22 Questions
What does the economic environment of a country include?
Level of employment, income rate, inflation, exchange rates
How does the social environment affect businesses?
It helps businesses understand purchasing preferences of people.
What is the study of people's statistics, such as age, gender, race, ethnicity, and location called?
Demography
Why should businesses research the conditions in the market before starting a new business?
To understand the economic and social factors affecting the business
Which factor significantly affects the sales performance of a company?
Demand
Why are social factors important for businesses?
Businesses are able to understand purchasing preferences of people.
What is the primary purpose of technology environment for businesses?
To increase global business operations
How does political/legal environment impact businesses?
It helps international companies decide on investments based on evaluating laws and regulations
What are the effects of natural disasters on businesses?
Forced migration and disruption of the ecosystem
What is a main characteristic of globalization according to the text?
Growing complexity with more people and ideas spreading quickly
In what aspect does globalization impact businesses according to the text?
To meet and work with employees, employers, customers, suppliers from different countries
What do global enterprises aim to achieve according to the text?
To build worldwide connections, interdependence, and complexity
What are some key factors that influence the performance of companies according to the text?
Level of employment, income rate, and exchange rates
Why is it important for businesses to understand demographic data according to the text?
To identify markets and determine workforce profiles
How does the social environment influence businesses according to the text?
By understanding purchasing preferences and shopping power
What aspect of the market conditions should businesses research before starting a new business according to the text?
Economic situation and demand
How does the performance of companies depend on the economic situation of the country according to the text?
It impacts level of employment, income rate, and exchange rates
How does technology environment impact businesses, according to the text?
It increases global business operations, productivity, effectiveness, and reduces costs by new technologies.
What is the main impact of globalization on businesses, according to the text?
Increasing connections and interdependence in economies
What are the characteristics of a global enterprise, based on the provided information?
Buying manufactured products overseas and working with employees from different countries
Why is the political/legal environment crucial for businesses, according to the text?
To help international or multinational companies make investment decisions based on evaluating laws and regulations
How do natural disasters affect businesses, as mentioned in the text?
By affecting businesses through hurricanes, volcanic eruptions, earthquakes, forced migration, etc.
Test your knowledge of how the economic environment affects business performance, including factors such as employment levels, income rates, inflation, and exchange rates. Understand how demand impacts sales, wages, and the availability of resources.
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