Question 1

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. Group 1 will discuss advanced economies, Group 2 will address the characteristics of developing economies, and Group 3 will focus on emerging markets.
-Which of the following refers to a distinctive trait of the type of economy discussed by Group 1?

Accepted Answer

A)   minimal trade barriers
B)   low trade volume
C)   low inward FDI
D)   poor industrialization

Question 2

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Accepted Answer

A)   it tends to overemphasize 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 3

The absence of reliable or consistent governance from recognized government authorities ________.

Accepted Answer

A)   decreases risks
B)   increases managers' ability to forecast business conditions
C)   increases business costs
D)   increases inward FDI

Question 4

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.

Question 5

________ 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

Question 6

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

Question 7

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

Accepted Answer

Microfinance provides small-scale financ...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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 11

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 continue to grow, representing enormous spending power

Question 12

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

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following countries has weak intellectual property protection?

Accepted Answer

A)   China
B)   the United States
C)   Australia
D)   France

Question 16

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Accepted Answer

A) True 
 B)False

Question 17

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

Accepted Answer

A) True 
 B)False

Exam 8: Understanding Emerging Markets

The purchasing power parity concept suggests that ________.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Emerging markets are ________.

Correct Answer
verified

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

Correct Answer
verified

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Correct Answer
verified

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?

Correct Answer
verified
Firms that wish to do business in emergi...
View Answer

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

Correct Answer
verified

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Correct Answer
verified

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

Correct Answer
verified

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

Correct Answer
verified

Which of the following countries has weak intellectual property protection?

Correct Answer
verified

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

Correct Answer
verified

The absence of reliable or consistent governance from recognized government authorities ________.

Correct Answer
verified

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

Correct Answer
verified
Microfinance provides small-scale financ...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

Exam 8: Understanding Emerging Markets

The purchasing power parity concept suggests that ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Emerging markets are ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Per-capita GDP converted at market exchange rates does NOT paint an accurate picture of the market potential of an emerging market because ________.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedFirms that wish to do business in emergi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Africa's GDP has been relatively stagnant since the 1960s because the continent is afflicted by illiteracy, malnutrition, and poor sanitation and water supply.

Correct AnswerverifiedShow Answer

Many emerging market economies are dominated by family-owned rather than publicly owned businesses.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following countries has weak intellectual property protection?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The absence of reliable or consistent governance from recognized government authorities ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedMicrofinance provides small-scale financ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Firms that wish to do business in emergi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Microfinance provides small-scale financ...
View Answer

Correct Answer
verified

Correct Answer
verified