ACTUAL SUBMISSION PAPER 2026
COMPLETE SOLUTIONS GRADED A+
⩥ BRICA. Answer: Brazil, Russia, India, and China.
⩥ Emerging economies. Answer: term that has gradually replaced the
term "developing countries" since the 1990s.
⩥ Emerging markets. Answer: A term that is often used interchangeably
with "emerging economies."
⩥ Expatriate manager. Answer: A manager who works abroad, or
"expat" for short.
⩥ Foreign direct investment (FDI). Answer: Investment in, controlling,
and managing value-added activities in other countries.
⩥ Global Business. Answer: Business around the globe.
⩥ Globalization. Answer: The close integration of countries and peoples
of the world.
,⩥ Gross domestic product (GDP). Answer: The sum of value added by
resident firms, households, and governments operating in an economy.
⩥ Gross national income (GNI). 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.
⩥ Gross national product (GNP). Answer: GDP plus income from non-
resident sources abroad
⩥ Group of 20 (G-20). Answer: The group of 19 major countries plus
the European Union (EU) whose leaders meet on a biannual basis to
solve global economic problems.
⩥ International business (IB). Answer: (1) A business (or firm) that
engages in international (cross-border) economic activities and/or (2) the
action of doing business abroad.
⩥ International premium. Answer: A significant pay raise when working
overseas.
⩥ Liability of foreignness. Answer: The inherent disadvantage that
foreign firms experience in host countries because of their non-native
status.
,⩥ Multinational enterprise (MNE). Answer: A firm that engages in
foreign direct investment (FDI).
⩥ Nongovernmental organization (NGO). Answer: An organization that
is not affiliated with governments.
⩥ Purchasing power parity (PPP). Answer: A conversion that determines
the equivalent amount of goods and services that different currencies can
purchase.
⩥ Reverse innovation. Answer: An innovation that is adopted first in
emerging economies and is then diffused around the world.
⩥ Risk management. Answer: The identification and assessment of risks
and the preparation to minimize the impact of high-risk, unfortunate
events.
⩥ Scenario planning. Answer: A technique to prepare and plan for
multiple scenarios (either high or low risk).
⩥ Semiglobalization. Answer: A perspective that suggests that barriers to
market integration at borders are high, but not high enough to insulate
countries from each other completely.
⩥ Triad. Answer: North America, Western Europe, and Japan.
, ⩥ Purchasing power parity (PPP). Answer: adjustment made to the GDP
to reflect differences in the cost of living
⩥ The bottom billion. Answer: Concentrated in Africa and Central Asia -
58 small countries, stuck at the bottom in terms of growth, incomes and
human development
⩥ Enhance employability & advance career, better preparation to be
expat, competence in interacting with foreign
suppliers/partners/competitors/employees. Answer: Why study global
business?
⩥ Institution-based view. Answer: A core perspective. Success and
failure of firms are constrained by institutions
⩥ Formal rules. 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
⩥ Informal rules. Answer: cultures, ethics, and norms play an important
part in shaping the success and failure of firms around the globe