management test 2

Southern Common Market (MERCOSUR)

A political and economic agreement among the countries of Bolivia, Argentina, Brazil, Venezuela, Uruguay, and Paraguay

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico.

Which of the following characteristics relates to the nature of the management environment?

All of those factors that affect the operation of the organization

What name is given to other organizations that produce similar, or in some cases identical, goods or services?

Competitors

Which of the following refers to those who purchase an organization's goods and/or services?

Customers

What name is given to the overall condition of the complex interactions of economies throughout the world?

Economic dimention

Which of the following characteristics relates to countertrade agreements?

Exporting that involves bartering products for other products instead of for currency

Which of the following refers to all of the factors outside the organization that may affect the managers' actions?

External environment

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?

Global

Which of the following characteristics relates to suppliers?

Organizations and individuals who provide resources to other organizations

An American firm's refusal to enter into a binding contract with a Russian oil firm because of the lack of clarity of Russian law in this area is based on the American firm's analysis of which dimension of the general environment?

Political-legal dimension

Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?

Political-legal dimension

What name is given to the degree to which a firm understands and addresses stakeholder demands?

Stakeholder orientation

What term describes goods or services that may be used in place of those furnished by a given business?

Substitutes

What name is given to those factors that have a direct effect on a specific organization and its managers, including customers, suppliers, competitors, substitutes, and potential new entrants to the industry?

Task Environment

Which of the following characteristics relates to corporate governance?

The formal system of oversight, accountability, and control for organizational decisions and resources

strategic alliance

a partnership formed to create competition advantage on a worldwide basis

Association of Southeast Asian Nations (ASEAN)

a trade alliance that promotes trade and economic integration among member nations in Southeast Asia

In analyzing their external environment, most organizations find that it presents

both threats and opportunities.

The lowering of the fat content in many American food products is an example of

changing values regarding food products.

potential new competitors

companies that are not currently operating in a business industry yet

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

contract manufacturing

socioculture environments

demographics, attitudes, and the values of the society

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?

direct investment

global environments

factors in other countries that affect the organization

world bank

gives loans to less developed countries that helps rebuild infrastructure

substitutes

goods or services that can be used in place of those of furnished business

Which of the following refers to the market value of a nation's total output of goods

gross domestic product

protectionisms

guides that a country will put into place to protect their domestic industries

Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers

have little control over the restaurants.

WTO

helps monitor international trade

Which of the following refers to a tax levied by a nation on goods bought outside its borders and imported into the country?

import tarriff

Which of the following refers to the buying, selling, and trading of goods and services across national boundaries?

international business

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

licensing

A corporation that operates in several countries without significant ties to any of them is a

multinational

dumping

occurs when a country or business firms sells products at less than what it costs to produce them

competitors

other organizations that make similar or identical goods

corporate governance

oversight, accountability, and control for organizational decisions and resources

The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the

political element of the political-legal dimension.

supplier

provide resources to organizations

customers

purchase an organizations goods or services

political-legal environments

relationships between government and the organization

board of directors

represent stockholders in their capacity as owner

exchange controls

restrictions on the amount of a particual currency can leave a country

technical managers

serve under the strategic management and act as middle managers

strategic managers

setting the overall direction of the company

You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook?

social and cultural differences

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

strategic alliance

3 types of managers

strategic, technical, operational

globalization

strategy in in which organizations treat the entire world as the domain for conducting business

The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's

task environment

economic environments

the interactions of economies throughout the world

technological environments

the knowledge and process of changing inputs to outputs

quota

the max number of units in a product that can be imported into a country

The most accurate definition of the technological dimension of the general environment is

the process of changing inputs to outputs.

embargo

the suspension of trade in a particular product by the government

operational managers

transform the organizational inputs into finished outputs and are typically lower-level line managers

joint venture

when a company wants to do business in another country finds a local partner to share the costs and operation of business

You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of

your failure to cope with the technological dimension of the general environment.