Exam Questions and Answers 100%
Solved
Base of the pyramid (BOP) - ✔✔Economies where people make less than
$2,000 per capita per year.
BRICA - ✔✔Brazil, Russia, India, and China.
Emerging economies - ✔✔term that has gradually replaced the term
"developing countries" since the 1990s.
Emerging markets - ✔✔A term that is often used interchangeably with
"emerging economies."
Expatriate manager - ✔✔A manager who works abroad, or "expat" for
short.
Foreign direct investment (FDI) - ✔✔Investment in, controlling, and
managing value-added activities in other countries.
Global Business - ✔✔Business around the globe.
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Globalization - ✔✔The close integration of countries and peoples of the
world.
Gross domestic product (GDP) - ✔✔The sum of value added by resident
firms, households, and governments operating in an economy.
Gross national income (GNI) - ✔✔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) - ✔✔GDP plus income from non-resident
sources abroad
Group of 20 (G-20) - ✔✔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) - ✔✔(1) A business (or firm) that engages in
international (cross-border) economic activities and/or (2) the action of
doing business abroad.
International premium - ✔✔A significant pay raise when working overseas.
Liability of foreignness - ✔✔The inherent disadvantage that foreign firms
experience in host countries because of their non-native status.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Multinational enterprise (MNE) - ✔✔A firm that engages in foreign direct
investment (FDI).
Nongovernmental organization (NGO) - ✔✔An organization that is not
affiliated with governments.
Purchasing power parity (PPP) - ✔✔A conversion that determines the
equivalent amount of goods and services that different currencies can
purchase.
Reverse innovation - ✔✔An innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - ✔✔The identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - ✔✔A technique to prepare and plan for multiple
scenarios (either high or low risk).
Semiglobalization - ✔✔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 - ✔✔North America, Western Europe, and Japan.
Purchasing power parity (PPP) - ✔✔adjustment made to the GDP to reflect
differences in the cost of living
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, The bottom billion - ✔✔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 - ✔✔Why study global business?
Institution-based view - ✔✔A core perspective. Success and failure of firms
are constrained by institutions
Formal rules - ✔✔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 - ✔✔cultures, ethics, and norms play an important part in
shaping the success and failure of firms around the globe
Resource-based view - ✔✔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 - ✔✔What are the three views of globalization?
"Four Tigers" - ✔✔Hong Kong, Singapore, South Korea and Taiwan
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.