Business 1000 Final Review Questions
with Guaranteed Pass Solutions 2026
Updated.
Business process - Answer A structure of network activates supported by non-human and
human resources that interact to achieve some sort of goal
What is an emerging economy and what are their characteristics? Provide examples - Answer
An emerging economy is a subset of developing economy. They have enormous economic
potential and investors are very of interest
They meet some standards of developed markets
Characteristics
* lower than average per capital income
* rapid growth
* high volatility as EEs are in the process of implementing socioeconomic systems which are
very different from the past. The increased turbulence makes it harder for resource allocation
and strategic planning
EXAMPLES
* BRIC -- Brazil, Russia, India and China
* BRIICS -- Brazil, Russia, India, Indonesia, China and South Africa
* E7 -- Brazil, Russia, India, Indonesia, China, Mexico and Turkey
Why are emerging economies important to businesses - Answer INFRASTRUCTURE
* This is needed to support the population increase
Floor Space
* demand for residential foor space expectd to increase 90 percent by 2025. As incomes rise the
vaerge numebr of people per household decreases, thus there is an increase for dwellings due
to both population increase and smaller average household size
* the demand for commercial floor space expected to increase by 75 percent by 2025
Water
* sanitation is a key driver of early urban population expansion
,* as economies and populations expand, the provision of water treatment infrastructure for
drinking and sanitation also increases
* by 2025 increase in water usage to 270 billion cubic meters p.a.
Containers
* increased economic activity GDP requires increased transportation of goods
* eemerign markets will generate 85 percent of the increase in demand for containerised
transport.
Impact
* There is an increased demand for raw materials in buildings e.g. coal, iron ore, copper etc
* transportation fo goods requires energy therefore increased demand for oil and petroleum
* negative impacts -- increased demand leads to increased prices gloablly including energy
* this level of natural resource usage is not sustainable
RISE OF THE MIDDLE CLASS
* global middle class increasing mainly coming from Chinese and Indian markets
Multinational corporations
What are the drivers of internationalisation and globalisation? - Answer Market drivers --
similar to customer needs, global customers and transferable marketing
Cost drivers -- scale economies, country specific differences, fabourable logistics
Government drivers -- trade policies, technical standard sand host government policies
Competitive drivers -- interdependence between countries and competitors global strategies
What is liability of foreigness - Answer Firms face additional social and economic costs when
they operate in foreign markets such as:
1. communication
2. resource
3. host government discrimination
4. culteral unfamiliarity
,5. legal and institutional
What is institutional environment and what are they liek in emerging economies - Answer
The institutional environment consists of regulatory or normative pressures placed on an
organisation by the state, society and professions
* the pressures can be direct and enforced through regulations or court
* pressures cna be indirectly enforced by creating expectations and norms that the organisation
needs to adhere to to acquire legitimacy and access to resources
The insitutional environment is generally less develoiped than the institutional environemnt
within developed markets
* they are more turbulent as they are in the process of implementing a socioeconomic system
that is radically different from the one that precedes it. This makes strategic planning and
resource allocation more difficult. They are also less likely to be conducive towards mutually
beneficial economic exchanges between 2 economic actors
The rise of MNCs from emerging markets + innovation features and latecomer and new comer
MNCs share - Answer Emerging economies MNCs increased their presence among the largest
corporations in the world
Several emerging economy MNCs have made it to the very top in becoming world leaders in
their own sectors (banking, logistics, automobile, telecom, engineering and constructiosn . etc).
In 2004, no emerging economies MNCs ranked in the top 5 world leaders but in 2015 40 percent
of such leaders came from emerging economies
However, the average profit margins from emerging economies MNCs lag behind those of their
US and Japanese counterparts. Emerging economies MNCs have a stronger focus on revenues
and market growth than profit margins
The overseas expansions of emerging economies MNCs has disrupted global competition
landscape
Innovation features that latecomers and newcomer MNCs share:
* accelerated internationalisation -- making use of prior international connections, and starting
out with the view that they will customers wherever they are found
* strategic innovation -- finding new ways to complement the strategies of incumbents e.g.
offering contract services, licensing new technologies, forming joint ventures and strategic
alliances
, * organisational innovation -- implementation of new, organisational method in the firm's
business practices, in the organisation fo its workplace or inits external relations, to improve the
use of knowledge, workflows efficiency or quality of goods and services
MNC expansion frameworks - Answer * OLI is the decision to become multinational and go
overseas and it is dependent on whether you have these 3 sources of advantage
* Since you're not in the market, do you have these 3 sources of advantage that can allow you
to enter the market?
* Sources of multinational advantage focus on the firms ability to exploit domestic assets
abroad
* This framework suggests:
* Low productivity firms produce only in home market
* High productivity firms engage in FDI
3 aspects
Ownership — extending their propriety assets abroad e.g. brands, technologies, to compete
with competitors in host market (i.e. the competitive advantages of the enterprises seeking to
engage in FDI)
* Ownership advantage suggests that the MNC possesses a resrouce that is not generally
available to others or easily imitated
* The MNC resources have high levels of resources which can be applied to production in
different locations e.g. technology, brand, marketing, management skills and processes
* Low productivity firms produce only in home market + high productivity firms engage in FDI
(foreign direct investment)
Location — integrating activités across sectors of the world with different factor costs and
resource costs (access and use of local natural or labor resources and markets)
* MNCs have an incentive to produce where (location) they can generate the highest profit
* Location advantages can include:
* Access to required resources e.g. raw mateirals
* Cost of required resources e.g. cheap labour
* Transportation costs
* The more immobile, natural or created resources (which firms need to use with their own
competitive advantages), the more livelily they will favour a presence in a foreign location +
thus more lily to exploit their specific advantages and engage in FDI
Internalisation — building economies of scale and scope through inte
with Guaranteed Pass Solutions 2026
Updated.
Business process - Answer A structure of network activates supported by non-human and
human resources that interact to achieve some sort of goal
What is an emerging economy and what are their characteristics? Provide examples - Answer
An emerging economy is a subset of developing economy. They have enormous economic
potential and investors are very of interest
They meet some standards of developed markets
Characteristics
* lower than average per capital income
* rapid growth
* high volatility as EEs are in the process of implementing socioeconomic systems which are
very different from the past. The increased turbulence makes it harder for resource allocation
and strategic planning
EXAMPLES
* BRIC -- Brazil, Russia, India and China
* BRIICS -- Brazil, Russia, India, Indonesia, China and South Africa
* E7 -- Brazil, Russia, India, Indonesia, China, Mexico and Turkey
Why are emerging economies important to businesses - Answer INFRASTRUCTURE
* This is needed to support the population increase
Floor Space
* demand for residential foor space expectd to increase 90 percent by 2025. As incomes rise the
vaerge numebr of people per household decreases, thus there is an increase for dwellings due
to both population increase and smaller average household size
* the demand for commercial floor space expected to increase by 75 percent by 2025
Water
* sanitation is a key driver of early urban population expansion
,* as economies and populations expand, the provision of water treatment infrastructure for
drinking and sanitation also increases
* by 2025 increase in water usage to 270 billion cubic meters p.a.
Containers
* increased economic activity GDP requires increased transportation of goods
* eemerign markets will generate 85 percent of the increase in demand for containerised
transport.
Impact
* There is an increased demand for raw materials in buildings e.g. coal, iron ore, copper etc
* transportation fo goods requires energy therefore increased demand for oil and petroleum
* negative impacts -- increased demand leads to increased prices gloablly including energy
* this level of natural resource usage is not sustainable
RISE OF THE MIDDLE CLASS
* global middle class increasing mainly coming from Chinese and Indian markets
Multinational corporations
What are the drivers of internationalisation and globalisation? - Answer Market drivers --
similar to customer needs, global customers and transferable marketing
Cost drivers -- scale economies, country specific differences, fabourable logistics
Government drivers -- trade policies, technical standard sand host government policies
Competitive drivers -- interdependence between countries and competitors global strategies
What is liability of foreigness - Answer Firms face additional social and economic costs when
they operate in foreign markets such as:
1. communication
2. resource
3. host government discrimination
4. culteral unfamiliarity
,5. legal and institutional
What is institutional environment and what are they liek in emerging economies - Answer
The institutional environment consists of regulatory or normative pressures placed on an
organisation by the state, society and professions
* the pressures can be direct and enforced through regulations or court
* pressures cna be indirectly enforced by creating expectations and norms that the organisation
needs to adhere to to acquire legitimacy and access to resources
The insitutional environment is generally less develoiped than the institutional environemnt
within developed markets
* they are more turbulent as they are in the process of implementing a socioeconomic system
that is radically different from the one that precedes it. This makes strategic planning and
resource allocation more difficult. They are also less likely to be conducive towards mutually
beneficial economic exchanges between 2 economic actors
The rise of MNCs from emerging markets + innovation features and latecomer and new comer
MNCs share - Answer Emerging economies MNCs increased their presence among the largest
corporations in the world
Several emerging economy MNCs have made it to the very top in becoming world leaders in
their own sectors (banking, logistics, automobile, telecom, engineering and constructiosn . etc).
In 2004, no emerging economies MNCs ranked in the top 5 world leaders but in 2015 40 percent
of such leaders came from emerging economies
However, the average profit margins from emerging economies MNCs lag behind those of their
US and Japanese counterparts. Emerging economies MNCs have a stronger focus on revenues
and market growth than profit margins
The overseas expansions of emerging economies MNCs has disrupted global competition
landscape
Innovation features that latecomers and newcomer MNCs share:
* accelerated internationalisation -- making use of prior international connections, and starting
out with the view that they will customers wherever they are found
* strategic innovation -- finding new ways to complement the strategies of incumbents e.g.
offering contract services, licensing new technologies, forming joint ventures and strategic
alliances
, * organisational innovation -- implementation of new, organisational method in the firm's
business practices, in the organisation fo its workplace or inits external relations, to improve the
use of knowledge, workflows efficiency or quality of goods and services
MNC expansion frameworks - Answer * OLI is the decision to become multinational and go
overseas and it is dependent on whether you have these 3 sources of advantage
* Since you're not in the market, do you have these 3 sources of advantage that can allow you
to enter the market?
* Sources of multinational advantage focus on the firms ability to exploit domestic assets
abroad
* This framework suggests:
* Low productivity firms produce only in home market
* High productivity firms engage in FDI
3 aspects
Ownership — extending their propriety assets abroad e.g. brands, technologies, to compete
with competitors in host market (i.e. the competitive advantages of the enterprises seeking to
engage in FDI)
* Ownership advantage suggests that the MNC possesses a resrouce that is not generally
available to others or easily imitated
* The MNC resources have high levels of resources which can be applied to production in
different locations e.g. technology, brand, marketing, management skills and processes
* Low productivity firms produce only in home market + high productivity firms engage in FDI
(foreign direct investment)
Location — integrating activités across sectors of the world with different factor costs and
resource costs (access and use of local natural or labor resources and markets)
* MNCs have an incentive to produce where (location) they can generate the highest profit
* Location advantages can include:
* Access to required resources e.g. raw mateirals
* Cost of required resources e.g. cheap labour
* Transportation costs
* The more immobile, natural or created resources (which firms need to use with their own
competitive advantages), the more livelily they will favour a presence in a foreign location +
thus more lily to exploit their specific advantages and engage in FDI
Internalisation — building economies of scale and scope through inte
