MGT 131 Ch. 1
The world's economies can be evaluated as
1. established 2. emerging 3. developing
The balance in a mixed economy allows competition to thrive while the government can extend...
assistance to individuals or companies.
In Hungary, state-owned hotels have been privatized, and Western firms, attracted by the low cost of highly skilled, professional labor, have been...
entering into joint ventures with local companies.
In a command economy the particular goods and services are not necessarily in response to consumers' stated needs but are determined by...
the theoretical advancement of society.
The economy of _________ was the only economy in the EU that continued developing during the global recession 200-2009...
Poland
CEVITS (fast growing developing countries)
Colombia, Egypt, Vietnam, Indonesia, Turkey, and South Africa
Based on the data on purchasing power parity (PPP), _________________ would exceed the United States as the largest world economic power by 2050.
China and India
28 countries now comprise the EU with 17 having adopted the...
Euro.
The Goldman Sachs global economics team released its initial report on the economic growth project to occur in the emerging markets of ...
Brazil, Russia, India, and China -- which it collectively coined as the "BRIC" nations.
In 2010, the BRIC leaders of the founding members decided to join ______ to the group, making it the BRICS.
South Africa
Which of the following groups of economies suspended Russia in 2014 after a series of political differences between the economies and Russia?
The Group of Seven (G7) economies.
World Trade Organization
The global organization of countries that oversees rules and regulations for international trade and investment
Offshoring
The process by which companies undertake some activities at foreign locations instead of in their countries of origin.
Outsourcing
The subcontracting or contracting out of activities to endogenous organizations that had previously been perform by a firm.
The following countries are part of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR)
U.S., El Salvador, Honduras, Nicaragua, Guatemala, Dominican Republic, Costa Rica.
developing economies typically face relatively low GDP per capita...
and a workforce that is either unskilled or semiskilled.
Chile attracts a lot of foreign direct investment, mainly dealing with gas, water, electricity, and mining. It continues to participate in globalization by...
engaging in further grade agreements, including those with Mercosur, China, India, the EU, South Korea, and Mexico.
Limited clean water, power, paved roadways, and modern bridges, however, are making it increasingly difficult ...
for companies to expand.
Transatlantic Trade and Investment Partnership (T-Tip)
is a proposed trade agreement between the European Union and the United States that could further bolster trade and multilateral economic growth in Europe and North America.
"Battle in Seattle"
protesters disrupting the meeting, and representative of developing countries who felt their views were being left out of the discussion succeeded in ending the discussions early and postponing a new round of trade takes.
According to antiglobalization activists, if corporations are free to locate anywhere in the world, the world's poorest countries will
relax or eliminate environmental standards and social services in order to attract first-world investment and the jobs and wealth that come with it.
A market economy has the least restricition because....
resource allocation is roughly decided by the law of demand.
A market economy contains the least...
restriction as the allocation of resources is roughly determined by the law of demand.
In 2015, the Brazilian economy dipped into recession, experiencing an economic contraction of ...
roughly 3 percent, double-digit inflation and a rapidly rising unemployment rate.
E7
seven major emerging economies; 1) Brazil 2) China 3) India 4) Indonesia 5) Mexico 6) Russia 7) Turkey
A goal for the EU that has finally largely become a reality is a ....
single currency and a regional central bank.
India is one country as the center of the globalization debate. India has been the beneficiary of significant foreign investment, especially in services such as
software and information technology (IT).
In the years since Goldman Sachs' original reports on the future potential of the BRIC nations, global economic conditions have led to ...
some setbacks for the economies of Brazil, Russia, and China, leading some to reconsider the rate at which the BRIC economies will continue to grow.
Emerging markets can be viewed as developing economies that exhibit...
sustained economic reform and growth.
Globalization has been facilitated by
technological advances in transnational communications, transport, and travel.
Increases in the price of commodities, such as oil and gas, agricultural products, and mineral and mining products, between 2000 and 2015 have helped boost incomes and wealth in...
the African continent.
Japan remains a formidable international competitor and is well poised in all three major economic regions:
the Pacific Rim, North America, and Europe
Foreign Direct Investment (FDI)
the amount invested in property, plant, and equipment in another country
Mexican firms are now able to produce products at highly competitive prices because of...
the availability of low-cost labor and because the Mexican market is close to the American market.
Expanding by over 7 percent in 2015, India has eclipsed China as ...
the fastest growing large economy.
The slowdown extends beyond the BRIC nations; in 2015, emerging markets outside of China and India contributed only 13 percent to global GDP growth. This represents...
the lowest proportion of GDP growth contributed by emerging markets since 2009.
Businesses in a command economy are owned by the state to ensure that investments and other business practices are done in the best interest of...
the nation.
Internationalization
the process of a business crossing national and cultural borders, while globalization is the vision of creating one world unit, a single market entity.
Management
the process of completing activities with and through other people.
Globalization
the process of social, political, economic, cultural, and technological integration among countries around the world.
The ultimate objective of the EU is to eliminate all ....
trade barriers among member countries.
The similarity between the legal and business environments in Canada and the United States helps promote....
trade between the United States and Canada.
North American constitutes one of the four largest...
trading blocs in the world.
FDI has been growing at a slow but steady rate in the years since the global recession of 2009. Despite dripping almost 50 percent in 2009 to $896 billion, global FDI rebounded to ...
$1.5 trillion by 2013. By 2017, FDI is estimated to reach 1.7 trillion, surpassing the all-time high set a decade earlier in 2007.
Saudi Arabia the largest oil producer in the...
Arab world.
CAFTA
U.S. Central American Free Trade Agreement
A mixed economy is a combination of ....
a market and command economy.
The free-market-based economy of North America allows considerable liberty in...
decision-making processed of private firms.
These Countries are part of the European Union
- The Czech Republic - Latvia - Croatia - Austria
The NAFTA agreement lead to some important development including...
1) the elimination of tariffs, and import and export quotas 2) the opening of government procurement markets to companies in the other two nations. 3) an increase in the opportunity to make investments in each other's country. 4) an increase in the ease of travel between countries. 5) the removal of restrictions on agricultural products, auto parts, and energy goods.
Greece has been forced to accept certain measure as it has accepted multiple bailout packages for the international monetary fund (IMF), the European Commission, and the European Central Bank between 2010 and 2015. What are those measures....
1. Freezing of government pensions and wages 2. Cuts to public spending
MITI has given primary attention to the so-called ABCD industries:
1. automation 2. biotechnology 3. computers 4. data processing
Russia, which averaged 6.6 percent annual GDP growth between 2002 and 2008, slowed to only...
1.5 percent average annual growth between 2011 and 2014.
In China, GDP grew just 6.8 percent in 2015 -- significantly less than its...
14.5 percent growth in 2007.
Goldman Sachs predicted that the BRIC economies' share of world growth could rise from....
20 percent in 2003 to more than 40 percent in 2025, and that the BRIC's total weight in the world economy would rise from approx. 10 percent in 2004 to more than 20 percent in 2025.
One major problem of doing business in the African continent is the overwhelming diversity of approximately one-billion people, divided into...
3,000 tribes, that speak 1,000 languages and dialects.
By 2050 the working age population will contract by nearly...
5 percent worldwide.
Ministry of International Trade and Industry (MITI)
A Japanese government agency that identifies and ranks national commercial pursuits and guides the distribution of national resources to meet these goals.
European Union (EU)
A political and economic community consisting of 28 member states.
In addition to tragic tribal wars, there has been the spread of terrible diseases such as ...
AIDS, malaria, and Ebola.
Trans-Pacific Partnership (TPP)
Asian trade agreement of 2015
The economy of _______ outweighs that of any other South American Country and has become a worldwide presence with an economic output comparable to that of France.
Brazil
Identify the countries that are part of the EAGLES, which is a group of economies
Brazil, Russia, India, China, Mexico, Indonesia, South Korea, Turkey, Egypt and Taiwan.
PricewaterhouseCoopers (PwC) coined the term
E7
The Andean Common Market
It is a subregional free-trade compact that is designed to advance economic and social integration and cooperation between Bolivia, Colombia, Ecuador, and Peru.
Another major reason for Japanese success may be the use of
Keiretsus
E7 economies are located throughout...
Latin America and Asia
North American Free Trade Agreement (NAFTA)
Made up of the USA, Mexico, and Canada. removed all barriers to trade among these countries and created a huge North American market.
Competition is intensely promoted to foster innovation, economic growth, high quality and efficiency in a ___________ economy.
Market
MIST countries
Mexico, Indonesia, South Korea, Turkey are a subset of the N-11, are sometimes grouped as a particularly attractive subset.
Mercosur
a common market created by Argentina, Brazil, Paraguay, Uruguay, and Venezuela, and the Andean Common Market, a subregional free-trade compact that is designed to promote economic and social integration and cooperation between Bolivia, Colombia, Ecuador and Peru.
Maquiladora system
a factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty and tariff free basis for assembly or manufacturing and re-export.
Multinational corporations (MNCs)
a firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners.
Purchasing Power Parity (PPP)
a method that adjusts GDP to account for different prices in countries, a more dramatic picture is presented.
There has been a steady decline in Japan's overseas investments since the 1990's due to ...
a slowing Japanese economy, poor management decisions, and competition from emerging economies, such as China.
Proponents of globalization believe...
protectionist policies, not trade and investment liberalization, lead to environmental and social damage within the developing world.
Partly as a result of the slow progress in multilateral trade negotiations, the United States and many other countries have pursued ...
bilateral and regional trade agreements.
One concern of globalization is that the major winners of globalization are
company executives.
A command economy is...
comparable to a monopoly in the sense that the organization, in this case the government, has explicit control over the price and supply of a good or service.
Unlike its fellow BRIC partners, India ...
continues to post strong figures, and the country has actually surpassed China in annual GDP.
In recent years globalization has accelerated...
creating both opportunities and challenges to global business and international management.
Management within a command economy ignores...
demographic information.
Broad-Based Black Economic Empowerment (B-BBEE) program...
designed to reintegrate the disenfranchised majority into business and economic life.
More than 90 percent of Mexico's trade takes place under...
free-trade agreements.
The price of oil greatly fluctuates, and the Organization of Petroleum Exporting Countries (OPEC) has trouble...
holding together its cartel.
People are now living longer lives in both developed and developing countries due to...
improvements in technology and health care sectors.
Evidence of globalization can be seen
in increased levels of trade, capital flows, and migration.
The amount of spending on health care-related services will keep on...
increasing rapidly
The developing and emerging countries of the world are now predicted to occupy...
increasingly dominant roles in the global economic system.
effective international management still requires knowledge of...
individual countries
Argentina has one of the strongest economies overall with abundant natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base; however it has suffered the recurring economic problems of...
inflation, external debt, capital flight, and budget deficits.
While globalization has opened up new markets for developed countries, developing nations in Africa lack the institutions...
infrastructure, and economic capacity to take full advantage of globalization.
International management is distinct from other forms of management in that....
knowledge and insights about global issues and specific cultures are a requisite for success.
Keiretsus
large, vertically integrated corporations who's holdings supply much of the assistance needed in providing goods and services to end users.
India's public debt has declined to about 65 percent of GDP over the last ten years, increasing ...
macroeconomic stability and lowering it vulnerability to external risks.
African nations remain very poor and undeveloped, and international trade is only beginning to serve as a ...
major source of income
The evolution of global economies has resulted in three main systems:
market economies, command economies, and mixed economies.
N-11 (next 11)
may constitute the next wave of emerging markets growth. Includes: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam.
The Arab and Central Asian countries rely almost exclusively on ....
oil production.
Other big problems include...
poverty, malnutrition, illiteracy, corruption, social breakdown, vanishing resources, overcrowded cities, drought, and homeless refugees.
Market economy
private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.
Management is particularly effective in a market economy since....
private ownership provides local evaluation and understanding, opposed to a nationally standardized archetype.
International Management
process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts.
Cheabols
very large family held Korean conglomerates that have considerable political and economic power.
