Question 1

Belgium was the first EU country to outlaw burqas,full body covering worn by some Muslim women.Lawmakers stated concern about the ability to identify people in public.Masks are also not allowed.This is an example of the cultural context of international business.

Accepted Answer

The statement is factually correct and refers to a specific law in Belgium that has cultural implications for international business.

Question 2

Nike and Reebok are best described as

Accepted Answer

Nike and Reebok are fierce competitors in the athletic apparel and footwear industry.

Question 3

In Asia,consumers have historically had an aversion to debt.However,in recent years credit card use has grown significantly,supported by aggressive marketing and governments in the region that see it as a means to fuel economic growth.This is an example of the ____ dimension.

Accepted Answer

The answer of In Asia,consumers have historically had an aversion...

Question 4

No company wants to set up shop in another country unless trade relationships with the country are relatively well defined and stable.This point of view reflects what dimension of the general environment?

Accepted Answer

This reflects the political-legal dimension of the general environment, which includes government regulations, stability, and relationships with other countries. The statement specifically mentions trade relationships, which are affected by political and legal factors.

Question 5

The ____ environment of a business that manufactures top-of-the-line cabinets includes computer-assisted design software that helps to convert wood and people's ideas into lovely,functional cabinets.

Accepted Answer

The technological environment of the business includes the computer-assisted design software used to manufacture the cabinets. The other options are not directly related to this aspect of the business.

Question 6

All of the following are included in the task environment of organizations EXCEPT

Accepted Answer

The economy is not a part of the task environment of organizations as it is a broader external factor that affects multiple industries and organizations. The task environment includes more immediate factors such as competitors, customers, regulators, and suppliers that directly impact the organization.

Question 7

The GATT replaced the WTO.

Accepted Answer

The GATT (General Agreement on Tariffs and Trade) was replaced by the WTO (World Trade Organization) in 1995.

Question 8

The task environment includes all of the following EXCEPT

Accepted Answer

The task environment includes competitors, customers, regulators, and strategic allies. However, technology is not considered as a part of the task environment, as it is typically classified as a component of the broader societal environment.

Question 9

Which of the following is part of the task environment for Wal-Mart Corporation?

Accepted Answer

Procter and Gamble is a supplier to Wal-Mart, therefore, is part of Wal-Mart's task environment. The Securities and Exchange Commission is part of the general environment as a government regulatory agency, the Teamsters Union may be part of the internal environment as a stakeholder group, and Wal-Mart's Board of Directors is part of the internal environment as a governing body.

Question 10

The use of color holds little symbolic value in most cultures.

Accepted Answer

In many cultures, colors hold significant symbolic meaning. For example, in Western cultures, white is often associated with purity or innocence, while red can symbolize love or anger. In Chinese culture, the color red is associated with luck and prosperity, while yellow is symbolic of the emperor and royalty.

Question 11

International mergers are more complicated than domestic mergers.

Accepted Answer

International mergers involve the integration of companies from different countries, which entails dealing with different legal systems, language barriers, cultural differences, and regulatory frameworks. These complexities make international mergers more complicated than domestic mergers, which only involve companies from the same country.

Question 12

The culture of an organization is easy to measure objectively.

Accepted Answer

The culture of an organization is subjective and can vary from person to person. It is based on the shared beliefs, values, assumptions, and behaviors of the people within the organization. Therefore, it is not easy to measure objectively.

Question 13

When a locally owned restaurant fears new competition from Applebee's or TGIF's,it is experiencing a change in its

Accepted Answer

The entry of Applebee's or TGIF's into the local market represents a change in the external environment of the locally owned restaurant. The external environment includes factors outside the organization that can affect its success, such as competitors, economic conditions, and social trends.

Question 14

Maquiladoras are an example of what the text refers to as direct investment.

Accepted Answer

Maquiladoras involve foreign companies setting up factories in a different country, which is a form of direct investment.

Question 15

Which of the following statements does NOT describe a characteristic of an organization's external environment?

Accepted Answer

The statement "The boundary between the organization and its environment is quite specific and clearly defined" does not accurately describe a characteristic of an organization's external environment. In reality, the boundary between an organization and its environment is not always clearly defined and can be influenced by a variety of factors, such as changes in technology or shifting social norms. The other statements are all accurate descriptions of the external environment.

Question 16

The values held by an organization's founder or founders are often among the major determinants of corporate culture.

Accepted Answer

The values held by an organization's founder or founders are often deeply ingrained into the company's culture and can shape the values, attitudes, and behaviors of its employees. Thus, they are among the major determinants of corporate culture.

Question 17

The EU created the first economic community.

Accepted Answer

The European Coal and Steel Community (ECSC) was the first economic community established by the EU in 1951, followed by the European Economic Community (EEC) in 1957.

Question 18

International licensing agreements involve regulations for truckers transporting products between countries.

Accepted Answer

International licensing agreements do not typically involve regulations for truckers. Rather, they typically concern legal rights and obligations related to the use of intellectual property such as patents, trademarks, and copyrights.

Question 19

Investors were worried about the stock market when unemployment was 10%,companies were slow to invest,and government debt was still increasing.These are aspects of which environment?

Accepted Answer

The aspects mentioned in the statement refer to the economic environment, specifically concerning the state of the labor market, business investment, and government debt. The concerns of investors about the stock market are largely based on economic indicators that affect the performance of companies and the financial stability of the economy.

Question 20

Most MNCs use direct investment exclusively because they are so big they can afford to buy companies.

Accepted Answer

While it is true that MNCs have the financial resources to acquire other companies, many MNCs also use other forms of investment such as joint ventures and licensing agreements. The choice of investment mode depends on various factors such as the level of risk, control, and market access the MNC seeks.

Quiz 2: The Environment of Organizations and Managers