Question 1

Which of the following best summarizes the argument in favor of microfinance?

Accepted Answer

A)  Microfinance ultimately leads to greater tax revenues for national governments. 
B)  Recently, mainstream banks have begun to view microfinance as the prime driver of advanced economies. 
C)  Microfinance allows the underprivileged to create businesses and improve their lives. 
D)  Microfinance alleviates the pressure on MNEs to support developing economies. 
A)  Microfinance ultimately leads to greater tax revenues for national governments. 
B)  Recently, mainstream banks have begun to view microfinance as the prime driver of advanced economies. 
C)  Microfinance allows the underprivileged to create businesses and improve their lives. 
D)  Microfinance alleviates the pressure on MNEs to support developing economies.

Question 2

Which of the following is characteristic of family conglomerates?

Accepted Answer

A)  low access to capital than most other firms 
B)  wholly owned or controlled by the government 
C)  extensive networks in various industries 
D)  inferior market knowledge 
A)  low access to capital than most other firms 
B)  wholly owned or controlled by the government 
C)  extensive networks in various industries 
D)  inferior market knowledge

Question 3

Which of the following is an example of global sourcing?

Accepted Answer

A)  After the recent global recession, major banks in Palladia were funded more quickly under national ownership and control. 
B)  Titania, a country with a major stake in automobile manufacturing, employs citizens to keep its level of quality and commitment to the automobile industry. 
C)  Camden Ltd., a Berylia-based pharmaceutical company has opened manufacturing centers in Rhodia. 
D)  To manage the steel industry in Cadmia, over 900 coal mines were taken under public ownership. 
A)  After the recent global recession, major banks in Palladia were funded more quickly under national ownership and control. 
B)  Titania, a country with a major stake in automobile manufacturing, employs citizens to keep its level of quality and commitment to the automobile industry. 
C)  Camden Ltd., a Berylia-based pharmaceutical company has opened manufacturing centers in Rhodia. 
D)  To manage the steel industry in Cadmia, over 900 coal mines were taken under public ownership.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Governments and state enterprises in emerging markets are major targets for sales of infrastructure-related products and services.

Accepted Answer

A) True 
 B)False

Question 6

An economy is categorized as advanced, developing, or emerging based on per capita income and the level of economic development.

Accepted Answer

A) True 
 B)False

Question 7

Maximus Motor Company (Scenario)
Maximus Motor Company is a British automobile manufacturer that builds high-end luxury cars for sale around the world. Maximus managers recognize they are missing opportunities in emerging markets, such as India, which have an increasing number of middle-class people ready to purchase affordable cars. Competitors that entered the Indian market experienced significant profits over the last two years. Maximus managers have been assigned the task of determining the best strategy for Maximus to do business in India.
-Which of the following would be most important for Maximus managers in determining the best entry strategy for entering an emerging market such as India, characterized by the presence of family conglomerates?

Accepted Answer

A)  What other firms have partnered with family conglomerates? 
B)  How often do Indians use their cars and for what purpose? 
C)  What type of automobile should Maximus manufacture in India? 
D)  How would Maximus benefit from partnering with a family conglomerate? 
A)  What other firms have partnered with family conglomerates? 
B)  How often do Indians use their cars and for what purpose? 
C)  What type of automobile should Maximus manufacture in India? 
D)  How would Maximus benefit from partnering with a family conglomerate?

Question 8

Which of the following situations will discourage business activities of foreign firms in an emerging market?

Accepted Answer

A)  allowing foreign firms to access the country's energy resources 
B)  increasing the requirements for licenses, approvals, and paperwork 
C)  using a strong legal framework and patent laws 
D)  investing in a strong Internet infrastructure 
A)  allowing foreign firms to access the country's energy resources 
B)  increasing the requirements for licenses, approvals, and paperwork 
C)  using a strong legal framework and patent laws 
D)  investing in a strong Internet infrastructure

Question 9

Which of the following countries is home to the Hyundai Group?

Accepted Answer

A)  India 
B)  South Korea 
C)  Russia 
D)  Taiwan 
A)  India 
B)  South Korea 
C)  Russia 
D)  Taiwan

Question 10

Family conglomerates (FCs) might pose a challenge to firms trying to enter emerging markets because ________.

Accepted Answer

A)  FCs have no more knowledge in manufacturing and distribution than other private players 
B)  FCs are not required to pay taxes 
C)  the owners of FCs are often overly sympathetic to the bureaucratic state machinery 
D)  FCs enjoy substantial competitive advantages that overwhelm late entrants 
A)  FCs have no more knowledge in manufacturing and distribution than other private players 
B)  FCs are not required to pay taxes 
C)  the owners of FCs are often overly sympathetic to the bureaucratic state machinery 
D)  FCs enjoy substantial competitive advantages that overwhelm late entrants

Question 11

________ are formal offers made by a buyer to purchase certain products or services.

Accepted Answer

A)  Quotas 
B)  Tariffs 
C)  Tenders 
D)  Microloans 
A)  Quotas 
B)  Tariffs 
C)  Tenders 
D)  Microloans

Question 12

Advanced economies account for about ________ percent of the world population.

Accepted Answer

A)  14 
B)  42 
C)  61 
D)  5 
A)  14 
B)  42 
C)  61 
D)  5

Question 13

Which of the following is likely to be the most beneficial to Maximus if it builds a manufacturing facility in India?

Accepted Answer

A)  legal precedents 
B)  low-cost labor pool 
C)  government regulations 
D)  solid infrastructure 
A)  legal precedents 
B)  low-cost labor pool 
C)  government regulations 
D)  solid infrastructure

Question 14

Emerging markets are important in international business and trade due to ________.

Accepted Answer

A)  large informal economy 
B)  low rates of energy consumption 
C)  high growth rate of middle class population 
D)  low inward FDI 
A)  large informal economy 
B)  low rates of energy consumption 
C)  high growth rate of middle class population 
D)  low inward FDI

Question 15

Per-capita GDP converted at market exchange rates paints an accurate picture of market potential.

Accepted Answer

A) True 
 B)False

Question 16

Economists estimate real buying power by calculating GDP statistics based on purchasing power parity.

Accepted Answer

A) True 
 B)False

Question 17

Privatization has provided many opportunities for foreign firms to enter transition economies by purchasing former state enterprises.

Accepted Answer

A) True 
 B)False

Which of the following best summarizes the argument in favor of microfinance?

Which of the following is characteristic of family conglomerates?

Which of the following is an example of global sourcing?

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

Governments and state enterprises in emerging markets are major targets for sales of infrastructure-related products and services.

An economy is categorized as advanced, developing, or emerging based on per capita income and the level of economic development.

Which of the following situations will discourage business activities of foreign firms in an emerging market?

Which of the following countries is home to the Hyundai Group?

Family conglomerates (FCs) might pose a challenge to firms trying to enter emerging markets because ________.

________ are formal offers made by a buyer to purchase certain products or services.

Advanced economies account for about ________ percent of the world population.

Which of the following is likely to be the most beneficial to Maximus if it builds a manufacturing facility in India?

Emerging markets are important in international business and trade due to ________.

Per-capita GDP converted at market exchange rates paints an accurate picture of market potential.

Economists estimate real buying power by calculating GDP statistics based on purchasing power parity.

Privatization has provided many opportunities for foreign firms to enter transition economies by purchasing former state enterprises.

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

Which of the following best summarizes the argument in favor of microfinance?

Which of the following is characteristic of family conglomerates?

Which of the following is an example of global sourcing?

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

Governments and state enterprises in emerging markets are major targets for sales of infrastructure-related products and services.

An economy is categorized as advanced, developing, or emerging based on per capita income and the level of economic development.

Which of the following situations will discourage business activities of foreign firms in an emerging market?

Which of the following countries is home to the Hyundai Group?

Family conglomerates (FCs) might pose a challenge to firms trying to enter emerging markets because ________.

________ are formal offers made by a buyer to purchase certain products or services.

Advanced economies account for about ________ percent of the world population.

Which of the following is likely to be the most beneficial to Maximus if it builds a manufacturing facility in India?

Emerging markets are important in international business and trade due to ________.

Per-capita GDP converted at market exchange rates paints an accurate picture of market potential.

Economists estimate real buying power by calculating GDP statistics based on purchasing power parity.

Privatization has provided many opportunities for foreign firms to enter transition economies by purchasing former state enterprises.

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