He External Environment (Scenario)

question 120

Multiple Choice

he External Environment (Scenario)
DigiTech Corporation is a manufacturer of handheld language translation devices. There are many forces in the external environment that influence DigiTech, and its managers are monitoring them closely. One factor is the upcoming federal election. If elected, the leading political candidate has promised to cut corporate taxes to help stimulate the economy. Another factor is the emergence of new competitors with products similar to DigiTech's best-selling model: the Speak-Easy. Advances in the processing speed of computer chips have shortened product development cycles and made it easier for new companies to enter the market. Unfortunately, the recent increase in competition has led to supplier shortages of key components such as microphones and micro-speakers and has left DigiTech scrambling to find new sources!
-Rapid changes in ________ conditions have resulted in shorter product development cycles for DigiTech.

• A)economic
• B)political/legal
• C)socio-cultural
• D)technological
• E)global

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Definitions:

GNI Per Capita

Gross National Income per capita is a measure dividing the country's GNI by its population, providing an average economic income per person.

Purchasing Power

The quantity and quality of goods and services that can be bought with a unit of currency.

Birth Rates

The number of live births per thousand of the population per year, a key demographic indicator.

Developing Countries

are nations with lower levels of socioeconomic development, characterized by lower income, less industrialization, and poorer health and educational statuses.