D270 Final Davis Exam Questions With 100% Correct Answers

D270 Final Davis Exam Questions With 100% Correct Answers Q.Economic freedom leads to - ANSWER-Higher standard of living Q.Why study the economic environment? - ANSWER-Economic systems shape a market Better investment choices Operating decisions Policy decisions Better returns / less risk Q.Developed Economies - ANSWER-Efficient capital movement Stable institutions Infrastructure International trade and investments Technology Higher economic freedom Higher political freedom Rule of law Q.Developing Economies - ANSWER-Uneven Corruption Lower incomes Resistance to foreign ownership Lower literacy levels, poverty Lower economic freedom Lower political freedom Rule of man Q.Emerging Economies - ANSWER-Accelerating growth Modernizing Market liberalization Exports FDI Middle class, expanding consumption Pro business Higher economic freedom Higher/unchanged political freedom Moving towards rule of law Lower cost resources Productive labor Q.G20 Countries - ANSWER-Premier international forum for global economic cooperation 86% of world economy 78% of global trade 66% of world's population More than half of world's poor Some emerging countries Q.Commonalities of Big Emerging Markets (BEMs) - ANSWER-Territory Population Natural Resources, Increased consumption Liberalization - FDI Infrastructure needs Aspirations of technological leadership Political influence Q.Emerging Economies at a glance - ANSWER-Almost 6 billion people Account for 50% of global GDP Account for 50% of global exports Contributed to huge reduction in global poverty Contributed 80% of global growth since 2008 financial crisis (helping save jobs in advanced countries) China is now 1st or 2nd largest trading partner for 78 countries Q.Big challenges for IB - ANSWER-Communication, power generating, transportation infrastructure Distribution channels Financial markets Volatility Problems finding/working with suitable business partners Gov't involvement & control Corruption