Question 1

Unit labor costs will not rise in unison with wage rates if

Accepted Answer

Unit labor costs will not rise in unison with compensation rates if gains in productivity outstrip increases in hourly compensation. In fact, if productivity increases fast enough, the unit costs of labor will decrease even though the firm is required to pay workers more.

Question 2

According to the text,primary reasons for relative changes in labor costs include increases or decreases in

Accepted Answer

What are the reasons for the changes in labor costs? Three factors are responsible: (1) compensation, (2) productivity, and (3) exchange rates.

Question 3

From comparisons of income distribution studies over time,it appears that in early stages of development

Accepted Answer

Comparisons indicate that income inequality increases in the early stages of development and reverses in the later stages. The fact that the middle quintiles in some nations are growing at the expense of the top and bottom 20 percent signifies an increase in the number of middle-income families, which is especially significant to marketers.

Question 4

According to the World Bank,populations in high-income economies use how much commercial energy per capita as do people in developing economies?

Accepted Answer

The World Bank has found that populations of high-income economies use nearly seven times as much commercial energy per capita as do people in developing economies.

Question 5

The after-tax personal income of consumers is known as

Accepted Answer

The after-tax personal income of consumers is known as disposable income.

Question 6

The percentages of household expenditures spent on transportation,communication,and health care by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

Accepted Answer

The percentages spent on (1) transport and communication, and (2) consumer durables by households of developed nations are twice those of developing nations.

Question 7

According to the text,a large international debt may result in

Accepted Answer

A nation's available foreign currency, known as foreign exchange, needs to be available to businesses to pay for imports billed in foreign currency. If a major part of the foreign exchange is used to pay international debts and cannot be used to import components for local products, then either local industries must manufacture the components or the companies that import them must stop production. Either alternative can cause the multinational to lose sales if it has been selling the parts made in one of its home country plants to its subsidiary.

Question 8

If a nation's GNI is small,but a small percentage of its population receives a large percentage of that income

Accepted Answer

Depending on the type of product and the total population, both relatively even and relatively uneven income distribution can suggest market opportunities. Although South Africa's GDP was $597 billion in PPP terms, over half the total income is received by only the top 10 percent of the population, indicating sizable numbers are potential customers for low-volume, high-priced luxury products.

Question 9

The percentages of household expenditures spent on consumer durables by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

Accepted Answer

The percentages spent on consumer durables by households of developed nations are twice those of developing nations.

Question 10

Income distribution studies confirm the belief that,generally,income is more evenly distributed in the

Accepted Answer

From comparisons of income distribution studies over time, it generally appears that income is more evenly distributed in the richer nations, although there are important variations among both developed and developing nations.

Question 11

According to the text,the market analyst may determine a country is not a good market by making a simple calculation based on

Accepted Answer

A simple calculation based on GNI, total population, and income distribution may be enough to indicate a particular country is or is not a good market.

Question 12

According to the text,primary reasons for relative changes in labor costs include increases or decreases in

Accepted Answer

What are the reasons for the changes in labor costs? Three factors are responsible: (1) compensation, (2) productivity, and (3) exchange rates.

Question 13

The amount of income left after paying taxes and making essential purchases is known as

Accepted Answer

The amount of income left after paying taxes and making essential purchases is known as discretionary income.

Question 14

The percentages of household expenditures spent on food and beverages by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

Accepted Answer

The percentages of household expenditures spent on food and beverages in developing nations are two to four times the percentages spent in industrialized nations.

Question 15

According to the text,commercial energy use per capita is related to the size of which of the following sets of modern sectors?

Accepted Answer

Commercial energy use per capita is related to the size of the modern sectors-urban areas, industry, and motorized transport.

Question 16

According to the text,unit costs of labor will decrease even though the firm is required to pay more to workers,provided

Accepted Answer

Unit labor costs will not rise in unison with compensation rates if gains in productivity outstrip increases in hourly compensation. In fact, if productivity increases fast enough, the unit costs of labor will decrease even though the firm is required to pay workers more.

Question 17

Because ____________ consumer expenditures eliminate differences in relative prices,marketers use these data to analyze how the composition of consumption changes with the level of development.

Accepted Answer

Because PPP-based consumer expenditures eliminate differences between prices, marketers use them to analyze how the composition of consumption changes with the level of development.

Question 18

According to the text,as the level of a government's debt increases

Accepted Answer

As the level of debt increases, more resources are redirected toward payment of interest rather than invested for productive uses. Concern about a country's ability to meet its debt obligations can also increase uncertainty about its future economic performance, hinder governmental investment and responsiveness to infrastructural and other pressures, and lower consumer confidence.

Question 19

From comparisons of income distribution studies over time,it generally appears that

Accepted Answer

From comparisons of income distribution studies over time, it generally appears that income is more evenly distributed in the richer nations, although there are important variations among both developed and developing nations.

Question 20

According to the text,relative changes in wage rates among nations may cause the multinational firm to

Accepted Answer

According to the text, relative changes in wage rates among nations may cause the multinational firm to change its sources of supply from one country to another. For example, Nike, which has no production in the United States, began using Japanese plants in 1964. When labor costs rose there in the mid-1970s, the company changed to factories in South Korea and Taiwan and later added Thailand. But as labor costs rose in those countries, Nike shifted most of its production to contracted factories in China. As wage rates rose in China, Nike became concerned because its $75 to $175 (retail) shoes were costing as much as $10 to produce and ship to the United States. The company has undertaken efforts to move production to other locations, where wage rates can be at least 30 percent lower. The company now produces in 719 factories in 44 countries, although much of its shoe production remains in low-cost Asian nations such as Indonesia and Vietnam.

Quiz 7: Economic and Socioeconomic Forces

Unit labor costs will not rise in unison with wage rates if

According to the text,primary reasons for relative changes in labor costs include increases or decreases in

From comparisons of income distribution studies over time,it appears that in early stages of development

According to the World Bank,populations in high-income economies use how much commercial energy per capita as do people in developing economies?

The after-tax personal income of consumers is known as

The percentages of household expenditures spent on transportation,communication,and health care by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

According to the text,a large international debt may result in

If a nation's GNI is small,but a small percentage of its population receives a large percentage of that income

The percentages of household expenditures spent on consumer durables by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

Income distribution studies confirm the belief that,generally,income is more evenly distributed in the

According to the text,the market analyst may determine a country is not a good market by making a simple calculation based on

According to the text,primary reasons for relative changes in labor costs include increases or decreases in

The amount of income left after paying taxes and making essential purchases is known as

The percentages of household expenditures spent on food and beverages by residents of industrialized nations are _______________ the percentages spent by residents of developing nations.

According to the text,commercial energy use per capita is related to the size of which of the following sets of modern sectors?

According to the text,unit costs of labor will decrease even though the firm is required to pay more to workers,provided

Because ____________ consumer expenditures eliminate differences in relative prices,marketers use these data to analyze how the composition of consumption changes with the level of development.

According to the text,as the level of a government's debt increases

From comparisons of income distribution studies over time,it generally appears that

According to the text,relative changes in wage rates among nations may cause the multinational firm to