Chapter 2

which of the following statements about the various trade agreements is true?

ASEAN's primary goal is to promote social and cultural development

which of the following entities belongs to the general environment of an organization?

technology

(T/F) social values often pose a much lesser challenge than language barriers for a company wanting to expand globally

F

(T/F) the consensus principle meant that foreign firms would be subject to the same rules and regulations as a country's domestic firms

F

(T/F) the socio-cultural dimension of a firm's environment includes interest rates of all the countries where it sells its products and services

F

(T/F) the uruguay round is noteworthy because it created the successor to world trade organization

F

(T/F) a firm's employees are the people who make the products and provide the services that allow the firm to exist

T

(T/F) fuel and mining products are increasingly important components of MERCOSUR's export base

T

(T/F) globalization has presented challenges including emergence of new, powerful competitors in many industries

T

(T/F) successful business leaders not only respond to changes in the global business environment but also try to influence it

T

(T/F) the theory of comparative advantage proclaims that countries should specialize in producing goods for which they have the lowest opportunity cost of production

T

of the three main principles of GATT, the most favored nation principle meant that

a tariff rate granted to one member of GATT would be extended to all members

the fourth largest regional trading group, MERCOSUR, comprises the countries of

argentina, brazil, paraguay, uruguay, and venezuela

which of the following statements is true about the dimensions of internal environment

cultures at firms develop over a long period of time

culture belongs to the _____ environment of an organization

internal

which of the following countries is one of the original members of ASEAN?

phillipines

(T/F) in contrast to the dimensions of the task environment, the general environment has the ability to exert a greater influence over a firm

F

identify the country that is represented by NAFTA

Mexico

the responsibility of James and Henry in an organization is to direct and oversee managers to ensure that the jobs are properly done. Both were elected by the shareholders of the organization to serve as an intermediate group. from this scenario it can be inferred that James and Henry are the _____ of the organization

board of directors

to remain competitive, companies

can no longer sell exclusively in their domestic markets

which of the following trade agreements does Costa Rica belong to?

central american common market

a firm's task environment includes

competitors, suppliers, and customers

sam, the top manager of TechPark, decides to expand his business globally and creates a new market in Erbia, a neighboring country. eventually, the company faces issues related to unskilled labor and poor resource positions such as unreliable highway systems and improper communication networks. from this scenario it can be inferred that sam failed to focus on the _____ dimension of the external environment affecting business

economic

which of the following entities belongs to the internal environment of an organization

employees

which of the following is one of the primary goals of ASEAN?

ensuring peace and stability

identify the trade agreement that created a single market by a system of laws that apply in all member states, guaranteeing the freedom of movement of people, goods, services, and capital

european union

_____ refers to the integration and interdependence of economic, technological, socio cultural and political systems across diverse geographic regions

globalization

which of the following is the best example of Hofstede's long- versus short term orientation dimension?

in an organization, it was mandatory for managers to make decisions by giving more importance to the future than the present

which of the following statements is true about businesses and their leaders?

some leaders focus their efforts on lobbying to influence the government's role in business

which of the following is a best example of Hofstede's small versus large power distance dimension?

the host country employees of an organization prefer to unquestionably abide by the rules of the top management

the factor that distinguishes an internal environment of an organization from an external environment is that

the internal environment includes owners, the board of directors, employees and culture

the factor that distinguishes owners from the board of directors is that

the owners maintain legal control of the organization

the members of a particular society in Rhodia often find it hard to adapt themselves to the changing situations. therefore, they prefer to follow standard rules and procedures in an attempt to reduce the occurrences of any anxiety causing situations. which of the following Hofstede's social dimensions is described in the above example?

uncertainty avoidance

which of the following countries was admitted to MERCOSUR in 2012 and is likely to increase the importance of fuel trade both within and outside the region?

venezuela

the _____ was formed to deal with the rules of trade between nations and is responsible for negotiating and implementing new trade agreements and policing member countries' adherence to them

world trade organization