Question 1

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

Accepted Answer

Microfinance provides small-scale financ

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

MNEs must set high prices in emerging markets because emerging market consumers have high spending power.

Accepted Answer

A) True 
 B)False

Question 5

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 Elaine's group?

Accepted Answer

A)  substantial competition 
B)  minimal trade barriers 
C)  poor industrialization 
D)  high inward FDI 
A)  substantial competition 
B)  minimal trade barriers 
C)  poor industrialization 
D)  high inward FDI

Question 6

Developing economies ________.

Accepted Answer

A)  account for nearly two-thirds of world GDP 
B)  are often highly developed in historical and cultural terms 
C)  are characterized by high purchasing power 
D)  have a high literacy rate 
A)  account for nearly two-thirds of world GDP 
B)  are often highly developed in historical and cultural terms 
C)  are characterized by high purchasing power 
D)  have a high literacy rate

Question 7

Per-capita GDP converted at market exchange rates paints an inaccurate picture of the market potential of an emerging market because ________.

Accepted Answer

A)  it tends to over-emphasize 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 over-emphasize 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 8

Purchasing power parity is ________.

Accepted Answer

A)  the total income received by all sectors of an economy within a nation 
B)  the value of goods and services that can be purchased with one unit of a country's currency 
C)  an adjustment for prices that reflects the amount of goods that consumers can buy in their home country, using their own currency and consistent with their own standard of living 
D)  the exchange rate in the international currency market 
A)  the total income received by all sectors of an economy within a nation 
B)  the value of goods and services that can be purchased with one unit of a country's currency 
C)  an adjustment for prices that reflects the amount of goods that consumers can buy in their home country, using their own currency and consistent with their own standard of living 
D)  the exchange rate in the international currency market

Question 9

Businesses foster economic development via modernization projects and entrepreneurial activity in emerging markets and developing economies. Such efforts are a form of corporate social
responsibility.

Accepted Answer

A) True 
 B)False

Question 10

Certain emerging markets that have evolved from centrally planned economies to liberalized markets are called transition economies.

Accepted Answer

A) True 
 B)False

Question 11

How do national governments contribute to the problems faced by developing economies? Provide examples from Africa, and explain measures taken by governments to improve conditions.

Accepted Answer

Governments in developing economies are

Question 12

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 Jordan's group?

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 13

Economic Development Workshop (Scenario)
Members of 50 different countries attended a workshop on economic development hosted by an international organization based in Geneva, Switzerland. Attendees of the workshop learned about techniques designed to assist countries in expanding their degree of economic development.
-The workshop participants are divided into groups of three. For learning purposes, each group must be made up of individuals from countries with similar degree of economic development. Which of the following might be grouped together?

Accepted Answer

A)  Representatives from Mongolia, Iran, and Sudan 
B)  Representatives from Germany, China, and Sudan 
C)  Representatives from the U.S., China, and Belarus 
D)  Representatives from Sudan, Spain, and France 
A)  Representatives from Mongolia, Iran, and Sudan 
B)  Representatives from Germany, China, and Sudan 
C)  Representatives from the U.S., China, and Belarus 
D)  Representatives from Sudan, Spain, and France

Question 14

Which of the following is an example of a developing economy?

Accepted Answer

A)  Australia 
B)  Bangladesh 
C)  France 
D)  Brazil 
A)  Australia 
B)  Bangladesh 
C)  France 
D)  Brazil

Question 15

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 most likely supports the consulting firm's recommendation that Vytel proceed with plans to do business in Argentina?

Accepted Answer

A)  The political conditions in Argentina are stable. 
B)  Government bureaucrats favor domestic firms to foreign firms. 
C)  Potential local partners have few government contacts. 
D)  The Argentine government lacks transparency. 
A)  The political conditions in Argentina are stable. 
B)  Government bureaucrats favor domestic firms to foreign firms. 
C)  Potential local partners have few government contacts. 
D)  The Argentine government lacks transparency.

Question 16

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

Accepted Answer

A)  Indonesia 
B)  Thailand 
C)  China 
D)  India 
A)  Indonesia 
B)  Thailand 
C)  China 
D)  India

Question 17

Why is per-capita income NOT always the best indicator of an emerging market's potential? What does the concept of purchasing power parity (PPP) suggest?

Accepted Answer

When evaluating the potential of individ

Question 18

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

Accepted Answer

A)  offshoring 
B)  protectionism 
C)  insourcing 
D)  subsidizing 
A)  offshoring 
B)  protectionism 
C)  insourcing 
D)  subsidizing

Question 19

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 20

Which of the following is typical of developing economies?

Accepted Answer

A)  low levels of bureaucracy and red tape 
B)  low debt levels 
C)  lack of cultural history 
D)  poor education systems 
A)  low levels of bureaucracy and red tape 
B)  low debt levels 
C)  lack of cultural history 
D)  poor education systems

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

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?

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

MNEs must set high prices in emerging markets because emerging market consumers have high spending power.

Developing economies ________.

Per-capita GDP converted at market exchange rates paints an inaccurate picture of the market potential of an emerging market because ________.

Purchasing power parity is ________.

Businesses foster economic development via modernization projects and entrepreneurial activity in emerging markets and developing economies. Such efforts are a form of corporate social responsibility.

Certain emerging markets that have evolved from centrally planned economies to liberalized markets are called transition economies.

How do national governments contribute to the problems faced by developing economies? Provide examples from Africa, and explain measures taken by governments to improve conditions.

Which of the following is an example of a developing economy?

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

Why is per-capita income NOT always the best indicator of an emerging market's potential? What does the concept of purchasing power parity (PPP) suggest?

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

Which of the following countries has weak intellectual property protection?

Which of the following is typical of developing economies?

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

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

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?

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

MNEs must set high prices in emerging markets because emerging market consumers have high spending power.

Developing economies ________.

Per-capita GDP converted at market exchange rates paints an inaccurate picture of the market potential of an emerging market because ________.

Purchasing power parity is ________.

Businesses foster economic development via modernization projects and entrepreneurial activity in emerging markets and developing economies. Such efforts are a form of corporate social responsibility.

Certain emerging markets that have evolved from centrally planned economies to liberalized markets are called transition economies.

How do national governments contribute to the problems faced by developing economies? Provide examples from Africa, and explain measures taken by governments to improve conditions.

Which of the following is an example of a developing economy?

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

Why is per-capita income NOT always the best indicator of an emerging market's potential? What does the concept of purchasing power parity (PPP) suggest?

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

Which of the following countries has weak intellectual property protection?

Which of the following is typical of developing economies?

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