External Influences Part 2

Which of the following regulatory bodies is responsible for monitoring market integrity and providing consumer protection in financial services?

• Office of Fair Trading

• Australian Securities and Investments Commission

• Department of Environment, Climate Change and Water

• Australian Stock Exchange

A small business that sells handcrafted furniture is experiencing increased competition from mass-produced imported items. This is MOST directly an example of:

• Institutional influence

• Technological influence

• Competitive situation influence

• Management influence

If a country experiences a significant currency devaluation, what would be the MOST likely impact on domestic businesses?

• Imported goods become more expensive

• Local market demand decreases immediately

• Interest rates automatically decrease

• Employee productivity increases

In a market characterized by many small businesses selling similar products with little differentiation except price, what type of market concentration exists?

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

Which institution would a business MOST likely interact with when attempting to raise capital through the issuance of shares?

• Australian Competition and Consumer Commission

• Trade unions

• Australian Stock Exchange

• Office of Fair Trading

A restaurant decides to locate in a busy shopping center despite higher rental costs. This decision MOST strongly reflects the importance of:

• Proximity to suppliers

• Passing customer traffic

• Proximity to support services

• Cost minimization

What would MOST likely happen to Australian export businesses if rapid economic growth continues in China and India?

• Their opportunities would decrease due to competition

• They would need to decrease production capacity

• Their market opportunities would likely expand

• They would be unaffected by Asian economic growth

If interest rates increase significantly in the financial market, which type of business would MOST likely be negatively affected?

• A business with large cash reserves

• A business with high levels of debt

• A business that primarily exports goods

• A business that only sells essential goods

When multiple companies within the same industry coordinate lobbying efforts to influence government policy, this is an example of which external influence?

• Competitive influence

• Institutional influence

• Geographic influence

• Financial influence

Which market trend has made it easier for international businesses to access foreign markets?

• Decreasing global population

• Increased trade barriers

• Greater capital mobility across borders

• Restricted immigration policies