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C211 - GLOBAL ECONOMICS FOR
MANAGERS FINAL EXAM - ALL READING
2025 QUESTIONS AND ANSWERS.
1. Base of the pyramid (BOP) - correct answer - Economies
where people make less than $2,000 per capita per year.
2. BRICA - correct answer - Brazil, Russia, India, and China.
3. Emerging economies - correct answer - term that has gradually
replaced the term "developing countries" since the 1990s.
4. Emerging markets - correct answer - A term that is often used
interchangeably with "emerging economies."
5. Expatriate manager - correct answer - A manager who works
abroad, or "expat" for short.
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6. Foreign direct investment (FDI) - correct answer - Investment
in, controlling, and managing value-added activities in other
countries.
7. Global Business - correct answer - Business around the globe.
8. Gross national income (GNI) - correct answer - GDP plus
income from non-resident sources abroad. The term used by
the World Bank and other international organizations to
supersede the term GNP.
9. Gross national product (GNP) - correct answer - GDP plus
income from non-resident sources abroad
10. International business (IB) - correct answer - (1) A business
(or firm) that engages in international (cross-border) economic
activities and/or (2) the action of doing business abroad.
11. International premium - correct answer - A significant pay
raise when working overseas.
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12. Liability of foreignness - correct answer - The inherent
disadvantage that foreign firms experience in host countries
because of their non-native status.
13. Multinational enterprise (MNE) - correct answer - A firm that
engages in foreign direct investment (FDI).
14. Reverse innovation - correct answer - An innovation that is
adopted first in emerging economies and is then diffused
around the world.
15. Risk management - correct answer - The identification and
assessment of risks and the preparation to minimize the impact
of high-risk, unfortunate events.
16. Scenario planning - correct answer - A technique to prepare
and plan for multiple scenarios (either high or low risk).
17. Purchasing power parity (PPP) - correct answer - adjustment
made to the GDP to reflect differences in the cost of living
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18. The bottom billion - correct answer - Concentrated in Africa
and Central Asia - 58 small countries, stuck at the bottom in
terms of growth, incomes and human development
19. Enhance employability & advance career, better preparation
to be expat, competence in interacting with foreign
suppliers/partners/competitors/employees - correct answer -
Why study global business?
20. Formal rules - correct answer - 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
21. Informal rules - correct answer - cultures, ethics, and norms
play an important part in shaping the success and failure of
firms around the globe
C211 - GLOBAL ECONOMICS FOR
MANAGERS FINAL EXAM - ALL READING
2025 QUESTIONS AND ANSWERS.
1. Base of the pyramid (BOP) - correct answer - Economies
where people make less than $2,000 per capita per year.
2. BRICA - correct answer - Brazil, Russia, India, and China.
3. Emerging economies - correct answer - term that has gradually
replaced the term "developing countries" since the 1990s.
4. Emerging markets - correct answer - A term that is often used
interchangeably with "emerging economies."
5. Expatriate manager - correct answer - A manager who works
abroad, or "expat" for short.
, Page | 2
6. Foreign direct investment (FDI) - correct answer - Investment
in, controlling, and managing value-added activities in other
countries.
7. Global Business - correct answer - Business around the globe.
8. Gross national income (GNI) - correct answer - GDP plus
income from non-resident sources abroad. The term used by
the World Bank and other international organizations to
supersede the term GNP.
9. Gross national product (GNP) - correct answer - GDP plus
income from non-resident sources abroad
10. International business (IB) - correct answer - (1) A business
(or firm) that engages in international (cross-border) economic
activities and/or (2) the action of doing business abroad.
11. International premium - correct answer - A significant pay
raise when working overseas.
, Page | 3
12. Liability of foreignness - correct answer - The inherent
disadvantage that foreign firms experience in host countries
because of their non-native status.
13. Multinational enterprise (MNE) - correct answer - A firm that
engages in foreign direct investment (FDI).
14. Reverse innovation - correct answer - An innovation that is
adopted first in emerging economies and is then diffused
around the world.
15. Risk management - correct answer - The identification and
assessment of risks and the preparation to minimize the impact
of high-risk, unfortunate events.
16. Scenario planning - correct answer - A technique to prepare
and plan for multiple scenarios (either high or low risk).
17. Purchasing power parity (PPP) - correct answer - adjustment
made to the GDP to reflect differences in the cost of living
, Page | 4
18. The bottom billion - correct answer - Concentrated in Africa
and Central Asia - 58 small countries, stuck at the bottom in
terms of growth, incomes and human development
19. Enhance employability & advance career, better preparation
to be expat, competence in interacting with foreign
suppliers/partners/competitors/employees - correct answer -
Why study global business?
20. Formal rules - correct answer - 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
21. Informal rules - correct answer - cultures, ethics, and norms
play an important part in shaping the success and failure of
firms around the globe
