Chapter 11 Multiple Choice

The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget. A. 10 B. 25 C. 30 D. 45 E. 55

A. 10 The rural population, which accounts for almost three-fourths of the Chinese population usually receives about 10 percent of the central government budget. That amounts to less than $100 a head for rural roads, water, power supplies, schools, and hospitals.

Grameen Bank is a private commercial enterprise in _____. A. Bangladesh B. China C. Japan D. Sri Lanka E. South Korea

A. Bangladesh Grameen Bank is a private commercial enterprise in Bangladesh.

Which of the following regions is considered as the information technology (IT) corridor in north China? A. Beijing-Tianjin B. Heilongjiang C. Liaoning D. The Jilin River Delta E. Fujian

A. Beijing-Tianjin The Beijing-Tianjin region is considered as the information technology (IT) corridor in north China.

_____ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities. A. Dalian B. Jilin C. Heilongjiang D. Guangdong E. Hainan

A. Dalian Dalian at the southern tip of the Liaodong Peninsula is the focus of bi-national relationships. The city has one of the world's largest and most modern port facilities.

Which of the following is the best way to stimulate economic development and growth from within developing countries? A. Imposing embargoes. B. Encouraging governmental regulations. C. Restricting immigration. D. Increasing tariffs on exports. E. Encouraging entrepreneurial activities that are networked.

A. Imposing embargoes. Entrepreneurial activities that are networked appear to be perhaps the best way to stimulate economic development and growth from within developing countries.

Which of the following Asian countries was the first to move from a status of developing country to a newly industrialized country? A. Japan B. Thailand C. South Korea D. Malaysia E. Sri Lanka

A. Japan The "Four Asian Tigers", Hong Kong, South Korea, Singapore, and Taiwan often described as the "East Asian miracle," were the first countries in Asia, after Japan, to move from a status of developing countries to newly industrialized countries.

Liaoning province of Northeast China has the closest economic ties with _____. A. Japan B. South Korea C. Russia D. United Kingdom E. North Korea

A. Japan The most important advantage of Northeast China is its juxtaposition with China's most important industrial neighbors. For centuries, goods and ideas have flowed across those borders and continue to do so in the greatest quantities ever. Liaoning has the closest economic ties with Japan, Jilin with South Korea, and Heilongjiang with Russia.

According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. Products usually developed for more affluent consumers will not be appropriate for BOPMs. B. Most BOPMs are geographically isolated and thus difficult to access. C. Protective policies make BOPMs difficult to penetrate. D. Exchange-rate fluctuations make BOPMs very volatile. E. Language and cultural barriers make BOPMs unattractive and sometimes hostile.

A. Products usually developed for more affluent consumers will not be appropriate for BOPMs. Prahalad's basic point is that these consumers have been relatively ignored by international marketers because of misconceptions about their lack of resources (both money and technology) and the lack of appropriateness of products and services usually developed for more affluent consumers.

Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 1990s. Which of the following theory are we talking about? A. The Cultural Causation theory. B. The Power Shift theory. C. The Third Way theory. D. The Hybridity theory. E. The Cultural Capital theory.

A. The Cultural Causation theory. The Cultural Causation theory went something as follows: Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?"

What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan? A. They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries. B. They have a middle class numbering some 250 million, about the population of the United States. C. The exports in these countries are growing at a rate of 50 percent annually. D. They have faced a serious disadvantage in the information age due to their complex languages. E. They all have the custom of "baksheesh", a deeply ingrained system of bribery.

A. They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries. The most rapidly growing economies in this region during the 1980s and 1990s were the group sometimes referred to as the Four Asian Tigers (or Four Dragons): Hong Kong, South Korea, Singapore, and Taiwan. Often described as the "East Asian miracle," they were the first countries in Asia, after Japan, to move from a status of developing countries to newly industrialized countries.

Which of the following is one of the primary targets of ASEAN Vision 2020? A. To implement fully and as rapidly as possible the ASEAN Free Trade Area. B. To form the ASEAN+3 to deal with trade and monetary issues facing Asia. C. To shift Asian economies from manufacturing based to commodity based. D. To aid Japan's emergence as the major provider of technology and capital necessary to develop new industries. E. To prevent the further privatization of state owned industries.

A. To implement fully and as rapidly as possible the ASEAN Free Trade Area. ASEAN Vision 2020 is the most outward-looking commitment to regional goals ever accepted by the group. Among the targets that will lead to further integration is the commitment to implementing fully and as rapidly as possible the ASEAN Free Trade Area.

Which of the following most accurately represent the "three direct links" leading to the establishment of One China? A. Transportation, trade, and communications. B. Culture, language, and religion. C. History, language, and transportation. D. Federal bodies, education, and trade. E. Technology, natural resources, and people.

A. Transportation, trade, and communications. It is best to wrap future talks on the One China debate inside a bundle of more concrete issues, such as establishing the "three direct links"—transportation, trade, and communications. The three direct links issue must be faced because each country has joined the WTO, and the rules insist that members communicate about trade disputes and other issues.

Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China's: A. ability to deregulate industry. B. ability to prevent the privatization of its state owned enterprises. C. preparedness to resist the capitalist wave. D. ability to put embargoes on foreign investment. E. ability to uphold its traditional legal system.

A. ability to deregulate industry. Most analysts predict that an 8 to 10 percent average for the next 10 to 15 years is possible. At that rate, China's GNP should equal that of the United States by 2015. All of this growth is dependent on China's ability to deregulate industry, import modern technology, privatize overstaffed and inefficient state owned enterprises (SOEs), and continue to attract foreign investment.

The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could: A. defend their currencies against future attack. B. improve the multilateral trade. C. keep inflation under check. D. acquire nuclear technology. E. improve agricultural production.

A. defend their currencies against future attack. The first meeting of ASEAN+3 was devoted to devising a system whereby the member countries shared foreign exchange reserves to defend their currencies against future attack.

Half of Shanghai's GDP is derived from its _____. A. financial services industries B. steel industries C. electronic products D. shipping sector E. software industries

A. financial services industries Half the Shanghai's GDP derives from financial services industries, such as banking, retailing, finance, trade, insurance, and real estate development.

The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is: A. its juxtaposition with China's most important industrial neighbors. B. the lack of economic diversity in this area. C. the existence of oil fields these areas. D. that it contains Hong Kong, Macau, Guangzhou, and Shenzhen. E. that it has the authority to impose embargoes upon its trading partners.

A. its juxtaposition with China's most important industrial neighbors. Perhaps the most important advantage of Northeast China is its juxtaposition with China's most important industrial neighbors.

The negotiators from the Shanghai area are famous for their: A. shrewdness. B. tendency to be closemouthed. C. low spending habits. D. lack of creativity. E. imperialist perspective.

A. shrewdness. Negotiators from the Shanghai area are renowned in China for their shrewdness. They are outgoing, big talkers and big spenders. They try to impress you in ways and to extents you won't see anywhere else in China.

C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than _____. A. $400 B. $1,200 C. $ 2500 D. $ 3700 E. $ 4200

B. $1,200 C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than $1,200.

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank. B. Admission to the World Trade Organization. C. Signing of the new ASEAN pact. D. The handover of Hong Kong by the British to China. E. Inclusion of Hong Kong as a special administrative region (SAR) of China.

B. Admission to the World Trade Organization. Two major events that occurred in 2000 are having a profound effect on China's economy: admission to the World Trade Organization and the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR).

Which of the following is most closely associated with negotiators from the Beijing area? A. Traditional thought pattern B. Bureaucratic sloth C. Forthrightness D. Shrewdness E. Aggression

B. Bureaucratic sloth Negotiators from the Beijing area are known for their unusual (within China) bureaucratic sloth and imperialist perspective, both yielding a relative lack of creativity, that is, thinking outside the box.

Which of the following is one of the important reasons behind the fact that there is no one-growth strategy for China? A. Inclusion of Hong Kong as a special administrative region of China. B. Each region in China being at a different stage economically. C. Inability to prevent the privatization of its state owned enterprises. D. Each region within China being completely isolated from other regions. E. Complete absence of autonomy in the various regions of China.

B. Each region in China being at a different stage economically. Given China's size, diversity, and political organization, it can be more conveniently thought of as a group of regions rather than a single country. There is no one-growth strategy for China. Each region is at a different stage economically and has its own link to other regions.

Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s? A. The caste system B. Inept political apparatus C. Aggressive internal competition D. Theocratic rule E. Lack of natural resources

B. Inept political apparatus Four explanatory themes have emerged for the persistence stagnation in Japan in the 1990s, each with a basis in observable fact, namely, Japan's (1) faulty economic policies, (2) inept political apparatus, (3) disadvantages due to global circumstances, and (4) cultural inhibitions.

Which of the following is true of the Tianjin region in China? A. It is China's largest industrial city. B. It is China's fastest growing city. C. It has the closest economic ties with Japan. D. It is referred to as "Little Moscow." E. It harbors the world's largest and most modern port facilities.

B. It is China's fastest growing city. Tianjin is China's third largest industrial city after Shanghai and Beijing, and it is also the fastest growing one.

Which of the following provinces of China shares the closest economic ties with South Korea? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

B. Jilin The most important advantage of Northeast China is its juxtaposition with China's most important industrial neighbors. For centuries, goods and ideas have flowed across those borders and continue to do so in the greatest quantities ever. Liaoning has the closest economic ties with Japan, Jilin with South Korea, and Heilongjiang with Russia.

_____ a boomtown bordering Hong Kong and a fishing village just 20 years ago has replaced the provincial capital Guangzhou to lead the local economy. A. Dongguan B. Shenzhen C. Huizhou D. Foshan E. Zhongshan

B. Shenzhen Shenzhen, a boomtown bordering Hong Kong and a fishing village just 20 years ago, has replaced the provincial capital Guangzhou to lead the local economy.

ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____. A. United States B. South Korea C. Russia D. Australia E. New Zealand

B. South Korea ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and South Korea.

Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union? A. Japan B. South Korea C. Malaysia D. Singapore E. India

B. South Korea South Korea is the center of trade links with north China and the Asian republics of the former Soviet Union. South Korea's sphere of influence and trade extends to Guangdong and Fujian, two of the most productive Chinese Special Economic Zones, and is becoming more important in interregional investment as well.

Which of the following is true regarding Hong Kong, post its turnover to the People's Republic of China? A. After becoming a special administrative region of the People's Republic of China, Hong Kong has lost its autonomy. B. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. C. The central government in Beijing has no jurisdiction over matters related to foreign affairs and defense of Hong Kong. D. The Hong Kong dollar has ceased to be freely convertible after its turnover to the People's Republic of China. E. The Hong Kong SAR government openly opposes economic policies that stresses the predominant role of the private sector.

B. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. The Basic Law of the Hong Kong SAR forms the legal basis for China's "one country, two systems" agreement that guarantees Hong Kong a high degree of autonomy. The Hong Kong government negotiates bilateral agreements (which are then "confirmed" by Beijing) and makes major economic decisions on its own.

Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers? A. Most of them have little disposable income. B. The distribution network is poor or absent. C. They are mostly Communist party members who avoid purchasing imported goods. D. They are restricted to settlement zones where marketing is prohibited. E. They are unfamiliar with the English language.

B. The distribution network is poor or absent. In China, most of the 1.3 billion potential consumers are not accessible because of a poor or nonexistent distribution network.

Which of the following is true of the marketing opportunities in Greater China? A. It has an efficient distribution and channel system and so companies can save on infrastructure building. B. There are extreme differences in economic well-being, cultures, and political structures. C. Unlike the United States, luxury cars sell better in rural areas of the west. D. The economic system of China is based entirely on capitalist principles. E. Selling consumer products in China requires little cultural nuance.

B. There are extreme differences in economic well-being, cultures, and political structures. The Chinese market is huge and growing fast. Across this vast land of opportunity, there are extreme differences in economic well-being, cultures, and political structures.

Which of the following is a cultural hurdle in the path of China becoming a vast market in the long run? A. Caste system B. Xenophobia C. Excessive focus on human rights D. Excessive bureaucracy E. Excessive spending

B. Xenophobia In the long run, the economic strength of China will not be as an exporting machine but as a vast market, particularly if consumers there can overcome the cultural hurdles of thrift and xenophobia.

_____ is known as China's Silicon Valley. A. Liaoning B. Zhongguancun C. Jilin D. Guangzhou E. Heilongjiang

B. Zhongguancun Zhongguancun is known as China's Silicon Valley.

The negotiators in the Pearl River Delta are reputed to be: A. much more calculating than traders in Shanghai. B. relatively honest and forthright. C. very poor traders. D. more interested in making long-term gains. E. cut-off from foreign influences.

B. relatively honest and forthright. Negotiators from the Pearl River Delta are reputed to be relatively honest and forthright. They are less calculating than folks in Shanghai. But they are excellent traders and particularly interested in making short-term gains.

The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. A. 9 B. 15 C. 25 D. 33 E. 48

C. 25 The true consumer market in China is probably limited to no more than 25 percent of those who live in the more affluent cities.

One result of the Asian financial crisis of 1997 to 1998 was the creation of _____. A. SADC B. NAFTA C. ASEAN+3 D. CEFTA E. COMESA

C. ASEAN+3 One result of the Asian financial crisis of 1997 to 1998 was the creation of ASEAN+3 (ASEAN plus China, Japan, and South Korea) to deal with trade and monetary issues facing Asia.

The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the _____. A. Four Lions B. Four Elephants C. Four Dragons D. Four Horses E. Four Swans

C. Four Dragons The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s were sometimes referred to as the Four Asian Tigers or Four Dragons. These countries are Hong Kong, South Korea, Singapore, and Taiwan.

Which of the following provinces of China shares the closest economic ties with Russia? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan

C. Heilongjiang The most important advantage of Northeast China is its juxtaposition with China's most important industrial neighbors. For centuries, goods and ideas have flowed across those borders and continue to do so in the greatest quantities ever. Liaoning has the closest economic ties with Japan, Jilin with South Korea, and Heilongjiang with Russia.

Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ROC acquiring U.N membership. B. Rise of communism. C. Increase in direct trade. D. American military involvement in peacekeeping. E. ASEAN mandates overruling former hostilities between member nations.

C. Increase in direct trade. Over the years the relationship between People's Republic of China (PRC) and the Republic of China (ROC) has been both politically difficult and militarily dangerous. But in the 21st century, direct trade between the formerly hostile neighbors has increased dramatically, easing much of the historical tension in all of East Asia.

Which of the following is most likely to cause the biggest problems for television and radio advertisers in China? A. Low levels of television and radio penetration. B. The rigid theocratic rule. C. Lack of common language. D. The rigid adherence to traditional values. E. Lack of investment.

C. Lack of common language. In China, lack of common language causes some problems for television and radio advertisers in the country that print media can usually avoid.

Aside from the United States and Japan, _____ is the most important single national market. A. United Arab Emirates B. Union of Soviet Socialist Republics C. People's Republic of China D. Dominican Republic E. French Southern Territories

C. People's Republic of China Aside from the United States and Japan, there is no more important single national market than the People's Republic of China (PRC).

A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend? A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world's best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of parts easier. E. There is a lack of competitiveness among local firms.

C. Qualified labor is cheap, and the market potential is massive. One noted authority on India declared that corrupt practices are not the quaint custom of "baksheesh" but pervasive, systematic, structured, and degraded corruption running from the bottom to the top of the political order. Nevertheless, a survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. They are hooked on the country's cheap, qualified labor and the potential of a massive market.

Which of the following is one of the nations referred to as the Four Asian Tigers? A. India B. Thailand C. South Korea D. Malaysia E. Sri Lanka

C. South Korea The most rapidly growing economies in this region during the 1980s and 1990s were the group sometimes referred to as the Four Asian Tigers (or Four Dragons): Hong Kong, South Korea, Singapore, and Taiwan.

Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan? A. The deeply-rooted bureaucratic structure. B. The rise in global oil prices. C. The complex Japanese language. D. The growing fiscal deficit. E. The burgeoning population.

C. The complex Japanese language. Japan has a serious disadvantage in the information age: its complex language. Not only did its three alphabet systems hinder software innovations appropriate for world markets, but the fundamental indirectness of the Japanese linguistic system hinders electronic information flows in general.

This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion. A. The coastal Dalian city B. The Pearl River Delta C. The Yangtze River Delta D. Beijing-Tianjin E. Fujian

D. Beijing-Tianjin The Beijing-Tianjin region is the political and R&D center of China. The 75-mile corridor between Beijing and its coastal cousin Tianjin hosts some 5,000 Chinese high-tech companies, among them Lenovo, and more than 1,000 international IT companies.

IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the _____. A. Blue Connect B. China Express C. China Blue D. Blue Express E. China Connect

D. Blue Express After nearly a decade of frustration in trying to effectively market and service its products in China, IBM took a bold step and entered a venture with the Railways Ministry that allowed IBM to set up IBM service centers dubbed the "Blue Express."

C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception? A. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products. B. The lack of uniformity in bottom-of-the-pyramid markets. C. The heavy taxation system in bottom-of-the-pyramid markets allows little profit. D. Consumers in the bottom-of-the-pyramid markets lack both money and technology. E. Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.

D. Consumers in the bottom-of-the-pyramid markets lack both money and technology. Prahalad's basic point is that consumers in the bottom-of-the-pyramid markets have been relatively ignored by international marketers because of misconceptions about their lack of resources (both money and technology) and the lack of appropriateness of products and services usually developed for more affluent consumers.

Which of the following is true of the APEC? A. Russia is not a member of this grouping. B. It is opposed to open trade. C. Its members meet once in six months. D. It promotes economic cooperation. E. It aims to increase barriers to investment.

D. It promotes economic cooperation. APEC is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation.

The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy and are referred to as "dongbei", meaning Northeast, or "dong sansheng", meaning Northeastern Three Provinces. A. Gansu B. Shanxi C. Henan D. Liaoning E. Sichuan

D. Liaoning The three contiguous provinces in Northeast China—Liaoning (43.7 million persons), Jilin (27.4 million), and Heilongjiang (38.3 million)—have long represented a cohesive unit in terms of culture and the political economy. These three provinces are referred to as "dongbei".

This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region. A. Shanghai B. Northeast China C. Yangtze River Delta D. The Greater Pearl River area E. Taiwan

D. The Greater Pearl River area The Greater Pearl River area includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau.

Which of the following is true of the standard of living of the eight most populous countries of the Asia/Pacific region? A. The Japanese rail system is the most underdeveloped in the world. B. In the Philippines, most people travel by train. C. As a result of communism, China and Vietnam place low emphasis on health. D. The Japanese healthcare system produces the longest lifespans in the world. E. Consumption patterns indicate that the Chinese place much lower emphasis on education, compared to Indians.

D. The Japanese healthcare system produces the longest lifespans in the world. The general excellence of the Japanese healthcare system that produces the longest lifespans in the world is represented by the following statistics: In Japan, there are 2.2 doctors and 13.7 hospital beds per 1000 persons. Refer to Exhibit 11.3-Standard of Living in the Eight Most Populous Countries in the Asia Pacific Region.

_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry. A. Northeast China B. The Yellow River Delta C. The Yangtze River Delta D. The Pearl River Delta E. Southwest China

D. The Pearl River Delta The Pearl River Delta contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry.

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? A. Japan's trade policies with the United States. B. Japan's refusal to join Asian trade blocs. C. The powerful influence of the royalty in political issues. D. The long entrenched Liberal Democratic political party. E. The splintering of most of Japan's right-wing political parties.

D. The long entrenched Liberal Democratic political party. Views of economists on Japan's crisis have not been the only ones heard. Political pundits also rose to the challenge. They found two major villains: the country's long entrenched Liberal Democratic political party and the hidebound Japanese bureaucracy.

_____ is China's third largest industrial city after Shanghai and Beijing. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Kaohsiung

D. Tianjin Tianjin is China's third largest industrial city after Shanghai and Beijing, but it is also the fastest growing one.

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets. A. subsistence B. third-world C. underdeveloped D. bottom-of-the-pyramid E. peripheral

D. bottom-of-the-pyramid C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than $1,200. These markets are not necessarily defined by national borders but rather by the pockets of poverty across countries. These 4 billion consumers are, of course, concentrated in the LDCs and LLDCs particularly in South Asia and sub-Sahara Africa.

Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration? A. NAFTA B. ASEAN C. ASEAN+3 D. SADC E. APEC

E. APEC APEC is an important grouping that encompasses the Asian-Pacific Rim is the Asia-Pacific Economic Cooperation. Formed in 1989, APEC provides a formal structure for the major governments of the region, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration.

The primary multinational trade group in Asia is _____. A. NAFTA B. COMESA C. CEFTA D. SADC E. ASEAN

E. ASEAN The primary multinational trade group in Asia is ASEAN, which is evolving into the ASEAN Free Trade Area (AFTA); ASEAN+3, a forum for ASEAN ministers plus ministers from China, Japan, and South Korea.

_____ is now Japan's most important trading partner. A. Malaysia B. The United States C. Bangladesh D. Bahrain E. China

E. China China is now Japan's most important trading partner, even ahead of the United States.

Which of the following is the biggest threat to the fast pace of growth China is experiencing? A. Increased opening of the market to foreign investments. B. Trade isolation by other ASEAN countries. C. Losing the permanent normal trade relations (PNTR) status conferred by the United States. D. Reformation of the traditional legal system. E. Economic volatility that accompanies fast growth.

E. Economic volatility that accompanies fast growth. China is a relatively poor nation going through a painfully awkward transformation from a socialist market system to a hybrid socialist-free market system, not yet complete and with the rules of the game still being written. The biggest threat for China is the economic volatility that seems to accompany fast growth.

Which of the following is the stereotype of businesspeople in the Northeast area of China? A. Loud and argumentative B. Cold and businesslike C. Aggression D. Dishonesty E. Forthrightness

E. Forthrightness Forthrightness is the stereotype of businesspeople in the Northeast, mostly held by their southern neighbors.

Which of the following are the two most important steps China has to take to ensure that the road to economic growth is smooth? A. Decreasing export barriers and promoting indigenous technology. B. Strengthening the hold of its communist party and promoting innovative thinking. C. Investing in more developing countries and changing its education system. D. Acquiring membership in more regional trade blocs and increasing embargoes. E. Improving human rights and reforming the legal system.

E. Improving human rights and reforming the legal system. China has two important steps to take if the road to economic growth is to be smooth: improving human rights and reforming the legal system.

The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country. A. Wu B. Min C. Hakka D. Xiang E. Mandarin

E. Mandarin The national language of China is standard Mandarin, but more than 56 dialects and other languages are spoken across the country.

What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Absolute plutocracy B. Sovereignty of the provinces C. Theocracy D. Noninterventionist approach E. One country, two systems

E. One country, two systems Many thought the territory's laissez-faire ways, exuberant capitalism, and gung-ho spirit would prove unbearable for Beijing's heavy-handed communist leaders. But except for changes in tone and emphasis, even opponents of communist rule concede that Beijing is honoring the "one country, two systems" arrangement.

Which of the following was designated as China's first Special Economic Zone? A. Shanghai B. Hong Kong C. Taiwan D. Beijing E. Shenzhen

E. Shenzhen In 1980, Shenzhen was designated as China's first Special Economic Zone.

_____ has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Suzhou

E. Suzhou Suzhou has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center.

Which part of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language? A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan

E. Taiwan Both the behavior and the language of the people of Taiwan are considered, by other Chinese, to be the most conservative.

Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations? A. The decision to shift their economies from manufacturing based to commodity based. B. North Koreas' emergence as a major provider of technology and capital necessary to upgrade manufacturing capability. C. A bilateral trade agreement between the United States and Vietnam leading to the granting of NTR status to Vietnam. D. Hong Kong becoming a special administrative region (SAR) of the People's Republic of China. E. The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies.

E. The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies. Four major events account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations. One of them is the ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies.

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. The Greater China

E. The Greater China The term "The Greater China" refers to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan.

Negotiators from this region in China have been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity. They are excellent traders and particularly interested in making short-term gains. Identify the region. A. Taiwan B. Yangtze River Delta C. Beijing D. Shanghai E. The Pearl River Delta

E. The Pearl River Delta Chinese in the south (The Pearl River Delta) have always been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity.

In the 1970s, Frank Gibney had called Japan "The Fragile Superpower", which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of: A. social loafing. B. compensating errors. C. being penny-wise and pound-foolish. D. herd behavior. E. one-party sickness.

E. one-party sickness. Back in the 1970s, Frank Gibney had written a seminal book on Japan. He called it "The Fragile Superpower". His insight into the possible future of Japan's then surging economy was confirmed when the 1990s brought on crisis conditions. In a new appraisal, Gibney has written that Japan became the victim of "one-party sickness," an ailment brought on by a 40-year hardening of political arteries.