Deck 5: Natural Resources and Environmental Sustainability

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Through 2035,oil is expected to remain the world's dominant energy source.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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 14

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

Question 15

Saudi Arabia and Canada have the largest proven oil reserves.

Question 16

Geographic proximity is rarely a major reason for trade.

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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 24

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

Question 25

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

Question 26

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 27

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

Question 28

Patagonia recognizes that doing business following the traditional approach,focusing on quarterly earnings,is not complete because it 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 accounting (3BL).

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

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 31

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

Question 32

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 33

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

Question 34

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

Question 35

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

Question 36

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 37

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

Question 38

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 39

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

Question 40

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

Question 41

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 42

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 43

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 44

As an energy source,nuclear power

A)is growing significantly,especially in developing countries.
B)has been growing as an energy source as the price of oil climbs and cleaner energy sources (non polluting)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

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 46

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 47

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 48

Nations whose mountains divide them into smaller regional areas include:

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

Question 49

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 50

The area with the greatest investment in renewables from 2002 to 2008 is

A)North America.
B)Europe.
C)the Middle East and Africa.
D)South America.

Question 51

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 52

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 53

The top four countries in proved reserves are:

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

Question 54

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 55

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 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

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

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

Question 58

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 U.S.
D)B and C

Question 59

Nonfuel minerals

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

Question 60

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

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

Question 61

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 62

The main transportation artery of Europe is the

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

Question 63

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

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

Question 64

This is the cleanest of the nonrenewable fuel sources,and it has become a substitute for oil as oil prices increase.

A)natural gas
B)diesel
C)nuclear
D)kerosene

Question 65

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

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

Question 66

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 need to provide heat and shelter that is present in northern climates.
C)unparalleled trade.
D)cultivation of citrus and 4 crops per year.

Question 67

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 68

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 69

The North-South divide uses climatic differences to explain

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

Question 70

Although it pollutes heavily,this energy source is on the rise everywhere,especially in China.

A)natural gas
B)coal
C)nuclear
D)diesel

Question 71

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

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

Question 72

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 73

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 74

Natural resources are anything

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

Question 75

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 76

This material,when heated to 500 Centigrade,will yield 25 liters or more per ton of input.

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

Question 77

This is the only industrialized country that has not ratified the Kyoto Protocol,a UN convention on climate change.

A)China
B)France
C)Russia
D)the U.S.

Question 78

The U.S.Energy Information Administration projects that world energy consumption will increase through 2035,with dramatic increases in

A)China and India.
B)North America.
C)Africa and the Middle East.
D)Europe.

Question 79

Instead of declining,this nonrenewable energy source,because of its lack of pollution and the rising price of oil,has seen significant growth.

A)wind power
B)nuclear power
C)geothermal power
D)petroleum

Question 80

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.