Sustainability And Natural Resources Test Bank Docx Ball

Module 04 Sustainability and Natural Resources

1) Environmental sustainability is about maintaining the environment, and it is both local and global.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : Renewable and Nonrenewable Energy Options
Learning Objective : 04-01 Describe environmental sustainability and its potential influence on business.

The environment involves systems that are local and global at the same time. For example, France does not produce many greenhouse gas emissions but is affected by emissions produced by other industrial countries.

2) Sustainability requires adjustments at the margins, rather than a totally new approach to business.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-01 Describe environmental sustainability and its potential influence on business.

Sustainability, in fact, requires us to change the way we manage everything—government institutions, markets, business organizations, and our own individual behavior.

3) Early business sustainability efforts looked beyond their own operations and focused on the external aspects of conservation and environmental regulation.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
Topic : Environmental Sustainability
Bloom's : Understand
Learning Objective : 04-01 Describe environmental sustainability and its potential influence on business.

In their early efforts at sustainability, firms examined their own operations and paid attention to the way they used resources. For example, they measured the amount of water saved and energy consumption reduced due to their conservation efforts.

4) Life cycle assessment (LCA) is a marketing concept that addresses innovation in product development.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : Environmental Sustainability
Learning Objective : 04-02 Describe frameworks for sustainability.

LCA addresses the environmental impact of a product or service throughout its lifetime.

5) The carbon footprint associated with a product is a measure of the volume of greenhouse gas emissions associated with that product.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 04-03 Summarize ways to measure sustainability achievements.
Topic : Environmental Sustainability

A product’s carbon footprint measures the volume of greenhouse gas emissions associated with it, usually throughout its life cycle.

6) Limits, interdependence, and equity are characteristics of sustainable business practices.

⊚ true
⊚ false

Sustainability in business involves recognizing and accepting that there are limits to environmental resources; developing ways to manage the interdependence of the systems in which they operate, and recognizing the need for equity in their supply chains.

7) The stakeholder model for environmentally sustainable business has failed because we don't have an accounting system to measure the present costs of environmental irresponsibility.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Topic : Environmental Sustainability
Difficulty : 2 Medium
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

The stakeholder model has not failed. It is regarded as a helpful model because it forces businesses to address the underlying values and principles of their business.

8) Geographic proximity is rarely a major reason for trade.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade

To the contrary, geographical proximity often explains trade relationships.

9) Mountains tend to impede trade, whereas flat areas tend to facilitate trade relationships.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade
Bloom's : Understand

Topography contributes to differences in economies, and mountains and flatlands are a part of that.

10) Mountain ranges facilitate global markets and the process of internationalization.

⊚ true
⊚ false

Mountain ranges can foster regional markets, each with its own distinctive industries, climate, culture, dialect, and sometimes language.

11) Bodies of water, much like deserts and mountains, also serve as barriers to trade.

⊚ true
⊚ false

Bodies of water facilitate trade; they bring people closer.

12) Wind power is an example of a renewable energy source.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
Bloom's : Understand
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options

Among renewable energy sources, those that are naturally replenished are wind power, biomass fuels, solar photovoltaic power, concentrating solar thermal power, geothermal power, ocean energy, and hydropower.

13) Coal and natural gas are forms of renewable energy because they cannot be replenished.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options

Coal and natural gas are considered nonrenewable energy since they cannot be replenished.

14) "Petroleum man" faces inevitable extinction, as we currently understand resources.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options

The likely answer is that “Petroleum Man will be virtually extinct this century,” a prediction that gives us around 80 years.

15) Greenpeace supports extraction of shale oil from proven reserves.

⊚ true
⊚ false

Greenpeace and other environmental groups have campaigned against oil shale projects on the grounds that extracting the oil from shale creates four times the greenhouse-gas impact as does extracting conventionally drilled oil, and that it creates polluted wastewater.

16) Above-ground issues impact territories available for oil exploration.

⊚ true
⊚ false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options

Above-ground issues such as political unrest, financial crises, and natural disasters impact territories available for exploration and production. Political unrest limits access to potential sites, and governments control access to their natural resources.

17) Nuclear power is viewed as “clean” since it doesn’t contribute to climate change.

⊚ true
⊚ false

Although nuclear power is seen as clean, largely because it doesn’t contribute to climate change, serious concerns remain about reliance on it.

18) Because it is a high polluter, coal is on the decline as an energy source.

⊚ true
⊚ false

Coal, much like nuclear power, has been projected to decline as an energy source, largely because it pollutes heavily.

19) Biomass is a category of renewable energy fuels based on their heavy weight.

⊚ true
⊚ false

Biomass is a category of fuels based on photosynthesis, using the sun's energy to create chemical energy via plants. Weight is not a part of the issue.

20) Geothermal power is derived from mirrors or sensors used to collect sunlight.

⊚ true
⊚ false

Geothermal power derives from the heat stored in the earth and may rely on many technologies.

21) Gwyn works for a paper manufacturer and recommended to the product development team that sourcing from recycled goods would help preserve the forests for future generations. What is Gwyn referring to?

A) economies of scale
B) environmental sustainability
C) an absolute advantage
D) a carbon disclosure project

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 04-01 Describe environmental sustainability and its potential influence on business.

Europe has made significant investment in sustainability, including renewable energy.

22) Environmental sustainability is both local and global because

A) environmental conditions do not recognize national borders.
B) governments are not prepared to address environmental issues beyond the UN.
C) business has become global, so sustainability must follow the trend.
D) it is a political issue as well as an academic one.

For example, New England is a low polluter, yet the area is afflicted by acid rain caused by Midwest carbon emissions. France is a low polluter, yet shares Europe's pollution.

23) Ecologically sustainable businesses such as Patagonia recognize that doing business following the traditional approach, focusing on quarterly earnings, is not complete because it does not focus on

A) the negative impact of the business, such as excessive water usage.
B) the cost of environmental sustainability.
C) consumer needs for green merchandise.
D) triple bottom-line accounting.

Patagonia's LCA led them to realize that water usage could be reduced. This realization did not show up in earnings.

24) An LCA conducted for a T-shirt convinced Patagonia that

A) recycled plastics were ecological choices for packing materials.
B) industrially produced cotton used excessive amounts of water compared to organic cotton.
C) South Africa provided a good source of raw materials.
D) too many T-shirts were sold, and instead, should be recycled.

As a result of the LCA, as mentioned in the text, Patagonia switched to organic cotton to reduce water consumption in the supply chain.

25) Cradle-to-cradle (C-2-C) design

A) identifies differing levels of success among the national players in world markets.
B) builds on endowment factor differentials.
C) measures the impact of climate on development.
D) closes the production loop so there is no waste.

C-2-C closes the production loop, thereby reducing waste. Waste = Food.

26) The Carbon Disclosure Project (CDP), unlike the Kyoto Protocol, a UN convention on climate change, is

A) regulated by the EU.
B) regulated by the U.S.
C) controlled by the IMF.
D) made up of corporate members.

The CDP is made up of corporate members, while Kyoto Protocol has nation-state members.

27) Henson Automotive wants to understand how much water the company is using when manufacturing its energy-efficient cars. What type of measure should the company take?

A) water waste
B) water footprint
C) water pressure
D) water emissions

Question Details
Accessibility : Keyboard Navigation
Learning Objective : 04-03 Summarize ways to measure sustainability achievements.
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Bloom's : Apply
Difficulty : 2 Medium

A water footprint is a measure of the amount of water used in a product’s manufacture and use.

28) When considering the limits associated with sustainability, a company should address

A) that environmental resources are exhaustible.
B) the amount of renewable resources it takes to build the company’s products.
C) whether or not government approval is necessary when creating environmental controls.
D) the best season or time of year in which to produce.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

Limits address the reality that environmental resources are exhaustible. Water, soil, and air can be made toxic, and their use needs to be informed by awareness of that danger.

29) Which characteristic of environmental stability is a Peterson Mining Corp. taking into account when it installs special filters that promote clean air for the surrounding community?

A) Resources are limited.
B) Systems are interdependent.
C) Equity in distribution must prevail.
D) Free enterprise and buyer beware are sufficient monitors.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

Extractive industries such as mining and oil offer ready examples of how recognizing limits can function in achieving sustainability.

30) The three characteristics of evolving sustainable business practices are

A) local, global, and improving quality of life.
B) environmental sustainability, quality of life sustainability, and triple bottom-line accounting.
C) limits, interdependence, and equity.
D) being green, centering on the customer's needs, and demonstrating simple kindness.

Limits involve a recognition that resources are exhaustible; interdependence describes the relationships among ecological, social, and economic systems; and equity in distribution suggests that for interdependence to work, there cannot be vast differences in the distribution of gains.

31) Oomph Beauty Inc. is being scrutinized by the federal government for failing to control emissions from their plant that could damage the ozone layer. Which characteristic of an environmentally sustainable business is the company ignoring?

A) Profit sharing is divisible.
B) Supply chain equity is inevitable.
C) Resources are limited.
D) Stakeholders can vary in attitudes.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

Limits address the reality that environmental resources are exhaustible. Water, soil, and air can be made toxic, and their use needs to be informed by awareness of that danger.

32) The relationships among ecological, social, and economic systems in sustainable environments need to be

A) discreet.
B) renewable.
C) positive.
D) interdependent.

33) After Nike built a plant in a rural area, it discovered that families were taking their children out of school to work in these plants. Instead of getting an education, these children were put to work which wasn’t Nike’s intent. Which characteristic of environmentally sustainable businesses does this demonstrate?

A) alignment of relative industries
B) equity in distribution within the supply chain
C) limits on the Earth’s resources
D) interdependence of ecological, social, and economic systems

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

Interdependence describes the complex relationships that sustainable practices create among ecological, social, and economic systems, in which actions in one of these systems may affect the other two, often in ways that are not easily predicted. Another impact is the social disruption that may be caused by locating manufacturing facilities in rural areas. Parents may take children from school to work in these plants, as Nike found.

34) One aspect of an environmentally stable business is to ensure that there are not vast differences in the distribution of gain. In other words, the business practices

A) sovereignty.
B) equity.
C) susceptibility.
D) intentionality.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

"The whole idea of compassion is based on a keen awareness of the interdependence of all these living beings, which are all part of one another, and all involved in one another."

35) Triple-bottom-line (3BL) accounting is not a framework for sustainability because

A) its measures are not standardized and therefore not comparable.
B) it does not take into account social factors.
C) Wall Street has not approved its use.
D) foreign and domestic factors affect its use.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.
Difficulty : 3 Hard
Bloom's : Analyze

One criterion for a framework is that its measures be comparable. 3BL does not allow for comparisons across companies because the measurements, especially in the social and environmental areas, are not standardized.

36) A way to measure a company's success in meeting its sustainable business goals is to

A) examine the return on investment.
B) use triple-bottom-line accounting.
C) monitor the company in a social context.
D) review the marketing materials.

Triple bottom-line accounting measures a company's social and environmental performance, as well as the traditional economic performance. It is not comparative, though.

37) The stakeholder model requires businesses to think about

A) the stakeholders' interest in profitability.
B) the network of tensions caused by competing demands.
C) strategy in light of sustainability.
D) the frequency of social issues faced by the stakeholders.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Topic : Environmental Sustainability
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.
Difficulty : 3 Hard

Stakeholder theory differs from the input-process-output model because it considers the network of tensions caused by the competing internal and external demands within which the business exists.

38) Stakeholder theory pushes managers to be clear about how they want to do business, so it forces a business to

A) recognize underlying values and principles.
B) discuss profit center margins.
C) strategize development from the top down.
D) create decisive management.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

Stakeholder theory forces businesses to recognize their underlying values, including what kind of relationships they want to create with their stakeholders.

39) Stakeholder theory is an understanding of how business works when it

A) takes into account culture and environmentalism.
B) rejects the importance of the bottom line.
C) emphasizes planning.
D) takes into account all identifiable interest holders.

Stakeholder theory also gives all stakeholders a voice and suggests that the tensions among them can be balanced.

40) The traditional U.S. business model is

A) economic.
B) cultural.
C) political.
D) social.

Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

The traditional U.S. business model is economic and focuses on an input-process-output approach, where profitability is the goal, perpetual economic growth and unbridled consumption is encouraged, and nature’s worth is measured primarily in terms of its potential for generating economic value.

41) Why is sustainable business local and global simultaneously?

A) It requires a simultaneous focus inside the business and widely outside it.
B) Because all business is global, and all business requires a local presence.
C) Managers of a global business encounter the exact same problems as managers of a local business.
D) Because we have no global businesses that are sustainable unless they are also local.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

Sustainability is local and global simultaneously; it requires a simultaneous focus inside the business and widely outside it. To help managers keep both the big picture context (global) and the details of the business (local) in their minds, the stakeholder model is useful.

42) The stakeholder theory operates on

A) a network of tensions—the competing internal and external demands that form the business context.
B) the assumption that hierarchical decisions and command and control are best.
C) a socialist premise that business has obligations to society at large.
D) the cooperation of all who have a vested interest in the success of the business.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Difficulty : 2 Medium
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.
Bloom's : Analyze

Stakeholder theory operates with the tensions created by competing internal and external stakeholders.

43) Traditional approaches to business focus on the goal of creating profits, while the stakeholder approach forces a business

A) to address its underlying values and principles.
B) into a dialogue with unions and environmentalists.
C) to dialogue with banks to establish community policies.
D) to lay claim to territories of expertise.

Stakeholder theory requires that a business address underlying values and principles, because they are the basis for the resolution of conflicting stakeholder needs and values.

44) At Torno Manufacturing, the company identifies its purpose by having discussions with employees, vendors, community members, and other groups pertinent to the business. Which theory for a sustainable business does Torno Manufacturing follow?

A) stakeholder theory
B) footprinting
C) limits theory.
D) natural capital

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

To achieve the balance among competing tensions that characterize the stakeholder approach, a company needs to see itself in relation to its stakeholders and also in a societal context Taking this view of itself leads the company to clearly identify its larger purpose, principles, and responsibilities through discussions both within the company and in its larger social context.

45) Triple-bottom-line accounting is a good way for a business to

A) measure its sustainability activities and share the results with stakeholders.
B) compare its sustainability results with other firms in the same sector.
C) receive government assistance for environmental issues.
D) share evidence with its publics that sustainability is a costly endeavor.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

3BL is not comparable across businesses, because there is no common platform, so its use is good for measuring business results and year-to-year comparisons, but not for use across businesses.

46) The land, air, water, living organisms, and our ecosystem's formations that provide us with the goods and services on which our survival depends comprises our

A) natural capital.
B) national endowment.
C) topography.
D) national birthright.

Question Details
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
AACSB : Analytical Thinking
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade
Bloom's : Analyze

The term used in the text is natural capital. Natural capital is, in short, the basis for everything we do as humans.

47) A country's location influences its trade relationships because

A) trade tends to occur with neighbors, often in subtle ways.
B) proximity breeds contempt, a phenomenon that influences trade.
C) southern countries have to trade with northern ones, due to climactic realities in the South.
D) competitive advantage dictates that no contiguous countries can have the same levels of trade.

Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
AACSB : Analytical Thinking
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade

Trade tends to occur with neighbors, if political relationships permit. Sometimes these trade relationships can be quite subtle, as in the text examples of Austria during the Cold War and Singapore today.

48) Japan has been one of China's largest sources of imports, along with South Korea and the United States. Because there is still political enmity between China and Japan due to the Japanese occupation of parts of China during World War II, the best explanation for the present Japanese trade relationship with China is

A) geographical proximity.
B) Asian interdependence.
C) that only Japan manufactures to Chinese standards.
D) a common written language.

Question Details
Accessibility : Keyboard Navigation
AACSB : Analytical Thinking
Difficulty : 2 Medium
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade
Bloom's : Understand

Geographic proximity is major reason for trade between nations and helps explain why Japan has been one of China’s largest sources of imports.

49) Parul told the members of the management team that the topography of North Carolina did not lend itself to their needs for the new manufacturing facility. What is Bethany referring to?

A) the physical features of the area
B) the availability of suppliers
C) the number of competing firms in the area
D) the available human resources

Question Details
Accessibility : Keyboard Navigation
AACSB : Analytical Thinking
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade

Topography refers to the physical features of an area such as mountains, deserts, bodies of water.

50) Tropical rain forests are

A) a barrier to economic development.
B) an important source of agriculture, due to their fertile soil.
C) the equivalent of marshes along coasts.
D) locations of significant rural population centers due to their bodies of water.

Tropical rain forests tend to have harsh climate and poor soil, so they function as a barrier to economic development.

51) From a business perspective, bodies of water often coincide with

A) densely populated areas along seacoasts, lakes, and rivers.
B) reduced manufacturing and increased tourism.
C) higher levels of pollution.
D) reduced levels of temperate climates.

Bodies of water have increased populations along seacoasts, lakes, and rivers. Water attracts populations, the opposite of mountains and deserts.

52) The world's most important inland waterway system runs

A) from the North Sea to the Black Sea.
B) through the central United States along the Mississippi River to the Gulf of Mexico.
C) into the center of South America along the Amazon.
D) from the Gulf of Finland and St. Petersburg to Moscow.

The North Sea connects to the Black Sea, the most important inland waterway. It is the Rhine waterway and runs through 15 countries.

53) The North–South divide is a faulty explanation of

A) the intellectual and economic development that has excelled in northern areas.
B) the U.S. Civil War.
C) why urban populations tend to be richer than rural populations.
D) the social forces that support agricultural development in developing economies.

The North–South divide is a faulty explanation of development in the North, the assumption being that more temperate climates limit human energy and mental powers.

54) Certain geologic structures have led to the development of separate languages within the same country. These barriers include

A) political and cultural patterns.
B) mountain barriers.
C) linguistic tariffs.
D) differentiating borders.

Examples of this are Afghanistan, Switzerland, China, Colombia (dialects).

55) Why is every western coast between 20 and 30 degrees north or south of the equator dry?

A) The winds blow away from the land, carrying moisture with them.
B) This is coincidental. Egypt, which has a source of water, can support a large population.
C) The equator is a tropical area, and the heat leads to evaporation.
D) Western coasts are not dry; it is the interior of continents that becomes arid desert.

More than one-third of the Earth’s surface consists of arid and semiarid regions located either on the coasts of continents, where the winds blow away from the land, or in their interiors, where mountains or long distances cause the winds to lose their moisture before reaching these regions. Every continent has deserts and tropical forests, and every western coast between 20 and 30 degrees north or south of the Equator is dry. Only in latitudes where there is a major source of water, as in Egypt, is there a concentration of population.

56) How does the Canadian Shield benefit or hurt Canada’s potential for international business?

A) The topography associated with this area does not support populations which means it would cost companies more to manufacture there.
B) This is an indication of government protection in terms of lower export taxes.
C) This is a guarantee to all Canadian consumers that imports will be limited to enhance existing manufacturing efforts.
D) This refers to a core group of five companies that dominate production in the country.

The Canadian Shield, although neither desert nor rainforest, is a vast outcropping of bedrock thinly covered with soil that covers about half the country (1.7 million square miles), is mostly in permafrost, and does not support populations, although it is the source of minerals, diamonds, and ores.

57) Geographical proximity contributes to

A) limited knowledge of the country by its neighbors.
B) standardized freight costs.
C) the likelihood of trade relationships.
D) distrust and contempt.

In addition to being a major reason for trade between nations, geographic proximity also plays a role in the formation of trading groups.

58) Topography, including mountains, deserts, plains, and bodies of water, greatly influence

A) political relationships.
B) the physical distribution of products and services.
C) the local approach to education and health services.
D) local attitudes toward industrially developed economies.

The features of the Earth’s surface, such as mountains, plains, deserts, and bodies of water, contribute to differences in economies, cultures, politics, and social structures wherever they occur. These features can both hinder and aid physical distribution.

59) Nations whose mountains divide them into smaller regional areas include

A) the United States, Mexico, and Canada.
B) Switzerland, Afghanistan, China, and Colombia.
C) Luxembourg, France, and Romania.
D) Estonia, Latvia, and Lithuania.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 04-06 Describe how geographic features of a country or region contribute to natural capital.
Topic : Geographical Implications that Affect Trade

These mountain ranges create regional markets, each with its own distinctive industries, climate, culture, dialect, and sometimes even language. In addition to Switzerland, Afghanistan, China, and Colombia, there is Spain.

60) One example of the effect of topography is

A) isolated language groups, which require special marketing adjustments.
B) regional metals markets.
C) a unified China.
D) equal distribution of populations.

Spain is an example; the same issues are found in China, Switzerland, and Afghanistan.

61) What is the correlation between population density and bodies of water?

A) The larger the body of water, the lower the population level.
B) There is no correlation between bodies of water and population density.
C) Densely populated regions coincide with rivers, lakes, and seacoasts.
D) Populations tend to cluster around lakes and rivers more than oceans.

The world population map clearly shows that bodies of water have attracted more people than have areas remote from water. The world population map clearly shows that densely populated regions coincide with rivers, lakes, and seacoasts.

62) In more dense populations, international managers can expect

A) increased political discord.
B) markets that respond well to word-of-mouth promotion.
C) contrasting topographical features.
D) lower marketing and distribution costs.

International managers know that in more densely populated nations, marketing and distribution cost less because population centers are closer together, communication systems are more efficient, and more people are available for employment.

63) Densely populated areas coincide with

A) rivers, lakes, and seacoasts.
B) inland waterways.
C) rich mineral reserves and rare earth deposits.
D) low levels of environmental awareness.

The world population map clearly shows that densely populated regions coincide with rivers, lakes, and seacoasts.

64) How does climate affect the population of a region?

A) It is the basis for intelligence and energy levels, per the North–South divide.
B) It affects what people can do, physically and economically.
C) It is an indicator of education and security.
D) It allows for adjustment and motivation.

Climate sets limits on what people can do but not on their inherent capabilities.

65) World Bank studies have shown that underdevelopment in tropical nations is often due to

A) factors such as parasites and viruses that expand unchecked because of the lack of winter temperatures.
B) mental slowness in people of the climates around the equator.
C) socialist political regimes.
D) lack of government investment in education.

Continuous heat and no cold winter temperatures offer an ideal environment for parasites, viruses, weeds, and insects, all of which contribute to factors responsible for underdevelopment.

66) Trading groups in close proximity would typically have the benefit of

A) tariff barriers.
B) lower freight costs.
C) delayed deliveries.
D) language differences.

In addition to being a major reason for trade between nations, geographic proximity also plays a role in the formation of trading groups. With proximity, knowledge of trade partners is likely, delivery faster, and freight and service costs lower.

67) Climate is probably the most important element of the physical forces as it sets the limits on

A) annual rainfall, thus water supply.
B) population growth patterns.
C) what people can do physically and economically.
D) expected FDI.

Climate establishes limits for what humans can do, physically and economically.

68) Inland waterways provide inexpensive access to interior markets and are significant in every continent except

A) Australia.
B) North America.
C) Africa.
D) Asia.

Inland waterways, such as major rivers and lake systems, are significant in every continent except Australia.

69) Australia's topography is

A) an inland plain and desert, with population concentrated along the coasts.
B) like North Africa's, with population along the water and then desert and mountains.
C) desert except for the central highlands.
D) similar to North America's, with dissecting rivers, mountains, and some desert area.

Australia has a coastline that is humid and fertile, while the huge center of the country is mainly desert, closely resembling the Sahara. Australia’s population is concentrated along the coastal areas in and around the state capitals, which are also major seaports, and in the southeastern fifth of the nation, where more than half the population lives.

70) The North–South divide draws on climatic differences to explain

A) political differences.
B) trade patterns.
C) differences in human development.
D) cultural differences.

The North–South divide suggests that warmer climates limit human energy and mental powers. Although this theory has been largely debunked, it remains a popular explanation for differences in development.

71) Studies conducted by the World Bank indicate that tropical climates allow for

A) the unimpeded reproduction and growth of weeds, viruses, birds, insects, and parasites.
B) the lack of need to provide heat and shelter that is present in northern climates.
C) unparalleled trade.
D) cultivation of citrus and four crops per year.

Weeds, birds, insects, viruses, and parasites result in destroyed crops, dead cattle, and people infected with debilitating diseases.

72) China's vast and mountainous terrain leads to

A) many languages and dialects.
B) political unity, as in Switzerland.
C) economic disparities.
D) population divergences.

Mountainous areas of China have led to many different languages with many dialects.

73) Deserts and tropical forests seem to be opposites, but have what trait in common?

A) They are good vacation spots so are an economic stimulator.
B) They have small populations on their edges.
C) They separate markets, thereby increasing transportation costs.
D) They are hospitable to insects.

Both deserts and tropical forests separate markets.

74) Petroleum, a relatively cheap nonrenewable energy source, is

A) in abundant supply but is not environmentally clean.
B) being increasingly depleted and is expected to become extinct in 80 years.
C) clean, cheap, and available, but most of the reserves are located in countries whose leadership is critical of the industrialized world.
D) expected to run out in another 10 years and needs to be replaced with renewable energy sources quickly.

How much time do we have to make adjustments before the price of oil becomes prohibitive? The likely answer is that “Petroleum Man will be virtually extinct this Century,” a prediction that gives us around 80 years.

75) Which nonrenewable energy source comes from shale?

A) nuclear energy
B) natural gas
C) hydropower
D) oil

Then there also is oil-bearing shale, a fine-grained sedimentary rock that yields 25 liters or more of liquid hydrocarbons per ton of rock when heated to 500°C.

76) Heavy oil is considered

A) oil that does not flow easily.
B) the key to equalizing power in the oil industry.
C) oil extracted from biomass that is reprocessed.
D) Top grade oil drawn from wells.

Heavy oil is obtained from unconventional sources and usually through additional processing involving heating and pressure treatments. It does not flow easily and cannot be obtained from wells like conventional oil.

77) What is the current status of nuclear power?

A) It is growing insignificantly, except in developing countries.
B) It has been growing.
C) It has been rejected by France.
D) It has been abandoned by all nations.

Although nuclear power as an energy source was expected to decline because of safety and security, it has grown substantially, especially in the developing world and in France.

78) Why is it predicted that the use of coal as an energy source will decline?

A) It is considered too new and unknown.
B) It pollutes heavily.
C) It creates additional tariff barriers.
D) It is rejected by consumers but accepted by industry.

Coal, much like nuclear power, has been projected to decline as an energy source, largely because it pollutes heavily.

79) What is a characteristic of renewable energy?

A) It will replace fossil fuels, due to price, depletion, or carbon emissions, within 10 years.
B) It is essentially a political issue in developed economies.
C) It is not actually renewable long term.
D) It has outpaced growth in the nonrenewable sector in the United States.

In recent years, growth in the renewable energy sector has outpaced growth in the nonrenewable sector in both the European Union and the United States, and growth in the renewable energy markets in developing countries also has been rapid.

80) Which country has the highest percentage of the world’s capacity of wind power?

A) China
B) the United States
C) Germany
D) India

Both on land and offshore, wind power is now a mainstream electric energy source. As shown in Figure 4.13, global wind-generating capacity in 2017 was nearly 23 times the level of 2001. China represents 35 percent of the world’s capacity and the United States 17 percent, while Germany (10 percent), India (6 percent), the UK (4 percent), and Canada (2 percent) trail behind.

81) The consumption of natural gas is increasing because it is

A) the least expensive of the fossil fuels.
B) a nonrenewable energy source.
C) comparable to oil-producing shale.
D) the cleanest-burning of the fossil fuels.

Natural gas is the cleanest-burning among the fossil fuels, with greenhouse gas emissions significantly lower than those of oil or coal.

82) Hudson Manufacturing prides itself on using a renewable energy source to run its plant. What is an example of a renewable energy source this company might use?

A) petroleum
B) coal
C) nuclear power
D) hydropower

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Topic : Geographical Implications that Affect Trade
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.

83) Natural resources are described as

A) that which is alive in the natural world.
B) anything provided by nature on which people depend.
C) any raw material that becomes a component in a manufactured good.
D) that which is used for food or fuel.

What are natural resources? For our purposes, they are anything supplied by nature on which people depend.

84) Energy consumption by fuel type reveals that fuel use has been dominated since 2010 by

A) renewable energy sources.
B) nuclear energy and coal.
C) nonrenewable energy sources.
D) solar and wind power.

Energy consumption is dominated by nonrenewable energy sources.

85) Hydraulic fracking is associated with which nonrenewable energy source?

A) wind power
B) oil
C) solar power
D) nuclear energy

In addition to horizontal drilling, the technology called hydraulic fracturing can make shale oil and gas deposits available. Hydraulic fracturing, or fracking, is the cracking of rock by injecting a fluid under pressure. Both horizontal drilling and fracking have opened new reserves in the United States. In addition, Estonia, China, Brazil, Germany, and Russia are processing oil shale reserves.

86) Unconventional sources of petroleum such as oil sands and shale are often grouped together and referred to as

A) nonrenewable hopes.
B) new sources.
C) peak sources.
D) heavy oil.

These unconventional sources of oil become reasonable alternatives for sourcing oil as its price increases.

87) What material, when heated, will yield up to 25 liters or more of liquid hydrocarbons per ton of input?

A) shale
B) biomass
C) natural gas
D) light petroleum

The only material that yields fluid is shale. Oil-bearing shale is not yet economical but will become so as the price of oil increases. The largest known source is in the U.S. states of Utah, Wyoming, and Colorado.

88) Greenpeace and other environmental groups oppose oil shale projects because they lead to

A) polluted wastewater.
B) ravaged rainforests.
C) the greenhouse effect.
D) over-developed deserts.

89) Instead of declining, which nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth?

A) wind power
B) nuclear power
C) geothermal power
D) petroleum

Nuclear power generation has seen growth, largely because of its cleanliness. Although there are security and storage issues, the developing countries and France have invested heavily in its continued development.

90) The emissions released by burning coal are considered directly responsible for

A) black holes.
B) global warming.
C) nuclear disasters.
D) catastrophic illness.

The emissions released by burning coal are directly responsible for global warming, although clean-coal technologies are being developed that reduce the level of pollution released as part of the energy generation process.

91) What is the cleanest of the nonrenewable fuel sources, and has become a substitute for oil?

A) natural gas
B) diesel
C) nuclear
D) kerosene

Natural gas is the cleanest-burning among the fossil fuels, with greenhouse gas emissions significantly lower than those of oil or coal. As oil prices increase and new deposits of natural gas are found, its consumption is increasing as a substitute fuel.

92) Heat sources that are drawn from steam reservoirs deep in the earth are known as

A) nuclear power.
B) hydropower.
C) geothermal power.
D) solar power.

Geothermal is power from energy stored in the earth.

93) Which group of renewable fuels is derived from organic materials whose energy is supplied by photosynthesis?

A) biomass
B) geothermal
C) solar photovoltaic
D) shale

Biomass is a category of renewable fuels derived from organic materials whose energy source is photosynthesis, through which plants transform the sun’s energy into chemical energy.

94) When companies rely on concentrating solar thermal power, what are they using to collect sunlight?

A) water tanks
B) mirrors
C) buckets
D) farmland

Concentrating solar thermal power (CSP) uses mirrors or lenses to collect sunlight that heats water running in tubes behind the collector’s surface.

95) Business approaches to sustainability consider ecological, social, and ________ aspects of the business.

Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Learning Objective : 04-01 Describe environmental sustainability and its potential influence on business.

The three areas of concern are social, ecological, and economic.

96) ________ is an approach used to evaluate the environmental impact aspects of a product or service throughout its life cycle.

Life cycle assessment (LCA) is sometimes called cradle-to-grave assessment and dramatically changes the manufacturer's relationship to production.

97) ________ takes into account the evaluation aspects of a product provided by its LCA.

LCA provides information on the use of a product throughout its life cycle, sometimes called cradle-to-grave analysis.

98) The shorthand version of the C2C concept is the phrase ________.

This is the shortcut version to C2C, explained in Rob van Hattum's documentary.

99) C2C identifies two types of nutrients, the technical and the ________.

These are the two types of nutrients. The biological decompose and the inorganic, synthetic technical nutrients can be reused.

100) The Carbon Disclosure Project is a nonprofit organization that provides reporting frameworks for sustainable water use and the reduction of ________.

The CDP has corporate partners, and more than 85 percent of the Global 500 corporations partner with CDP.

101) A product's ________ measures the volume of greenhouse gas emissions associated with it, usually throughout its life cycle.

The carbon footprint is a complicated calculation that attempts to measure both direct consumption (as a result of product use) and indirect consumption (as a result of the manufacture of the product).

102) The three characteristics of environmentally sustainable businesses are, in brief, limitations, interdependence, and ________.

Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Learning Objective : 04-04 Identify the characteristics of environmentally sustainable business.

The third characteristic is equity. Businesses that accept their responsibility for environmental sustainability recognize and accept that resources are limited; they develop ways to manage the interdependence of the systems in which they operate, and they recognize the need for equity in their supply chains.

103) Industries such as oil and mining extract resources from the earth and demonstrate how recognizing ________ can help a company achieve sustainability.

Extractive industries such as mining and oil offer ready examples of how recognizing limits can function in achieving sustainability.

104) Stakeholder theory calls for businesses to address the network of ________ caused by the competing internal and external demands within which the business exists.

Question Details
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
AACSB : Analytical Thinking
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 04-05 Describe how the stakeholder model can help businesses achieve sustainability.

Stakeholder theory directly addresses the tensions that exist among stakeholders and forces a business to address its underlying values and principles.

105) The ecosystem in which we live and do business and which is the basis for everything we do as humans is known as ________.

Natural capital includes the land, air, water, living things, everything in our ecosystem.

106) ________, the features of the earth's surface, contributes to differences in economies, cultures, politics, and social structures wherever they occur.

Topography, all the features of the landscape, are critical in their influence. Think about the deserts and mountains that separate people, and the bodies of water and temperate plains that bring them together.

107) Because ________ has so much arid land, its population is spread along the coasts, giving it one of the highest percentages of urban population in the world.

Australia's population equals just 7 percent of the U.S. population, but it is spread over a much smaller land mass, because most of Australia is desert. Australia’s topography creates one of the highest percentages of urban population in the world, at about 93 percent.

108) In densely populated areas, marketing and distribution costs are usually ________ than in sparsely populated areas.

This is because population centers are closer together, communication systems are more efficient, and more people are available for employment.

109) The set of meteorological conditions of temperature, precipitation, and wind that prevail in a region constitutes that region's ________.

Climate is important because it sets limits on what people can do.

110) Some writers have used climate differences to explain differences in human and economic development. This explanation is known as the ________.

For centuries, Northern writers have used climate differences to explain differences in human and economic development. This explanation, known as the North–South divide, suggests that the greatest economic and intellectual development has occurred in the temperate climates of northern Europe and the United States because less-temperate climates limit human energy and mental powers.

111) Energy that comes from sources that cannot be replenished is known as ________ energy.

Question Details
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
AACSB : Analytical Thinking
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options

Energy sources are divided into renewable and nonrenewable.

112) ________ consist of 17 nonfuel mineral elements used in defense and technology applications.

Rare earths are 17 nonfuel mineral elements used in defense applications and in all areas of modern manufacturing.

113) The category of fuels whose energy source is photosynthesis is known as ________.

Biomass is a kind of indirect solar energy, in which the plants transform the sun's energy into chemical energy. Ethanol is one example. Biomass heating is also growing, especially in China and Sweden.

114) The two main types of solar power are ________ and concentrating solar thermal.

Photovoltaic is created when certain materials are exposed to light. Concentrating solar thermal collects the sun's heat and magnifies it through mirrors and lenses.

115) Compare and contrast the life cycle assessment approach toward environmental impact with the cradle-to-cradle design approach.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Topic : Environmental Sustainability
Bloom's : Apply
Learning Objective : 04-02 Describe frameworks for sustainability.
Difficulty : 3 Hard

116) Describe four tools for measuring sustainability.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Learning Objective : 04-03 Summarize ways to measure sustainability achievements.
Topic : Environmental Sustainability
Bloom's : Apply
Difficulty : 3 Hard

117) Describe the shift toward renewable energy sources and provide examples.

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Learning Objective : 04-07 Outline nonrenewable and renewable energy options available and their potential impacts on business.
Topic : Renewable and Nonrenewable Energy Options
Difficulty : 3 Hard

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