Managing In The Global Environment

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Question 1
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Opportunities and threats that result from changes in the task environment are easier to identify and respond to than events in the general environment.

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Question 2
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A high level of rivalry typically results in price competition that increases existing prices.

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Question 3
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The greater the economies of scale of an existing organization, the lower are the barriers to entry for new competitors.

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Question 4
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Managers today have fewer ways to supervise and coordinate geographically dispersed employees.

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Question 5
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The aging of the population of a country is an example of a demographic force that affects organizations in the country.

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Question 6
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Nations forming political unions that allow free exchange of resources and capital is an example of the political and legal forces in the environment.

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Question 7
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Falling trade barriers pose a serious threat to the nation's domestic market because they increase competition in the task environment.

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Question 8
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Globalization has increased the levels of interdependence between people and nations.

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Question 9
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The aim of import tariffs is to encourage the entry of foreign goods into a country's market.

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Question 10
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The establishment of free-trade areas is not beneficial for manufacturing organizations since it increases their costs.

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Question 11
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Norms are written codes of conduct that prescribe appropriate behavior in particular situations and are considered important by most members of a group or organization.

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Question 12
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According to Hofstede's model of national culture, individualist societies adhere to the principle that people should be judged by their individual achievements rather than by their social background.

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Question 13
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According to Hofstede, the gap between the rich and poor in high-power-distance societies grows very large.

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Question 14
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According to Hofstede, in low-power-distance countries, the societies prevent a large gap between rich and poor and minimize inequalities between different classes of citizens.

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Question 15
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Organizations with culturally homogeneous management teams are best equipped to tailor their management systems to meet the requirements of different cultures.

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Question 16
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What benefits does the global environment offer organizations?

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A
The global environment provides organizations with several opportunities to increase efficiency and effectiveness.
B
The global environment is easy to operate within and is constant, straightforward, and predictable.
C
Fluctuating sociocultural factors never affect the performance of organizations that function at a global level.
D
Organizations are faced with fewer challenges and risks when they grow to prominence internationally.
E
Organizations that operate internationally seldom compete for scarce and valuable resources.
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Question 17
Multiple Choice

Which of the following is true about the task environment?

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A
It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
B
It contains the forces that have the least immediate effect on managers and their decisions.
C
It contains opportunities and threats that are harder to identify than those in the general environment.
D
It is a framework of environmental policies that dictate the CSR policies of global organizations.
E
It is the set of forces that originate with global suppliers, distributors, customers, and competitors.
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Question 18
Multiple Choice

Which of the following is true about the general environment?

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A
It contains opportunities and threats that are easier to identify and respond to than those in the task environment.
B
It comprises the set of forces that originate with global suppliers, distributors, customers, and competitors.
C
It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
D
It contains the forces that have the most immediate effect on managers and their decisions.
E
It contains forces that have very little impact upon the performance of organizations.
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Question 19
Multiple Choice

In what way is the task environment similar to the general environment?

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A
They are both a set of geopolitical forces that are predictable and unchanging.
B
They both present managers with few opportunities and risks when operating at a global level.
C
They are both a set of forces and conditions that operate beyond an organization's boundaries.
D
They both contain challenges that are easily identified and anticipated.
E
They are both forces that are easy to control and have little impact on organizational performance.
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Question 20
Multiple Choice

In what way does the task environment differ from the general environment?

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A
Threats in the general environment are easier to respond to than threats in the task environment.
B
Forces in the task environment have a more immediate and direct effect on managers than forces in the general environment.
C
Opportunities in the task environment are less easy to identify than opportunities in the general environment.
D
Unlike the task environment, the general environment deals with conditions that affect an organization's ability to obtain inputs and dispose of outputs.
E
Unlike the general environment, the task environment includes the global, economic, sociocultural, political, and legal forces that affect an organization.
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