Question 1

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

Accepted Answer

A) high regulations 
B) high availability of low-wage workforce 
C) well-developed infrastructure 
D) strong intellectual property laws 
A) high regulations 
B) high availability of low-wage workforce 
C) well-developed infrastructure 
D) strong intellectual property laws

Question 2

The strategies that MNEs developed decades ago and refined in mature advanced-economy markets are considered most suitable for achieving success in emerging markets.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

________ are low-income countries characterized by limited industrialization and stagnant economies.

Accepted Answer

A) Developing economies 
B) Emerging markets 
C) Developed economies 
D) Transition economies 
A) Developing economies 
B) Emerging markets 
C) Developed economies 
D) Transition economies

Question 5

Which of the following most likely supports the consulting firm's recommendation that Vytel should NOT do business in Argentina?

Accepted Answer

A) Government bureaucracy in Argentina is limited and is not characterized by red tape. 
B) Qualified suppliers and distributors who are eager to work are readily available in Argentina. 
C) Import restrictions do not apply to the telecommunications industry in Argentina. 
D) In the past, intellectual property rights law have not been enforced in Argentina. 
A) Government bureaucracy in Argentina is limited and is not characterized by red tape. 
B) Qualified suppliers and distributors who are eager to work are readily available in Argentina. 
C) Import restrictions do not apply to the telecommunications industry in Argentina. 
D) In the past, intellectual property rights law have not been enforced in Argentina.

Question 6

Privatization has provided many opportunities for foreign firms to enter transition economies by ________.

Accepted Answer

A) initiating joint ventures with local businesses 
B) purchasing former state enterprises 
C) exporting products with a high mark-up price 
D) exporting products of inferior quality 
A) initiating joint ventures with local businesses 
B) purchasing former state enterprises 
C) exporting products with a high mark-up price 
D) exporting products of inferior quality

Question 7

Businesses foster economic and social development in in emerging markets and developing economies ________.

Accepted Answer

A) through the mass production of cheap, low-quality goods 
B) by using strategies developed decades ago and refined in mature advanced-economy markets 
C) by developing community-oriented social programs 
D) by implementing cost-effective production methods 
A) through the mass production of cheap, low-quality goods 
B) by using strategies developed decades ago and refined in mature advanced-economy markets 
C) by developing community-oriented social programs 
D) by implementing cost-effective production methods

Question 8

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 9

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 10

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

Accepted Answer

A) low inward FDI 
B) high trade barriers 
C) low energy consumption 
D) privatization of state-owned industries 
A) low inward FDI 
B) high trade barriers 
C) low energy consumption 
D) privatization of state-owned industries

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Outsourcing helps firms become more efficient, concentrate on their core competencies, and obtain competitive advantages .

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

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 18

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 19

Which of the following refers to a distinctive trait of the type of economy discussed by Group 3?

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 20

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

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

The strategies that MNEs developed decades ago and refined in mature advanced-economy markets are considered most suitable for achieving success in emerging markets.

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

________ are low-income countries characterized by limited industrialization and stagnant economies.

Which of the following most likely supports the consulting firm's recommendation that Vytel should NOT do business in Argentina?

Privatization has provided many opportunities for foreign firms to enter transition economies by ________.

Businesses foster economic and social development in in emerging markets and developing economies ________.

Which of the following countries has weak intellectual property protection?

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

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

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?

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

Excessive bureaucracy is usually associated with ________.

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

Outsourcing helps firms become more efficient, concentrate on their core competencies, and obtain competitive advantages .

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

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

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

Which of the following refers to a distinctive trait of the type of economy discussed by Group 3?

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

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 8: Understanding Emerging Markets

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

The strategies that MNEs developed decades ago and refined in mature advanced-economy markets are considered most suitable for achieving success in emerging markets.

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

________ are low-income countries characterized by limited industrialization and stagnant economies.

Which of the following most likely supports the consulting firm's recommendation that Vytel should NOT do business in Argentina?

Privatization has provided many opportunities for foreign firms to enter transition economies by ________.

Businesses foster economic and social development in in emerging markets and developing economies ________.

Which of the following countries has weak intellectual property protection?

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

Transition economies were once socialist states but have been largely transformed into capitalism-based systems, partly through ________.

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?

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

Excessive bureaucracy is usually associated with ________.

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

Outsourcing helps firms become more efficient, concentrate on their core competencies, and obtain competitive advantages .

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

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

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

Which of the following refers to a distinctive trait of the type of economy discussed by Group 3?

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

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters