C211 (WGU): Global Economics for Managers
Cengage Text 2022/2024| 219 Questions and
Answers/ Graded A
Globalization - -The close integration of countries and peoples of the world.
-Purchasing Power Parity (PPP) - -A conversion that determines the equivalent amount
of goods and services that different currencies can purchase.
-Scenario Planning - -A technique to prepare and plan for multiple scenarios (either
high or low risk).
-Risk management - -The identification and assessment of risks and the preparation to
minimize the impact of high-risk , unfortunate events.
-Gross National Income (GNI) - -GDP + income from non-resident sources abroad.
GNI is the term used by the World Bank and other international organizations to
supersede the term GNP.
-Gross National Product (GNP) - -GDP + income from non-resident sources abroad.
-reverse innovation - -An innovation that is adopted first in emerging economies and is
then diffused around the world.
-International Business (IB) - -(1) A business or firm that engages in international
crossborder economic activities and/or (2) the action of doing business abroad.
-semiglobalization - -A perspective that suggests that barriers to market integration at
borders are high, but not high enough to insulate countries from each other completely.
-BRIC - -Brazil, Russia, India, and China
-base of the pyramid (BOP) - -Economies where people make less than $2,000 per
capita per year.
-emerging economies - -A term that has gradually replaced the term "developing
countries" since the 1990's.
-emerging markets - -A term that is often used interchangeably with "emerging
economies"
-nongovernmental organizations (NGO's) - -An organization that is not affiliated with
governments.
-Expatriate Manager - -A manager who works "abroad", or "expat" for short.
, -Gross Domestic Product (GDP) - -The sum of value added by resident firms,
households, and governments
-Foreign Direct Investment (FDI) - -Investment in, controlling, and managing value-
added activities in other countries.
-Group of 20 (G-20) - -The group of 19 major countries plus the European Union (EU)
whose leaders meet on a biannual basis to solve global economic problems.
-liability of foreignness - -The inherent disadvantage that foreign firms experience in
host countries because of their non-native status.
-global business - -Business around the globe.
-international premium - -A significant pay raise when working overseas.
-multinational enterprise (MNE) - -A firm that engages in foreign direct investment
(FDI)
-Triad - -North America, Western Europe, and Japan
-Expatriate Manager (expat) - -A manager who works abroad, or "expat" for short.
-Nontariff Barriers (NTB) - -Trade barrier that relies on nontariff means to discourage
imports.
-tariff barrier - -Trade barrier that relies on tariffs to discourage imports.
-deadweight costs - -Net losses that occur in an economy as a result of tariffs.
-free trade - -The idea that free market forces should determine how much trade with
little or no government intervention.
-infant industry argument - -The argument that if domestic firms are as young as
"infants", in the absence of government intervention, they stand no chances of surviving
and will be crushed by mature foreign rivals.
-product life cycle theory - -A theory that accounts for changes in the patterns of trade
over time by focusing on product life cycles.
-theory of mercantilism - -A theory that suggests that the wealth of the world is fixed
and that a nation that exports more than imports less will be richer.
-theory of comparative advantage - -A theory that focusses on the relative not the
absolute advantage in one economic activity that one nation enjoys in comparison with
other nations.
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