1. Thegeneral environment and the task environment are the two layers of an organizations external environment.

2. Theouter layer of the external environment is the task environment. 3. Currentemployees, management, and especially corporate culture are part of an organizations internal environment. 4. Accordingto the Spotlight on Skills in Chapter 2, the Chinese concept of guanxi is a supportive, mutually beneficial connection between 2 people. 5. Customers and competitors are two important sectors of the economic dimension of a firms general environment. 6. Thetask environment includes sectors that have a direct working relationship with the organization, such as customers, suppliers, and the labor market. 7. Suppliers are the people in the environment who acquire goods and services from the organization. 8. IfBritish Petroleum (BP) provides jet fuelfor American Airlines (AA), then BP isconsidered a supplier for AA. 9. Cooperation with suppliers is becoming an exception rather than the rule. 10. People in the environment who can be hired to work for an organization make up the labor market. 11. The reason that organizations care so much about the external environment is that this environment creates uncertainty for organization managers. 12. A merger occurs when there is a strategic alliance between two or more organizations. 13. The set of key values, beliefs, and norms that are shared by members of an organization are combined to create the symbols of an organization. 14. Corporateculture includes stories that keep an organizations values alive. 15. A symbol is a figure who exemplifies the deeds, character, and attributes of a corporate culture. 16. A slogan is a phrase or sentence that succinctly expresses a key corporate value. 17. The security supervisor who once challenged IBMs chairman because he wasnt carrying the appropriate clearance identification to enter a security area is an example of a hero. 18. A global mind-set and international experience are fast becoming prerequisites for managerial success. 19. The reality of todays borderless companies means that consumers can easily identify from which country they are buying. 20. Countertrade is the barter of products for products rather than the sale of products for currency. 21. Outsourcingis one of the least widespread approaches to international involvement in China and India. 22. Ethnocentrism within a country makes it easier for foreign firms to operate there. 23. The ___ includes all elements existing outside the boundary of the organization that have the potential to affect the organization.a) Organizational environmentb) Internal environmentc) Task environmentd) General environmente) Technological environment 24. The___ environment represents the outer layer of the environment and affects organizations ____.a) Task; indirectlyb) General; directlyc) Internal; directlyd) Internal; indirectlye) General; indirectly 25. The internal environment includes:a) Current employees, management and the corporate cultureb) Current employees, management, but not the corporate culturec) Government, technology and the economyd) Government, technology, corporate culture and the economye) Corporate culture alone 26. The phases of globalization are:a) Domestic, international, multinational, & globalb) Global, multinational, international, & democraticc) Domestic, international, multinational, & multidomesticd) Cottage, domestic, international, & multinationale) Domestic, cottage, international & global 27. Inthe ___ stage, the company usually adopts an export-oriented, multidomestic strategic orientation.a) Internationalb) Domesticc) Globald) Statelesse) multinational 28. Accordingto Spotlight on Skills Cross Cultural Communication in Chapter 3, all of the following are some basic principles to follow in international business relations EXCEPT:a) Emphasize points of agreementb) Show respect and listen carefullyc) Go aloned) Dont lose your tempere) Save face and give face as well 29. Engagingin the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country is referred to as:a) Franchisingb) Licensingc) Bureaucratic exchanged) Outsourcinge) Countertrading 30. Most firms being with this strategy for entering foreign markets.a) Exportingb) Greenfield venturec) Joint ventured) Acquisitione) Direct investment 31. ___is an entry strategy in which the organization maintains its production facilities within its come country and transfers its products for sale in foreign markets.a)Exportingb)Greenfield venturec)Joint ventured)Acquisitione)Direct investment 32. Whichof the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?a) Franchisingb) Licensingc) Market entry strategyd) Outsourcese) Activity 33. Accordingto Benchmarking Li and Fung in Ch. 3, Li and Fung in Hong Kong deals primarily with:a) Machinesb) Informationc) Factoriesd) Fabricse) Manufacturing 34. Asa first step into international business, which two countries are most companies going to today?a) Russia & Japanb) Sweden & Germanyc) China & Indiad) Brazil & Philippinese) Indonesia & Brazil 35. Firms facing the global environment are often faced with challenges in:a) Economic, legal-political & sociocultural environmentsb) Domestic, economic & legal-political environmentsc) Legal-political & sociocultural environmentsd) Only domestic environmentse) Economic & sociocultural environments 36. The managements of business operations conducted in more than one country is called:a) Global managementb) International managementc) Contingency managementd) Planning managemente) Domestic management 37. ___generally are located in Asia, Africa & South America.a) MNCsb) EUsc) LDCsd) WTOse) MFNs 38. Thecriterion traditionally used to classify countries as developed or developing is:a) Population densityb) Per capita incomec) Resource and product marketsd) Time orientatione) Exchange rates 39. A Canadian-based manufacturing company opening a plant in Bolivia would need to know that Bolivia has 3,519 kilometers of railroad, 1 sea port, & 16 airports with paved road. This information identifies:a) Parts of the nations infrastructureb) A symptom of existing culture barriersc) A means of stereotyping the countryd) A part of its legal environmente) The companys status as a developed nation 40. If you build a lumber company in a foreigncountry and then found that you could notfind enough people with the right skills tostaff your organization, your problem wouldbe related to: a) An inadequate infrastructure b) An economy incapable of supporting growth c) A poor resource market d) A poor product market e) Political barriers to distribution