Exam 2: The Global Business Environment

The _____ was formed to deal with the rules of trade between nations and is responsible for negotiating and implementing new trade agreements and policing member countries' adherence to them.

Which of the following statements about the various trade agreements is true?

Social values often pose a much lesser challenge than language barriers for a company wanting to expand globally.

In contrast to the dimensions of the task environment,the general environment has the ability to exert a greater influence over a firm.

Which of the following entities belongs to the internal environment of an organization?

Sam,the top manager of TechPark,decides to expand his business globally and creates a new market in Erbia,a neighboring country.Eventually,the company faces issues related to unskilled labor and poor resource positions such as unreliable highway systems and improper communication networks.From this scenario it can be inferred that Sam failed to focus on the _____ dimension of the external environment affecting business.

The consensus principle meant that foreign firms would be subject to the same rules and regulations as a country's domestic firms.

Successful business leaders not only respond to changes in the global business environment but also try to influence it.

The members of a particular society in Rhodia often find it hard to adapt themselves to the changing situations.Therefore,they prefer to follow standard rules and procedures in an attempt to reduce the occurrences of any anxiety causing situations.Which of the following Hofstede's social dimensions is described in the above example?

Briefly describe the different dimensions of the general environment.

The socio-cultural dimension of a firm's environment includes interest rates of all the countries where it sells its products and services.

A firm's task environment includes:

Which of the following is one of the primary goals of ASEAN?

Explain the features of the European Union.

_____ refers to the integration and interdependence of economic,technological,socio-cultural,and political systems across diverse geographic regions.

Of the three main principles of GATT,the most favored nation principle meant that:

To remain competitive,companies:

The theory of comparative advantage proclaims that countries should specialize in producing goods for which they have the lowest opportunity cost of production.

A firm's employees are the people who make the products and provide the services that allow the firm to exist.

Which of the following statements is true about businesses and their leaders?