Question 1

Which of the following is TRUE of the Grameen Bank founded by Prof. Muhammad Yunus?

Accepted Answer

A)  It provides funding primarily to global conglomerates. 
B)  It is a family conglomerate based in Bangladesh. 
C)  It provides small-scale financial services to aspiring entrepreneurs in poor countries. 
D)  It sells insurance in India for less than 20 cents. 
A)  It provides funding primarily to global conglomerates. 
B)  It is a family conglomerate based in Bangladesh. 
C)  It provides small-scale financial services to aspiring entrepreneurs in poor countries. 
D)  It sells insurance in India for less than 20 cents.

Question 2

China, Indonesia, and Russia are examples of advanced economies with strong intellectual property protection.

Accepted Answer

A) True 
 B)False

Question 3

Businesses in emerging markets are important targets for machinery and equipment sales compared to those in advanced economies.

Accepted Answer

A) True 
 B)False

Question 4

The purchasing power parity concept suggests that ________.

Accepted Answer

A)  in emerging markets, the ability to buy goods and services depends on the influx of FDI from international MNEs 
B)  the fluctuation in exchange rates disrupts international trade because the value of goods and services is mostly inconsistent 
C)  in the future, a unified currency should be used to create equality in the global marketplace and to eliminate disparity 
D)  in the long run, exchange rates should move toward levels that would equalize the prices of an identical basket of goods and services in any two countries 
A)  in emerging markets, the ability to buy goods and services depends on the influx of FDI from international MNEs 
B)  the fluctuation in exchange rates disrupts international trade because the value of goods and services is mostly inconsistent 
C)  in the future, a unified currency should be used to create equality in the global marketplace and to eliminate disparity 
D)  in the long run, exchange rates should move toward levels that would equalize the prices of an identical basket of goods and services in any two countries

Question 5

Briefly explain how microfinancing has helped individuals to rise out of poverty in many developing nations.

Accepted Answer

Microfinance provides small-scale financ

Question 6

Demographic trends indicate that, in the coming two decades, ________.

Accepted Answer

A)  the spending power of middle-class households will substantially decline 
B)  the GDP of advanced economies will decline 
C)  the spending power of low-income households will increase tremendously 
D)  the proportion of middle-class households in emerging markets will continue to grow, representing enormous spending power 
A)  the spending power of middle-class households will substantially decline 
B)  the GDP of advanced economies will decline 
C)  the spending power of low-income households will increase tremendously 
D)  the proportion of middle-class households in emerging markets will continue to grow, representing enormous spending power

Question 7

Which of the following countries has weak intellectual property protection?

Accepted Answer

A)  China 
B)  the United States 
C)  Australia 
D)  France 
A)  China 
B)  the United States 
C)  Australia 
D)  France

Question 8

Class Reports (Scenario)
Prof. Jacob Middleton has divided students in his international business class into three groups. Each group has been assigned the task of presenting an overview of a major country group and outlining its distinguishing characteristics. Group 1 will discuss advanced economies, Group 2 will address the characteristics of developing economies, and Group 3 will focus on emerging markets.
-Which of the following refers to a distinctive trait of the type of economy discussed by Group 1?

Accepted Answer

A)  minimal trade barriers 
B)  low trade volume 
C)  low inward FDI 
D)  poor industrialization 
A)  minimal trade barriers 
B)  low trade volume 
C)  low inward FDI 
D)  poor industrialization

Question 9

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

Accepted Answer

A)  low inward FDI 
B)  high trade barriers 
C)  low energy consumption 
D)  privatization of state-owned industries 
A)  low inward FDI 
B)  high trade barriers 
C)  low energy consumption 
D)  privatization of state-owned industries

Question 10

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Accepted Answer

A)  it tends to overemphasize the role of pricing in driving growth in emerging markets 
B)  it overlooks the substantial price differences between advanced economies and emerging markets 
C)  prices are usually higher for most products and services in emerging markets 
D)  emerging markets do not support inward FDI 
A)  it tends to overemphasize the role of pricing in driving growth in emerging markets 
B)  it overlooks the substantial price differences between advanced economies and emerging markets 
C)  prices are usually higher for most products and services in emerging markets 
D)  emerging markets do not support inward FDI

Question 11

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

Accepted Answer

A) True 
 B)False

Question 12

When sourcing relies on foreign suppliers or production bases, it is known as global sourcing or offshoring.

Accepted Answer

A) True 
 B)False

Question 13

The absence of reliable or consistent governance from recognized government authorities ________.

Accepted Answer

A)  decreases risks 
B)  increases managers' ability to forecast business conditions 
C)  increases business costs 
D)  increases inward FDI 
A)  decreases risks 
B)  increases managers' ability to forecast business conditions 
C)  increases business costs 
D)  increases inward FDI

Question 14

In a short essay, describe some of the risks and challenges of doing business in emerging markets. What strategies help firms enter emerging markets successfully?

Accepted Answer

Firms that wish to do business in emergi

Question 15

Emerging markets are ________.

Accepted Answer

A)  developing economies where goods and services are directly exchanged for other goods and services 
B)  post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure 
C)  low-income countries characterized by limited industrialization and stagnant economies 
D)  former developing economies that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s 
A)  developing economies where goods and services are directly exchanged for other goods and services 
B)  post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure 
C)  low-income countries characterized by limited industrialization and stagnant economies 
D)  former developing economies that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s

Question 16

________ is the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers.

Accepted Answer

A)  Purchasing power parity 
B)  Outsourcing 
C)  Privatization 
D)  Nationalization 
A)  Purchasing power parity 
B)  Outsourcing 
C)  Privatization 
D)  Nationalization

Question 17

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Accepted Answer

A) True 
 B)False

Which of the following is TRUE of the Grameen Bank founded by Prof. Muhammad Yunus?

China, Indonesia, and Russia are examples of advanced economies with strong intellectual property protection.

Businesses in emerging markets are important targets for machinery and equipment sales compared to those in advanced economies.

The purchasing power parity concept suggests that ________.

Briefly explain how microfinancing has helped individuals to rise out of poverty in many developing nations.

Demographic trends indicate that, in the coming two decades, ________.

Which of the following countries has weak intellectual property protection?

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

When sourcing relies on foreign suppliers or production bases, it is known as global sourcing or offshoring.

The absence of reliable or consistent governance from recognized government authorities ________.

In a short essay, describe some of the risks and challenges of doing business in emerging markets. What strategies help firms enter emerging markets successfully?

Emerging markets are ________.

________ is the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers.

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 8: Understanding Emerging Markets

Which of the following is TRUE of the Grameen Bank founded by Prof. Muhammad Yunus?

China, Indonesia, and Russia are examples of advanced economies with strong intellectual property protection.

Businesses in emerging markets are important targets for machinery and equipment sales compared to those in advanced economies.

The purchasing power parity concept suggests that ________.

Briefly explain how microfinancing has helped individuals to rise out of poverty in many developing nations.

Demographic trends indicate that, in the coming two decades, ________.

Which of the following countries has weak intellectual property protection?

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

When sourcing relies on foreign suppliers or production bases, it is known as global sourcing or offshoring.

The absence of reliable or consistent governance from recognized government authorities ________.

In a short essay, describe some of the risks and challenges of doing business in emerging markets. What strategies help firms enter emerging markets successfully?

Emerging markets are ________.

________ is the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers.

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters