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
Multiple Choice
What benefits does the global environment offer organizations?
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The global environment provides organizations with several opportunities to increase efficiency and effectiveness.
The global environment is easy to operate within and is constant, straightforward, and predictable.
Fluctuating sociocultural factors never affect the performance of organizations that function at a global level.
Organizations are faced with fewer challenges and risks when they grow to prominence internationally.
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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It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
It contains the forces that have the least immediate effect on managers and their decisions.
It contains opportunities and threats that are harder to identify than those in the general environment.
It is a framework of environmental policies that dictate the CSR policies of global organizations.
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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It contains opportunities and threats that are easier to identify and respond to than those in the task environment.
It comprises the set of forces that originate with global suppliers, distributors, customers, and competitors.
It includes the wide-ranging global, technological, sociocultural, and political forces that affect organizations.
It contains the forces that have the most immediate effect on managers and their decisions.
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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They are both a set of geopolitical forces that are predictable and unchanging.
They both present managers with few opportunities and risks when operating at a global level.
They are both a set of forces and conditions that operate beyond an organization's boundaries.
They both contain challenges that are easily identified and anticipated.
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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Threats in the general environment are easier to respond to than threats in the task environment.
Forces in the task environment have a more immediate and direct effect on managers than forces in the general environment.
Opportunities in the task environment are less easy to identify than opportunities in the general environment.
Unlike the task environment, the general environment deals with conditions that affect an organization's ability to obtain inputs and dispose of outputs.
Unlike the general environment, the task environment includes the global, economic, sociocultural, political, and legal forces that affect an organization.