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</p> Signup and view all the answers

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

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

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

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

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

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

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

    <p>Cultural differences</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%</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</p> Signup and view all the answers

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

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

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

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

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

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

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

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

    What does Corporate Social Responsibility (CSR) involve?

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

    What is a key expectation consumers have from businesses today?

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

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

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

    How has Microsoft's YouthSpark initiative addressed youth opportunities?

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

    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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