Exam 2: The Global Economic Environment

The World Bank has developed a four-category classification system for stages of marketing development which uses GDP as a base.

The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates:

The Coca-Cola Company recently began to address dietary and health needs in low-income countries by developing Vitango, a beverage product that can help fight anemia, blindness, and other ailments related to malnutrition.

Porsche relies on currency hedging rather than price increases in order to:

One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%.When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that yen was only 20% overvalued relative to the dollar.What is the most likely explanation for this?

The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world.It is divided into the current and capital accounts.Current accounts include all of the following except:

Measuring elevator populations in countries measured as units installed per thousand people gives an estimate of the market for elevators.That China has about one half an elevator per thousand people is indicative of:

According to C.K.Prahalad and A.Hammond, the poor often pay higher prices for many goods, and so there is an opportunity for efficient competitors to realize attractive margins by offering quality and low prices.

The United States regularly posts deficits in both the current account and the trade balance in goods.

The fastest-growing sector of world trade includes:

The lack of employment as seen in the recent times is indicative of the fact that manufacturing is in decline.

Devaluation can result from government action or an economic crisis.In August 1998, the Russian economy imploded.As a result all of the following listed events happened except:

A distinction between industrial and postindustrial countries is that the postindustrial countries exhibit an orientation toward the future and stress the importance of interpersonal relationships in the functioning of society.

Some people believe that marketing is relevant only in affluent, industrialized countries, whereas others believe that the role of marketing is to identify people's needs and wants worldwide, irrespective of the economy.Giving examples of companies involved in energy conservation and technology, support the latter argument.

Upper-middle-income countries that achieve the highest rates of economic growth are sometimes referred to collectively as:

Between the year 2001 and 2006, China bought more than $250 billion in U.S.Treasury bonds.Such purchases:

The Cold War decades that followed World War II saw the East and the West jockeying for geopolitical advantage.

Nike produces only a small portion of its output in China, but when the firm refers to China as a "two-billion-foot market," it is referring to the fact that:

Which two companies are sourcing product components from small-scale enterprises, which in turn are helping preserve old-growth forests as well as economic opportunities in Brazil?

What are the distinguishing features between Centrally Planned Socialism and Centrally Planned Capitalism? Give examples of countries which follow these systems.