External Factors Influencing Business and Globalization
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Which of the following is NOT a primary benefit of e-commerce for businesses?

  • Guaranteed profitability for all businesses adopting the model (correct)
  • Reduced overhead costs due to no need for physical stores
  • Simplified customer service through automated responses
  • Increased customer reach through online visibility

Which business model primarily focuses on selling products directly to consumers online, bypassing traditional retail channels?

  • Manufacturer Direct (correct)
  • Bricks-and-Clicks
  • Virtual Merchants
  • Catalog Merchants

What is a significant challenge faced by businesses adopting e-commerce, as indicated in the provided content?

  • Lack of available data for informed decision-making
  • High shipping costs for online purchases (correct)
  • Limited reach due to the internet's accessibility
  • Inability to provide personalized customer service online

Which of these is a potential impact of e-commerce on the business landscape?

<p>Reduced demand for customer service representatives (C)</p> Signup and view all the answers

What describes a business that operates both physical stores and an online presence?

<p>Bricks-and-Clicks (B)</p> Signup and view all the answers

Which of these companies best exemplifies the 'Manufacturer Direct' business model?

<p>Dell (A)</p> Signup and view all the answers

The trend of using powerful computers to process vast amounts of data and generate recommendations for businesses is a growing aspect of e-commerce often referred to as:

<p>Artificial Intelligence (AI) (B)</p> Signup and view all the answers

Which of these is LEAST likely to be a future impact of technology on businesses?

<p>A complete replacement of human managers by intelligent machines (C)</p> Signup and view all the answers

What is the main reason that existing companies choose to adopt e-commerce?

<p>To reduce costs and increase revenue through operational efficiencies. (C)</p> Signup and view all the answers

Which benefit of e-commerce is specifically advantageous for small businesses?

<p>Create a 'level playing field' for small businesses with big businesses. (D)</p> Signup and view all the answers

Which cost associated with e-commerce is specifically related to the development and ongoing maintenance of online business?

<p>High cost of developing and maintaining a website. (C)</p> Signup and view all the answers

Which aspect of e-commerce creates a challenge for established businesses?

<p>The increased competition from small, emerging businesses. (C)</p> Signup and view all the answers

Which of the following benefits of e-commerce is NOT directly related to the buyer's perspective?

<p>New marketing tool for existing products. (D)</p> Signup and view all the answers

What is the primary impact of e-commerce on the traditional business model?

<p>E-commerce requires businesses to adapt and embrace new technologies and strategies to remain competitive. (A)</p> Signup and view all the answers

Which of the following is NOT a cost associated with e-commerce?

<p>Lack of access to global markets. (A)</p> Signup and view all the answers

Which of the following best describes the relationship between e-commerce and business innovation?

<p>E-commerce has triggered a wave of innovation in the business world, forcing companies to adapt to a changing digital landscape. (B)</p> Signup and view all the answers

What is the percentage of revenue earned out of home country by Google?

<p>55% (B)</p> Signup and view all the answers

Which of the following challenges for the global marketplace was identified by Fohlke Ahlback?

<p>Cultural differences (B)</p> Signup and view all the answers

What proportion of world exports of goods and services accounted for the world GDP in 2013?

<p>25% (B)</p> Signup and view all the answers

By the year 2050, how many persons over the age of 60 are projected to exist in the world?

<p>9.55 billion (B)</p> Signup and view all the answers

What defines a global brand as opposed to a local brand?

<p>Being recognized by people globally (A)</p> Signup and view all the answers

What percentage of Apple's revenue is earned outside of the United States?

<p>60% (A)</p> Signup and view all the answers

The demographic changes mentioned include an aging population. What percentage of the population in more developed countries is expected to be 60 years or older by 2050?

<p>32% (C)</p> Signup and view all the answers

What is the modern trend seen in the global economy regarding the transfer of goods and services?

<p>Free transfer across national frontiers (B)</p> Signup and view all the answers

What is the expected percentage of older people in less developed countries by 2050?

<p>19% (C)</p> Signup and view all the answers

Which age group is primarily responsible for the current imbalance in the Australian workforce?

<p>Baby boomers (B)</p> Signup and view all the answers

What major change has led to an increase in the average age of employees in Australia?

<p>Increased life expectancy (D)</p> Signup and view all the answers

Which of the following is a legal requirement for businesses in Australia regarding age?

<p>No discrimination based on age (B)</p> Signup and view all the answers

In the Australian workforce, what is the average pay comparison between women and men?

<p>Women earn about three-quarters of men's pay (D)</p> Signup and view all the answers

What is a potential consequence of having a workforce with a higher proportion of older workers?

<p>Need for more employee training (D)</p> Signup and view all the answers

What challenge do women face in the Australian workforce despite having the same qualifications and experience as men?

<p>Challenges in earning promotions (C)</p> Signup and view all the answers

What factor is leading the Australian Government to encourage people to remain in the workforce beyond retirement age?

<p>Labour shortages (C)</p> Signup and view all the answers

What has contributed to the shift in business goals regarding ethics?

<p>A growing belief in socio-economics (A)</p> Signup and view all the answers

Which professions have consistently ranked highest for honesty and ethics according to Gallup's polls?

<p>Nurses, pharmacists, and primary school teachers (A)</p> Signup and view all the answers

What is a major challenge for business leaders today regarding ethics?

<p>Balancing profit-making with ethical conduct (A)</p> Signup and view all the answers

What does Corporate Social Responsibility (CSR) involve?

<p>Acknowledging the impact on community and environment (D)</p> Signup and view all the answers

Which factor has contributed to the decline in the respect for bankers and business executives according to Gallup's survey?

<p>Perceived decline in ethical business behavior (D)</p> Signup and view all the answers

What is a key expectation consumers have from businesses today?

<p>Adoption of sustainable practices (C)</p> Signup and view all the answers

What has caused the perception of the clergy to fall to a record low?

<p>Moral scandals within religious organizations (B)</p> Signup and view all the answers

What aspect does ethics in business address in addition to moral conduct?

<p>Environmental concerns (C)</p> Signup and view all the answers

Which of the following companies is known for its commitment to using fair trade ingredients?

<p>Ben and Jerry's (B)</p> Signup and view all the answers

What competitive edge did Method achieve by integrating ecological and health issues into its business strategy?

<p>Significant revenue growth and employment opportunities (A)</p> Signup and view all the answers

What is one potential negative impact of internet usage in business ethics?

<p>Opportunities for unethical behavior like cheating (D)</p> Signup and view all the answers

What aspect is demonstrated by Tom's Shoes’ business model?

<p>One-for-one donation of shoes to those in need (D)</p> Signup and view all the answers

Which of the following is an example of how technological factors impact business?

<p>Ease of setting up businesses through e-commerce (B)</p> Signup and view all the answers

How has Microsoft's YouthSpark initiative addressed youth opportunities?

<p>By providing education, employment, and entrepreneurship opportunities (C)</p> Signup and view all the answers

What impact does reduced tariff protection have on local industries?

<p>It makes it harder for them to compete against imported products. (B)</p> Signup and view all the answers

What is a common issue associated with an aging population in the workforce?

<p>More expensive workforce due to higher wages and benefits (C)</p> Signup and view all the answers

Flashcards

Globalisation

The process of businesses and individuals operating on a global scale, with the free movement of capital, goods, and services across national borders.

Global Brand

A brand recognized and appreciated by people worldwide. It has significant market presence and influence in multiple countries.

Local Brand

A brand that primarily operates in its home country and has limited international presence.

Social Influences on Business

The influence of social changes, such as demographics and lifestyle shifts, on businesses and consumers.

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Workforce Demographics

Changes in the composition of the population, particularly the age distribution.

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Aging Population

The increasing proportion of older people in the population, predicted to surpass the number of children by 2050.

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Baby Boom

A large number of babies born in a specific period, leading to a larger population size.

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Aging Workforce

The average age of employees is increasing, creating a higher proportion of older workers in the workforce.

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Ageism

Discrimination based on age, often favoring younger individuals over older ones.

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Gender Discrimination

Prejudice or discrimination against women based on their gender, often leading to unequal opportunities and lower pay.

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Median Pay

The middle value in a set of data, representing the value that separates the higher half from the lower half.

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Gender Bias

The practice of favoring one gender over another in hiring, promotions, or salary decisions.

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Virtual Merchants

Online stores that solely derive their revenue from online sales. They own no physical stores.

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Bricks-and-Clicks

Businesses with both a physical presence and online sales channels.

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Catalog Merchants

Companies that operate through physical catalogs and have expanded to online sales.

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Manufacturer Direct

Manufacturers who sell their products directly to consumers online, bypassing traditional retailers.

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E-commerce

The use of electronic communication technologies to conduct business transactions.

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Search Engine Connection

The ability of search engines to connect customers to online stores, enabling real-time transactions.

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Supercomputer Business Decisions

Using supercomputers to analyze large datasets and generate actionable recommendations for business decisions.

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Technology Automation

The use of technology to perform tasks that were previously done by humans, leading to increased efficiency and automation.

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Ethics

Rules that define right and wrong behaviour, influencing managerial decisions.

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Socio-economics

The consideration of societal well-being alongside economic goals in business.

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Corporate Social Responsibility (CSR)

Businesses recognizing their impact on the environment and community.

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Sustainable practices

The growing expectation for businesses to adopt practices that are environmentally sound.

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Decline in Ethical Business Behavior

The decline in trust and respect for business leaders as observed by the public.,

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Gallup Honesty and Ethics of Professions Annual Survey

Surveys that track public perception of the honesty and ethical conduct of various professions.

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Environmental Concerns

Addressing environmental concerns such as global warming and biodiversity.

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Profit vs. Ethics

The challenge for businesses to balance making a profit with acting ethically and responsibly towards the environment.

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What is e-commerce?

The use of the internet and other electronic networks to conduct business transactions, like buying and selling goods or services.

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What does B2C stand for?

A way of categorizing e-commerce transactions where businesses sell directly to individual consumers.

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What does B2B stand for?

A way of categorizing e-commerce transactions where businesses sell to other businesses.

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What are some benefits for buyers using e-commerce?

Benefits for buyers include a broader selection of products, lower prices due to competition, and the convenience of shopping anytime, anywhere.

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What are some benefits for businesses using e-commerce?

Businesses can reach a global market, reduce operational costs, and use e-commerce as a new marketing tool.

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What are some potential costs for both buyers and sellers in e-commerce?

Developing and maintaining a website can be expensive, and there might be delays in receiving products.

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How does e-commerce benefit small businesses?

E-commerce allows small businesses to compete with larger companies, overcoming traditional barriers like high startup costs.

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How does technology impact businesses?

Technological change often leads to new products, services, and business models, requiring businesses to adapt or risk falling behind.

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Ethical Business Advantage

A competitive advantage achieved by a company due to its strong ethical practices, which can attract customers who value those values.

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Unethical Opportunities

The ability to engage in dishonest or harmful activities, often facilitated by factors like increased online anonymity and pressure for fast profits.

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Social Factors

Changes in social trends and demographics that impact businesses, like a growing elderly population.

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E-commerce Impact

E-commerce platforms enabling businesses to establish online operations with relatively low costs and quick potential for profit.

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Free Trade Benefits

The benefits of free trade, including access to more affordable imports for consumers.

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Reduced Tariff Protection

The challenges faced by local industries when they have less protection from foreign competition due to reduced tariffs.

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Study Notes

External Factors Influencing Business

  • Government policy significantly impacts businesses
    • Policies might encourage self-reliance by decreasing subsidies to certain companies
    • Spending cuts can affect businesses reliant on government contracts
    • Privatization allows local or foreign companies to participate in previously government-owned industries
  • Free trade involves buying and selling goods and services without restrictions like tariffs, quotas, or legal hurdles
    • Free trade agreements can create obstacles for small local businesses, especially in countries where labor and capital costs are high
    • Major free trade blocs like NAFTA, AFTA, EU, and MERCOSUR represent a combined 65% of global GDP and 27% of the world's population.

Globalization

  • Globalization expands on international business
    • It incorporates economic, financial, trade, and communications integration
    • It creates a global outlook replacing local/nationalistic perspectives
    • There is a free transfer of capital, goods, and services across national borders.
  • Global companies like Apple and Google operate internationally, with a significant portion of their revenue originating outside their home country.
  • People from all over the world recognize global brands, contrasting them with local brands operating only within their home country.
  • The global marketplace faces challenges like politics, culture, and technology transfer and protection.

Social Influences

  • Social trends significantly influence businesses
    • Demographics and lifestyle shifts directly impact both workforce compositions and consumer behavior.
  • World population is aging, with more people expected to be 60+ by 2050 than ever before
    • This impacts businesses, particularly in developed countries which have a higher percentage of older workers.
  • Other aspects of discrimination can affect the business environment.
    • Example: gender discrimination persists despite women outnumbering men in the workforce, with women still earning less and experiencing challenges with promotions.

Technological Factors

  • Technology is a major force driving change in businesses, such as through increased use of the Internet in eCommerce transactions
    • Digital technologies dramatically change manufacturing, transportation, and communication methods
    • Innovation in technologies spurs creation of new products and services
    • Businesses are obliged to adapt and manage technological changes to survive and thrive.

E-Commerce

  • E-commerce is a method of conducting business transactions using electronic means (online)
    • Businesses can gain operational efficiencies and revenues by engaging in B2B (business-to-business) or B2C (business-to-consumer) transactions.
  • Impacts of e-commerce include:
    • Access to a larger and broader market
    • Virtual markets that reduce price competition among competitors
    • Technological improvements lead to reduced costs for businesses
  • Disadvantages of e-commerce include:
    • High initial costs of website development and maintenance
    • Time delay between purchase and receiving the product
    • Difficulty of product experience without an actual viewing/feeling of the product

Ethical Considerations

  • Businesses need ethical considerations and practices in daily management decisions.
  • Corporate Social Responsibility (CSR) acknowledges a business's impact on communities (both positive and negative) and therefore involves social awareness that businesses increasingly face.
  • Growing societal expectation is that companies consider ethical business practices, environmental sustainability, and wider community well-being.

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GAC 012 Business II: Business Studies PDF

Description

This quiz explores how external factors such as government policies and free trade influence businesses. It also delves into the concept of globalization, examining its impact on international business and economic integration. Test your knowledge on these crucial topics affecting the global economy.

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