Question 1

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

Accepted Answer

Subsistence economies rely on self-sufficiency and the use of natural resources to meet basic needs, and are typically characterized by low levels of income and little or no monetary exchange.

Question 2

The United States and Norway are examples of ________ economies.

Accepted Answer

Both the United States and Norway have well-developed manufacturing and service sectors, making them examples of industrial economies.

Question 3

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

India's need for more imports of raw materials and fewer imports of finished goods indicates an industrializing economy, where the focus is on increasing domestic manufacturing and production capabilities. This is in contrast to a subsistence or agrarian economy, which would rely more heavily on agriculture and self-sufficiency, or a raw material exporting economy, which would focus more on exporting raw materials rather than importing them. Totalitarianism, a form of government control, is not directly related to the structure of an economy.

Question 4

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 being coffee, tea, cotton, and tobacco indicate that it primarily exports raw materials, which characterizes a raw material exporting economy.

Question 5

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 is abundant in natural resources and generates much of its revenue from exporting those resources. However, it may be poor in other ways such as infrastructure, education, and technology. This type of economy is typically found in developing nations where there is a heavy reliance on primary industries such as mining, agriculture, and forestry.

Question 6

Industrializing economies are also known as ________ economies.

Accepted Answer

Industrializing economies are countries whose economies are in the process of transitioning from agriculture and raw material exports to manufactured goods and services. These countries are often referred to as emerging economies because they are in the process of developing and growing their economies.

Question 7

________ are major importers and exporters of manufactured goods and services

Accepted Answer

Industrial economies are countries with mature economies that are major importers and exporters of manufactured goods and services. These economies have high levels of industrialization, technological advancement, and infrastructure development. Examples include the United States, Japan, Germany, and the United Kingdom.

Question 8

BRICS countries are examples of ________ economies.

Accepted Answer

BRICS countries (Brazil, Russia, India, China, South Africa) are commonly referred to as industrializing or emerging economies, as they are experiencing rapid economic growth and industrialization. They have significant potential to develop their industries and increase their competitiveness in the global market, making them important players in the global economy. While some BRICS countries are also raw material exporters, this is not the defining characteristic of the group as a whole. Subsistence economies are characterized by low productivity and self-sufficiency, and do not describe the BRICS countries. Totalitarianism refers to political systems rather than economic ones.

Question 9

The BRICS countries are ________.

Accepted Answer

The BRICS countries are Brazil, Russia, India, China, and South Africa. These five countries are considered to be emerging economies and important players in the global economy. They have formed an alliance to promote economic development and cooperation among themselves.

Question 10

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

Accepted Answer

Raw material exporting economies are those that rely heavily on the exportation of natural resources, such as minerals, agriculture, and forestry products. Of the choices given, Chile is the best example, as it is a major exporter of metals such as copper, as well as fruits, seafood, and wood products. Brazil also exports a significant amount of natural resources, but it also has a more diversified economy, particularly in manufacturing and services. Sweden and the United Kingdom have highly industrialized economies, while Russia is an oil-producing nation that also has a significant industrial sector.

Question 11

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 that is restricted by the government of the buyer's country from being exchanged for other currencies or used for international transactions. Sellers might accept a blocked currency if they can use it to buy goods they need in the buyer's country or if they can sell it to someone else who needs it. This would be beneficial if the restricted currency is more valuable than the seller's own currency.

Question 12

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.

Question 13

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

Monetary and trade regulations can have a significant impact on a company's ability to operate in a new country, including issues related to taxes, tariffs, and currency exchange rates. It is important for companies to closely examine the political and legal factors in a potential new market before making a decision to enter.

Question 14

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 have a significant impact on a company's ability to operate within a country. Excessive red tape, corruption, and delays in obtaining necessary permits and licenses can make it difficult for companies to do business, increasing costs and lowering efficiency. Therefore, it is crucial for companies to consider the level of government bureaucracy in a country when assessing whether to enter a new market.

Question 15

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

Accepted Answer

An industrializing economy is characterized by a shift from agriculture to manufacturing, leading to rapid economic growth.

Question 16

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

Accepted Answer

The industrial structure of a country is an economic factor as it determines the level of development, types of industries present, and potential market opportunities for a company.

Question 17

Which of the following characterizes emerging economies?

Accepted Answer

Emerging economies are characterized by industrialization, which often leads to the creation of a new rich class and a growing middle class that demands new types of imported goods.

Question 18

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 reference to regulations and nontariff trade barriers suggests that the issue at hand is related to the political-legal environment of the country. The fact that local businesses are being protected indicates that there may be policies in place to promote and support domestic companies over foreign ones. It is important for foreign businesses to carefully assess the political and legal environment of a country before deciding to operate there.

Question 19

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 phrase "bottom of the economic pyramid" refers to consumers in subsistence and emerging economies who earn low incomes. This choice is the most specific and accurate in describing the target consumers for many companies operating in Africa.

Question 20

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

Accepted Answer

Japan is a well-known example of an industrial economy, with a highly developed manufacturing sector and advanced technological capabilities.

Quiz 19: The Global Marketplace