Economics for Managers 2026
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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.
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, 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
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