Importance of International Business

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What is the main focus of foreign direct investment (FDI)?

Investing in foreign value-added activities (correct)

Investing in government projects

Investing in non-profit organizations

Investing in domestic activities

Which acronym represents the emerging economies of Brazil, Russia, India, China, and South Africa?

ASEAN

NAFTA

EURO

BRIC(S) (correct)

What does Gross National Income (GNI) include?

GDP plus income from nonresident sources (correct)

GDP only

GDP minus income from nonresident sources

GDP plus income only from resident sources

What does purchasing power parity (PPP) aim to adjust for?

Differences in cost of living Signup and view all the answers

Who is an expatriate manager (expat)?

A manager who works abroad Signup and view all the answers

What is one of the benefits of international business mentioned in the text?

Facilitates the mobility of labor, capital, and technology Signup and view all the answers

Which type of business engages in foreign direct investments according to the text?

Multinational enterprise (MNE) Signup and view all the answers

What does global business encompass according to the text?

Both international and domestic business activities Signup and view all the answers

Which of the following firms engages in international economic activities, as per the text?

Art, film, and music companies Signup and view all the answers

What is a characteristic of a multinational enterprise (MNE) as per the text?

Engages in foreign direct investments Signup and view all the answers

What is the key difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

GDP includes income from nonresident sources abroad, while GNI does not. Signup and view all the answers

What does the term 'Base of the Pyramid' refer to?

The vast majority of humanity living with an annual income less than $2,000. Signup and view all the answers

Which term is used to describe the adjustment made to reflect differences in the cost of living when comparing the absolute purchasing power of countries?

Purchasing power parity (PPP) Signup and view all the answers

What does a manager who works abroad, such as in a different country, typically command?

A significant salary increase known as the expatriate premium. Signup and view all the answers

What is the common term used to describe economies transitioning from low-income, less developed states to modern industrial states?

Emerging markets Signup and view all the answers

What is one of the roles of international business as mentioned in the text?

Providing challenging employment opportunities Signup and view all the answers

Which type of businesses are included under global business, as per the text?

Businesses engaging in both international and domestic activities Signup and view all the answers

What distinguishes multinational enterprises (MNEs) from other firms?

Engagement in foreign direct investments Signup and view all the answers

How does international business impact the mobility of resources according to the text?

By facilitating the mobility of labor and capital Signup and view all the answers

What is the primary focus of a multinational enterprise (MNE) as highlighted in the text?

Engaging in foreign direct investments Signup and view all the answers