MGMT 321 Chapter 4 Questions

Which example represents a supplier-related threat? Multiple choice question. A supplier decides to raise the price of an input because he knows that he is the only one who can provide it. A large number of suppliers competitively bid for new contracts in the area. There are a multitude of suppliers to choose from in the country that Zak wants to do business in. The only way Sara can do business in Argentina is to adhere to that country's laws.

A supplier decides to raise the price of an input because he knows that he is the only one who can provide it.

What are economies of scale? Multiple choice question. Any cost advantage associated with large operations The purchasing of inputs from overseas suppliers in order to reduce costs The advantages that come with operating in more than one country Forces that originate from a firm's suppliers, distributors, or competitors

Any cost advantage associated with large operations

After World War II, what did Western industrial countries believe would bring about a healthy domestic economy and low unemployment? Multiple choice question. Trade embargoes Trade barriers Free trade Import taxes

Free trade

Which doctrine holds that the best use of global resources occurs when each country specializes in producing goods and services that it can do most efficiently? Multiple choice question. Free-trade doctrine GATT Economies of scale Monroe doctrine

Free-trade doctrine

After World War II, what international treaty was instituted in the hope of removing barriers to the free flow of goods, services, and capital between countries? Multiple choice question. NAFTA The EU IMF GATT

GATT

Select all that apply What were two results of the Uruguay Round of negotiations? (Check all that apply.) Multiple select question. GATT was dissolved. The WTO was formed. Tariffs increased by 30%. World trade decreased.

GATT was dissolved. The WTO was formed.

Select all that apply Individualism is characterized by which of the following? (Check all that apply.) Multiple select question. Group orientation Individual achievement Individual freedom Self-expression

Individual achievement Individual freedom Self-expression

Which of these factors are economic forces? Multiple choice question. Alliances, trade practices and marketing Goods, services and resources Interest rates, unemployment and economic growth Competition, pressure, and tasks

Interest rates, unemployment and economic growth

Select all that apply Which of the following are characteristics of a global environment? (Check all that apply.) Multiple select question. It is static. It is constantly changing. It is complex. It is predictable.

It is constantly changing. It is complex.

Select all that apply What three values are held by a nurturing orientation? (Check all that apply.) Multiple select question. Quality of life Warm personal relationships Competition Care for the weak Assertiveness

Quality of life Warm personal relationships Care for the weak

What kind of structure reflects the traditional system of relationships established between people and groups in a society? Multiple choice question. Environmental Social Sociocultural Demographic

Social

What force in the general environment stems from either the national culture or from the social structure of a society? Multiple choice question. Technological Demographic Economic Sociocultural

Sociocultural

Select all that apply The general environment is comprised of what three forces? (Check all that apply.) Multiple select question. Competitive forces Sociocultural forces Technology Political forces Product forces

Sociocultural forces Technology Political forces

Which innovation in the transportation industry has resulted in opening up the global environment? Multiple choice question. The growth of commercial jet travel The technological advancements in urban mass transit The growth of high-speed passenger railways The cooperation of countries in regulating waterways

The growth of commercial jet travel

Big Corporation would like to expand its operations and set up a manufacturing plant in Germany. However, it is finding that following German regulations will be very costly for the business. This is an example of _______. Multiple choice question. political pressure unrealistic costs an economy of scale a barrier to entry

a barrier to entry

cause the United States values performance, success, competition, and results, it can be described as a(n) _______ oriented society. Multiple choice question. nurturing rigid ruthless achievement

achievement

Human, financial, resource, and political are the four principal forms of _______ that flow between countries. Multiple choice question. social resources norms beliefs capital

capital

Wealth-generating resources such as money, natural resources, and people are referred to as _______. Multiple choice question. factors of interest credits liabilities capital

capital

The view that people should put group goals ahead of individual goals is referred to as _______. Multiple choice question. collectivism power distance individualism uncertainty avoidance

collectivism

A _______ is an organization that makes and sells goods and services that are similar to other companies' goods and services. Multiple choice question. competitor distributor supplier customer

competitor

Jill's company makes and sells cosmetics. Jill is deciding whether or not to also produce and sell perfume. She has the ability to do so, but hasn't done so yet. For the perfume industry, Jill is considered a potential _______. Multiple choice question. competitor distributor supplier partner

competitor

You manufacture and sell men's work boots. There are three other companies that make work boots similar to yours. These other companies are referred to as your _______. Multiple choice question. suppliers competitors customers distributors

competitors

Extensive rivalry among existing competitors is a major threat to _______. Multiple choice question. consumers' ability to pay competitors' profitability distributors governmentv

competitors' profitability

When a society deems certain norms to be critical to the functioning of society and social life, these norms are called _______. Multiple choice question. folkways mores cultural biases control factors

mores

Managers doing business in a foreign country must be especially sensitive to the _______ of that country. Multiple choice question. educational system fashions foods and drinks norms

norms

The unwritten, informal rules of conduct that prescribe appropriate behavior in certain situations and are considered important by most members of a group are called ______. Multiple choice question. folkways norms values mores

norms

_______ are informal, unwritten codes of conduct that prescribe appropriate behavior in certain situations.

norms

Bill has discovered that it will be less expensive to have his machine parts assembled overseas, so he is contracting with a company in China to handle this production task. This is an example of global _______. Multiple choice question. production outsourcing management insourcing

outsourcing

The purchase of inputs from overseas suppliers to lower production costs is known as global

outsourcing

The integration of countries into the European Union is an example of Blank______. Multiple choice question. social networks antitrust policies demographic forces political and legal forces

political and legal forces

Deregulation would be considered a ______ force. Multiple choice question. technological political or legal force sociocultural demographic force

political or legal force

According to Hostede, _______ describes how differences in individual capabilities result in economic and social differences in wealth, status, and well-being. Multiple choice question. power distance individualism collectivism uncertainty avoidance

power distance

Hofstede's dimension of _______ describes inequalities in power and well-being as resulting from differences in individuals' physical and intellectual capabilities. Multiple choice question. collectivism uncertainty avoidance orientation power distance

power distance

Select all that apply Hofstede's Model of National Culture includes the dimensions of which five factors? (Check all that apply.) Multiple select question. power distance long-term versus short-term orientation certainty avoidance leadership versus nurturing orientation achievement versus nurturing orientation groups versus teams uncertainty avoidance individualism versus collectivism

power distance long-term versus short-term orientation achievement versus nurturing orientation uncertainty avoidance individualism versus collectivism

Select all that apply High levels of rivalry among existing competitors result in _______. (Check all that apply.) Multiple select question. price competition increased profits lower prices decreased profits higher prices

price competition lower prices decreased profits

When new competitors enter an industry, competition increases and _______. Multiple choice question. illegal or unethical activities increase profits and prices increase companies collaborate better profits and prices decrease

profits and prices decrease

Free-trade areas create opportunities for manufacturing organizations by letting them _______. Multiple choice question. reduce their costs increase their costs increase their manpower reduce their manpower

reduce their costs

A society that is rigid and wary of people whose behaviors deviate from the norm is said to be high on _______. Multiple choice question. collectivism a nurturing orientation an achievement orientation uncertainty avoidance

uncertainty avoidance

Beliefs about what a society considers good, right, desirable, or beautiful are called

values

One of the basic building blocks of national culture are ______ --- those beliefs that provide the basic underpinnings for notions of personal freedom, democracy, truth, justice, etc. Multiple choice question. folkways values norms mores

values

A plumbing supply manufacturer located in Minnesota sells its products directly to customers in that state. However, to help sell its products in other states, it uses companies called _______. Multiple choice question. suppliers producers manufacturers distributors

distributors

Sometimes companies use other organizations to help them sell their products. These other organizations are referred to as _______. Multiple choice question. distributors competitors customers suppliers

distributors

Both individuals and businesses are negatively affected when a country experiences inflation and high unemployment. These factors are considered _______ forces in the general environment. Multiple choice question. economic demographic political technological

economic

When interest rates, inflation or unemployment affect the general health of a country, these are described as _______ forces. Multiple choice question. technological legal economic socio-cultural

economic

Large corporations can take advantage of _______ when they are able to buy inputs in bulk or produce goods in very large quantities. Multiple choice question. brand loyalty economies of scale the general environment the task environment

economies of scale

Multicorp, a U.S. firm, has a manufacturing plant in Asia. Its overseas operation has to contend with forces and conditions outside of the firm's control; this affects how Multicorp does business. Multicorp operates in a(n) _______ environment. Multiple choice question. multi-national global universal organizational

global

Trusty Tool Works has manufacturing plants in the United States and in Mexico. It is considered a _______ organization. Multiple choice question. diverse universal foreign global

global

In ________ -power-distance societies, inequalities grow over time.

high

Why is operating in a global environment uncertain and unpredictable? Multiple choice question. Because it contains plentiful resources Because it s complex and constantly changing Because it is static and so well protected that it is isolated around the world Because it is simplistic and static

Because it s complex and constantly changing

Select all that apply What are the three main sources that result in barriers to entry? (Check all that apply.) Multiple select question. Brand loyalty Technological advancements Economies of scale Decreased competition Government regulations

Brand loyalty Economies of scale Government regulations

Select all that apply What are two ways that free-trade areas have created opportunities for manufacturing organizations to reduce their costs? (Check all that apply.) Multiple select question. By serving the whole region from one location By establishing separate operations in each country By shifting production to the lowest-cost location within the free-trade area By increasing the number of employees in each location

By serving the whole region from one location By shifting production to the lowest-cost location within the free-trade area

How does national culture shape individual behavior? Multiple choice question. By specifying appropriate and inappropriate behavior when interacting with others By defining universal beliefs, morals, customs, and traditions By setting rules and laws governing the noncompliance of cultural norms By reducing the language barrier

By specifying appropriate and inappropriate behavior when interacting with others

Select all that apply Which four factors would be considered an economic force that affects the general health and well-being of a country or world region? (Check all that apply.) Multiple select question. Population New technology Changes on population demographics Economic growth Inflation Unemployment Interest rates Need help? Review these concep

Economic growth Inflation Unemployment Interest rates

What barrier to entry is at play when a large company is able to lower its costs because of the ability to manufacture in large quantities and the result is that newcomers find it difficult to enter the industry? Multiple choice question. Brand loyalty Economies of scale Brand awareness Government regulations

Economies of scale

What is being described if one country values individualism while another country expects people to conform to group expectations? Multiple choice question. National culture Social structure Attitudes National structure

National culture

What is described as the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society? Multiple choice question. Attitudes National structure National culture Social structure

National culture

Select all that apply The general environment is made up of which four wide-ranging forces that affect an organization? (Check all that apply.) Multiple select question. Supplier Political and legal Sociocultural Technological Economic Competitive

Political and legal Sociocultural Technological Economic

_______ are organizations that could make the same products or provide the same services and have the resources to do so, but are not presently in the same task environment. Multiple choice question. Potential competitors Buyers Potential customers Retailers

Potential competitors

Select all that apply What two things typically happen when new competitors enter an industry? (Check all that apply.) Multiple select question. Profits and prices decrease. Competition increases. Companies collaborate better. Profits and prices increase.

Profits and prices decrease. Competition increases.

Select all that apply Although globalization has brought more countries together, the cultures of different countries still vary widely because of vital differences in their _______. (Check all that apply.) Multiple select question. geographies politicians attitudes values norms

attitudes values norms

When a firm wants to enter an industry, _______ are factors that make it costly or difficult to do so. Multiple choice question. economies of scale task difficulties brand quality barriers to entry

barriers to entry

There are several pizza chains on campus, but Jake prefers Pizza Town and will only eat pizza from there. Jake is exhibiting _______. Multiple choice question. generic brand bias brand loyalty brand awareness economies of scale

brand loyalty

Jerry buys wheels and other plastic parts from Fred in order to make his line of toy trains. Jerry is a _______. Multiple choice question. stockholder distributor customer supplier

customer

When you purchase something from a retail store in a mall, you are considered that store's _______. Multiple choice question. distributor stockholder supplier customer

customer

Changes in specific characteristics that define populations such as age, gender, and even sexual orientation are all examples of _______ forces. Multiple choice question. aging civil sociocultural demographic

demographic

When a population experiences changes in its makeup due to gender, race, or social class, it is a result of _______ forces. Multiple choice question. demographic sociocultural economic political

demographic

A(n) _______ environment refers to the set of forces and conditions in the world that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources. Multiple choice question. multi-national global universal organizational

global

An organization based in the United States also has operations in countries around the world. It is known as a(n) _______ organization. Multiple choice question. global alien foreign multi-domestic

global

Geert Hofstede's model of national culture identifies _______ dimensions along which national cultures can be placed. Multiple choice question. three seven five ten

five

Political and legal forces that affect the way a company does business are a part of the Blank______ environment. Multiple choice question. competitive general task marketing

general

Political and legal forces that affect the way a company does business are a part of the Blank______ environment. Multiple choice question. task general competitive marketing

general

Wide-ranging conditions such as demographic or political and legal forces that affect an organization and its task environment form the organization's _______ environment. Multiple choice question. specific general task operating

general

Economic, political, and legal forces are external elements in the _______ environment; whereas, industry competitors and distributors are elements of the _______ environment. Multiple choice question. multinational, task task; task general; multinational general; task

general; task

Economic, political, and legal forces are external elements in the _______ environment; whereas, industry competitors and distributors are elements of the _______ environment. Multiple choice question. task; task multinational, task general; multinational general; task

general; task

Technological advances have had a major impact on globalization by _______ the speed and ease of communication. Multiple choice question. decreasing holding steady increasing eliminating

increasing

For companies that operate globally, their purchasing activities have become _______. Multiple choice question. relatively simple vastly easier rather costly increasingly complex

increasingly complex

For companies that operate globally, their purchasing activities have become _______. Multiple choice question. vastly easier increasingly complex rather costly relatively simple

increasingly complex

In Hofstede's model, the dimension that states that people should be judged by their personal accomplishments rather than by their social background is _______. Multiple choice question. uncertainty avoidance collectivism power distance individualism

individualism

According to Hofstede's model, _______ values individual freedom and self-expression while _______ values the goals of the group over the goals of the individual. Multiple choice question. collectivism; individualism individualism; power distance individualism; collectivism power distance; collectivism

individualism; collectivism

The United States is a country that values the rights of the individual; in Japan, there is a strong identification with the group. According to Hofstede's model, the United States is a(n) _______ culture and Japan is a(n) _______ culture. Multiple choice question. collectivist; individualist individualist; collectivist power hungry; nice open-minded; closed-minded

individualist; collectivist

If companies already enjoy economies of scale in the task environment, it makes _______. Multiple choice question. it more difficult to utilize employees' skills it affordable for competitors to develop new products it expensive for new companies to enter the industry products more expensive overall

it expensive for new companies to enter the industry

According to Hofstede, when a society's government uses taxation and social welfare programs to counter large inequalities, that society is said to have _______. Multiple choice question. low uncertainty avoidance high power distance low power distance high uncertainty avoidance

low power distance

If Monique will only use Bare Minerals cosmetics, she exhibits brand _____________ toward Bare Minerals.

loyalty

The three main causes of barriers to entry are government regulations, economies of scale and brand _______. Multiple choice question. confusion dilution recognition loyalty

loyalty

The violation of mores brings _______. Multiple choice question. a good reputation a pleasant workplace serious retribution rewards

serious retribution

The traditional system of relationships established between people in a society is called the

social structure

The arrangement of relationships between individuals and groups in a society is known as _______; whereas, the set of values that a society considers important and the norms of approved behavior in that society defines _______. Multiple choice question. clan culture; national culture social structure; national culture national culture; demographic culture social structure; clan culture

social structure; national culture

In the United States, there is an increased concern about managing diversity in the workplace. This is an example of a(n) _______ force. Multiple choice question. demographic legal sociocultural economic

sociocultural

Select all that apply It is easier for companies to coordinate complicated global purchasing exchanges using Blank______. (Check all that apply.) Multiple select question. the Internet organizational socialization information technology a cohesive culture

the Internet information technology

A person or organization that provides the raw materials needed for a company to produce its products is known as that company's _______. Multiple choice question. supplier distributor customer competitor

supplier

In order to produce goods and services, companies need input resources, such as raw materials or component parts. The individuals or organizations that provide these input resources are known as _______. Multiple choice question. traders shareholders suppliers deliverables

suppliers

A government tax on imports or sometimes even on exports is a(n) _______. Multiple choice question. tariff embargo acquisition force

tariff

When the government of Mexico decides to tax goods being imported into its country, it is imposing a(n) _______. Multiple choice question. embargo quota tariff sanction

tariff

The _______ environment most immediately affects managers and contains the set of forces and conditions that originate with global suppliers, distributors, customers, and competitors. These forces and conditions affect an organization's ability to obtain inputs and dispose of its outputs. Multiple choice question. competitive task integrated general

task

conditions that stem from suppliers, distributors, or customers that affect a company's ability to obtain inputs or dispose of outputs are part of the _______ environment. Multiple choice question. competitive general task working

task

The _______ environment has the most immediate and direct effect on managers and influences their daily work lives. The _______ environment is a source of more encompassing forces that managers must address in order to preserve organizational performance. Multiple choice question. general; task task; general general; personnel personnel; task

task; general

When a company combines the use of machines, information, and computers to design, make, and distribute goods and services, it is using _______ to do so. Multiple choice question. global chain management globalization technology barriers to trade

technology

oe is an architect. He uses computer-aided design programs and 3D printers to help him design homes and buildings. Joe uses _______ to help him in his job. Multiple choice question. economic forces demographics technology globalization

technology

Select all that apply A supplier's bargaining position is strong when _______. (Check all that apply.) Multiple select question. there are a number of substitutes for the supplier's product the input is vital to the organization the supplier is one of many available suppliers the supplier is the sole source of input

the input is vital to the organization the supplier is the sole source of input

In collectivism, people are judged by _______. Multiple choice question. how well they express themselves the amount of individual freedom they desire their contribution to the group their individual accomplishments

their contribution to the group