Chapter 4, Chapter 5, Chapter 7 Combined Quiz

The idea of a changing New World Economic Order was represented by new players on the world stage in the form of A. Countries and firms B. Types of government and types of economies C. Politicians and sports figures D. Products and brands

A. Countries and firms

One major problem with using Essential Industry argument as an intervention tool is that A. In times of crisis, just about any industry can be considered as essential B. Industrial production can drown out agriculture C. Some countries only have essential industries D. Some countries do not have any essential industries and lack trade negotiation coverage

A. In times of crisis, just about any industry can be considered as essential

All of the following were listed as commonalities of Big Emerging Market EXCEPT A. Having a modern seaport B. Needing huge infrastructure improvements C. Having a large territory D. Wanting to be a technological leader

A. Having a modern seaport

**** Which of the following is considered a fiscal dividend based on economic growth? A. Increased tax revenue B. Rising asset valuation C. Higher employment D. Stabilization of wealth E. Increase capital investment

A. Increased tax revenue

Proving that dumping has taken place is problematic because A. Governments encourage their home country firms to hide their cost data B. Firms who use this tactic usually keep 2 sets of books C. Firms using this tactic would operate in the black market D. It is difficult to get accurate cost and pricing data

D. It is difficult to get accurate cost and pricing data

All of these are areas in which international managers receive societal scrutiny EXCEPT: A. Energy Conservation B. Labor issues like sweatshops C. Anticompetitive actions D. Lobbying their home government too much

D. Lobbying their home government too much

One positive effect of MNC investment on the local natural environment is that A. MNCs are willing to pay higher wages to local employees who care about the environment B. MNCs tend to pay higher taxes for environment cleanup than local firms C. MNCs tend to naturally drive polluting firms out of business D. MNCs tend to use greener technology abroad

D. MNCs tend to use greener technology abroad

The U.S. Foreign Corrupt Practices Act _______________________. A. Applies only to Latin America B. Applies to all countries in the world C. Is overseen by the Federal Reserve D. Legalizes bribery payments by U.S. firms to foreign political parties E. Has been copied by the Chinese government

B. Applies to all countries in the world

The number of children estimated to be working illegally worldwide is what? A. Around 100 million B. Around 160 million C. Around 350 million D. Around 500 million E. Around 750 million

B. Around 160 million

All of the following are characteristics of a Market Economy EXCEPT A. Applies the invisible hand to production decisions B. Bias towards large scale production C. Mostly private ownership of resources D. Respects the right to own property and fosters individualism

B. Bias towards large scale production

Which of the following would NOT be considered a stakeholder in an organization? A. Stockholders B. Political candidates C. Local merchants D. Corporate decision makers E. Tax payers

B. Political candidates

According to Fortune magazine, in the shantytown of Dharavi, outside of Mumbai, India, approximately 85 percent of the households have a television. This example illustrates which of the following? A. Low income distribution B. Potential for the Bottom of the Pyramid markets C. Low productivity D. Extreme poverty E. Low internal debt

B. Potential for the Bottom of the Pyramid markets

**** It is important for international managers to monitor the host country's balance of payment situation because the host country government may take all of the actions except: A. Implement import restrictions B. Provide subsidies to local producers C. Apply local content requirements D. Require exports by MNCs E. Apply foreign exchange controls

B. Provide subsidies to local producers

When a company produces products made out of post-consumer recycled materials, the company is showing a concern for which of the following? A. Extraterritoriality B. Sustainability C. Sovereignty D. Global warming E. Bribery

B. Sustainability

Host country governments may really like large capital inflows at some point in time. However, the effect will not be liked by the same host country government when A. Foreign firms begin to coordinate their flows to get better treatment by the local government B. The MNC profits are repatriated to the home country C. The inflows begin to conflict with essential industry goals D. Third country capital inflows are squeezed out

B. The MNC profits are repatriated to the home country

The example given in the lecture on how Ford Motor Company tried to avoid paying a 25% tariff on vehicles coming from Europe was called A. The administrative delay shuffle B. The chicken tax maneuver C. The tied aid scandal D. The import quota hustle

B. The chicken tax maneuver

Speaking of re-emerging economies, when did emerging economies lose their dominance versus developed economies? A. Around 1000 AD B. By 1820 C. Between 1820 and 1913 D. Around 1500

C. Between 1820 and 1913

Which of the following is NOT an assumption made by developing countries when trying to develop a manufacturing base? A. Industrial growth promotes exports. B. Markets for industrial products grow faster than markets for commodities. C. Foreign competition helps the industry building process. D. Foreign investment spurs growth. E. A developing nation should not depend on a few commodities for growth.

C. Foreign competition helps the industry building process.

**** A firm that scouts the world for the lowest cost labor and the most lenient environmental protection laws is probably interested in which approach A. Transformative B. Responsive C. Exploitive D. Transactional

C. Exploitive

Which of the following is NOT an example of government intervention in a mixed economy? A. A national government redistributes income and wealth in order to pursue an equity objective, by creating socialized medicine or welfare programs. B. A national government influences private production by buying goods or services. C. A state government owns some of the means of production, for example for electricity. D. A local government owns some of the means of production, for example for water purification. E. A national government controls all resources.

E. A national government controls all resources.

Which of the following is NOT a facet of the diamond of national competitive advantage? A. Factor conditions B. Demand conditions C. Firm strategy, structure, and rivalry D. Relating and supporting industries E. Cultural similarities

E. Cultural similarities

If there is a stakeholder in a company who wants a safer workplace and higher compensation, they are demonstrating the desires of which of the following stakeholders? A. Society B. Shareholders C. Owners D. Customers E. Employees

E. Employees

Companies tend to act responsibly because of the possibility of all of the following EXCEPT: A. Lost sales because of bad publicity B. Low employee morale C. Possible legal sanctions D. Consumer boycotts E. Expectations of higher profits

E. Expectations of higher profits

***** The protectionism theory that says a government should protect an emerging industry from foreign competition is known as what? A. Underlying assumptions argument B. Terms of trade C. The industrialization argument D. Diversification argument E. Infant industry argument

E. Infant industry argument

For many organizations, their attitudes toward protectionism are a function of what? A. Investments made to implement domestic strategy B. Number of multidomestic facilities C. Ability to lobby decision makers D. Investment made to local supply chain strategy E. Investments made to implement international strategy

E. Investments made to implement international strategy

The idea that actions in one market influence outcomes in another is called what? A. System complexity B. Market dynamism C. Globalization D. Data overload E. Market interdependence

E. Market interdependence

**** All of the following are clear marks of state capitalist economies EXCEPT which? A. Public investment B. Prevailing public enterprise C. Public wealth D. Promotion of domestic markets E. Promotion of foreign companies

E. Promotion of foreign companies

Some of the advantages offered by the WTO over the organization it replaced included all of the following except: A. Its resolutions are more binding B. Coverage of IP Protection C. Faster resolutions of unfair trade charges D. Coverage of 97% of the world trade E. Shining the spotlight on government corruption

E. Shining the spotlight on government corruption

Ethical dilemmas often involve doing which one of the following? A. Ends over means B. Means over ends C. To cover up your actions D. To not make a moral decision E. Some balance between means and ends

E. Some balance between means and ends

The invisible hand of the marketplace, rather than the visible hand of politicians, can be called which of the following? A. Trade freedom B. Labor freedom C. Political influence D. The market test E. Supply and demand

E. Supply and demand

Providing aid and credits to, and encouraging imports from, countries based on a treaty is considered what? A. Essential industry argument B. Preserving national culture C. A trade control D. Extending spheres of influence E. A nontariff barrier

D. Extending spheres of influence

**** Which of the following is NOT a characteristic of free-market capitalism? A. Free market capitalism promotes free choice. B. Free market capitalism promotes a laissez faire mentality. C. Free market capitalism promotes private ownership. D. Free market capitalism promotes government involvement. E. Free market capitalism denies government involvement.

D. Free market capitalism promotes government involvement.

The broadest measure of economic activity for a country is known as which of the following? A. Economic Freedom Index B. National Wellness Index C. Net National Product D. Gross National Income E. Human Development Index

D. Gross National Income

**** Speaking of Economic Freedom, the original business press article referenced in the lecture began with _______ factors to create a composite Economic Freedom score for a country. A. 10 B. 20 C. 15 D. 5

A. 10

Related to US-Vietnamese catfish wars, the intervention tools featured were: A. Antidumping and standards & labelling B. Subsidiaries and administrative delays C. Quotas and subsidiaries D. Tied aid and permission requirements

A. Antidumping and standards & labelling

In order to deal with government intervention, a firm should do all of the following EXCEPT: A. Ask their home country government to stay away from trade intervention B. Concentrate on markets and products with less international competitions C. Increase their efficiency and innovate D. Move operations to a low cost location

A. Ask their home country government to stay away from trade intervention

Choose the BEST example of an economic assumption that a company manager should make. A. Change in one country can have consequences in another country. B. Economic changes do not alter market circumstances. C. Countries are similar in almost all ways. D. Countries do not share connections, changes, or consequences. E. Political changes do not alter market circumstances.

A. Change in one country can have consequences in another country.

One key theme from chapter 5 is the frustration faced by international managers because society: A. Exhibits a love-hate relationship towards MNCs B. Is always negative towards MNCs C. Is always positive towards home country MNCs D. Is always aligned with the home country government

A. Exhibits a love-hate relationship towards MNCs

***** If a home-country government imposes domestic legal and ethical standards on the foreign subsidiaries of companies headquartered in its jurisdiction, the government is engaging in which type of practice? A. Extraterritoriality B. Bribery C. Justification D. Normativism E. Relativism

A. Extraterritoriality

The market value of production that takes place as a result of domestically-owned only factors of production is called A. GNI B. GNC C. GDP D. LDP

A. GNI

**** The belief that each country is a component of and is dependent on the natural world is known as which of the following? A. Green economics B. Your Better Life Index C. Happynomics D. Human Development Index E. Net national product

A. Green economics

All of the following were highlighted in the lecture as good reasons not to influence trade EXCEPT: A. It contributes to the black market B. It encourages lobbying C. It encourages retaliation D. It is expensive

A. It contributes to the black market

Which of the following issues is NOT a concern identified by the Ethical Trading Initiative for companies that engage in offshore production? A. Limited discrimination is practiced. B. Working hours are not excessive. C. Employment is freely chosen. D. Working conditions are safe and hygienic. E. Freedom of association and the right to collective bargaining are respected.

A. Limited discrimination is practiced.

In an example from the lecture in which Walmart recently decided to pull out from India, the intervention tool used by the Indian government was A. Local content legislation B. An import quota C. A discriminating tariff D. A subsidy to local produce

A. Local content legislation

Which is an example of an interventionist theory? A. Mercantilism B. Comparative advantage C. Country size D. Absolute advantage E. Factor proportions

A. Mercantilism

Speaking of the 2013 BCG Global Challengers, these 100 firms did not appear just overnight. One main reason for how they got to be where they are was that A. They have been protected from foreign competition by their governments for a long time B. They have had highly skilled labor at home for many years C. They became serious about wanting to become global in the 1980s. D. They are all in some way connected to the energy sector or to infrastructure development

A. They have been protected from foreign competition by their governments for a long time

All of the following are reasons why governments tend to intervene in the aircraft industry EXCEPT: A. To protect outdated but valuable technology B. To defray the huge costs of R&D C. To generate tax revenues D. To create local jobs

A. To protect outdated but valuable technology

**** Which of the following is considered a noneconomic rationale for government intervention in trade? A. Promoting spheres of influence abroad B. Balance of trade adjustment C. Fighting unemployment D. Growth generated by foreign investment E. Increased trade controls

A. Promoting spheres of influence abroad

**** A major problem in calculating the Balance of Payment effect on a host country is that: A. Trade and investment data may not be tracked accurately B. Managers are not well trained to understand government statistics C. The home country government may block efforts by its MNCs to get good data D. Most governments do not track Trade and Investment flows

A. Trade and investment data may not be tracked accurately

Speaking of corruption and bribery in international business, the multilateral organization that is working hard to clean up the world for managers and citizens is A. Transparency International B. Federal Bureau of Investigations C. Interpol D. AntiCorruption International

A. Transparency International

Labor conditions of foreign workers are not critical in which of the following sectors at this time? A. Footwear B. IT C. Agriculture D. Clothing E. Retail

B. IT

**** Which tactic for dealing with importers includes using economic and noneconomic arguments to support particular policies? A. Using countertrade B. Convincing policy makers C. Using administrative delays D. Changing the competitive environment E. Invoking reciprocal requirements

B. Convincing policy makers

***** Which of the following requires the exporting country to provide additional economic benefits as part of the transaction? A. Tied aid B. Countertrade C. Foreign exchange controls D. Subsidies E. Quota

B. Countertrade

Which of the following is the BEST justification for a company spending time and energy analyzing economic activity in another country? A. Political decisions do not affect economic activity. B. Economic changes in one country have consequences in others. C. Economic decisions do not affect economic activity. D. Countries share similar levels of economic potential. E. Countries share levels of economic development.

B. Economic changes in one country have consequences in others.

International managers are not alone in getting governments to reduce trade intervention. The multilateral organization responsible for much liberalization since soon after WW2 was A. The International Monetary Fund B. General Agreement on Tariffs and Trade C. World Trade Organization D. The World Bank

B. General Agreement on Tariffs and Trade

Speaking of Balance of Payment accounts emphasized in the lecture, the country with the largest current account surplus is A. Japan B. Germany C. USA D. Brazil

B. Germany

Speaking of rationales for government intervention, the fact that governments are oriented towards creating jobs is usually bound to conflict with a firm's goal toward what? A. Market penetration B. High productivity C. Competitive advantage D. Raising returns

B. High productivity

Speaking of balance of payment effects, when the host country gains from massive inflows of foreign direct investment, a host country loss tends to be: A. Creating of many more jobs in the home country B. Higher labor costs at the local level C. A negative transfer of managerial expertise D. A loss of technology to foreigners

B. Higher labor costs at the local level

Which of the following presumes that the unregulated importation of lower priced products prevents the development of a domestic industry? A. Comparable access argument B. Infant industry argument C. The diversification argument D. Balance of trade adjustment argument E. Industrialization argument

B. Infant industry argument

Which of the following is NOT a reason why an individual should not attempt to apply his or her own legal standards to people in a foreign country? A. Laws are slow to develop in emerging areas of concern. B. Laws embody many of a country's moral principles. C. The law is simply inefficient in many ways. D. Courts and judges often scrutinize the law. E. Some things that are unethical are not illegal.

B. Laws embody many of a country's moral principles.

Speaking of a changing New World Economic Order, all of the following are acronyms for the types of countries discussed EXCEPT A. BEMs B. NIICs C. LDCs D. RDEs

B. NIICs

From the lecture, a changing New World Economic Order refers to A. The fact that democracy is under retreat B. The rise of emerging economies C. The economic success experienced by totalitarian governments D. The use of terrorism to appropriate resources such as oil

B. The rise of emerging economies

A positive contribution of an MNC in the host country might involve introducing higher productivity production practices. The negative impact of this might be that: A. This technology tends to contaminate the environment versus older technology B. This technology costs fewer jobs overall in the host country C. This technology might be outdated D. This technology tends to drive home country firms out of business

B. This technology costs fewer jobs overall in the host country

The Kyoto Protocol commits signatories to which of the following? A. Eliminate all coal-fired power stations by 2014 B. To reduce greenhouse gas emissions C. Reduce greenhouse gas emissions by 50% of 1990 levels by 2014 D. Increase greenhouse gas emissions to promote plant growth E. Meet the greenhouse gas emission standards of the Japanese government

B. To reduce greenhouse gas emissions

The most important reason for studying the economic environment of a country in D270 is A. Because it's interesting to know how to classify a country in terms of economic system B. To understand how doing business there will affect a firm investing there C. To be able to assess the population size D. To analyze the type of government system used there

B. To understand how doing business there will affect a firm investing there

According to the lecture, all of the following create moral mazes for managers except: A. Some laws follow MNCs away from their home country B. Unions would like for MNCs to keep all jobs at home C. What is right in one country may be wrong in another country D. What is legal in one country may be illegal in another country

B. Unions would like for MNCs to keep all jobs at home

From the discussion on the changing world economic order, a main reason that emerging economies may continue to have future success in the global economy is that A. most have the latest infrastructure which is better than most industrialized countries B. they are producing more skilled workers than the European Union, the US, and Japan combined C. due to environmental pressures they consume less energy than the industrialized countries D. they are able to leapfrog the industrialized countries by adopting the latest technologies

B. they are producing more skilled workers than the European Union, the US, and Japan combined

Speaking of Control of Economic Activity and Ownership of Production in the lecture, the various types of systems were presented in _______ cells A. 4 B. 6 C. 9 D. 12

C. 9

A country that has a high Gross Domestic Product generally has which of the following? A. A large agricultural base B. Increase imports C. A large manufacturing base D. Extensive overseas investments E. High unemployment

C. A large manufacturing base

Which is the name for the phenomenon when a country loses productive resources when educated members of its potential workforce move abroad? A. Trade deficit B. Favorable balance of trade C. Brain drain D. Factor condition E. Nontradable good

C. Brain drain

When governments resort to excessive trade intervention, the biggest losers tend to be A. Foreign producers B. The government involved C. Consumers D. Special interest groups

C. Consumers

In order to calculate a country's purchasing power, it's important to calculate its A. Population B. Level of economic stability C. Cost of a universal "basket of goods" D. Current Account Balance

C. Cost of a universal "basket of goods"

Which of the following stakeholders would want higher-quality products at lower prices? A. Employees B. Stockholders C. Customers D. Businesses E. Society

C. Customers

A system in which individuals, rather than the state, decide how to work, produce, consume, save, and invest describes which of the following? A. Monetary freedom B. Trade freedom C. Economic freedom D. Financial freedom E. Business freedom

C. Economic freedom

The release of greenhouse gases that trap heat in the atmosphere, rather than allowing them to escape, is known as which of the following? A. Global cooling B. Environmental restraint C. Global warming D. Erosion control E. Sustainability

C. Global warming

All of the following are characteristics of a command economy except A. Fosters the value of collectivism B. Applies to the visible head of the state C. Goal of balancing economic efficiency with protection against greed D. Government owns most or all resources

C. Goal of balancing economic efficiency with protection against greed

Using tied-aid would allow a country to achieve which policy goal most directly? A. Protecting an infant industry B. Maintaining an essential industry C. Maintaining a sphere of influence D. Improving comparative position

C. Maintaining a sphere of influence

Speaking of economic systems in the world, the most common type is A. Market B. Control C. Mixed D. Command

C. Mixed

Speaking of economic stereotypes, if a person could be born today in a country with a favorable economic situation, they would probably choose A. France B. Brazil C. Norway D. Switzerland

C. Norway

Speaking of economic freedom rankings, an original business press article highlighted in the lecture established found a positive correlation between a country's freedom category and its A. Inflation rate B. Purchasing power parity C. Per capita GDP D. Geographic Location

C. Per capita GDP

All of the following are found to be themes from Chapter 4 EXCEPT: A. The world no longer revolves economically around the USA B. A highly effective and clean market may not be the most attractive for expansion C. Political freedom is a characteristic of all market economies D. A large market may not always be highly attractive for expansion

C. Political freedom is a characteristic of all market economies

Which of the following will affect the quantity of an import? A. Export reduction B. Tariff barriers C. Quotas D. Transit stimulus E. Import tariffs

C. Quotas

Requiring foreign firms to prove that their product is safe for consumer is an example of which intervention tool? A. Countervailing Pressures B. Administrative Delays C. Regulatory Standards D. VERs

C. Regulatory Standards

All of these are dimensions of a good code of conduct EXCEPT which of the following? A. Reporting results to all external stakeholders B. Ensuring that policies are carried out C. Setting policies that are complied with only in one country D. Communicating the code to all internal stakeholders E. Setting global policies that must be complied with wherever the company operates

C. Setting policies that are complied with only in one country

Which of the following would NOT be an opportunity created by governmental trade policies to discourage trade? A. Foreign exchange control B. Standards and labels C. Shipping times D. Administrative delays E. Specific permission requirements

C. Shipping times

One reason the United States and Canada share a strong trade partnership is because they share comparable consumer economic levels. Which of the following BEST describes why this trade relationship is successful? A. Similar trade deficit B. Similar product life cycle (PLC) C. Similar economic levels D. Similar geographical size E. Similar nontradable goods

C. Similar economic levels

An economic system in which the state decides how, when, and where assets will be valued is known as which of the following? A. Deregulation B. State socialism C. State capitalism D. State communism E. Trade freedom

C. State capitalism

Which of the following represents a form of direct assistance to local companies to boost competitiveness? A. Customs valuation B. Aids and loans C. Subsidies D. Tied aid E. Quotas

C. Subsidies

The news source credited with identifying the countries that are part of the New World Economic Order was A. The Wall Street Journal B. Bloomberg Business Week C. The Economist D. The Financial Times

C. The Economist

Sarbanes-Oxley was named after members of which one of the following institutions? A. The Federal Reserve Board B. The U.S. executive branch C. The U.S. Congress D. The U.S. Attorney General's office E. The President's Council of Economic Advisors

C. The U.S. Congress

An important fact supporting the idea of a New World Economic Order was that A. The emerging economies have 70% of the world's population B. There are more wealthy people in India than the population of the USA C. The emerging economies now have 50% of the world's income D. China now buys more new cars than the USA

C. The emerging economies now have 50% of the world's income

All of the following are considered labor issues EXCEPT ________? A. Working hours B. Working conditions C. Where to vacation D. Wages E. Child labor

C. Where to vacation

The Serious Frauds Office is which of the following? A. Is a division of the Canadian national police force B. Is a part of the Australian Ministry of Justice C. Works under the jurisdiction of the U.K. Attorney General D. Is part of the U.S. Department of Justice E. Is an Interpol division

C. Works under the jurisdiction of the U.K. Attorney General

Which of the following supports the idea of a company with a green economics focus? A. A company is looking to cut costs by any means necessary. B. A company is concerned only with monetary gain. C. A company ignores its ecological footprint. D. A company is concerned with how it is affecting the environment.

D. A company is concerned with how it is affecting the environment.

If a country government wanted to remedy an "unfair" trade practice, it would tend to use which intervention tools? A. A preferential tariff B. A transit quota C. An antidomestic legislation D. A countervailing duty E. A subsidy

D. A countervailing duty

**** The main reason that MNCs will evoke a strong reaction from society at large is that MNCs A. Are simply interested in labor exploitation and in environmental contamination B. Are often instruments of their home country governments C. Do not do enough to employ local workers D. Are powerful actors in the global economy

D. Are powerful actors in the global economy

An analyst in a Toronto, Canada-based multinational is examining the economic environment of a developing country where a manufacturing firm might be located. The analyst is investigating the country's trade and financial transactions which were conducted by all the individuals, business, and government agencies in that country, compared to the rest of the world, over the last year. The analyst is examining which of the following? A. Productivity B. Macro economic strategy C. Income distribution D. Balance of Payments E. Laissez faire policies

D. Balance of Payments

American entrepreneurs have the freedom to start a business, operate it as they see fit, and close the business if they aren't satisfied with its performance. Which kind of freedom do these entrepreneurs enjoy? A. Labor freedom B. Fiscal freedom C. Monetary freedom D. Business freedom E. Trade freedom

D. Business freedom

The main problem with economic measurements of a country include all of the following except A. Internal and external market conditions are constantly changing B. Markets are complex and unique C. Markets are interdependent on each other D. Corrupt officials try to hide the data

D. Corrupt officials try to hide the data

The Bottom of Pyramid approach involves A. Passing the front page of the newspaper test B. Knowing and obeying all laws C. Developing a country wide code of ethics D. Developing products and services for the poorest consumers on the planet

D. Developing products and services for the poorest consumers on the planet

Which one of the following has set policies more aggressive than the Kyoto Protocol? A. India B. China C. The United States D. E.U. countries E. Russia

D. E.U. countries

Speaking on corruption and bribery, the good news for managers is that all of the following are efforts to clean things up EXCEPT: A. Actions of Entire Industry Groups B. The Foreign Corrupt Practices Act of 1977 C. The work of many NGOs D. Effective actions by poor countries to kick out corrupt government officials

D. Effective actions by poor countries to kick out corrupt government officials

Your company requires all of its employees to sign off that they've read the company code of conduct and that they understand and will practice it. This demonstrates which dimension of a code of conduct? A. Set global policies that everyone working for the company must comply with. B. Communicate company policies to all stakeholders. C. Report results to external stakeholders. D. Ensure that policies are carried out by employees. E. Require only local employees to comply.

D. Ensure that policies are carried out by employees.

The types of firms representing the changing New World Economic Order are known as A. The Fortune 500 BEM firms B. The Forbes 100 Emerging Market firms C. The McKinsey new world players D. The BCG New Global Challengers

D. The BCG New Global Challengers

A major concern with the rise of Big Emerging Markets is the increased use of energy. This was illustrated by A. The use of electricity to power appliances B. The use of water as cities grow C. The consumption of steel as infrastructure improves D. The consumption of oil as income rises

D. The consumption of oil as income rises

All the following are important reasons that most MNCs are interested in emerging economies EXCEPT A. They have strong indication of economic advancement B. They are seeking FDI to fuel their economic development C. They are growing rapidly due to liberalization D. They are less interested in environmental regulations and unionization

D. They are less interested in environmental regulations and unionization

All of the following countries have more than five New Global Challengers EXCEPT: A. Mexico B. China C. India D. Turkey E. Brazil

D. Turkey

**** The balance of payments formula discussed in lecture B = (m-m1) + (x-x1) + (c-c1) was used as a tool to help managers: A. Understand what types of technologies would work best in the host country B. Understand the economic freedom conditions of the host country C. Understand how the local currency would impact their investment decisions D. Understand the societal impact of their investments on the host country

D. Understand the societal impact of their investments on the host country

A U.S.based insurance company is interested in investigating the potential market in China, and finds that the markets might be strongest for its product in the urban centers around Beijing and Shanghai, rather than in the rural areas. This illustrates which of the following principles of income distribution? A. Bottom of the pyramid B. Balance of payments C. Gini coefficient D. Urban versus rural income distribution E. Internal deb

D. Urban versus rural income distribution

An economics professor advocates an economic system that is characterized by a free market, with extensive private ownership and control. This economic system is known as ________. A. command B. parliamentary C. mixed D. capitalism E. communism

D. capitalism

The BCG 100 New Global Challengers did not appear overnight. They got here for all of the following reasons EXCEPT A. Large appetite for risk and global ambition B. Access to low cost resources like labor C. Protected access to their home markets D. Freedom from legacy assets E. Weak enforcement of corruption at home

E. Weak enforcement of corruption at home

You work in a country whose economy demonstrates low inflation, high employment rates, and open trade policies. According to the economic system test, where does your economy stand? A. Your economy is average. B. Your economy needs some work. C. Your economy is in transition. D. Your economy is failing. E. Your economy is successful.

E. Your economy is successful.