MAR 4156 Exam 2 questions with correct answers
Economic development Correct Answer-- An increase in GDP and
implies a widespread distribution of increased income
- Increase in the average per capita GDP
Stages of Economic Development Correct Answer-The United Nations
groups countries into three categories
- MDCs (more-developed countries)
*(NICs between MDC & LDC)
- LDCs (less-developed countries)
- LLDCs (least-developed countries)
- ex. 3rd world countries
Newly Industrialized Countries (NICs) Correct Answer-- Countries that
are experiencing rapid economic expansion and industrialization
- Do not exactly fit as LDCs or MDCs
- Have moved away from restrictive trade practices
- Instituted significant free market reforms
NIC (Economic Growth Factors) *from Book* Correct Answer--
Political stability in policies affecting development
- Economic and legal reforms (poorly defined and/or weakly enforced
contract and property rights)
,- Entrepreneurship
- Planning (central with observable and measurable development goals
linked to specific policies)
- Outward orientation (focusing on production for domestic market and
export markets w/ increases in efficiencies and continual differentiation
of exports from competitions)
- Factors of production (if deficient: factors of production could easily
come from outside the country and be directed to development
objectives)
- Industries targeted for growth
- Incentives to force a high domestic rate of savings and to direct capital
to update the infrastructure, transportation, housing, education, and
training
- Privatization of state-owned enterprises (SOEs) that placed a drain on
national budgets
final NIC growth factors *from book* (cont.) Correct Answer-- large
accessible markets with low tariffs
- econ growth factors don't apply only to industrial growth
, - economic growth can occur with agricultural development as its
economic engine
- process for economic growth is to continually adapt to changing tastes,
constantly improve technology, and find new ways to prosper from
natural resources
- regional cooperation and open market
Objectives of Developing Countries Correct Answer-- Industrialization
is the fundamental objective
- Economic growth is seen as the achievement of social as well as
economic goals
- Better education
- Better and more effective government
- Elimination of many social inequities
- Improvements in moral and ethical responsibilities
- Privatization is currently a major economic phenomenon
marketing in BOP case 3-3 Correct Answer-- providing infrastructure
for product to function properly
- package product in salable sizes (single-use)
- design product to function in local area with inadequate support
, - examine manufacturing costs to be able to lower prices
- provide credit in a market where credit purchases are not traditional
- devise distribution strategies to gain market penetration to small and
geographically scattered villages
- work with local self-help groups to bring products to the BOP
BOPM Marketing (product implications) Correct Answer-- not about
making cheap products but about making technologically advanced
products affordable
- requires advanced technology with infrastructure support
- requires creative financing to assist in financing large purchases
- requires effective distribution (low cost to distribute products)
- requires affordable packaging
- creates health benefits
Infrastructure and Development Correct Answer-Infrastructure
- Represents those types of capital goods that serve the activities of
many industries
- Affects a country's economic growth potential and the ability of an
enterprise to engage effectively in business
- The less developed a country → the less adequate the infrastructure is
for conducting business
Economic development Correct Answer-- An increase in GDP and
implies a widespread distribution of increased income
- Increase in the average per capita GDP
Stages of Economic Development Correct Answer-The United Nations
groups countries into three categories
- MDCs (more-developed countries)
*(NICs between MDC & LDC)
- LDCs (less-developed countries)
- LLDCs (least-developed countries)
- ex. 3rd world countries
Newly Industrialized Countries (NICs) Correct Answer-- Countries that
are experiencing rapid economic expansion and industrialization
- Do not exactly fit as LDCs or MDCs
- Have moved away from restrictive trade practices
- Instituted significant free market reforms
NIC (Economic Growth Factors) *from Book* Correct Answer--
Political stability in policies affecting development
- Economic and legal reforms (poorly defined and/or weakly enforced
contract and property rights)
,- Entrepreneurship
- Planning (central with observable and measurable development goals
linked to specific policies)
- Outward orientation (focusing on production for domestic market and
export markets w/ increases in efficiencies and continual differentiation
of exports from competitions)
- Factors of production (if deficient: factors of production could easily
come from outside the country and be directed to development
objectives)
- Industries targeted for growth
- Incentives to force a high domestic rate of savings and to direct capital
to update the infrastructure, transportation, housing, education, and
training
- Privatization of state-owned enterprises (SOEs) that placed a drain on
national budgets
final NIC growth factors *from book* (cont.) Correct Answer-- large
accessible markets with low tariffs
- econ growth factors don't apply only to industrial growth
, - economic growth can occur with agricultural development as its
economic engine
- process for economic growth is to continually adapt to changing tastes,
constantly improve technology, and find new ways to prosper from
natural resources
- regional cooperation and open market
Objectives of Developing Countries Correct Answer-- Industrialization
is the fundamental objective
- Economic growth is seen as the achievement of social as well as
economic goals
- Better education
- Better and more effective government
- Elimination of many social inequities
- Improvements in moral and ethical responsibilities
- Privatization is currently a major economic phenomenon
marketing in BOP case 3-3 Correct Answer-- providing infrastructure
for product to function properly
- package product in salable sizes (single-use)
- design product to function in local area with inadequate support
, - examine manufacturing costs to be able to lower prices
- provide credit in a market where credit purchases are not traditional
- devise distribution strategies to gain market penetration to small and
geographically scattered villages
- work with local self-help groups to bring products to the BOP
BOPM Marketing (product implications) Correct Answer-- not about
making cheap products but about making technologically advanced
products affordable
- requires advanced technology with infrastructure support
- requires creative financing to assist in financing large purchases
- requires effective distribution (low cost to distribute products)
- requires affordable packaging
- creates health benefits
Infrastructure and Development Correct Answer-Infrastructure
- Represents those types of capital goods that serve the activities of
many industries
- Affects a country's economic growth potential and the ability of an
enterprise to engage effectively in business
- The less developed a country → the less adequate the infrastructure is
for conducting business
