Exam 2: The Environment of Business

Honata Automobiles is a South Korean-owned company. Honata has factories in Indonesia and Brazil. Which of the following is/are affected by the production of Honata automobiles?

Marquand says: Information technology has had its biggest impact on business in communication and access to data. With the networking and streamlined communication modalities now available to businesses, businesses can collaborate with each other as well as within a business at different locations with the greatest of ease. Businesses also have access to a greater range of information and at a greater speed than ever before. And with this information being constantly updated, businesses now have the ability to plan in response to market conditions with much greater efficiency than before. Stevenson responds: Information is important, but what's most important is how that information is used. And there is no more direct way that information technology has helped businesses than the ability to sell directly. Selling online has opened up entirely new markets that allow businesses to make greater profits, with greater efficiency, than ever before. Many businesses, such as Amazon, have been able to use online selling exclusively to dramatic effect: without having to spend money on bricks-and-mortar storefronts, they can make billions in profits selling products at low prices. Which of the following, if true, would best support Stevenson's position?

Which of the following is the best definition of vertical merger?

What is outsourcing?

Which of the following would be excluded from the GDP of Brazil?

________ uses games, contests, chat rooms, and bulletin boards to encourage potential customers to try out products and tell other people about them.

Flavour Foods runs The Hungry Cow, a chain of fast food restaurants located all over the country. The chain has a loyal customer base and is well-known for its signature dishes like the Big Bite Burger, Springy Fries, and the Orange Float. The company is faced with a critical decision: Should it expand its operations into China? Which of the following, if true, would weaken the argument for competing in the Chinese market?

The rise in housing and food prices means that Canadian consumers now spend a larger proportion of their income on necessities than they did 40 years ago.

When Molson merged with Adolph Coors, this was an example of

When unemployment is low, businesses raise the wages that they are willing to pay.

When comparing GNP to GDP, it is correct to say that

PepsiCo created a new corporation called Tricon Global Restaurants (now called Yum! Brands Inc.) which included Pizza Hut, KFC, and Taco Bell. This is an example of a(n)

The chance that a society can actually achieve full employment is ________ percent.

How does the external environment affect business?

Define the term unemployment.

________ is often cited as a buyer that puts tremendous pressure on its suppliers.

The government controls the size of the money supply through ________ policies.

Inflation causes an increase in the purchasing power of money.

A computer programmer who has just quit her job but who will find a new one soon is an example of ________ unemployment.

Canada's GDP per capita (in $US) is approximately