Global Business- Chapter 1 Questions with Verified Answers Latest Version 2024
International Business - Answers A business that engages in international economic activities and/or the
action of doing business abroad
Multinational Enterprise (MNE) - Answers A firm that engages in foreign direct investment (FDI)
Foreign Direct Investment (FDI) - Answers Investment in, controlling, and managing value-added
activities
Global business - Answers business around the globe
Emerging economies - Answers A term that has gradually replaced the term "developing countries"
Emerging markets - Answers A term that is often used interchangeable with "emerging economies"
Gross Domestic Product (GDP) - Answers The sum of value added by resident firms, households, and
government operating in an ecconomy
Purchasing Power Party (PPP) - Answers A conversion that determines the equivalent amount of goods
and services that different currencies can purchase
Gross National Product (GNP) - Answers GDP plus income from non-resident sources abroad
Gross National Income (GNI) - Answers GDP plus income from nonresident sources abroad. GNI is the
term used by the World Bank and other international organizations to supersede the term GDP
BRIC - Answers Brazil, Russia, India, and China
Triad - Answers North America, Western Europe, and Japan
Base of the Pyramid (BOP) - Answers Economies where people make less than $2000 per capita per year
Reverse Innovation - Answers An innovation that is adopted first in emerging economies and is then
diffused around the world
Group of 20 (G-20) - Answers The group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems
Expatriate manager - Answers a manager who works abroad
International Premium - Answers A significant pay raise when working overseas
Liability of foreignness - Answers The inherent disadvantage that foreign firms experience in host
countries because of their non-native status
Globaliztion - Answers The close integration of counties and peoples of the world
International Business - Answers A business that engages in international economic activities and/or the
action of doing business abroad
Multinational Enterprise (MNE) - Answers A firm that engages in foreign direct investment (FDI)
Foreign Direct Investment (FDI) - Answers Investment in, controlling, and managing value-added
activities
Global business - Answers business around the globe
Emerging economies - Answers A term that has gradually replaced the term "developing countries"
Emerging markets - Answers A term that is often used interchangeable with "emerging economies"
Gross Domestic Product (GDP) - Answers The sum of value added by resident firms, households, and
government operating in an ecconomy
Purchasing Power Party (PPP) - Answers A conversion that determines the equivalent amount of goods
and services that different currencies can purchase
Gross National Product (GNP) - Answers GDP plus income from non-resident sources abroad
Gross National Income (GNI) - Answers GDP plus income from nonresident sources abroad. GNI is the
term used by the World Bank and other international organizations to supersede the term GDP
BRIC - Answers Brazil, Russia, India, and China
Triad - Answers North America, Western Europe, and Japan
Base of the Pyramid (BOP) - Answers Economies where people make less than $2000 per capita per year
Reverse Innovation - Answers An innovation that is adopted first in emerging economies and is then
diffused around the world
Group of 20 (G-20) - Answers The group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems
Expatriate manager - Answers a manager who works abroad
International Premium - Answers A significant pay raise when working overseas
Liability of foreignness - Answers The inherent disadvantage that foreign firms experience in host
countries because of their non-native status
Globaliztion - Answers The close integration of counties and peoples of the world
