TEST BANK For International Business
Competing in the Global Marketplace, 14th
Edition
International business (IB) - answer-a business or firm that engages in international (cross -
border) economic activities and or the action of doing business abroad
multinational enterprise - answer-a firm that engages in foreign direct investment
Foreign direct investment - answer-investment in, controlling, and managing value-added
activities in other countries
global business - answer-business around the globe
emerging economies - answer-a term that gradually replaced the term "developing countries"
since the 1900s
emerging markets - answer-a term that is often used interchangeably with "emerging
economies"
gross domestic product - answer-the sum of value added by resident firms, households, and
governments operating in an economy
purchasing power parity - answer-a conversion that determines the equivalent amount of goods
and services that different currencies can purchase
1
, gross national product - answer-GDP plus income from non-resident sources abroad
gross national income - answer-GDP plus income from non-resident sources abroad. GNI is the
term used by the World Bank and other international organizations to supersede the term GNP
BRIC - answer-Brazil, Russia, India, and China
Triad - answer-North America, Western Europe, and Japan
Base of the Pyramid - answer-Economies where people make less than $2000 per capita per
year
Reverse innovation - answer-an innovation that is adopted first in emerging economies and is
then diffused around the world.
Group of 20 - answer-the group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems
Expatriate manager - answer-a manager who works abroad or 'expat' for short
international premium - answer-a significant pay raise when working overseas
Liability of Foreignness - answer-the inherent disadvantage that foreign firms experience in host
countries because of their non-native status
globalization - answer-the close integration of countries and peoples of the world
2
Competing in the Global Marketplace, 14th
Edition
International business (IB) - answer-a business or firm that engages in international (cross -
border) economic activities and or the action of doing business abroad
multinational enterprise - answer-a firm that engages in foreign direct investment
Foreign direct investment - answer-investment in, controlling, and managing value-added
activities in other countries
global business - answer-business around the globe
emerging economies - answer-a term that gradually replaced the term "developing countries"
since the 1900s
emerging markets - answer-a term that is often used interchangeably with "emerging
economies"
gross domestic product - answer-the sum of value added by resident firms, households, and
governments operating in an economy
purchasing power parity - answer-a conversion that determines the equivalent amount of goods
and services that different currencies can purchase
1
, gross national product - answer-GDP plus income from non-resident sources abroad
gross national income - answer-GDP plus income from non-resident sources abroad. GNI is the
term used by the World Bank and other international organizations to supersede the term GNP
BRIC - answer-Brazil, Russia, India, and China
Triad - answer-North America, Western Europe, and Japan
Base of the Pyramid - answer-Economies where people make less than $2000 per capita per
year
Reverse innovation - answer-an innovation that is adopted first in emerging economies and is
then diffused around the world.
Group of 20 - answer-the group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems
Expatriate manager - answer-a manager who works abroad or 'expat' for short
international premium - answer-a significant pay raise when working overseas
Liability of Foreignness - answer-the inherent disadvantage that foreign firms experience in host
countries because of their non-native status
globalization - answer-the close integration of countries and peoples of the world
2
