Question 1

Bureaucracy and red tape in developing economies deter firms from these countries from participating in the global economy.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following countries has the highest per-capita GDP using PPP exchange rates in US$?

Accepted Answer

A)  Brazil 
B)  China 
C)  Turkey 
D)  South Korea 
A)  Brazil 
B)  China 
C)  Turkey 
D)  South Korea D

Question 3

Which of the following emerging market economies has the largest middle-class population?

Accepted Answer

A)  India 
B)  Russia 
C)  Brazil 
D)  China 
A)  India 
B)  Russia 
C)  Brazil 
D)  China D

Question 4

Africa's GDP has improved substantially since the 1960s.

Accepted Answer

A) True 
 B)False

Question 5

Emerging markets are home to low-wage, high-quality labor for manufacturing and assembly operations.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following best explains the growth of family conglomerates in emerging markets?

Accepted Answer

A)  declining importance of entrepreneurship 
B)  high rate of innovation 
C)  highly competitive markets 
D)  government protection 
A)  declining importance of entrepreneurship 
B)  high rate of innovation 
C)  highly competitive markets 
D)  government protection

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. Three students have been selected as group leaders: Jordan, Elaine, and Andrei. Jordan's group will discuss advanced economies, Elaine's group will address the characteristics of developing economies, and Andrei's groups will focus on emerging markets.
-Which of the following refers to a distinctive trait of the type of economy discussed by Andrei's group?

Accepted Answer

A)  low inward FDI 
B)  rapidly liberalizing trade barriers 
C)  highly developed industry 
D)  low trade volume 
A)  low inward FDI 
B)  rapidly liberalizing trade barriers 
C)  highly developed industry 
D)  low trade volume

Question 9

Where are emerging markets mostly found? What are the factors contributing to their rapid growth?

Accepted Answer

Emerging markets are found in East and S

Question 10

Vytel Communications (Scenario)
Vytel Communications is a U.S.-based telecommunications company that is considering doing business in Argentina. Vytel managers hire a consulting firm to investigate the risks and benefits related to doing business in Argentina. The consulting firm identifies a number of challenges that might prohibit Vytel from entering Argentina. In addition, the consultants conduct surveys which indicate a demand for Vytel's products and services.
-Which of the following should be considered by the consulting firm before recommending that Vytel should do business in Argentina?

Accepted Answer

A)  What other emerging markets are dominated by family conglomerates? 
B)  What has been the historical economic effect of family conglomerates in Argentina? 
C)  Do family conglomerates control the telecommunications industry in Argentina? 
D)  What benefits and loans are received by family conglomerates in Argentina? 
A)  What other emerging markets are dominated by family conglomerates? 
B)  What has been the historical economic effect of family conglomerates in Argentina? 
C)  Do family conglomerates control the telecommunications industry in Argentina? 
D)  What benefits and loans are received by family conglomerates in Argentina?

Question 11

Which of the following is a promising investment target in Africa?

Accepted Answer

A)  banking sector 
B)  food processing sector 
C)  information technology 
D)  agriculture 
A)  banking sector 
B)  food processing sector 
C)  information technology 
D)  agriculture

Question 12

How are large MNEs from advanced economies competing against new emerging market MNEs? In a short essay, describe the methods used by the incumbents to protect market share from emergent firms.

Accepted Answer

Advanced-economy firms can counter in va

Question 13

Vytel Communications (Scenario)
Vytel Communications is a U.S.-based telecommunications company that is considering doing business in Argentina. Vytel managers hire a consulting firm to investigate the risks and benefits related to doing business in Argentina. The consulting firm identifies a number of challenges that might prohibit Vytel from entering Argentina. In addition, the consultants conduct surveys which indicate a demand for Vytel's products and services.
-Which of the following would be most important for the consulting firm to evaluate when making a recommendation to Vytel about doing business in Argentina?

Accepted Answer

A)  Is work-life balance uniformly enjoyed by the Argentine workforce? 
B)  Do Argentine firms frequently outsource their key operations abroad? 
C)  Would government regulations significantly impede Vytel's ability to make profits? 
D)  What benefits have been gained in the past by Vytel using foreign distributors? 
A)  Is work-life balance uniformly enjoyed by the Argentine workforce? 
B)  Do Argentine firms frequently outsource their key operations abroad? 
C)  Would government regulations significantly impede Vytel's ability to make profits? 
D)  What benefits have been gained in the past by Vytel using foreign distributors?

Question 14

Developing economies are countries that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s.

Accepted Answer

A) True 
 B)False

Question 15

The "cookie-cutter" strategies that MNEs developed decades ago are considered most suitable for achieving success in emerging markets.

Accepted Answer

A) True 
 B)False

Question 16

Demographic trends indicate that, in the coming two decades, the proportion of middle-class households in emerging markets will become much smaller.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

In an informal economy ________.

Accepted Answer

A)  market value of all officially recognized final goods and services produced within a country is substantially lowered 
B)  economic transactions are not officially recorded and are therefore left out of national GDP calculations 
C)  exchange rates are low 
D)  the household income is substantially larger than that in a formal economy 
A)  market value of all officially recognized final goods and services produced within a country is substantially lowered 
B)  economic transactions are not officially recorded and are therefore left out of national GDP calculations 
C)  exchange rates are low 
D)  the household income is substantially larger than that in a formal economy

Question 19

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 become much bigger, acquiring 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 become much bigger, acquiring enormous spending power

Question 20

________ 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

Bureaucracy and red tape in developing economies deter firms from these countries from participating in the global economy.

Which of the following countries has the highest per-capita GDP using PPP exchange rates in US$?

Which of the following emerging market economies has the largest middle-class population?

Africa's GDP has improved substantially since the 1960s.

Emerging markets are home to low-wage, high-quality labor for manufacturing and assembly operations.

Emerging markets are ________.

Which of the following best explains the growth of family conglomerates in emerging markets?

Where are emerging markets mostly found? What are the factors contributing to their rapid growth?

Which of the following is a promising investment target in Africa?

How are large MNEs from advanced economies competing against new emerging market MNEs? In a short essay, describe the methods used by the incumbents to protect market share from emergent firms.

Developing economies are countries that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s.

The "cookie-cutter" strategies that MNEs developed decades ago are considered most suitable for achieving success in emerging markets.

Demographic trends indicate that, in the coming two decades, the proportion of middle-class households in emerging markets will become much smaller.

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

In an informal economy ________.

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

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

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 10: Understanding Emerging Markets

Bureaucracy and red tape in developing economies deter firms from these countries from participating in the global economy.

Which of the following countries has the highest per-capita GDP using PPP exchange rates in US$?

Which of the following emerging market economies has the largest middle-class population?

Africa's GDP has improved substantially since the 1960s.

Emerging markets are home to low-wage, high-quality labor for manufacturing and assembly operations.

Emerging markets are ________.

Which of the following best explains the growth of family conglomerates in emerging markets?

Where are emerging markets mostly found? What are the factors contributing to their rapid growth?

Which of the following is a promising investment target in Africa?

How are large MNEs from advanced economies competing against new emerging market MNEs? In a short essay, describe the methods used by the incumbents to protect market share from emergent firms.

Developing economies are countries that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s.

The "cookie-cutter" strategies that MNEs developed decades ago are considered most suitable for achieving success in emerging markets.

Demographic trends indicate that, in the coming two decades, the proportion of middle-class households in emerging markets will become much smaller.

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

In an informal economy ________.

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

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

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters