Quiz 2: Chapter 2- The Global Business Environment

Question 1

Globalization

Answer 1

the integration and interdependence of economic, technological, sociocultural, and political systems across diverse geographic regions

Question 2

GATT

Answer 2

General Agreement on Tariffs and Trade

Question 3

WTO

Answer 3

World Trade Organization

Question 4

ASEAN

Answer 4

Association of South Eastern Asian Nations
Three main goals;
1) Accelerating economic growth
2) Promoting social and cultural development
3) Ensuring peace and stability

Question 5

NAFTA

Answer 5

North American Free Trade Agreement

• 1994
• The treaty eliminates tariffs among the nations

Question 6

IMF

Answer 6

International international trade organization

Question 7

EU history

Answer 7

European Union- took current form in 1993, introduced the euro in 1999 and 17 countries have adopted it

Question 8

MERCOSUR

Answer 8

Includes; Argentina, Brazil, Paraguay, Uruguay, and Venezuela
-established in 1991
the fourth largest regional trading group
seeks to create an economic juggernaut in South America

Question 9

Comparative Advantage

Answer 9

an economic theory that proclaims countries should specialize in producing goods for which they have the lowest opportunity cost of production

Question 10

External environement

Answer 10

represents all of the external forces that affect the firm’s business

Question 11

General environment

Answer 11

Includes the technological, economic, political/legal, and sociocultural dimensions that affect a firm’s external environment

Question 12

Task environment

Answer 12

includes entities that directly affect a firm on a constant basis and include competitors, suppliers, and customers

Question 13

General environment

Answer 13

Includes Technological, Economic, Political/legal, & sociocultural aspects

Question 14

Technological dimensions

Answer 14

the processes, technologies, or systems that a firm can use to produce outputs

Question 15

Economic dimensions

Answer 15

the general economic environment (GDP, inflation, and unemployment) in the markets where the firm performs activities

Question 16

Political Dimension

Answer 16

refers to the political events and activities in a market that affect a firm

Question 17

Legal Dimension

Answer 17

refers to the regulations and laws that a firm encounters in its markets

Question 18

Sociocultural dimension

Answer 18

demographic characteristics as well as the values and customes of a society

Question 19

Social values

Answer 19

the deeply rooted system of principles that guide individuals in their everyday choices and interactions

Question 20

Firms that expand globally need to be sensitive toward

Answer 20

social values and cultures

Question 21

Task environment

Answer 21

Competitors, Suppliers, & Customers

Question 22

Competitor

Answer 22

any organization that creates goods or services targeted at a similar group of customers

Question 23

Suppliers

Answer 23

provides resources or services for a firm to help in its creation of products and services- it is not economical for companies to produce everything in house

Question 24

Customers

Answer 24

the people or other organizations that buy a firm’s products and services

Question 25

Internal Environment

Answer 25

a group of parties or factors that directly impact a firm, including owners, the board of directors, employees, and culture

Question 26

Owners

Answer 26

the people or institutions that maintain legal control of an organization

Question 27

Board of Directors

Answer 27

a group of individuals elected by the shareholders and charged with overseeing the general direction of the firm

Question 28

Employees

Answer 28

the people who make the products and provide the services on behalf of an organization allowing the firm to exist