D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
North Korea bans women from wearing blank after deeming them 'capitalist
fashion' (but men can still wear them) - CORRECT ANSWER shorts
Beating expectations, Indonesia's economy grows 5 percent in Q4, why? -
CORRECT ANSWER "Because our COVID cases were high in the third quarter,
people's mobility was restricted and economic activity slowed down ... all
activities, by the government and the private sector, resumed in the fourth
quarter," said Margo Yuwono, head of Statistics Indonesia.
A highly efficient and clean market may not necessarily be the most attractive for
blank - CORRECT ANSWER expansion
A blank market may not always be highly attractive for expansion - CORRECT
ANSWER large
The world no longer revolves around the USA. why? - CORRECT ANSWER
Emerging Markets may soon overpower the USA economically
Economic Freedom is critical for business. why? - CORRECT ANSWER It leads to a
higher standard of living and can foster entrepreneurship, growth, and
competitiveness.
Why are countries so poor? - CORRECT ANSWER The reason why some countries
are rich and others poor depends on many things, including the quality of their
institutions, the culture they have, the natural resources they find and what
latitude they're on.
Economic Issues for International Businesses:
Ø What is the level of development of a particular economy? - CORRECT ANSWER
§ What is the size, growth potential, and stability of the market?
Economic Issues for International Businesses:
ØWhat type of economic system does the country have? - CORRECT ANSWER
§Does the government view foreign capital as competition with or in partnership
with public or local private enterprises?
Economic Issues for International Businesses:
Ø Is the company's industry in that country's public or private sector? - CORRECT
ANSWER §If public, does the government allow private competition?
§If private, is it moving towards public ownership?
-Get a sense of competition or if you as an industry are competing against other
businesses or country; airlines for specific country owned business, changes the
ways things work
Economic Issues for International Businesses:
Ø How does the government control the nature and extent of private enterprise?
ØHow will doing business there affect our firm?
,D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
ØWhat adjustments does a particular Environment require? - CORRECT ANSWER
How other countries view you if you open and start selling in a country; Ford if
they sold cars in russia... NO
Why study the economic environment? - CORRECT ANSWER Because it helps you
gain perspective, gives you another thing to look at for the business, economics is
the works of all businesses, if you want to move or travel there; know your
demographic, average income
Why Study the Economic Environment? list - CORRECT ANSWER -Economic
systems shape a market
-Better investment choices
-Operating decisions
-Policy decisions
-Better returns / less risk
Who is who in the global business environment? - CORRECT ANSWER -How do we
classify the broad classes of countries?
- What is the difference among them?
Developed Economies - CORRECT ANSWER q Efficient capital movement: Money
moves easily in a developed country
-higher economic and political freedom; rule of law
q Stable institutions: Stable: 911 will always come, hospitals open24/7
q Infrastructure
q International trade and investments
q Technology
q Higher or lower economic freedom?
q Higher or lower political freedom?
q Rule of law or rule of man?
Developing economies - CORRECT ANSWER q Uneven
q Corruption
q Lower incomes
q Resistance to foreign ownership
q Lower literacy levels, poor public hygiene and nutrition
q Higher or lower economic freedom?: lower
q Higher or lower political freedom?: lower
q Rule of law or rule of man?: rule of man
Economies in transition? Emerging economies - CORRECT ANSWER qAccelerating
growth:You can double work force when you employ more people, especially
from other countries
,D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
q Modernizing
q Market liberalization
q Exports
q FDI
q Middle class, expanding consumption, pro business
q Higher or lower economic freedom?: higher
q Higher or lower political freedom?: higher
q Rule of law or rule of man? Law?
G20 countries - CORRECT ANSWER qPremier international forum for global
economic cooperation.
q 86% of the world economy
q 78% of global trade
q 66% of the world's population
q And more than half of the world's poor
BRICs? Big Emerging Markets (BEMs). What do they have in common? - CORRECT
ANSWER Brazil, Russia, Israel china; combined gdp is that of the USA
Mixed records of human rights and; far surpasses economic expectations; it is
expanding currently
Commonalities of Big Emerging Markets (BEMs) - CORRECT ANSWER qTerritory
q Population
q Natural resources, increased consumption
q Liberalization - FDI
q Infrastructure needs
q Aspirations of technological leadership
q Political influence
Emerging Economies at a Glance - CORRECT ANSWER qAlmost 6 Billion people
q Account for 60% of global GDP,
up from 36% in 1980 and 50% in 2006
q Account for 50% of global Exports, up from 20% in 1970
q Have contributed huge reduction in global poverty (China alone has lifted 600
million people out of poverty in last 30 years)
q Have contributed 80% of global growth since 2008 financial crisis (helping save
jobs in advanced countries)
q China is now 1st or 2nd largest Trading Partner for 78 countries
great opportunities come with
big challenges
, D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
-The case of China - CORRECT ANSWER People moving to a city need support
system which drains economies because those people need things like schools
and real estate and doctors
Big challenges for IB - CORRECT ANSWER qcommunication, power generating,
and transportation infrastructure
q distribution channels
q financial markets
q volatility
q Problems finding and working with suitable business partners
q government involvement & control
q corruption
The degree of economic freedom an individual has to use his or her:
to pursue their ambitions - CORRECT ANSWER ØInitiative
ØEffort
ØCompetencies
ØThe freedom managers have to decide endless aspects of everyday business
operations without: - CORRECT ANSWER government coercion or constraint on
the production, distribution or consumption of goods and services
Ø Rule of Law - CORRECT ANSWER property rights, freedom from corruption,
effective judicial system
Ø Limited Government - CORRECT ANSWER (fiscal health, government spending,
limited taxation)
Ø Regulatory Efficiency - CORRECT ANSWER (labor, business and monetary
freedom)
Ø Open Markets - CORRECT ANSWER (trade, investment and financial freedom,
freedom of movement of labor and goods)
Economic Freedom and the Standard of living - CORRECT ANSWER - average GDP
per Capita of economies with high economic freedom has the highest average
GDP per Capita
The Paradox
Ø1989?
ØGiven the benefits of economic freedom, why do so few countries maximize it? -
CORRECT ANSWER Ø6.3 billion people moderately, mostly unfree or repressed
ØOnly 38 out of 178 are free or mostly free.
ØIs economic freedom necessary to anchor a productive economic system?
(China, Rwanda) - CORRECT ANSWER Not necessarily
answers 100% verified 2025 update
North Korea bans women from wearing blank after deeming them 'capitalist
fashion' (but men can still wear them) - CORRECT ANSWER shorts
Beating expectations, Indonesia's economy grows 5 percent in Q4, why? -
CORRECT ANSWER "Because our COVID cases were high in the third quarter,
people's mobility was restricted and economic activity slowed down ... all
activities, by the government and the private sector, resumed in the fourth
quarter," said Margo Yuwono, head of Statistics Indonesia.
A highly efficient and clean market may not necessarily be the most attractive for
blank - CORRECT ANSWER expansion
A blank market may not always be highly attractive for expansion - CORRECT
ANSWER large
The world no longer revolves around the USA. why? - CORRECT ANSWER
Emerging Markets may soon overpower the USA economically
Economic Freedom is critical for business. why? - CORRECT ANSWER It leads to a
higher standard of living and can foster entrepreneurship, growth, and
competitiveness.
Why are countries so poor? - CORRECT ANSWER The reason why some countries
are rich and others poor depends on many things, including the quality of their
institutions, the culture they have, the natural resources they find and what
latitude they're on.
Economic Issues for International Businesses:
Ø What is the level of development of a particular economy? - CORRECT ANSWER
§ What is the size, growth potential, and stability of the market?
Economic Issues for International Businesses:
ØWhat type of economic system does the country have? - CORRECT ANSWER
§Does the government view foreign capital as competition with or in partnership
with public or local private enterprises?
Economic Issues for International Businesses:
Ø Is the company's industry in that country's public or private sector? - CORRECT
ANSWER §If public, does the government allow private competition?
§If private, is it moving towards public ownership?
-Get a sense of competition or if you as an industry are competing against other
businesses or country; airlines for specific country owned business, changes the
ways things work
Economic Issues for International Businesses:
Ø How does the government control the nature and extent of private enterprise?
ØHow will doing business there affect our firm?
,D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
ØWhat adjustments does a particular Environment require? - CORRECT ANSWER
How other countries view you if you open and start selling in a country; Ford if
they sold cars in russia... NO
Why study the economic environment? - CORRECT ANSWER Because it helps you
gain perspective, gives you another thing to look at for the business, economics is
the works of all businesses, if you want to move or travel there; know your
demographic, average income
Why Study the Economic Environment? list - CORRECT ANSWER -Economic
systems shape a market
-Better investment choices
-Operating decisions
-Policy decisions
-Better returns / less risk
Who is who in the global business environment? - CORRECT ANSWER -How do we
classify the broad classes of countries?
- What is the difference among them?
Developed Economies - CORRECT ANSWER q Efficient capital movement: Money
moves easily in a developed country
-higher economic and political freedom; rule of law
q Stable institutions: Stable: 911 will always come, hospitals open24/7
q Infrastructure
q International trade and investments
q Technology
q Higher or lower economic freedom?
q Higher or lower political freedom?
q Rule of law or rule of man?
Developing economies - CORRECT ANSWER q Uneven
q Corruption
q Lower incomes
q Resistance to foreign ownership
q Lower literacy levels, poor public hygiene and nutrition
q Higher or lower economic freedom?: lower
q Higher or lower political freedom?: lower
q Rule of law or rule of man?: rule of man
Economies in transition? Emerging economies - CORRECT ANSWER qAccelerating
growth:You can double work force when you employ more people, especially
from other countries
,D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
q Modernizing
q Market liberalization
q Exports
q FDI
q Middle class, expanding consumption, pro business
q Higher or lower economic freedom?: higher
q Higher or lower political freedom?: higher
q Rule of law or rule of man? Law?
G20 countries - CORRECT ANSWER qPremier international forum for global
economic cooperation.
q 86% of the world economy
q 78% of global trade
q 66% of the world's population
q And more than half of the world's poor
BRICs? Big Emerging Markets (BEMs). What do they have in common? - CORRECT
ANSWER Brazil, Russia, Israel china; combined gdp is that of the USA
Mixed records of human rights and; far surpasses economic expectations; it is
expanding currently
Commonalities of Big Emerging Markets (BEMs) - CORRECT ANSWER qTerritory
q Population
q Natural resources, increased consumption
q Liberalization - FDI
q Infrastructure needs
q Aspirations of technological leadership
q Political influence
Emerging Economies at a Glance - CORRECT ANSWER qAlmost 6 Billion people
q Account for 60% of global GDP,
up from 36% in 1980 and 50% in 2006
q Account for 50% of global Exports, up from 20% in 1970
q Have contributed huge reduction in global poverty (China alone has lifted 600
million people out of poverty in last 30 years)
q Have contributed 80% of global growth since 2008 financial crisis (helping save
jobs in advanced countries)
q China is now 1st or 2nd largest Trading Partner for 78 countries
great opportunities come with
big challenges
, D270 Davis Final Exam study guide questions with correct
answers 100% verified 2025 update
-The case of China - CORRECT ANSWER People moving to a city need support
system which drains economies because those people need things like schools
and real estate and doctors
Big challenges for IB - CORRECT ANSWER qcommunication, power generating,
and transportation infrastructure
q distribution channels
q financial markets
q volatility
q Problems finding and working with suitable business partners
q government involvement & control
q corruption
The degree of economic freedom an individual has to use his or her:
to pursue their ambitions - CORRECT ANSWER ØInitiative
ØEffort
ØCompetencies
ØThe freedom managers have to decide endless aspects of everyday business
operations without: - CORRECT ANSWER government coercion or constraint on
the production, distribution or consumption of goods and services
Ø Rule of Law - CORRECT ANSWER property rights, freedom from corruption,
effective judicial system
Ø Limited Government - CORRECT ANSWER (fiscal health, government spending,
limited taxation)
Ø Regulatory Efficiency - CORRECT ANSWER (labor, business and monetary
freedom)
Ø Open Markets - CORRECT ANSWER (trade, investment and financial freedom,
freedom of movement of labor and goods)
Economic Freedom and the Standard of living - CORRECT ANSWER - average GDP
per Capita of economies with high economic freedom has the highest average
GDP per Capita
The Paradox
Ø1989?
ØGiven the benefits of economic freedom, why do so few countries maximize it? -
CORRECT ANSWER Ø6.3 billion people moderately, mostly unfree or repressed
ØOnly 38 out of 178 are free or mostly free.
ØIs economic freedom necessary to anchor a productive economic system?
(China, Rwanda) - CORRECT ANSWER Not necessarily
