C211: Global Economics for Managers (WGU) Cengage Text Exam |Question and Answers| 100% Correct

C211: Global Economics for Managers (WGU) Cengage Text Exam |Question and Answers| 100% Correct Globalization *Ans* The close integration of countries and peoples of the world. Purchasing Power Parity (PPP) *Ans* A conversion that determines the equivalent amount of goods and services that different currencies can purchase. Scenario Planning *Ans* A technique to prepare and plan for multiple scenarios (either high or low risk). Risk management *Ans* The identification and assessment of risks and the preparation to minimize the impact of high-risk , unfortunate events. Gross National Income (GNI) *Ans* GDP + income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP. Gross National Product (GNP) *Ans* GDP + income from non-resident sources abroad. reverse innovation *Ans* An innovation that is adopted first in emerging economies and is then diffused around the world. International Business (IB) *Ans* (1) A business or firm that engages in international crossborder economic activities and/or (2) the action of doing business abroad. semiglobalization *Ans* A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. BRIC *Ans* Brazil, Russia, India, and China base of the pyramid (BOP) *Ans* Economies where people make less than $2,000 per capita per year. emerging economies *Ans* A term that has gradually replaced the term "developing countries" since the 1990's. emerging markets *Ans* A term that is often used interchangeably with "emerging economies" nongovernmental organizations (NGO's) *Ans* An organization that is not affiliated with governments. Expatriate Manager *Ans* A manager who works "abroad", or "expat" for short. Gross Domestic Product (GDP) *Ans* The sum of value added by resident firms, households, and governments Foreign Direct Investment (FDI) *Ans* Investment in, controlling, and managing valueadded activities in other countries. Group of 20 (G-20) *Ans* The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems. liability of foreignness *Ans* The inherent disadvantage that foreign firms experience in host countries because of their non-native status. global business *Ans* Business around the globe. international premium *Ans* A significant pay raise when working overseas. multinational enterprise (MNE) *Ans* A firm that engages in foreign direct investment (FDI) Triad *Ans* North America, Western Europe, and Japan