BUSA CHAPTER 10 EXAM QUESTIONS AND ANSWERS ALL CORRECT
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Course
BUSA
Institution
BUSA
BUSA CHAPTER 10 EXAM QUESTIONS AND ANSWERS ALL CORRECT
Which of the following is one of the reasons that emerging markets act as manufacturing bases for global MNEs?
a. minimal trade restrictions
b. low-wage, skilled labor pool
c. well-developed infrastructure
d. strong intellectual propert...
BUSA CHAPTER 10 EXAM
QUESTIONS AND
ANSWERS ALL CORRECT
Which of the following is one of the reasons that emerging markets act as
manufacturing bases for global MNEs?
a. minimal trade restrictions
b. low-wage, skilled labor pool
c. well-developed infrastructure
d. strong intellectual property laws - Answer- B
South Korea has become a global leader in which of the following industries?
a. textiles
b. automobiles
c. pharmaceuticals
d. electronics - Answer- D
Outsourcing certain value-added activities with foreign suppliers is known as ________.
a. offshoring
b. global resourcing
c. privatization
d. subsidizing - Answer- A
All of the following are examples of global sourcing except ___________.
a. Mexican autoworkers manufacturing generators in Mexico for General Motors
b. Japanese workers employed at a Toyota plant in central Japan.
c. Microsoft employs skilled workers in India for computer programming.
d. Massachusetts General Hospital employs doctors in the Philippines to read x-rays. -
Answer- B
Which of the following explains why per-capita GDP converted at market exchange
rates inaccurately depicts the potential of an emerging market?
a. The market exchange rate does not take into consideration distribution and
production costs for each nation.
b. Products and services in emerging markets are priced significantly lower than they
are in advanced economies.
, c. The per-capita GDP converted using PPP exchange rates provides a precise
measure of consumer buying potential.
d. Products manufactured in emerging markets are priced less than products that are
imported outside of an economic bloc. - Answer- B
Which of the following best describes the concept of purchasing power parity (PPP)?
a. In emerging markets, the ability to buy goods and services depends on the influx of
FDI from international MNEs.
b. The fluctuation in exchange rates disrupts international trade because the value of
goods and services is inconsistent.
c. In the future, a world currency will create equality in the global marketplace and
eliminate disparity.
d. Eventually, the exchange rate of two currencies will be equalized and the same
goods will have the same price in two countries. - Answer- D
Which of the following terms is used to refer to unofficial economic transactions?
a. informal economy
b. national GDP
c. discretionary spending
d. market potential - Answer- A
In purchasing power parity terms, which nation has the highest per-capita GDP?
a. Brazil
b. China
c. Turkey
d. South Korea - Answer- D
Which of the following will most likely be the result of an increased number of middle-
class households in emerging markets?
a. a vital market economy
b. a decrease in GDP
c. urbanization decline
d. multi-income families - Answer- A
Which of the following is representative of a developing economy?
a. Australia
b. Bangladesh
c. France
d. Mexico - Answer- B
All of the following are typical characteristics of emerging markets except ________.
a. low inward foreign direct investment
b. rapid industrialization
c. moderate competition
d. rapidly declining trade barriers - Answer- A
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