C211 - Global Economics for Managers Final Exam Elaboration |Question and Answers| Study

C211 - Global Economics for Managers Final Exam Elaboration |Question and Answers| Study Base of the pyramid (BOP) *Ans* Economies where people make less than $2,000 per capita per year. BRICA *Ans* Brazil, Russia, India, and China. Emerging economies *Ans* term that has gradually replaced the term "developing countries" since the 1990s. Emerging markets *Ans* A term that is often used interchangeably with "emerging economies." Expatriate manager *Ans* A manager who works abroad, or "expat" for short. Foreign direct investment (FDI) *Ans* Investment in, controlling, and managing valueadded activities in other countries. Global Business *Ans* Business around the globe. Gross national income (GNI) *Ans* GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP. Gross national product (GNP) *Ans* GDP plus income from non-resident sources abroad International business (IB) *Ans* (1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the action of doing business abroad. International premium *Ans* A significant pay raise when working overseas. Liability of foreignness *Ans* The inherent disadvantage that foreign firms experience in host countries because of their non-native status. Multinational enterprise (MNE) *Ans* A firm that engages in foreign direct investment (FDI). Reverse innovation *Ans* An innovation that is adopted first in emerging economies and is then diffused around the world. Risk management *Ans* The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events. Scenario planning *Ans* A technique to prepare and plan for multiple scenarios (either high or low risk). Purchasing power parity (PPP) *Ans* adjustment made to the GDP to reflect differences in the cost of living The bottom billion *Ans* Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees *Ans* Why study global business? Formal rules *Ans* requirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants Informal rules *Ans* cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe