He External Environment (Scenario)

question 123

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!
-In DigiTech's specific environment,the number of ________ is increasing and there are shortages among its key ________.

• A)pressure groups; customers
• B)customers; competitors
• C)competitors; suppliers
• D)suppliers; investors
• E)investors; agents

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Definitions:

Macroeconomics

The part of economics concerned with the performance and behavior of the economy as a whole. Focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as the household, business, and government sectors.

Microeconomics

The part of economics concerned with (1) decision making by individual units such as a household, a firm, or an industry and (2) individual markets, specific goods and services, and product and resource prices.

Aggregates

A broad category of coarse to medium-grained particulate material used in construction, including sand, gravel, crushed stone, slag, and recycled concrete.

Opportunity Cost

Opting for one opportunity causes the relinquishment of possible gains from not selected alternatives.