Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

In most industries,the only producers that pose a serious threat to U.S.manufacturers are those in Japan and Western Europe. Producers in countries like China and India have become major U.S.competitors.For example,Lenovo,a Chinese firm,recently bought IBM's PC unit.

What is demography? Identify several demographic trends in the United States and discuss how they will impact U.S.businesses.

Technology helped the manufacturing industry to become more productive.

After several years of study as a part-time student,Alex recently earned a degree in marketing at a local college.The growth in global markets may increase Alex's job opportunities,but it will also require him to continually update his skills or seek further education. As businesses expand to serve global markets,new jobs will be created.But global markets will also create more competition.In order to remain competitive,U.S.workers will have to continually update their knowledge and skills.

John earned the same amount of money this year as he did last year.Thus,his standard of living must be the same as it was last year. The standard of living refers to the amount of goods people can buy with the money they have.There are two factors that determine the standard of living: a person's earnings and the price of goods and services.If the prices of goods and services have increased or decreased over the past year,John's standard of living will change even if the amount of money he earns is the same.

Bruno and Gino are worthy competitors in the bakery business in a small upscale resort town.Gino recently negotiated a contract with a supplier for really cheap cooking oil.He knows that bakery customers want cheap products.In this competitive environment,keeping the price down is all that matters. In the current competitive environment of every industry,customers are looking for high quality and good value,at competitive prices.

The primary focus of successful firms is designing and producing high quality goods.Advertising is then used to convince consumers to buy their superior products. Successful businesses are customer-driven,meaning that they listen to the wants and needs of customers and adjust their products,policies and practices to better meet customer demands.

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Empowerment means giving frontline workers the responsibility,authority,and freedom to respond quickly to customer requests.

One way for a government to actively promote entrepreneurship is to establish a currency that's tradable in world markets so that you can buy and sell goods anywhere in the world using that currency.

Businesses and nonprofit organizations often strive to accomplish the same objectives.

U.S.exports are expected to increase under new trade agreements leading to more U.S.jobs.

Political freedom,quality education,access to health care,and a clean environment are all factors that contribute to an improved quality of life. The quality of life focuses on the general well-being of a society,and includes factors such as freedom,security,leisure time,and other factors beyond the goods and services people can buy with their incomes.

Globalization:

Which of the following business policies would most likely help a single-parent family?

Trace the evolution of American business.Identify the key trends,and discuss the implications these trends have for the future.

Increases in productivity have allowed fewer farmers to feed more and more people.

Outsourcing has caused many complications in many states where jobs have been lost to overseas companies.

The continuing increase in the number of U.S.workers in the service sector means that more and more workers are employed in low-wage positions. Some jobs in the service sector do pay low wages,but there are actually more high-paying jobs in the service sector than in the goods-producing sector.Service jobs include high wage positions in such industries as health care,accounting,architecture,law,and telecommunications.

Honda and Toyota have used insourcing for years to produce cars in the United States.Insourcing: