Question 1

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Accepted Answer

A)  Potential output
B)  Gross national product
C)  Purchasing power
D)  Gross domestic product

Question 2

Nations with the poorest infrastructures and lowest personal incomes are called developing countries.

Accepted Answer

A) True 
 B)False

Question 3

Compare and contrast the business environments in China and Russia.

Accepted Answer

Doing Business-China and Russia share ce...

Question 4

The Foreign Corrupt Practices Act forbids U.S.companies from bribing government officials or political candidates in other nations.

Accepted Answer

A) True 
 B)False

Question 5

Nations having the poorest infrastructures and lowest personal incomes are called ________.

Accepted Answer

A)  developed countries
B)  newly industrialized countries
C)  emerging markets
D)  developing countries

Question 6

Which of the following statements about approaches to political risk management is NOT true?

Accepted Answer

A)  Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
B)  Passive political risk management assumes that it is difficult,if not impossible,to systematically model political risk.
C)  Active political risk management assumes that positive and negative political events in any country are neither independent nor random events.
D)  Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

Question 7

How does economic development in countries affect international business?

Accepted Answer

Economic development is an increasingly ...

Question 8

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living?

Accepted Answer

A)  category development index
B)  gross national product index
C)  human development index
D)  purchasing power index

Question 9

Guanxi,in the Chinese business context,means ________.

Accepted Answer

A)  bribing government officials
B)  manufacturing inexpensive products
C)  personal relationships
D)  preference for communism

Question 10

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Accepted Answer

A)  Internalization
B)  Nationalization
C)  Deportation
D)  Deracination

Question 11

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

Accepted Answer

Adaptation means incorporating risk into...

Question 12

________ is the forced transfer of assets from a company to the government with compensation.

Accepted Answer

A)  Expropriation
B)  Nationalization
C)  Confiscation
D)  Localization

Question 13

Which of the following statements is true of national production?

Accepted Answer

A)  Marketers use GDP or GNP figures to determine whether a country's population is wealthy enough to purchase its products.
B)  Per capita numbers provide a detailed picture of development of the entire country.
C)  Gross product figures accurately indicate whether a nation's economy is growing or shrinking.
D)  Volunteer work and unpaid household work are considered in GDP and GNP.

Question 14

Cleanshot USA in Russia
When Cleanshot USA,a photography products company,decided to enter the international arena,it chose Russia as its main market.Although Russia has been in transition for years,Cleanshot managers believe their company has tremendous opportunities there.
-Which of the following challenges is Cleanshot most likely to face in Russia?

Accepted Answer

A)  organized crime
B)  too many competitors
C)  low demand for the products of non-Russian companies
D)  fading underground economy

Question 15

Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?

Accepted Answer

Many mixed economies are remaking themse...

Question 16

The ________ of a country is its gross national product divided by its population.

Accepted Answer

A)  GNP per capita
B)  GDP per capita
C)  purchasing power parity
D)  purchasing power

Question 17

Explain each of the four means of incorporating risk into business strategies when companies employ an adaptation strategy.

Accepted Answer

Adaptation means incorporating risk into...

Question 18

The GDP per capita of a country is lower than that of France.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about the country?

Accepted Answer

A)  The cost of living in the country is higher than that of France.
B)  The cost of living in the country is lower than that of France.
C)  The cost of living in the country is approximately equal to that of France.
D)  The cost of living in the country has increased over the past decade.

Question 19

Cleanshot USA in Russia
When Cleanshot USA,a photography products company,decided to enter the international arena,it chose Russia as its main market.Although Russia has been in transition for years,Cleanshot managers believe their company has tremendous opportunities there.
-Given the lack of available hard currency,Russian businesses often use goods and services as payment for other products they buy from abroad.This practice is referred to as ________.

Accepted Answer

A)  letter of credit
B)  fiat money
C)  barter
D)  guanxi

Question 20

How are countries classified? Explain with examples.

Accepted Answer

Nations are commonly classified as being...

Exam 4: Economic Development of Nations

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Correct Answer
verified

Guanxi,in the Chinese business context,means ________.

Correct Answer
verified

How are countries classified? Explain with examples.

Correct Answer
verified
Nations are commonly classified as being...
View Answer

Correct Answer
verified

How does economic development in countries affect international business?

Correct Answer
verified
Economic development is an increasingly ...
View Answer

Explain each of the four means of incorporating risk into business strategies when companies employ an adaptation strategy.

Correct Answer
verified
Adaptation means incorporating risk into...
View Answer

Compare and contrast the business environments in China and Russia.

Correct Answer
verified
Doing Business-China and Russia share ce...
View Answer

The GDP per capita of a country is lower than that of France.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about the country?

Correct Answer
verified

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living?

Correct Answer
verified

Correct Answer
verified

________ is the forced transfer of assets from a company to the government with compensation.

Correct Answer
verified

Which of the following statements about approaches to political risk management is NOT true?

Correct Answer
verified

Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?

Correct Answer
verified
Many mixed economies are remaking themse...
View Answer

The ________ of a country is its gross national product divided by its population.

Correct Answer
verified

Which of the following statements is true of national production?

Correct Answer
verified

Nations having the poorest infrastructures and lowest personal incomes are called ________.

Correct Answer
verified

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Correct Answer
verified

Nations with the poorest infrastructures and lowest personal incomes are called developing countries.

Correct Answer
verified

The Foreign Corrupt Practices Act forbids U.S.companies from bribing government officials or political candidates in other nations.

Correct Answer
verified

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

Correct Answer
verified
Adaptation means incorporating risk into...
View Answer

Exam 4: Economic Development of Nations

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Correct AnswerverifiedShow Answer

Guanxi,in the Chinese business context,means ________.

Correct AnswerverifiedShow Answer

How are countries classified? Explain with examples.

Correct AnswerverifiedNations are commonly classified as being...View AnswerShow Answer

Correct AnswerverifiedShow Answer

How does economic development in countries affect international business?

Correct AnswerverifiedEconomic development is an increasingly ...View AnswerShow Answer

Explain each of the four means of incorporating risk into business strategies when companies employ an adaptation strategy.

Correct AnswerverifiedAdaptation means incorporating risk into...View AnswerShow Answer

Compare and contrast the business environments in China and Russia.

Correct AnswerverifiedDoing Business-China and Russia share ce...View AnswerShow Answer

The GDP per capita of a country is lower than that of France.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about the country?

Correct AnswerverifiedShow Answer

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ is the forced transfer of assets from a company to the government with compensation.

Correct AnswerverifiedShow Answer

Which of the following statements about approaches to political risk management is NOT true?

Correct AnswerverifiedShow Answer

Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?

Correct AnswerverifiedMany mixed economies are remaking themse...View AnswerShow Answer

The ________ of a country is its gross national product divided by its population.

Correct AnswerverifiedShow Answer

Which of the following statements is true of national production?

Correct AnswerverifiedShow Answer

Nations having the poorest infrastructures and lowest personal incomes are called ________.

Correct AnswerverifiedShow Answer

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Correct AnswerverifiedShow Answer

Nations with the poorest infrastructures and lowest personal incomes are called developing countries.

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act forbids U.S.companies from bribing government officials or political candidates in other nations.

Correct AnswerverifiedShow Answer

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

Correct AnswerverifiedAdaptation means incorporating risk into...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Nations are commonly classified as being...
View Answer

Correct Answer
verified

Correct Answer
verified
Economic development is an increasingly ...
View Answer

Correct Answer
verified
Adaptation means incorporating risk into...
View Answer

Correct Answer
verified
Doing Business-China and Russia share ce...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Many mixed economies are remaking themse...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Adaptation means incorporating risk into...
View Answer