Thegeneral environment and the task environment are the two layers of an organization’s external environment.
Theouter layer of the external environment is the task environment.
Currentemployees, management, and especially corporate culture are part of an organization’s internal environment.
Accordingto the Spotlight on Skills in Chapter 2, the Chinese concept of guanxi is a supportive, mutually beneficial connection between 2 people.
Customers and competitors are two important sectors of the economic dimension of a firm’s general environment.
Thetask environment includes sectors that have a direct working relationship with the organization, such as customers, suppliers, and the labor market.
Suppliers are the people in the environment who acquire goods and services from the organization.
IfBritish Petroleum (BP) provides jet fuel for American Airlines (AA), then BP is considered a supplier for AA.
Cooperation with suppliers is becoming an exception rather than the rule.
People in the environment who can be hired to work for an organization make up the labor market.
The reason that organizations care so much about the external environment is that this environment creates uncertainty for organization managers.
A merger occurs when there is a strategic alliance between two or more organizations.
The set of key values, beliefs, and norms that are shared by members of an organization are combined to create the symbols of an organization.
Corporateculture includes stories that keep an organization’s values alive.
A symbol is a figure who exemplifies the deeds, character, and attributes of a corporate culture.
A slogan is a phrase or sentence that succinctly expresses a key corporate value.
The security supervisor who once challenged IBM’s chairman because he wasn’t carrying the appropriate clearance identification to enter a security area is an example of a hero.
A global mind-set and international experience are fast becoming prerequisites for managerial success.
The reality of today’s borderless companies means that consumers can easily identify from which country they are buying.
Countertrade is the barter of products for products rather than the sale of products for currency.
Outsourcingis one of the least widespread approaches to international involvement in China and India.
Ethnocentrism within a country makes it easier for foreign firms to operate there.
The ___ includes all elements existing outside the boundary of the organization that have the potential to affect the organization. a) Organizational environment b) Internal environment c) Task environment d) General environment e) Technological environment
The___ environment represents the outer layer of the environment and affects organizations ____. a) Task; indirectly b) General; directly c) Internal; directly d) Internal; indirectly e) General; indirectly
The internal environment includes: a) Current employees, management and the corporate culture b) Current employees, management, but not the corporate culture c) Government, technology and the economy d) Government, technology, corporate culture and the economy e) Corporate culture alone
The phases of globalization are: a) Domestic, international, multinational, & global b) Global, multinational, international, & democratic c) Domestic, international, multinational, & multidomestic d) Cottage, domestic, international, & multinational e) Domestic, cottage, international & global
Inthe ___ stage, the company usually adopts an export-oriented, multidomestic strategic orientation. a) International b) Domestic c) Global d) Stateless e) multinational
According to Spotlight on Skills – Cross Cultural Communication in Chapter 3, all of the following are some basic principles to follow in international business relations EXCEPT: a) Emphasize points of agreement b) Show respect and listen carefully c) Go alone d) Don’t lose your temper e) Save “face” and give face as well
Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country is referred to as: a) Franchising b) Licensing c) Bureaucratic exchange d) Outsourcing e) Countertrading
Most firms being with this strategy for entering foreign markets. a) Exporting b) Greenfield venture c) Joint venture d) Acquisition e) Direct investment
___ is an entry strategy in which the organization maintains its production facilities within its come country and transfers its products for sale in foreign markets. a) Exporting b) Greenfield venture c) Joint venture d) Acquisition e) Direct investment
Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country? a) Franchising b) Licensing c) Market entry strategy d) Outsources e) Activity
According to Benchmarking – Li and Fung in Ch. 3, Li and Fung in Hong Kong deals primarily with: a) Machines b) Information c) Factories d) Fabrics e) Manufacturing
Asa first step into international business, which two countries are most companies going to today? a) Russia & Japan b) Sweden & Germany c) China & India d) Brazil & Philippines e) Indonesia & Brazil
Firms facing the global environment are often faced with challenges in: a) Economic, legal-political & sociocultural environments b) Domestic, economic & legal-political environments c) Legal-political & sociocultural environments d) Only domestic environments e) Economic & sociocultural environments
The managements of business operations conducted in more than one country is called: a) Global management b) International management c) Contingency management d) Planning management e) Domestic management
___generally are located in Asia, Africa & South America. a) MNCs b) EUs c) LDCs d) WTOs e) MFNs
Thecriterion traditionally used to classify countries as developed or developing is: a) Population density b) Per capita income c) Resource and product markets d) Time orientation e) Exchange rates
A Canadian-based manufacturing company opening a plant in Bolivia would need to know that Bolivia has 3,519 kilometers of railroad, 1 sea port, & 16 airports with paved road. This information identifies: a) Parts of the nation’s infrastructure b) A symptom of existing culture barriers c) A means of stereotyping the country d) A part of its legal environment e) The company’s status as a developed nation
If you build a lumber company in a foreign country and then found that you could not find enough people with the right skills to staff your organization, your problem would be related to: a) An inadequate infrastructure b) An economy incapable of supporting growth c) A poor resource market d) A poor product market e) Political barriers to distribution