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MGM101 > Chapter 6 > Flashcards

Chapter 6 Flashcards

1
Q

Characteristics such as current demand and supply and type of competition help determine the ________ in which a business operates.

A

economic environment

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2
Q

The _______ environment is the relevant conditions that exist in the economic system in which a company operates.

A

Economic

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3
Q

What is outsourcing?

A

A senior assisted-living facility has started sending its linens out to a commercial laundry firm because the laundry firm can clean them more cheaply.

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4
Q

Making shoelaces is a specific process that Nike needs as part of its shoes, but it can be done cheaper in Bangladesh where the cost of labour is significantly less than Canada. The action of moving shoelace production is known as ________.

A

outsourcing

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5
Q

To determine the ________ for a given country for a given year, you need to know the total value of all goods and services a national economy produces during that year using its domestic factors of production, and its population.

A

GDP per capita

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6
Q

What is a joint venture?

A

A strategic alliance in which the collaboration involves shared ownership of the new venture

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7
Q

What is the socio-cultural environment?

A

The customs, mores, values, and demographic characteristics of the society in which an organization functions

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8
Q

What is a strategic alliance in which the collaboration involves shared ownership of the new venture?

A

Joint venture

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9
Q

If the economy shrinks for two consecutive sessions, the economy is experiencing a __________ .

A

recession

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10
Q

A __________ occurs when the trough of the business cycle extends two or more years.

A

depression

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11
Q

What is the total amount of money a country owes its creditors?

A

National debt

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12
Q

Explain cyclical unemployment

A

People are out of work because of a downturn in the business cycle.

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13
Q

What is basic (or pure) R&D?

A

Improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable

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14
Q

What would you need to determine the GDP per capita for a given country for a given year?

A

The total value of all goods and services a national economy produces during that year using its domestic factors of production, and its population

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15
Q

Explain acquisition

A

An acquisition is the purchase of one company by another.

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16
Q

What is the union of two corporations to form a new corporation.

A

merger

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17
Q

What is strategic alliance?

A

A strategic alliance is a strategy in which two or more organizations collaborate on a project for mutual gain.

18
Q

What is a strategy whereby a firm sells one or more of its business units?

A

diverstiture

19
Q

A period where the Canadian economy experiences generally falling prices is described by the term ___________.

A

deflation

20
Q

What is economic environment?

A

The relevant conditions that exist in the economic system in which a company operates

21
Q

There are always a certain amount of people that are out of work temporarily while looking for a new job. This is known as ___________.

A

frictional unemployment

22
Q

What defines a company that is owned by another corporation?

A

Subsidiary

23
Q

The strategy of setting up one or more corporate units as new independent corporations is known as a __________.

A

spinoff

24
Q

The level of joblessness among people actively seeking work in an economic system is the definition of _________.

A

unemployment

25
Q

What is a company that is owned by another corporation?

A

Subsidiary

26
Q

In Canada, the federal government uses _______ to manage its revenues.

A

Fiscal policies

27
Q

What is a measure of the prices of typical products purchased by consumers living in urban areas?

A

Consumer price index

28
Q

The growth (and contraction) pattern of short-term ups and downs in an economy is called the __________.

A

business cycle

29
Q

What is the purchasing power parity?

A

Exchange rates that are set so the prices of similar products in different countries are about the same

30
Q

If executives at Holt Renfrew are conducting an industry analysis using Porter’s five forces model, which of the following elements are they considering when examining the possibility for American companies to cross the border and open up stores in Canada?

A

Threat of potential entrants

31
Q

When the money supply of a country expands but production does not, what is the likely result?

A

Inflation

32
Q

The total of a country’s exports (sales to other countries) minus its imports (purchases from other countries) is known as the __________.

A

balance of trade

33
Q 
The​ \_\_\_\_\_\_ is everything outside an​ organization's boundaries that might affect it.
A.
external environment
B.
multiple organizational environments
C.
internal environment
D.
organizational exterior
E.
organizational environment
A

external environment

34
Q 
When the economy experiences two or more consecutive quarters of decline in GDP we call this​ a(n) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A.
business cycle
B.
depression
C.
economic cycle
D.
collapse
E.
recession
A

recession

35
Q 
The​ \_\_\_\_\_\_ is the total of a​ country's exports minus its imports.
A.
budget surplus or deficit
B.
nominal GDP
C.
balance of trade
D.
balance of payment
E.
aggregate output
A

balance of trade

36
Q 
Inflation in canada is measured by the​ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
A.
standard of living
B.
producer price index
C.
national debt
D.
consumer price index
E.
internal debt
A

consumer price index

37
Q 
Although many people associate technology with​ \_\_\_\_\_\_. it is also a significant factor in the​ \_\_\_\_\_\_ sector.
A.
arts and​ entertainment; design and development
B.
​service; manufacturing
C.
​manufacturing; service
D.
​automotive; parts
E.
​agricultural; manufacturing
A

​manufacturing; service

38
Q 
When​ McDonald's responds to concerns about nutrition and health by adding salads to its​ menu, they are pursuing opportunities in the​ \_\_\_\_\_\_\_\_\_\_\_\_ environment.
A.
technological
B.
sociocultural
C.
competitive
D.
economic
E.
Political-legal
A

sociocultural

39
Q 
When someone purchases a train ticket instead of an airplane ticket to take a trip between two​ cities, this reflects​ \_\_\_\_\_\_ according to​ Porter's five forces model.
A.
the rivalry among existing competitors
B.
the bargaining power of buyers
C.
the threat of substitute products
D.
the threat of potential entrants
E.
the bargaining power of suppliers
A

the threat of substitute products

40
Q 
\_\_\_\_\_\_\_\_\_ is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services.
A.
Virtual management
B.
Offshoring
C.
Viral marketing
D.
Core competency
E.
Outsourcing
A

Outsourcing

41
Q 
The​ \_\_\_\_\_ environment includes the​ customs, mores,​ values, and demographic characteristics of the society in which an organization functions.
Question content area bottom
Part 1
A.
global
B.
domestic
C.
sociocultural
D.
economic
E.
​political-legal
A

sociocultural

42
Q 
Competition from companies such as​ BMW, Hyundai, and Honda is a part of Ford Motor​ Company's \_\_\_\_\_ business environment.
Question content area bottom
Part 1
A.
sociocultural
B.
economic
C.
​political-legal
D.
domestic
E.
global
A

domestic

MGM101 (17 decks)

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