C211 Global Economics OA 2024 Latest Update
Base of the pyramid (BOP) - ANSWER: Economies where people make less than
$2,000 per capita per year.
BRICA - ANSWER: Brazil, Russia, India, and China.
Emerging economies - ANSWER: term that has gradually replaced the term
"developing countries" since the 1990s.
Emerging markets - ANSWER: A term that is often used interchangeably with
"emerging economies."
Expatriate manager - ANSWER: A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) - ANSWER: Investment in, controlling, and managing
value-added activities in other countries.
Global Business - ANSWER: Business around the globe.
Globalization - ANSWER: The close integration of countries and peoples of the world.
Gross domestic product (GDP) - ANSWER: The sum of value added by resident firms,
households, and governments operating in an economy.
Gross national income (GNI) - ANSWER: 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) - ANSWER: GDP plus income from non-resident
sources abroad
Group of 20 (G-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.
International business (IB) - ANSWER: (1) A business (or firm) that engages in
international (cross-border) economic activities and/or (2) the action of doing
business abroad.
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.
Multinational enterprise (MNE) - ANSWER: A firm that engages in foreign direct
investment (FDI).
,Nongovernmental organization (NGO) - ANSWER: An organization that is not
affiliated with governments.
Purchasing power parity (PPP) - ANSWER: A conversion that determines the
equivalent amount of goods and services that different currencies can purchase.
Reverse innovation - ANSWER: An innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - ANSWER: The identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - ANSWER: A technique to prepare and plan for multiple scenarios
(either high or low risk).
Semiglobalization - ANSWER: A perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each
other completely.
Triad - ANSWER: North America, Western Europe, and Japan.
Purchasing power parity (PPP) - ANSWER: adjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - ANSWER: 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 -
ANSWER: Why study global business?
Institution-based view - ANSWER: A core perspective. Success and failure of firms are
constrained by institutions
Formal rules - ANSWER: 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 - ANSWER: cultures, ethics, and norms play an important part in
shaping the success and failure of firms around the globe
Resource-based view - ANSWER: A core perspective. Success and failure of firms is
determined by their environment
, New force in recent times, a long-running historical evolution, a pendulum swinging
between extremes - ANSWER: What are the three views of globalization?
"Four Tigers" - ANSWER: Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage - ANSWER: The economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - ANSWER: Bureaucratic rules that make it harder to import
foreign goods.
antidumping duty - ANSWER: Tariffs levied on imports that have been "dumped"
(selling below costs to "unfairly" drive domestic firms out of business).
Balance of Trade - ANSWER: The aggregation of importing and exporting that leads
to the country-level trade surplus or deficit.
Classical trade theories - ANSWER: The major theories of international trade that
were advanced before the 20th century, which consist of (1) mercantilism, (2)
absolute advantage, and (3) comparative advantage.
Comparative advantage - ANSWER: Relative (not absolute) advantage in one
economic activity that one nation enjoys in comparison with other nations.
Deadweight cost - ANSWER: Net losses that occur in an economy as a result of tariffs.
Export - ANSWER: Selling abroad.
Factor endowment - ANSWER: The extent to which different countries possess
various factors of production such as labor, land, and technology.
Factor endowment theory - ANSWER: A theory that suggests that nations will
develop comparative advantages based on their locally abundant factors.
Heckscher-Ohlin theory - ANSWER: Another name for factor endowment theory
First-mover advantage - ANSWER: Advantage that first movers enjoy and do not
share with late entrants.
Free trade - ANSWER: The idea that free market forces should determine how much
to trade with little or no government intervention.
Import - ANSWER: Buying from abroad.
Import quota - ANSWER: Restriction on the quantity of imports.
Import tariff - ANSWER: A tax imposed on imports.
Base of the pyramid (BOP) - ANSWER: Economies where people make less than
$2,000 per capita per year.
BRICA - ANSWER: Brazil, Russia, India, and China.
Emerging economies - ANSWER: term that has gradually replaced the term
"developing countries" since the 1990s.
Emerging markets - ANSWER: A term that is often used interchangeably with
"emerging economies."
Expatriate manager - ANSWER: A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) - ANSWER: Investment in, controlling, and managing
value-added activities in other countries.
Global Business - ANSWER: Business around the globe.
Globalization - ANSWER: The close integration of countries and peoples of the world.
Gross domestic product (GDP) - ANSWER: The sum of value added by resident firms,
households, and governments operating in an economy.
Gross national income (GNI) - ANSWER: 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) - ANSWER: GDP plus income from non-resident
sources abroad
Group of 20 (G-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.
International business (IB) - ANSWER: (1) A business (or firm) that engages in
international (cross-border) economic activities and/or (2) the action of doing
business abroad.
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.
Multinational enterprise (MNE) - ANSWER: A firm that engages in foreign direct
investment (FDI).
,Nongovernmental organization (NGO) - ANSWER: An organization that is not
affiliated with governments.
Purchasing power parity (PPP) - ANSWER: A conversion that determines the
equivalent amount of goods and services that different currencies can purchase.
Reverse innovation - ANSWER: An innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - ANSWER: The identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - ANSWER: A technique to prepare and plan for multiple scenarios
(either high or low risk).
Semiglobalization - ANSWER: A perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each
other completely.
Triad - ANSWER: North America, Western Europe, and Japan.
Purchasing power parity (PPP) - ANSWER: adjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - ANSWER: 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 -
ANSWER: Why study global business?
Institution-based view - ANSWER: A core perspective. Success and failure of firms are
constrained by institutions
Formal rules - ANSWER: 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 - ANSWER: cultures, ethics, and norms play an important part in
shaping the success and failure of firms around the globe
Resource-based view - ANSWER: A core perspective. Success and failure of firms is
determined by their environment
, New force in recent times, a long-running historical evolution, a pendulum swinging
between extremes - ANSWER: What are the three views of globalization?
"Four Tigers" - ANSWER: Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage - ANSWER: The economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - ANSWER: Bureaucratic rules that make it harder to import
foreign goods.
antidumping duty - ANSWER: Tariffs levied on imports that have been "dumped"
(selling below costs to "unfairly" drive domestic firms out of business).
Balance of Trade - ANSWER: The aggregation of importing and exporting that leads
to the country-level trade surplus or deficit.
Classical trade theories - ANSWER: The major theories of international trade that
were advanced before the 20th century, which consist of (1) mercantilism, (2)
absolute advantage, and (3) comparative advantage.
Comparative advantage - ANSWER: Relative (not absolute) advantage in one
economic activity that one nation enjoys in comparison with other nations.
Deadweight cost - ANSWER: Net losses that occur in an economy as a result of tariffs.
Export - ANSWER: Selling abroad.
Factor endowment - ANSWER: The extent to which different countries possess
various factors of production such as labor, land, and technology.
Factor endowment theory - ANSWER: A theory that suggests that nations will
develop comparative advantages based on their locally abundant factors.
Heckscher-Ohlin theory - ANSWER: Another name for factor endowment theory
First-mover advantage - ANSWER: Advantage that first movers enjoy and do not
share with late entrants.
Free trade - ANSWER: The idea that free market forces should determine how much
to trade with little or no government intervention.
Import - ANSWER: Buying from abroad.
Import quota - ANSWER: Restriction on the quantity of imports.
Import tariff - ANSWER: A tax imposed on imports.
