Question 1

Microfinance provides large-scale financial services mainly to global conglomerates.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is characteristic of emerging markets?

Accepted Answer

A)  low inward foreign direct investment 
B)  minimum regulations 
C)  major focus on services and branded products 
D)  rapidly declining trade barriers 
A)  low inward foreign direct investment 
B)  minimum regulations 
C)  major focus on services and branded products 
D)  rapidly declining trade barriers

Question 3

________ refer to post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure.

Accepted Answer

A)  Underground economies 
B)  Emerging markets 
C)  Advanced economies 
D)  Transition economies 
A)  Underground economies 
B)  Emerging markets 
C)  Advanced economies 
D)  Transition economies

Question 4

Emerging markets act as manufacturing bases for global MNEs because of ________.

Accepted Answer

A)  high regulations 
B)  high availability of low-wage ,highly skilled labor 
C)  well-developed infrastructure 
D)  strong intellectual property laws 
A)  high regulations 
B)  high availability of low-wage ,highly skilled labor 
C)  well-developed infrastructure 
D)  strong intellectual property laws

Question 5

Outsourcing enables foreign firms to increase efficiency by limiting corruption in the emerging markets.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a characteristic of advanced economies?

Accepted Answer

A)  poor quality of life 
B)  low life expectancy 
C)  high purchasing power 
D)  high infant mortality rate 
A)  poor quality of life 
B)  low life expectancy 
C)  high purchasing power 
D)  high infant mortality rate

Question 7

Samsung is an example of family conglomerate based in South Korea.

Accepted Answer

A) True 
 B)False

Question 8

In emerging markets, MNEs must set prices appropriate for local conditions because ________.

Accepted Answer

A)  research and development is relatively cheaper in emerging markets 
B)  of high corruption and bureaucracy 
C)  of inadequate legal framework 
D)  emerging market consumers cannot pay high prices 
A)  research and development is relatively cheaper in emerging markets 
B)  of high corruption and bureaucracy 
C)  of inadequate legal framework 
D)  emerging market consumers cannot pay high prices

Question 9

Excessive bureaucracy is usually associated with ________.

Accepted Answer

A)  strong legal framework 
B)  low country risk 
C)  lack of transparency 
D)  low trade barriers 
A)  strong legal framework 
B)  low country risk 
C)  lack of transparency 
D)  low trade barriers

Question 10

Counterfeiting is fairly uncommon in China, Indonesia, and Russia.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The lack of confidence among foreign investors with regard to Russia stems from the nation's unstable political conditions and its favoritism toward local firms.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a benefit to a foreign firm collaborating with a family conglomerate in an emerging market?

Accepted Answer

A)  reduced capital requirements 
B)  complete exemption from paying taxes 
C)  complete protection from intellectual property rights violations 
D)  low dependence on technology 
A)  reduced capital requirements 
B)  complete exemption from paying taxes 
C)  complete protection from intellectual property rights violations 
D)  low dependence on technology

Question 14

Developing countries lack numerous conditions needed for successful economic development, including low trade barriers and substantial international trade and investment.

Accepted Answer

A) True 
 B)False

Question 15

Transferring technology and know-how ________.

Accepted Answer

A)  promotes local innovation and enterprise 
B)  depresses derived demand for business commodities 
C)  encourages the development of market monopolies 
D)  lowers the competitive advantages of firms 
A)  promotes local innovation and enterprise 
B)  depresses derived demand for business commodities 
C)  encourages the development of market monopolies 
D)  lowers the competitive advantages of firms

Question 16

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 17

Which of the following is true about emerging market economies in international business?

Accepted Answer

A)  They account for nearly two-thirds of world GDP and host the world's largest MNEs. 
B)  They have tremendous purchasing power with minimal restrictions on international trade and investment. 
C)  These markets have evolved from manufacturing economies to service-based economies. 
D)  Businesses in emerging markets are important targets for machinery and equipment sales. 
A)  They account for nearly two-thirds of world GDP and host the world's largest MNEs. 
B)  They have tremendous purchasing power with minimal restrictions on international trade and investment. 
C)  These markets have evolved from manufacturing economies to service-based economies. 
D)  Businesses in emerging markets are important targets for machinery and equipment sales.

Question 18

New global challengers are large, highly diversified companies in advanced economies that are privately owned.

Accepted Answer

A) True 
 B)False

Question 19

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and political frameworks because ________.

Accepted Answer

A)  such alliances help eliminate business risks completely 
B)  through such partners, foreign firms can access local market knowledge 
C)  such alliances help foreign firms function without distributor networks 
D)  the dominance of family conglomerates in emerging economies are fast declining 
A)  such alliances help eliminate business risks completely 
B)  through such partners, foreign firms can access local market knowledge 
C)  such alliances help foreign firms function without distributor networks 
D)  the dominance of family conglomerates in emerging economies are fast declining

Question 20

Businesses foster economic development in emerging markets ________.

Accepted Answer

A)  through the mass production of cheap, low-quality goods 
B)  by using the "cookie cutter" strategy 
C)  through entrepreneurial activities and modernization projects 
D)  by implementing cost-effective production methods 
A)  through the mass production of cheap, low-quality goods 
B)  by using the "cookie cutter" strategy 
C)  through entrepreneurial activities and modernization projects 
D)  by implementing cost-effective production methods

Microfinance provides large-scale financial services mainly to global conglomerates.

Which of the following is characteristic of emerging markets?

________ refer to post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure.

Emerging markets act as manufacturing bases for global MNEs because of ________.

Outsourcing enables foreign firms to increase efficiency by limiting corruption in the emerging markets.

Which of the following is a characteristic of advanced economies?

Samsung is an example of family conglomerate based in South Korea.

In emerging markets, MNEs must set prices appropriate for local conditions because ________.

Excessive bureaucracy is usually associated with ________.

Counterfeiting is fairly uncommon in China, Indonesia, and Russia.

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

The lack of confidence among foreign investors with regard to Russia stems from the nation's unstable political conditions and its favoritism toward local firms.

Which of the following is a benefit to a foreign firm collaborating with a family conglomerate in an emerging market?

Developing countries lack numerous conditions needed for successful economic development, including low trade barriers and substantial international trade and investment.

Transferring technology and know-how ________.

The purchasing power parity concept suggests that ________.

Which of the following is true about emerging market economies in international business?

New global challengers are large, highly diversified companies in advanced economies that are privately owned.

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and political frameworks because ________.

Businesses foster economic development in emerging markets ________.

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

Microfinance provides large-scale financial services mainly to global conglomerates.

Which of the following is characteristic of emerging markets?

________ refer to post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure.

Emerging markets act as manufacturing bases for global MNEs because of ________.

Outsourcing enables foreign firms to increase efficiency by limiting corruption in the emerging markets.

Which of the following is a characteristic of advanced economies?

Samsung is an example of family conglomerate based in South Korea.

In emerging markets, MNEs must set prices appropriate for local conditions because ________.

Excessive bureaucracy is usually associated with ________.

Counterfeiting is fairly uncommon in China, Indonesia, and Russia.

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

The lack of confidence among foreign investors with regard to Russia stems from the nation's unstable political conditions and its favoritism toward local firms.

Which of the following is a benefit to a foreign firm collaborating with a family conglomerate in an emerging market?

Developing countries lack numerous conditions needed for successful economic development, including low trade barriers and substantial international trade and investment.

Transferring technology and know-how ________.

The purchasing power parity concept suggests that ________.

Which of the following is true about emerging market economies in international business?

New global challengers are large, highly diversified companies in advanced economies that are privately owned.

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and political frameworks because ________.

Businesses foster economic development in emerging markets ________.

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