Topic 2: The Organization in its Environment
Part A: Fill in the Blanks
1. The three types of industries are _______________, _______________, and _______________.
2. Internal trade occurs _______________, while external trade occurs _______________.
3. A _______________ organization exists primarily to generate profit, while a _______________
organization exists to promote public good.
4. In a corporation, the owners are called _______________.
5. The _______________ environment refers to factors within an organization’s control, while the
_______________ environment refers to factors outside its control.
Part B: Matching
Part C: True / False Statements.
1. A partnership always limits the liability of all partners. (_____________)
2. Globalization is driven mainly by international trade and technology. (_____________)
3. The sociocultural environment refers to customs, values, and demographics of society. (___________)
4. Unlimited liability means owners are responsible only up to the amount they invest. (_____________)
Part C: Short Case Questions
Dell Computers has built assembly plants in Europe and China.
1. Which international trade method does this represent?
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2. Give another real-life example of this method.
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3. Identify one possible barrier Dell might face when trading internationally.
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