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WorksheetsExternal Influences Part 2
Total questions: 15
Worksheet time: 8mins
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
A manufacturing business relocates from an urban area to a rural location. This decision is MOST likely influenced by:
Increased visibility to customers
Lower property costs
Proximity to support services
Access to highly skilled labor
In an oligopoly market structure, what strategy would a new competitor MOST likely need to implement to enter successfully?
Significant investment in advertising and differentiation
Offering identical products at the same price
Minimal investment in technology
Avoiding any form of product promotion
If a nation's labor market experiences a significant skills shortage, which institutional response would MOST likely occur?
Decreasing minimum wage requirements
Restricting all immigration
Increasing temporary skilled worker visas
Closing all technical training institutions
Which geographic factor has contributed MOST to the trend of 'virtual teams' in global businesses?
Decreased transportation costs
Increased urban population density
Advanced communications technology
Restricted immigration policies
A business that successfully adapts to maintain profitability during a financial market downturn would MOST likely:
Significantly increase all prices
Maintain flexible operational strategies
Ignore market changes entirely
Eliminate all research and development
