Management Environment and Issues Quiz

What is the external environment?

• Factors inside the organization

• Only economic factors affecting the organization

• Only technological innovations

• Factors, forces, situations, and events outside the organization

Which component of the external environment includes interest rates and inflation?

• Economic component

• Sociocultural component

• Technological component

• Demographic component

What does the demographic component focus on?

• Globalization issues

• Technological innovations

• Population characteristics

• Political conditions

What is globalization?

• A focus on domestic markets

• A boundaryless world for goods and services

• A local market strategy

• A method of reducing workforce

What is global sourcing?

• Selling products domestically

• Purchasing materials or labor from the cheapest source

• Investing in foreign subsidiaries

• Creating joint ventures

Which approach involves giving another organization the right to use its brand name?

• Licensing

• Joint venture

• Exporting

• Global sourcing

What is a joint venture?

• A decentralized management approach

• A type of global sourcing

• A partnership forming a separate organization

• A method of exporting products

What type of organization tailors strategies to each country’s unique characteristics?

• Transnational corporation

• Joint venture

• Global corporation

• Multidomestic corporation

What does the GLOBE study focus on?

• Economic factors in globalization

• Technological advancements

• Cultural differences in leadership

• Political stability

Which of the following is NOT a component of the external environment?

• Economic component

• Technological component

• Cultural component

• Political/legal component