INTB 2501 Final Exam Questions with
Complete Solutions7
emerging markets - ANSWERS-Brazil, Russia, India, China, & South Africa
IMF - ANSWERS-EM's are based on their GDP level and growth
Goldman Sachs - ANSWERS-GDP growth, per capita growth, currency movements
CNBC - ANSWERS-per capita income (low), fast growth, volatility
Vietnam - ANSWERS-achieved rapid development through:
- privatization
- increase in foreign trade
- increase in FDI
- deregulation - priv entry
- freeing prices - exchange rates
Singapore - ANSWERS-- globalization increased - buy the national resources
- achieved political stability - long-term thinking
- state-led capitalism
- ability to speak English-international business
Venezuela - ANSWERS-- oil
, Challenges of Operating in EMs - ANSWERS-- TOP (top of the pyramid)
- small fraction of the demand/population
- well-to-do --> have many dollars to spend
- MOP (middle of the pyramid)
- has less affluent people - "fat middle"
- can't afford many products in the EMs
- BOP (bottom of the pyramid)
- most of the population
- account for 20% of the market
- buy small quantities
Leadership challenges in EMs - ANSWERS-- have to face the risks that come with entering an EM
- have to be able to handle unpredictability
- watch out for the different cultural environment
- make sure you are surrounded by the right people
Main functions of the WTO - ANSWERS-- monitoring national trading policies
- handling trade disputes - make trade flow as smooth as you can
- enforcing GATT agreements
free trade - ANSWERS-- trade between nations without protective customs tariffs
- trade in which both countries have equal access to each other's markets and are treated
equally well by one another
tariff - ANSWERS-- tax on imported goods and rarely on exported goods
Complete Solutions7
emerging markets - ANSWERS-Brazil, Russia, India, China, & South Africa
IMF - ANSWERS-EM's are based on their GDP level and growth
Goldman Sachs - ANSWERS-GDP growth, per capita growth, currency movements
CNBC - ANSWERS-per capita income (low), fast growth, volatility
Vietnam - ANSWERS-achieved rapid development through:
- privatization
- increase in foreign trade
- increase in FDI
- deregulation - priv entry
- freeing prices - exchange rates
Singapore - ANSWERS-- globalization increased - buy the national resources
- achieved political stability - long-term thinking
- state-led capitalism
- ability to speak English-international business
Venezuela - ANSWERS-- oil
, Challenges of Operating in EMs - ANSWERS-- TOP (top of the pyramid)
- small fraction of the demand/population
- well-to-do --> have many dollars to spend
- MOP (middle of the pyramid)
- has less affluent people - "fat middle"
- can't afford many products in the EMs
- BOP (bottom of the pyramid)
- most of the population
- account for 20% of the market
- buy small quantities
Leadership challenges in EMs - ANSWERS-- have to face the risks that come with entering an EM
- have to be able to handle unpredictability
- watch out for the different cultural environment
- make sure you are surrounded by the right people
Main functions of the WTO - ANSWERS-- monitoring national trading policies
- handling trade disputes - make trade flow as smooth as you can
- enforcing GATT agreements
free trade - ANSWERS-- trade between nations without protective customs tariffs
- trade in which both countries have equal access to each other's markets and are treated
equally well by one another
tariff - ANSWERS-- tax on imported goods and rarely on exported goods
