Question 1

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

Accepted Answer

A) Low-income countries. 
B) Lower-middle-income countries. 
C) BRIC countries. 
D) Developing countries. 
E) LDCs (least-developed countries). 
A) Low-income countries. 
B) Lower-middle-income countries. 
C) BRIC countries. 
D) Developing countries. 
E) LDCs (least-developed countries).

Question 2

The majority of the world's population is included in the following economic category:

Accepted Answer

A) high-income countries. 
B) upper-middle-income countries. 
C) lower-middle-income countries. 
D) low-income countries. 
E) lower-upper income countries. 
A) high-income countries. 
B) upper-middle-income countries. 
C) lower-middle-income countries. 
D) low-income countries. 
E) lower-upper income countries.

Question 3

The table below is taken from the Big Mac Index.After reviewing it, answer the questions listed below.
   
What is meant by PPP? According to this table, which is the most overvalued and undervalued currency? Fill the last column showing under or over valuation of local currencies.Give reasons for your answer.What is the primary drawback of this index? How can this be used?

Accepted Answer

PPP stands for purchasing power parity,

Question 4

Upper-middle-income countries, also known as industrializing or developing countries, are those that achieve the highest rates of economic growth and are also collectively referred to as Newly Incoming Economies or NIEs.

Accepted Answer

A) True 
 B)False

Question 5

If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then:

Accepted Answer

A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before. 
B) the dollar has depreciated relative to the yen. 
C) the yen has depreciated relative to the dollar. 
D) the dollar has appreciated relative to the yen. 
E) the dollar and yen both remained same in value. 
A) a Japanese tourist in San Francisco pays more in yen for the same amount of dollars that she bought the week before. 
B) the dollar has depreciated relative to the yen. 
C) the yen has depreciated relative to the dollar. 
D) the dollar has appreciated relative to the yen. 
E) the dollar and yen both remained same in value.

Question 6

Porsche relies on currency hedging rather than price increases to boost pretax profits on sales of its automobiles.What is the advantage of doing this, and how does hedging work?

Accepted Answer

Hedging exchange rate exposure involves

Question 7

Global companies can also contribute to economic development by finding creative ways to preserve old-growth forests and other resources while creating economic opportunities for local inhabitants.

Accepted Answer

A) True 
 B)False

Question 8

To the extent that a country sells more goods and services abroad than it buys, there will be:

Accepted Answer

A) a greater demand for its currency. 
B) a surplus production of goods and services. 
C) a scarcity of goods and services within the country. 
D) a need for revaluation of its currency. 
E) time for fluctuating its currency. 
A) a greater demand for its currency. 
B) a surplus production of goods and services. 
C) a scarcity of goods and services within the country. 
D) a need for revaluation of its currency. 
E) time for fluctuating its currency.

Question 9

China offsets its trade surpluses with an outflow of capital, while the United States offsets its trade deficit with an inflow of capital.

Accepted Answer

A) True 
 B)False

Question 10

When countries or regions experience currency and/or economic stress, all of the following events can take place except:

Accepted Answer

A) increased exposure to certain risks. 
B) new profit opportunities. 
C) lower local currency financing costs. 
D) bad debts occur. 
E) cancellation of aircraft equipment sales. 
A) increased exposure to certain risks. 
B) new profit opportunities. 
C) lower local currency financing costs. 
D) bad debts occur. 
E) cancellation of aircraft equipment sales.

Question 11

With per capita GNI of $10,150, Venezuela is classified as an upper-middle-income country.

Accepted Answer

A) True 
 B)False

Question 12

The newly independent countries of the former Soviet Union present an interesting situation: income is declining, and there is considerable economic hardship.The potential for disruption is certainly high.Are they problem cases, or are they attractive opportunities with good potential for moving out of the low-income category?

Accepted Answer

These countries are good example of risk

Question 13

In the broadest sense, a stronger Chinese currency, renminbi, should help rebalance the global economy.

Accepted Answer

A) True 
 B)False

Question 14

In Sweden, where the government controls two-thirds of all expenditures, resource allocation is more "market" oriented than "command" oriented.

Accepted Answer

A) True 
 B)False

Question 15

The term "Expanded Triad" includes all of the following countries or regions except:

Accepted Answer

A) Japan 
B) United States 
C) Canada 
D) Mexico 
E) Russia 
A) Japan 
B) United States 
C) Canada 
D) Mexico 
E) Russia

Question 16

What is "Economic exposure," and how does it impact companies like Nestlé, Daimler AG, Royal Dutch Shell, and Astra Zeneca? Assess the impact of a weaker dollar on the financial performance of these corporations.

Accepted Answer

Economic exposure refers to the impact o

Question 17

The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom.The key economic variables considered for this ranking includes all of the following except:

Accepted Answer

A) taxation policy. 
B) government consumption of economic output. 
C) percent foreign ownership. 
D) banking policy. 
E) wage and price control. 
A) taxation policy. 
B) government consumption of economic output. 
C) percent foreign ownership. 
D) banking policy. 
E) wage and price control.

Question 18

The United Nations designates 50 countries in the bottom ranks of the low-income category as least-developed countries (LDCs); the term is sometimes used to indicate a contrast with developing countries and developed countries.

Accepted Answer

A) True 
 B)False

Question 19

People or organizations with needs and wants and the willingness and ability to buy or sell represent the definition of a market.

Accepted Answer

A) True 
 B)False

Question 20

During the past two decades, the world economic environment has become increasingly dynamic.To achieve success, executives and marketers must take into account all of the following realities except:

Accepted Answer

A) capital movements have replaced trade as the driving force of the world economy. 
B) production has become "uncoupled" from employment. 
C) the world economy dominates the scene. 
D) the struggle between capitalism and socialism continues. 
E) the growth of e-commerce diminishes the importance of national barriers. 
A) capital movements have replaced trade as the driving force of the world economy. 
B) production has become "uncoupled" from employment. 
C) the world economy dominates the scene. 
D) the struggle between capitalism and socialism continues. 
E) the growth of e-commerce diminishes the importance of national barriers.

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

The majority of the world's population is included in the following economic category:

Upper-middle-income countries, also known as industrializing or developing countries, are those that achieve the highest rates of economic growth and are also collectively referred to as Newly Incoming Economies or NIEs.

If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then:

Porsche relies on currency hedging rather than price increases to boost pretax profits on sales of its automobiles.What is the advantage of doing this, and how does hedging work?

Global companies can also contribute to economic development by finding creative ways to preserve old-growth forests and other resources while creating economic opportunities for local inhabitants.

To the extent that a country sells more goods and services abroad than it buys, there will be:

China offsets its trade surpluses with an outflow of capital, while the United States offsets its trade deficit with an inflow of capital.

When countries or regions experience currency and/or economic stress, all of the following events can take place except:

With per capita GNI of $10,150, Venezuela is classified as an upper-middle-income country.

In the broadest sense, a stronger Chinese currency, renminbi, should help rebalance the global economy.

In Sweden, where the government controls two-thirds of all expenditures, resource allocation is more "market" oriented than "command" oriented.

The term "Expanded Triad" includes all of the following countries or regions except:

What is "Economic exposure," and how does it impact companies like Nestlé, Daimler AG, Royal Dutch Shell, and Astra Zeneca? Assess the impact of a weaker dollar on the financial performance of these corporations.

The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom.The key economic variables considered for this ranking includes all of the following except:

The United Nations designates 50 countries in the bottom ranks of the low-income category as least-developed countries (LDCs); the term is sometimes used to indicate a contrast with developing countries and developed countries.

People or organizations with needs and wants and the willingness and ability to buy or sell represent the definition of a market.

During the past two decades, the world economic environment has become increasingly dynamic.To achieve success, executives and marketers must take into account all of the following realities except:

Introduction to Global Marketing

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing, Exporting, and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 2: The Global Economic Environment

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

The majority of the world's population is included in the following economic category:

Upper-middle-income countries, also known as industrializing or developing countries, are those that achieve the highest rates of economic growth and are also collectively referred to as Newly Incoming Economies or NIEs.

If an American tourist in Tokyo pays more in dollars for the same amount of yen that she bought last week, then:

Porsche relies on currency hedging rather than price increases to boost pretax profits on sales of its automobiles.What is the advantage of doing this, and how does hedging work?

Global companies can also contribute to economic development by finding creative ways to preserve old-growth forests and other resources while creating economic opportunities for local inhabitants.

To the extent that a country sells more goods and services abroad than it buys, there will be:

China offsets its trade surpluses with an outflow of capital, while the United States offsets its trade deficit with an inflow of capital.

When countries or regions experience currency and/or economic stress, all of the following events can take place except:

With per capita GNI of $10,150, Venezuela is classified as an upper-middle-income country.

In the broadest sense, a stronger Chinese currency, renminbi, should help rebalance the global economy.

In Sweden, where the government controls two-thirds of all expenditures, resource allocation is more "market" oriented than "command" oriented.

The term "Expanded Triad" includes all of the following countries or regions except:

What is "Economic exposure," and how does it impact companies like Nestlé, Daimler AG, Royal Dutch Shell, and Astra Zeneca? Assess the impact of a weaker dollar on the financial performance of these corporations.

The Washington, D.C.-based Heritage Foundation survey consists of over 175 countries ranked by degree of economic freedom.The key economic variables considered for this ranking includes all of the following except:

The United Nations designates 50 countries in the bottom ranks of the low-income category as least-developed countries (LDCs); the term is sometimes used to indicate a contrast with developing countries and developed countries.

People or organizations with needs and wants and the willingness and ability to buy or sell represent the definition of a market.

During the past two decades, the world economic environment has become increasingly dynamic.To achieve success, executives and marketers must take into account all of the following realities except:

Introduction to Global Marketing

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing, Exporting, and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters