Study guide chapter 2

Which of the following is true of the Apartheid system?

It refers to an official policy of racial segregation that was practiced in South Africa against anyone who was not white.

refer to the forces of change whose direction and sometimes timing can be predicted.

Trends

The early 1980s saw the gradual transition of the Chinese economy from a centrally planned economy toward a market-driven economy.

True

The economies of developing countries usually rely heavily on one or more key industries, often related to commodities like oil, minerals mining, or agriculture.

True

The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI. Group of answer choices

True

Forward contracts, currency swaps, options, and futures all belong to a group of financial instruments called:

derivatives

The Soziale Marktwirtschaft refers to Germany's:

economic system.

Human development index refers to:

the measurement of a country's average achievements in health, knowledge, and a decent standard of living.

A nation's GDP at purchasing power parity (PPP) exchange rates refers to:

the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

"Fourth World" was a term coined after World War II which referred to:

the unknown nations (cultural entities) of indigenous peoples living within or across national state boundaries.

Gross domestic product per person refers to:

the value of the GDP adjusted for purchasing power.

___ refers to a market in which prices rise for a prolonged period of time.

Bull market

The total size of the economy is a better indicator of the strength of the local economy and the market opportunity for a new consumer product than the income per person.

False

____ refers to a market in which prices steadily drop, in a downward cycle.

Bear market

A single language and a homogeneous cultural identity in Africa make it easier for advertisement companies to reach a wider audience with their ads. Group of answer choices

False

Africa serves as an attractive destination for investors because of its low trade tariffs and the untapped spending power of the African population.

False

An organization, when it is planning to expand in a foreign country, needs to view the country as a monolith.

False

If the acquiring firm is in a country with a strong currency, acquisitions becomes expensive for the acquiring firm.

False

The German law guarantees free unregulated private enterprise.

False

The World Trade Organization (WTO) has given clear definitions for "developed" and "developing" countries.

False

The human development index (HDI) also reflects political participation and gender inequalities.

False

_____ refers to the benefit that a company gains by entering into a market first or introducing a new product or service before its competitors. Group of answer choices

First-mover advantage

In the United States, retail and investment banks were barred from being under the same corporate umbrella by the:

Glass-Steagall Act

Which of the following was true of the Real Plan implemented by Brazil in 1994?

It emphasized the need for a strong currency, strict limits on government spending, and an opening up of the economy.

Which of the following is true for Japan?

Japanese business is difficult to penetrate due to its keiretsu nature.

The "Iron Triangle" in Japan refers to the tight relationship among:

Japanese politicians, bureaucrats, and big business leaders.

Which country ranked 1st in UNDP's 2016 HDI report?

Norway

_____ occurs when a company contracts with a third party to do some work on its behalf. Group of answer choices

Outsourcing

_____ refers to the capital market where new securities (stocks and bonds are the most common) are issued.

Primary market

_____ is a strategic-management tool that helps an organization take stock of its internal characteristics and assess the external environmental conditions. Group of answer choices

SWOT analysis

_____ drive(s) the German economy, representing 69 percent (in 2016) of the total GDP.

Services

Glasnost refers to the:

Soviet Union's policy of openness and candor.

The only reason a saver puts his cash at risk in the capital market is if the returns on the investment are greater than returns on holding risk-free assets.

false

Which of the following is an advantage of licensing and franchising? Group of answer choices

fast entry, low risk and low cost

Venture-capital firms, private equity providers, and mutual funds are examples of specialized intermediaries for:

financial markets

"Second World" was a term coined after World War II which referred to:

he Eastern bloc of the communist-socialist states.

Firms export mostly to countries that are close to their facilities because:

of lower transportation costs

"First World" was a term coined after World War II which referred to:

the bloc of democratic-industrial countries within the American influence sphere.

One of the primary purposes of the EU was:

to create a single market for business and workers accompanied by a single currency, the euro.

One disadvantage of partnering is the possibility that the partner's goals differ from the firm's goals.

true