Question 1

The United States and Norway are examples of ________ economies.

Accepted Answer

Both the United States and Norway have highly developed industrial economies, with advanced manufacturing, technology, and services sectors. They also have high levels of economic output and advanced infrastructure, making them examples of industrial economies.

Question 2

Sellers might accept a(n) ________, one whose removal from the country is restricted by the buyer's government, if they can buy other goods in that country that they need themselves or can sell elsewhere for a needed currency.

Accepted Answer

A blocked currency is a currency whose removal from the country is restricted by the buyer's government. In certain situations, sellers may accept a blocked currency if they can use it to buy other goods in that country that they need or can sell elsewhere for a needed currency. The other options listed (countervailing duty, custom duty, anti-dumping duty, tariff) are all forms of taxes or fees levied on imported goods, and do not relate to the acceptance of a blocked currency.

Question 3

Industrializing economies are also known as ________ economies.

Accepted Answer

Emerging economies are those that are in the process of industrialization and economic growth, characterized by an increase in GDP, urbanization, and employment in manufacturing and service sectors. These economies are typically transitioning from being primarily based on agriculture and raw material exports to more diverse and industrialized economies.

Question 4

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.

Accepted Answer

A raw material exporting economy is one that relies heavily on the export of natural resources, such as oil or diamonds, for its revenue. While these economies may have abundant natural resources, they may lack infrastructure or diversity in industries beyond the extraction and export of these resources.

Question 5

Foreign businesses in India appear to receive unusually close scrutiny and must meet special regulations, aimed at protecting local businesses. This includes nontariff trade barriers. This reflects that a country's ________ should be carefully considered before doing business in that country.

Accepted Answer

The fact that foreign businesses in India receive unusually close scrutiny and must meet special regulations suggests that the political-legal environment in India is not particularly friendly to foreign businesses. This highlights the importance of researching and understanding a country's political-legal environment before entering into business in that country.

Question 6

Which of the following characterizes emerging economies?

Accepted Answer

The answer of Which of the following characterizes emerging economies?
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Question 7

The BRICS countries are ________.

Accepted Answer

The BRICS countries are Brazil, Russia, India, China, and South Africa, forming an acronym for their names. The other answer choices do not include these specific countries.

Question 8

Which of the following involves the direct exchange of goods and services?

Accepted Answer

Barter involves the direct exchange of goods and services without the use of money or other forms of compensation. The other options all involve the use of money or some form of compensation.

Question 9

In a(n) ________ economy, fast growth in manufacturing results in rapid overall economic growth.

Accepted Answer

In an industrializing economy, the transition from agriculture-based sectors to manufacturing sectors often leads to rapid economic growth due to increased production efficiency, better infrastructure, and higher exports.

Question 10

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy.

Accepted Answer

Uganda's main exports are raw materials, indicating that it has a raw material exporting economy.

Question 11

Which of the following is an example of an industrial economy?

Accepted Answer

Japan is an example of an industrial economy as it has a highly developed manufacturing and technological industry. It is known for producing high-quality cars, electronics, and other advanced products. China, Vietnam, India, and North Korea may have elements of industrialization but are still primarily considered developing economies.

Question 12

Which of the following is an example of a raw material exporting economy?

Accepted Answer

Chile is a country that heavily relies on exporting raw materials such as copper, wood, and fish. They have an economy that is heavily dependent on the export of these natural resources, making them an example of a raw material exporting economy. Sweden, the United Kingdom, and Russia have more diversified economies, while Brazil also exports raw materials but also has a significant manufacturing sector.

Question 13

BRICS countries are examples of ________ economies.

Accepted Answer

BRICS countries (Brazil, Russia, India, China, and South Africa) are widely acknowledged as emerging or industrializing economies because they are experiencing rapid economic growth and structural transformation from agriculture-based economies to industrial and service-based economies.

Question 14

Which of the following is an economic factor that a company should consider before deciding to enter into a new country?

Accepted Answer

The answer of Which of the following is an economic...

Question 15

Countries with ________ economies consist mostly of households with very low family incomes.

Accepted Answer

The term "subsistence economies" refers to a type of economy in which most (if not all) of the population relies on farming or other forms of local production for their basic needs such as food, clothing, and shelter. This type of economy typically has very little access to modern technologies or external resources, and family incomes tend to be very low as a result.

Question 16

A company should consider political and legal factors such as monetary regulations, political stability, the country's attitudes toward international buying, and ________ when determining whether to enter a specific country.

Accepted Answer

Government bureaucracy can greatly impact a company's ability to operate in a specific country. It can determine the ease or difficulty of obtaining necessary permits, licenses, and approvals, as well as affect the level of corruption in the country.

Question 17

Income distribution is the second economic factor. While much of Africa consists of countries with subsistence economies, companies are increasingly targeting ________ consumers in subsistence and emerging economies.

Accepted Answer

The term "bottom of the economic pyramid" refers to consumers who live at or below the poverty line, which would include many subsistence and emerging economies in Africa. Companies are increasingly targeting these consumers with affordable and accessible products and services.

Question 18

India needs more imports of raw materials such as textiles, steel, and heavy machinery and fewer imports of finished textiles, paper products, and automobiles. In the context of industrial structures, India is most likely a(n) ________ economy.

Accepted Answer

The fact that India needs more imports of raw materials such as textiles, steel, and heavy machinery and fewer imports of finished textiles, paper products, and automobiles suggests that India is in a phase of industrialization, where it is developing its manufacturing capabilities but still depends on imports for certain intermediate goods. Therefore, the best choice is industrializing.

Question 19

________ are major importers and exporters of manufactured goods and services

Accepted Answer

Industrial economies are typically major importers and exporters of manufactured goods and services. Examples of industrial economies include the United States, Japan, Germany, and South Korea.

Question 20

Which of the following is a political and legal factor that a company should consider before deciding to enter into a new country?

Accepted Answer

Political and legal factors include monetary and trade regulations such as tariffs, taxes, and import/export policies which can impact a company's ability to do business in a foreign country. Transportation structure, population size and growth, industrial infrastructure, and business norms and approaches are important factors to consider, but are not strictly political and legal in nature.

Quiz 19: The Global Marketplace