Chapter 5 Global Business – Flashcards
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The relationships among ecological, social, and economic systems in sustainable environments need to be: A. discreet. B. renewable. C. positive. D. interdependent.
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D. interdependent.
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The stakeholder model requires businesses to think about: A. the stakeholders' interest in profitability. B. the network of tensions caused by competing demands. C. strategy in light of sustainability. D. the frequency of social issues faced by the stakeholders.
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B. the network of tensions caused by competing demands.
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Stakeholder theory pushes managers to be clear about how they want to do business, so it encourages: A. recognition of and transparency with values and underlying principles. B. discussion of profit center margins. C. strategy development from the top down. D. B and C.
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A. recognition of and transparency with values and underlying principles.
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Interface, the producer of Flor carpeting, has a solid record in sustainable business practice and: A. makes impressive contributions to sustainable development in developing economies. B. is committed to triple-bottom-line accounting. C. spins its products from petroleum. D. sources its raw materials from recycled plastic bottles.
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C. spins its products from petroleum.
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Patagonia recognizes that doing business following the traditional approach, focusing on quarterly earnings, is not complete because this does not focus on: A. the negative impact of the business. B. the cost of environmental sustainability. C. consumer needs for green merchandise. D. triple-bottom-line (3BL) accounting.
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A. the negative impact of the business.
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Chouinard, the founder of Patagonia, observed that: A. triple-bottom-line accounting is the way to build sustainability. B. compassion is the first step in sustainability. C. our approach to fossil fuel consumption is clearly unsustainable. D. no business can be done on a dead planet.
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D. no business can be done on a dead planet.
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Physical barriers that have led to the development of separate languages in the same country are known as: A. political and cultural patterns. B. topographical barriers. C. linguistic tariffs. D. differentiating borders.
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B. topographical barriers.
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With factor conditions, Porter's diamond model distinguishes between basic factors, those a country inherits, and A. imported factors, those it brings in from abroad. B. demand conditions, the aggregate demand in the economy. C. climate conditions, the basic influence on business options in the specific location. D. advanced factors, those a country can mold: labor and infrastructure.
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D. advanced factors, those a country can mold: labor and infrastructure.
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Swiss exports are concentrated, high-density products that minimize the need for importing bulky materials because: A. mountain ranges increase transport costs into and out of Switzerland and limit local resources. B. the Swiss love of chocolate and watches influenced the export patterns. C. high-density exports encounter lower tariffs. D. B and C.
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A. mountain ranges increase transport costs into and out of Switzerland and limit local resources.
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Geographical proximity contributes to: A. knowledge of the country by its neighbors. B. lower freight costs. C. the likelihood of trade relationships. D. all of the above.
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D. all of the above
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Topography, including mountains, deserts, plains, and bodies of water, greatly influences: A. political relationships. B. the physical distribution of products and services. C. the local approach to education and health services. D. local attitudes toward industrially developed economies.
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B. the physical distribution of products and services.
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Nations whose mountains divide them into smaller regional areas include: A. the United States, Mexico, and Canada. B. Switzerland, Afghanistan, China, and Colombia. C. Luxembourg, France, and Romania. D. Estonia, Latvia, and Lithuania.
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B. Switzerland, Afghanistan, China, and Colombia.
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One example of the effect of topography is: A. isolated language groups, which require special marketing adjustments. B. regional metals markets. C. a unified China. D. equal distribution of populations.
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A. isolated language groups, which require special marketing adjustments.
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A good example of the relationship between water supply and population concentration is: A. eastern Europe B. China C. Australia D. Japan
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C. Australia
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In more dense populations, international managers can expect: A. increased political discord. B. markets that respond well to word-of-mouth promotion. C. contrasting topographical features. D. lower marketing and distribution costs.
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D. lower marketing and distribution costs.
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Densely populated areas coincide with: A. rivers, lakes, and seacoasts. B. inland waterways. C. rich mineral reserves and rare earth deposits. D. low levels of environmental awareness.
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A. rivers, lakes, and seacoasts.
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Climate influences: A. intelligence and energy levels, per the North-South divide. B. what people can do, physically and economically. C. levels of emotional well-being. D. adjustment and motivation.
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B. what people can do, physically and economically.
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World Bank studies have shown that underdevelopment is often due to: A. factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures. B. mental slowness in people of the climates around the equator. C. socialist political regimes. D. lack of government investment in education.
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A. factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures.
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Petroleum, a relatively cheap nonrenewable energy source, is: A. in abundant supply but is not environmentally clean. B. being increasingly depleted and is expected to run out in another 50 years, but in the meantime, improved retrieval techniques are being developed. C. clean, cheap, and available, but most of the reserves are located in countries whose leadership is critical of the industrialized world. D. expected to run out in another 10 years and needs to be replaced with renewable energy sources quickly.
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B. being increasingly depleted and is expected to run out in another 50 years, but in the meantime, improved retrieval techniques are being developed.
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The top four countries in proven reserves are: A. China, Japan, Singapore, and Malaysia. B. Kuwait, Saudi Arabia, the United States, and Mexico. C. Qatar, Libya, Nigeria, and Venezuela. D. Saudi Arabia, Canada, Iran, and Iraq.
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D. Saudi Arabia, Canada, Iran, and Iraq.
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Heavy oil is: A. a group of unconventional oil sources such as oil sands, shale, coal, and natural gas, all of which via processing can yield oil. B. a rich oil found in deposits in Saudi Arabia and Kuwait whose molecular weight is heavier than normal oil. C. oil extracted from biomass that is reprocessed.
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A. a group of unconventional oil sources such as oil sands, shale, coal, and natural gas, all of which via processing can yield oil.
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As an energy source, nuclear power: A. is growing significantly, especially in developing countries. B. has been growing as the price of oil climbs and cleaner energy sources (nonpolluting) are sought. C. has been exploited by France, which has one of the lowest greenhouse gas emissions in the industrialized world. D. all of the above.
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D. all of the above.
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Coal pollutes heavily: A. so its use has declined markedly in the past 15 years. B. yet its consumption has increased and is projected to continue on this trend, especially in China and India. C. and contributes to greenhouse gas emissions, especially in China, India, and the United States. D. B and C.
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D. B and C.
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Renewable energy sources: A. will replace fossil fuels, due to price, depletion, or carbon emissions. B. are growing at greater rates than the nonrenewables in the United States and Europe. C. A and B. D. are all available everywhere.
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C. A and B.
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The area with the greatest capacities in renewables as of 2010 is: A. the United States. B. European Union. C. India. D. Japan.
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B. European Union.
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Nonfuel minerals: A. include chrome, manganese, platinum, and arsenic, all necessary for modern living. B. are mostly sourced through imports in the United States. C. frequently originate in China. D. all of the above.
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D. all of the above.
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Environmental sustainability is both local and global because: A. environmental conditions do not recognize national borders. B. governments are not prepared to address environmental issues beyond the UN. C. business has become global, so sustainability must follow the trend. D. all of the above.
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A. environmental conditions do not recognize national borders.
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The three characteristics of evolving sustainable business practices are: A. local, global, and improving quality of life. B. environmental sustainability, quality-of-life sustainability, and triple-bottom-line accounting. C. limits, interdependence, and equity. D. none of the above.
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C. limits, interdependence, and equity.
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Sam Palmisano, CEO of IBM, has described a new way of doing business that goes to equity of distribution by observing that: A. profit sharing will need to increase. B. stakeholder theory provides a way forward, combining local and global. C. IBM would end its colonial company model and move on to an integrated model with high levels of trust among stakeholders. D. A and B.
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C. IBM would end its colonial company model and move on to an integrated model with high levels of trust among stakeholders.
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Stakeholder theory is an understanding of how business works that: A. takes into account culture and environmentalism. B. rejects the importance of the bottom line. C. emphasizes planning. D. takes into account all identifiable interest holders.
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D. takes into account all identifiable interest holders.
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A way to measure a company's success in sustainable business practices is: A. to examine the return on investment. B. triple-bottom-line accounting. C. to monitor the company in a social context. D. to review the marketing materials.
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B. triple-bottom-line accounting.
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A specific example of a sustainable business is Patagonia, as evidenced in its: A. Footprint Chronicles program that addresses the trade-offs global sourcing creates and evaluates the impact of sourcing decisions. B. ecosystem model of sustainability that relies on the synergies between financial, environmental, and social elements. C. product lines and credit policies. D. A and B.
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D. A and B.
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Porter's diamond is a model that offers an explanation of: A. differing levels of success among the national players in world markets. B. endowment factor differentials. C. the impact of climate on development. D. macro-level FDI.
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A. differing levels of success among the national players in world markets.
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Climate is probably the most important element of the physical forces, as it sets the limits on: A. annual rainfall, and thus water supply. B. population growth patterns. C. what people can do physically and economically. D. expected FDI.
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C. what people can do physically and economically.
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The main transportation artery of Europe is the: A. Venice canal system. B. Danube-Dresden waterway. C. Lake Constantine system. D. Rhine waterway.
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D. Rhine waterway.
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Bodies of water that provide inexpensive access to interior markets are known as: A. inland waterways B. seaway outlets. C. river systems. D. inland oceans.
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A. inland waterways
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Every continent has inland waterways that provide inexpensive access to interior markets except: A. Russia. B. North Africa. C. Australia. D. North America.
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C. Australia.
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The North-South divide uses climatic differences to explain: A. population differences. B. trade patterns. C. differences in human development. D. cultural differences.
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C. differences in human development.
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Studies conducted by the World Bank indicate that tropical climates allow for: A. the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites. B. lack of the need to provide heat and shelter that is present in northern climates. C. unparalleled trade. D. cultivation of citrus and four crops per year.
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A. the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.
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Natural resources are: A. anything that is alive in the natural world. B. anything provided by nature on which people depend. C. any raw material that becomes a component in a manufactured good. D. anything that is used for food or fuel.
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B. anything provided by nature on which people depend.
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The marketed energy use has been dominated since 1980 by: A. renewable energy sources. B. nuclear energy and coal. C. nonrenewable energy sources. D. solar and wind power.
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C. nonrenewable energy sources.
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The International Energy Agency 2010 report observes that an energy revolution underway may well lead to: A. a 27 percent drop in oil usage. B. North America becoming the center of alternative energy research. C. Africa and the Middle East increasingly relying on fossil fuels. D. Europe relying increasingly on nuclear.
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A. a 27 percent drop in oil usage.
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Unconventional sources of petroleum such as oil sands and shale are often grouped together and referred to as: A. nonrenewable hopes. B. new sources. C. peak sources. D. heavy oil.
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D. heavy oil.
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This material, when heated to 500°C, will yield 25 liters or more per ton of input: A. shale. B. biomass. C. natural gas. D. light petroleum.
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A. shale.
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The largest portion of the world's proven oil reserves is located in: A. low-risk areas. B. high-risk areas. C. climate-challenging areas. D. developed nations' oil fields.
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B. high-risk areas.
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This government commercialized the German Fischer-Tropsch process in order to obtain oil from coal through a catalyzed chemical reaction: A. Israel. B. the Sudan. C. South Africa. D. Germany.
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C. South Africa.
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Instead of declining, this nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth: A. wind power. B. nuclear power. C. geothermal power. D. petroleum.
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B. nuclear power.
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Although it pollutes heavily, this energy source is on the rise everywhere, especially in China: A. natural gas. B. coal. C. nuclear. D. diesel.
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B. coal.
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This is the only industrialized country that has not ratified the Kyoto Protocol, a UN convention on climate change: A. China. B. France. C. Russia. D. the United States.
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D. the United States.
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This is the cleanest of the nonrenewable fuel sources, and it has become a substitute for oil as oil prices increase: A. natural gas. B. diesel. C. nuclear. D. kerosene.
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A. natural gas
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Wind power is sourced: A. on land only. B. on land and sea. C. where altitudes permit. D. in the Swiss Alps.
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B. on land and sea.
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According to the text, the fastest-growing renewable energy source is: A. solar PV. B. nuclear power. C. wind power. D. biomass.
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A. solar PV.
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This group of resources, which includes chrome and manganese, is used in many technology applications, and the United States imports many of these resources 100 percent: A. rare earths. B. nonfuel minerals. C. rare minerals. D. mineral gems.
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B. nonfuel minerals.
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China's vast and mountainous terrain leads to: A. many languages and dialects. B. political unity, as in Switzerland. C. economic disparities. D. population disparities.
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A. many languages and dialects.
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Deserts and tropical forests seem opposites, but they have this trait in common: A. they are good vacation spots, and thus an economic stimulator. B. they have small populations on their edges. C. they separate markets, increasing transportation costs. D. they are hospitable to insects.
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C. they separate markets, increasing transportation costs.
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Porter in his diamond model distinguishes two types of factor conditions: A. positive and negative factors. B. contributing and disaggregating factors. C. advanced and basic factors. D. foreign and domestic factors.
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C. advanced and basic factors.
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Rare earths are a group of elements used in: A. jewelry. B. technology applications. C. farming. D. solar applications.
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B. technology applications.
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Which country controls the export market of rare earths? A. Brazil B. Russia C. the United States D. China
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D. China
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Why are rare earths a concern in industrialized economies? A. Although they are relatively common, they do not occur in concentrated form often. B. They are very rare. C. They are used in the smelting process. D. They are not a concern, except for political reasons.
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A. Although they are relatively common, they do not occur in concentrated form often.
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Europe follows the precautionary principle approach to environmental health and safety. This means: A. everyone takes precautions and is always on the watch for environmental issues. B. once a product is thought to be harmful, it is investigated immediately. C. manufacturers of new products need to prove the product is safe. D. consumers regularly review product safety regulations.
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C. manufacturers of new products need to prove the product is safe.
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Sustainable business models: A. incorporate a more socialist political approach to the marketplace. B. have as a goal to ensure that the marketplace exists for future generations. C. regard environmentalism as more important than profit. D. A and C.
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B. have as a goal to ensure that the marketplace exists for future generations.
