les 4 international
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Questions and Answers

Which type of government is characterized by a state holding broad powers to serve the public interest and deciding what goods and services are produced and in what quantities?

  • Monarchy
  • Dictatorship
  • One-party system
  • Centrally planned socialism (correct)
  • In which economic system do individuals and firms allocate resources, production resources are privately owned, and the government's role is to promote competition among firms and ensure consumer protection?

  • Nordic model
  • Centrally planned socialism
  • Market capitalism (correct)
  • Centralized capitalism
  • Which type of economy involves a mix of state ownership and private ownership, high taxes, some market regulation, and a generous social safety net?

  • Social market economy model (correct)
  • Centralized capitalism
  • Centrally planned socialism
  • Anglo-saxon model
  • Which country is associated with the Nordic model of economic system?

    <p>Sweden</p> Signup and view all the answers

    In which type of economy does the government own entire industries and control distribution, with little reliance on product differentiation, advertising, and pricing strategy?

    <p>Centrally planned socialism</p> Signup and view all the answers

    Which economic system is characterized by an environment of private resource ownership and extensive command resource allocation?

    <p>Centrally planned capitalism</p> Signup and view all the answers

    Which type of economy is associated with private ownership, a free enterprise economy, minimal social safety net, and highly flexible employment policies?

    <p>Anglo-saxon model</p> Signup and view all the answers

    Which variable is considered in rankings of economic freedom among countries?

    <p>Trade policy</p> Signup and view all the answers

    Which of the following countries is categorized as 'Free' in terms of economic freedom?

    <p>New Zealand</p> Signup and view all the answers

    What type of government involves a single political party having control over the government and society?

    <p>One-party system</p> Signup and view all the answers

    What is the purpose of the global marketing plan discussed in the text?

    <p>To create sustainable competitive advantages in the global marketplace</p> Signup and view all the answers

    According to the text, what are the three main factors for market selection in the 5-stage decision model?

    <p>Economic environment, cultural environment, political environment</p> Signup and view all the answers

    What percentage of economic integration was present in the early 20th century according to the text?

    <p>10%</p> Signup and view all the answers

    Which two entities are mentioned as being very integrated in the text?

    <p>EU and NAFTA</p> Signup and view all the answers

    What has replaced trade as the driving force of the world economy according to the text?

    <p>Capital movements</p> Signup and view all the answers

    What has become uncoupled from employment according to the text?

    <p>Production</p> Signup and view all the answers

    What has gone down in terms of value according to the text?

    <p>The value of goods (production)</p> Signup and view all the answers

    What has also gone down but more than the value of goods according to the text?

    <p>The amount of people who make these goods (workforce)</p> Signup and view all the answers

    What is the 5-stage decision model used for in global marketing plan development according to the text?

    <p>To develop a systematic approach to creating a global marketing plan</p> Signup and view all the answers

    What is the GNI per capita range for low-middle-income countries?

    <p>$1046 to $4125</p> Signup and view all the answers

    Which group of countries has the highest sustained rates of economic growth among the listed countries?

    <p>BRICS countries</p> Signup and view all the answers

    What is the focus of the Big Emerging Markets (BEMs) identified 15 years ago?

    <p>Central Europe, Latin America, and Asia</p> Signup and view all the answers

    Which countries are included in the BRICS?

    <p>Brazil, Russia, India, China, and South Africa</p> Signup and view all the answers

    What type of countries have a GNI per capita of $12,476 or more?

    <p>High-income countries</p> Signup and view all the answers

    What records all economic transactions between residents and the rest of the world?

    <p>Balance of payments</p> Signup and view all the answers

    What market enables businesses to do business globally with different currencies?

    <p>Currency market</p> Signup and view all the answers

    'Entering developing markets is fruitless because goods are too cheap to make a profit' represents a mistaken assumption about:

    <p>'Least Developed Countries' (LDCs)</p> Signup and view all the answers

    'Poor people in developing countries have money' represents a mistaken assumption about:

    <p>'Least Developed Countries' (LDCs)</p> Signup and view all the answers

    'They will not waste money on non-essential goods' represents a mistaken assumption about:

    <p>'Low-income countries'</p> Signup and view all the answers

    Study Notes

    • The text discusses various stages of market development based on Gross National Income (GNI) and identifies countries in each category.
    • Big emerging markets (BEMs) were identified 15 years ago, with a focus on Central Europe, Latin America, and Asia.
    • Currently, the focus is on BRICS (Brazil, Russia, India, China, and South Africa) as BEMs.
    • Low-income countries have a GNI per capita of $1045 or less, with limited industrialization and high agriculture dependency.
    • Low-middle-income countries have a GNI per capita between $1046 and $4125, with expanding consumer markets and increasing urbanization.
    • The 50 bottom-ranked countries are called Least Developed Countries (LDCs), and India is the only BRIC nation among them.
    • Upper-middle-income countries have a GNI per capita between $4126 and $12,745, with rapidly industrializing economies and increasing literacy rates.
    • Newly industrializing economies like Egypt, Indonesia, the Philippines, Mexico, and Turkey have the highest sustained rates of economic growth.
    • MISTAKEN ASSUMPTIONS ABOUT LDCs:
      • Poor people in developing countries have money.
      • They will not waste money on non-essential goods.
      • Entering developing markets is fruitless because goods are too cheap to make a profit.
      • Global companies doing business in developing countries will be seen as exploiting the poor.
    • High-income countries have a GNI per capita of $12,476 or more.
    • G-7 is a group of seven countries aiming for global economic stability and prosperity, including the USA, Japan, Germany, France, Britain, and Canada.
    • G-20 was established in 1999 with 19 countries and the EU, including Russia.
    • OECD is a post-WW2 organization promoting economic growth and social well-being with 34 nations.
    • Companies need to be equally strong in each part of the world to succeed.
    • Product saturation levels indicate the percentage of potential buyers who own a product.
    • Balance of payments records all economic transactions between residents and the rest of the world.
    • Current account records recurring trade in merchandise, services, and humanitarian aid.
    • Capital account records long-term direct investment, portfolio investment, and capital flows.
    • Foreign exchange enables businesses to do business globally with different currencies.
    • Exchange risk occurs when the value of a currency changes as it is traded.
    • Spot market: immediate delivery, forward market: future delivery.
    • Countries can devalue, revalue, or maintain the value of their currency.
    • Currency markets include countries, central banks, companies converting foreign currency, and currency speculators.
    • Managing economic exposure refers to the impact of currency fluctuations on a company's financial performance.

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    Test your knowledge of the 5-stage decision model for developing a global marketing plan, with a focus on market selection based on economic, cultural, and political environments. Gain insights into the global economy and its impact on market integration and international business.

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