72) A company is conducting a research on new markets by comparing countries in terms of their human development index (HDI) scores. The company wishes to expand into a market where individuals experience a very high level of total well-being. Which of the following countries would the company most likely choose?
A) Russia
B) Mexico
C) China
D) Japan
Answer: D
73) Which of the following is true about economic development of a nation?
A) The purchasing power parity is a poor indicator of a people's total well-being.
B) GDP is a larger figure and includes a nation's income generated from exports, imports, and international operations.
C) Illegal activities such as gambling and black market transactions are considered in GDP and GNP.
D) Using gross product figures to compare production across countries accounts for different cost of living in each country.
Answer: A
74) Which of the following statements is true of national production?
A) Marketers use GDP or GNP figures to determine whether a country's population is wealthy enough to purchase its products.
B) Per capita numbers provide a detailed picture of development of the entire country.
C) Gross product figures accurately indicate whether a nation's economy is growing or shrinking.
D) Volunteer work and unpaid household work are considered in GDP and GNP.
Answer: A
75) Nations having the poorest infrastructures and lowest personal incomes are called ________.
A) developed countries
B) newly industrialized countries
C) emerging markets
D) developing countries
Answer:
76) A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n) ________.
A) newly industrialized country (NIC)
B) developing country
C) emerging market
D) developed country
Answer:
77) ________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.
A) Central planning
B) Economic transition
C) Industrialization
D) Economic liberalism
Answer:
78) Which of the following is a major obstacle to economic transition?
A) lack of government support
B) environmental degradation
C) privatization
D) black markets
Answer: B
79) Economic transition is the process of moving from ________.
A) developed to developing economies
B) centrally planned to free-market economies
C) developed to emerging economies
D) free-market to centrally planned economies
Answer:
Scenario: Stephanie Wong
Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
80) The first question that Stephanie expects participants to ask is: "Which is more important for the Chinese, contacts or contracts?" Which of the following is the most effective response Stephanie could give for this question?
A) Contracts are critical because of their extreme importance in Chinese business.
B) Face-to-face communications and personal relationships take priority over written contracts.
C) Non-Chinese businesspeople should take time to agree on a legal contract before developing personal relationships.
D) Business relationships are established only after successful legal dealings are concluded.
Answer: B