Chapter 7 Quiz

As of 2008, what percentage of the world's population was living in cities?

50 percent

________ refers to the total value of all income generated by the residents of a nation, including both the domestic production of goods and services and income from abroad.

Gross national income

What is predicted to happen with the population of many developed countries?

Population levels will fall by mid-century due to low birthrates.

Relative changes in wage rates among nations may cause the multinational firm to

change its sources of supply.

A large international debt may result in

decreased levels of foreign exchange available for importing components for local assembly.

Economies with per capita incomes in the low to middle range that are in a transition toward developed status are known as

emerging market economies.

The ________ includes all the uncontrollable forces originating outside the home country that surround and influence the firm.

foreign environment

One response to a large international debt is for a government to

impose price controls.

GNI/capita, a crude estimate of purchasing power, must be further refined by

incorporating data on how the national income is actually distributed.

A large international debt may cause a government to impose wage controls, which result in

limiting consumer purchasing power.

Where are the greatest urban shifts now occurring?

low- and middle-income countries

Incomes measured by the Atlas conversion factor are generally

more stable over time.

Currently, what percentage of the world's total population is found in developing countries?

more than 75 percent

Parul reminded her coworkers that regardless of the number of consumers living in the target area, they should focus on where people live specifically within the target area. What aspect of the population is Parul concerned with?

population distribution

The arithmetic average of the current exchange rate and the exchange rates in the two preceding years, adjusted by the ratio of domestic inflation to the combined inflation rates of the euro zone, Japan, the United Kingdom, and the United States, is known as

the Atlas conversion factor.

A measure of the degree to which family income within a country is distributed equally is called

the GINI index.

Because of the importance of economic information to the control and planning functions at headquarters, the collection of data and preparation of reports are usually the responsibility of

the home office.

The rural-to-urban shift is a reflection of

the movement of the population from rural areas to cities.

Michelle has been tasked with the job of analyzing the economy of three South American countries to determine if they have business potential. In her final report, she makes note of national income that may not be reported because it involves illegal activity. This indicates that Michelle is accounting for what?

the underground economy