Chapter 2: The Management Environment and Issues

Technological factors in the external environment refer to the application of knowledge and innovations to create new products and processes

• True

• False

Globalization has little impact on the management environment, as it mainly affects international organizations

• True

• False

The economic component of the external environment or in PEST analysis includes factors such as inflation rates, interest rates and economic growth

• True

• False

The political component of the external environment includes laws, regulations and government stability that can impact organizational operations

• Trues

• False

What does the term "global village" refer to in the context of management?

• Isolated and self-sufficient communities

• The interconnectedness and interdependence of nations

• small, localized businesses

• Nationalistic and protectionist economic policies

Which types of global organization combines elements of both centralization and decentralization in its operations?

• Multinational Corporation (MNC)

• International Corporation

• Transnational Corporation

• Global Corporation

In Transnational Corporation, decision-making is:

• Strictly centralized

• Completely decentralized

• A combination of centralization and decentralization

• irrelevant to global operations

Licensing is commonly used as a strategy for international expansion, allowing to enter markets without establishing their own manufacturing facilities

• True

• False

Importing refers to the sale of goods or services to another country, while exporting involves purchasing goods or services from a foreign country.

• True

• False

Joint Venture are commonly used as a strategy for companies to enter new markets, combining their expertise to navigate unfamiliar business environment

• True

• False