

Stakeholder theory suggests that balancing competing tensions in a business is impossible and that recognizing this early in the process is helpful.

Question 32

Environmentally sustainable businesses need to consider the economic and ecological systems in which they function, but not the social.

Question 33

Interface, the manufacturer of Flor, is an example of a petroleum-based business that has developed a sustainable model.

Question 34

Coal and nuclear power are both in decline as energy sources.

Question 35

The stakeholder model requires businesses to think about:

A) the stakeholders' interest in profitability.
B) the network of tensions caused by competing demands.
C) strategy in light of sustainability.
D) the frequency of social issues faced by the stakeholders.

Question 36

Interface, the producer of Flor carpeting, has a solid record in sustainable business practice and:

A) makes impressive contributions to sustainable development in developing economies.
B) is committed to triple-bottom-line accounting.
C) spins its products from petroleum.
D) sources its raw materials from recycled plastic bottles.

Question 37

Triple-bottom-line accounting is an example of sustainability with economic, social, and environmental accountability.

Question 38

Because it is a high polluter, coal is on the decline as an energy source.

Question 39

Biomass is a category of renewable energy fuels based on their heavy weight.

Question 40

Patagonia recognizes that doing business following the traditional approach, focusing on quarterly earnings, is not complete because this does not focus on:

A) the negative impact of the business.
B) the cost of environmental sustainability.
C) consumer needs for green merchandise.
D) triple-bottom-line (3BL) accounting.

Question 41

World Bank studies have shown that underdevelopment is often due to:

A) factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures.
B) mental slowness in people of the climates around the equator.
C) socialist political regimes.
D) lack of government investment in education.

Question 42

Coal pollutes heavily:

A) so its use has declined markedly in the past 15 years.
B) yet its consumption has increased and is projected to continue on this trend, especially in China and India.
C) and contributes to greenhouse gas emissions, especially in China, India, and the United States.
D) B and C

Question 43

Heavy oil is:

A) a group of unconventional oil sources such as oil sands, shale, coal, and natural gas, all of which via processing can yield oil.
B) a rich oil found in deposits in Saudi Arabia and Kuwait whose molecular weight is heavier than normal oil.
C) oil extracted from biomass that is reprocessed.

Question 44

As an energy source, nuclear power:

A) is growing significantly, especially in developing countries.
B) has been growing as the price of oil climbs and cleaner energy sources (nonpolluting) are sought.
C) has been exploited by France, which has one of the lowest greenhouse gas emissions in the industrialized world.
D) all of the above.

Question 45

Topography, including mountains, deserts, plains, and bodies of water, greatly influences:

A) political relationships.
B) the physical distribution of products and services.
C) the local approach to education and health services.
D) local attitudes toward industrially developed economies.

Question 46

Swiss exports are concentrated, high-density products that minimize the need for importing bulky materials because:

A) mountain ranges increase transport costs into and out of Switzerland and limit local resources.
B) the Swiss love of chocolate and watches influenced the export patterns.
C) The existence of mountain ranges influences the Swiss export patterns.
C) high-density exports encounter lower tariffs.
D) B and

Question 47

The top four countries in proven reserves are:

A) China, Japan, Singapore, and Malaysia.
B) Kuwait, Saudi Arabia, the United States, and Mexico.
C) Qatar, Libya, Nigeria, and Venezuela.
D) Saudi Arabia, Canada, Iran, and Iraq.

Question 48

Geographical proximity contributes to:

A) knowledge of the country by its neighbors.
B) lower freight costs.
C) the likelihood of trade relationships.
D) all of the above.

Question 49

Climate influences:

A) intelligence and energy levels, per the North-South divide.
B) what people can do, physically and economically.
C) levels of emotional well-being.
D) adjustment and motivation.

Question 50

The area with the greatest capacities in renewables as of 2010 is:

A) the United States.
B) European Union.
C) India.
D) Japan.

Question 51

One example of the effect of topography is:

A) isolated language groups, which require special marketing adjustments.
B) regional metals markets.
C) a unified China.
D) equal distribution of populations.

Question 52

Environmental sustainability is both local and global because:

A) environmental conditions do not recognize national borders.
B) governments are not prepared to address environmental issues beyond the UN.
C) business has become global, so sustainability must follow the trend.
D) all of the above.

Question 53

In more dense populations, international managers can expect:

A) increased political discord.
B) markets that respond well to word-of-mouth promotion.
C) contrasting topographical features.
D) lower marketing and distribution costs.

Question 54

A good example of the relationship between water supply and population concentration is:

A) eastern Europe
B) China
C) Australia
D) Japan

Question 55

Petroleum, a relatively cheap nonrenewable energy source, is:

A) in abundant supply but is not environmentally clean.
B) being increasingly depleted and is expected to run out in another 50 years, but in the meantime, improved retrieval techniques are being developed.
C) clean, cheap, and available, but most of the reserves are located in countries whose leadership is critical of the industrialized world.
D) expected to run out in another 10 years and needs to be replaced with renewable energy sources quickly.

Question 56

Densely populated areas coincide with:

A) rivers, lakes, and seacoasts.
B) inland waterways.
C) rich mineral reserves and rare earth deposits.
D) low levels of environmental awareness.

Question 57

With factor conditions, Porter's diamond model distinguishes between basic factors, those a country inherits, and

A) imported factors, those it brings in from abroad.
B) demand conditions, the aggregate demand in the economy.
C) climate conditions, the basic influence on business options in the specific location.
D) advanced factors, those a country can mold: labor and infrastructure.

Question 58

Nonfuel minerals:

A) include chrome, manganese, platinum, and arsenic, all necessary for modern living.
B) are mostly sourced through imports in the United States.
C) frequently originate in China.
D) all of the above.

Question 59

Renewable energy sources:

A) will replace fossil fuels, due to price, depletion, or carbon emissions.
B) are growing at greater rates than the nonrenewables in the United States and Europe.
C) A andB
D) are all available everywhere.

Question 60

Nations whose mountains divide them into smaller regional areas include:

A) the United States, Mexico, and Canada.
B) Switzerland, Afghanistan, China, and Colombia.
C) Luxembourg, France, and Romania.
D) Estonia, Latvia, and Lithuania.

Question 61

Bodies of water that provide inexpensive access to interior markets are known as:

A) inland waterways
B) seaway outlets.
C) river systems.
D) inland oceans.

Question 62

The three characteristics of evolving sustainable business practices are:

A) local, global, and improving quality of life.
B) environmental sustainability, quality-of-life sustainability, and triple-bottom-line accounting.
C) limits, interdependence, and equity.
D) none of the above.

Question 63

Studies conducted by the World Bank indicate that tropical climates allow for:

A) the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.
B) lack of the need to provide heat and shelter that is present in northern climates.
C) unparalleled trade.
D) cultivation of citrus and four crops per year.

Question 64

Proximity is a factor in explaining:

A) a nation's political system.
B) the number of a nation's political and trade relationships.
C) language patterns.
D) demand conditions.

Question 65

This government commercialized the German Fischer-Tropsch process in order to obtain oil from coal through a catalyzed chemical reaction:

A) Israel.
B) the Sudan.
C) South Africa.
D) Germany.

Question 66

The largest portion of the world's proven oil reserves is located in:

A) low-risk areas.
B) high-risk areas.
C) climate-challenging areas.
D) developed nations' oil fields.

Question 67

Porter's diamond is a model that offers an explanation of:

A) differing levels of success among the national players in world markets.
B) endowment factor differentials.
C) the impact of climate on development.
D) macro-level FDI.

Question 68

Sam Palmisano, CEO of IBM, has described a new way of doing business that goes to equity of distribution by observing that:

A) profit sharing will need to increase.
B) stakeholder theory provides a way forward, combining local and global.
C) IBM would end its colonial company model and move on to an integrated model with high levels of trust among stakeholders.
D) A and B

Question 69

Climate is probably the most important element of the physical forces, as it sets the limits on:

A) annual rainfall, and thus water supply.
B) population growth patterns.
C) what people can do physically and economically.
D) expected FDI.

Question 70

Stakeholder theory is an understanding of how business works that:

A) takes into account culture and environmentalism.
B) rejects the importance of the bottom line.
C) emphasizes planning.
D) takes into account all identifiable interest holders.

Question 71

This material, when heated to 500°C, will yield 25 liters or more per ton of input:

A) shale.
B) biomass.
C) natural gas.
D) light petroleum.

Question 72

The North-South divide uses climatic differences to explain:

A) population differences.
B) trade patterns.
C) differences in human development.
D) cultural differences.

Question 73

The marketed energy use has been dominated since 1980 by:

A) renewable energy sources.
B) nuclear energy and coal.
C) nonrenewable energy sources.
D) solar and wind power.

Question 74

A way to measure a company's success in sustainable business practices is:

A) to examine the return on investment.
B) triple-bottom-line accounting.
C) to monitor the company in a social context.
D) to review the marketing materials.

Question 75

Unconventional sources of petroleum such as oil sands and shale are often grouped together and referred to as:

A) nonrenewable hopes.
B) new sources.
C) peak sources.
D) heavy oil.

Question 76

Natural resources are:

A) anything that is alive in the natural world.
B) anything provided by nature on which people depend.
C) any raw material that becomes a component in a manufactured good.
D) anything that is used for food or fuel.

Question 77

The International Energy Agency 2010 report observes that an energy revolution underway may well lead to:

A) a 27 percent drop in oil usage.
B) North America becoming the center of alternative energy research.
C) Africa and the Middle East increasingly relying on fossil fuels.
D) Europe relying increasingly on nuclear.

Question 78

Every continent has inland waterways that provide inexpensive access to interior markets except:

A) Russia.
B) North Africa.
C) Australia.
D) North America.

Question 79

The main transportation artery of Europe is the:

A) Venice canal system.
B) Danube-Dresden waterway.
C) Lake Constantine system.
D) Rhine waterway.

Question 80

A specific example of a sustainable business is Patagonia, as evidenced in its:

A) Footprint Chronicles program that addresses the trade-offs global sourcing creates and evaluates the impact of sourcing decisions.
B) ecosystem model of sustainability that relies on the synergies between financial, environmental, and social elements.
C) product lines and credit policies.
D) A and B