C211 SECOND OA QUIZZES EXAM 300
QUESTIONS AND ANSWERS WITH
RATIONALES LATEST UPDATE THIS
YEAR
1. Viewing the global economy as a pyramid, the Triad refers to:
A. North America, Western Europe, and Japan
B. The United States, China, and India
C. Europe, Asia, and the Americas
D. The G7, BRICS, and ASEAN
E. The IMF, World Bank, and WTO
Correct Answer: A. North America, Western Europe, and Japan
Rationale: In the global economy pyramid model, the Triad represents the three
dominant economic centers: North America, Western Europe, and Japan. These
regions have historically been the primary drivers of global economic activity and
trade.
---
2. People who earn less than _____ a year comprise the base of the global
economic pyramid.
,A. $1,000
B. $2,000
C. $5,000
D. $10,000
E. $20,000
Correct Answer: B. $2,000
Rationale: The base of the global economic pyramid consists of the world's poorest
individuals, those earning less than $2,000 per year. This group represents a vast,
untapped market for many businesses and is a key focus for strategies aimed at
serving low-income consumers.
---
3. Which of the following would be an example of a top-down innovation?
A. Developing a completely new technology for high-end markets
B. Lowering prices and features of existing products to meet emerging market
needs
C. Creating a premium product for developed countries
D. Inventing a disruptive technology that creates a new market
E. Focusing on radical innovation for niche segments
Correct Answer: B. Lowering prices and features of existing products to meet
emerging market needs
Rationale: Top-down innovation involves taking products developed for high-
income markets and simplifying or reducing their features and costs to make them
accessible to lower-income consumers in emerging economies. This contrasts with
bottom-up innovation, which starts from the bottom of the pyramid.
,---
4. Which of the following is true of the Group of 20 (G-20)?
A. It has exactly 20 member countries.
B. It only has 19 member countries.
C. It has 21 member countries.
D. It includes the European Union as a member.
E. It is a forum for only developed nations.
Correct Answer: B. It only has 19 member countries.
Rationale: The G-20 is a group of 19 individual countries plus the European
Union, making it a forum of 20 members total. However, it is often stated that it
has "19 member countries" because the EU is a bloc, not a country.
---
5. Which of the following does the institution-based view of global business lay
emphasis on?
A. The internal resources of the firm
B. The laws and values of the host nation
C. The firm's competitive strategy
D. The firm's organizational culture
E. The personal relationships of managers
Correct Answer: B. The laws and values of the host nation
, Rationale: The institution-based view argues that the success and failure of firms
are largely determined by the formal and informal institutions of the environments
in which they operate. This includes understanding the laws, regulations, norms,
and values of the host country.
6. The term "emerging economies" has replaced which of the following terms?
A. Industrialized nations
B. Developing countries
C. First-world countries
D. Transition economies
E. Newly industrialized countries
Correct Answer: B. Developing countries
Rationale: The term "emerging economies" is now used in place of "developing
countries" to better reflect their rapid growth, increasing integration into global
markets, and improving economic and political institutions. This shift
acknowledges that these economies are not just "developing" but are actively
emerging as significant players in the world economy.
---
7. The gross domestic product plus the income from non-resident sources abroad
gives the:
A. Gross national income
B. Net national product
QUESTIONS AND ANSWERS WITH
RATIONALES LATEST UPDATE THIS
YEAR
1. Viewing the global economy as a pyramid, the Triad refers to:
A. North America, Western Europe, and Japan
B. The United States, China, and India
C. Europe, Asia, and the Americas
D. The G7, BRICS, and ASEAN
E. The IMF, World Bank, and WTO
Correct Answer: A. North America, Western Europe, and Japan
Rationale: In the global economy pyramid model, the Triad represents the three
dominant economic centers: North America, Western Europe, and Japan. These
regions have historically been the primary drivers of global economic activity and
trade.
---
2. People who earn less than _____ a year comprise the base of the global
economic pyramid.
,A. $1,000
B. $2,000
C. $5,000
D. $10,000
E. $20,000
Correct Answer: B. $2,000
Rationale: The base of the global economic pyramid consists of the world's poorest
individuals, those earning less than $2,000 per year. This group represents a vast,
untapped market for many businesses and is a key focus for strategies aimed at
serving low-income consumers.
---
3. Which of the following would be an example of a top-down innovation?
A. Developing a completely new technology for high-end markets
B. Lowering prices and features of existing products to meet emerging market
needs
C. Creating a premium product for developed countries
D. Inventing a disruptive technology that creates a new market
E. Focusing on radical innovation for niche segments
Correct Answer: B. Lowering prices and features of existing products to meet
emerging market needs
Rationale: Top-down innovation involves taking products developed for high-
income markets and simplifying or reducing their features and costs to make them
accessible to lower-income consumers in emerging economies. This contrasts with
bottom-up innovation, which starts from the bottom of the pyramid.
,---
4. Which of the following is true of the Group of 20 (G-20)?
A. It has exactly 20 member countries.
B. It only has 19 member countries.
C. It has 21 member countries.
D. It includes the European Union as a member.
E. It is a forum for only developed nations.
Correct Answer: B. It only has 19 member countries.
Rationale: The G-20 is a group of 19 individual countries plus the European
Union, making it a forum of 20 members total. However, it is often stated that it
has "19 member countries" because the EU is a bloc, not a country.
---
5. Which of the following does the institution-based view of global business lay
emphasis on?
A. The internal resources of the firm
B. The laws and values of the host nation
C. The firm's competitive strategy
D. The firm's organizational culture
E. The personal relationships of managers
Correct Answer: B. The laws and values of the host nation
, Rationale: The institution-based view argues that the success and failure of firms
are largely determined by the formal and informal institutions of the environments
in which they operate. This includes understanding the laws, regulations, norms,
and values of the host country.
6. The term "emerging economies" has replaced which of the following terms?
A. Industrialized nations
B. Developing countries
C. First-world countries
D. Transition economies
E. Newly industrialized countries
Correct Answer: B. Developing countries
Rationale: The term "emerging economies" is now used in place of "developing
countries" to better reflect their rapid growth, increasing integration into global
markets, and improving economic and political institutions. This shift
acknowledges that these economies are not just "developing" but are actively
emerging as significant players in the world economy.
---
7. The gross domestic product plus the income from non-resident sources abroad
gives the:
A. Gross national income
B. Net national product
