D270 Final Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Chapter 4 - CORRECT ANSWER
Question 4-1: Transformations such as the comeback of the emerging economies happen
quite rarely. Their infrequency amplifies their impact on our lives. Identify from the case how
your life has changed, or will likely change, given the comeback. - CORRECT
ANSWER My life has changed in the past decade. This technology has exploded and I
can shop on the Internet with my device and buy goods all over the world. I am not sure what
will happen in the future, because these developing countries are developing and the United
States is back. I think things have continued in the past year and I hope they remain like that,
but I still have some uncertainty.
Question 4-2: Now, flip analysis and consider the implications of the possible collapse of
emerging economies to your life. How might it change - CORRECT ANSWER When
emerging economies collapse, investors will move their money to other areas of the world. If
more countries moved their investments into the united states our economy would grow and
we would see many years of great prosperity
International Economic Analysis - CORRECT ANSWER Studying an economic
environment helps managers make better investment choices and operating decisions. Also
resource restraints require managers to identify which countries in the world warrant
investment as well as which countries they should avoid. Managers study a country's
economic environment to assess its development, explain its performance, and estimate its
potential.
Complexity - CORRECT ANSWER models that definitively represent a country's
economic performance and potential as well as work reliably in all types of economic
environments is difficult. Managers struggle with identifying valid measures for economies
and developing relationships seeing trends and analyzing them. Rather than improving
analysis, expanding data streams often make a task harder
Dynamism - CORRECT ANSWER The market is always changing, todays accurate
measures can be inaccurate tomorrow. Evolving circumstances, compounded by disruptive
situations and puzzling trends, generate anomalies and exceptions that convert comebacks
,into collapses. What works in one country may be the opposite of what works in another, for
many different reasons ( cultural, economic, geographical). Managers have been tried and
tested in developed countries to try to adapt to expand into foreign countries. The
characteristics of an economic environment determine which, where, and when each
approach makes sense.
Interdependence - CORRECT ANSWER The consequences of cross-national
connections means that actions here influence outcomes there. Cross- national
interdependencies moderate the forces of supply, demand, and their pricing signals. Adjusting
analysis for actions and reactions across an expanding scope of markets complicates
interpretation.
Emerging Economy - CORRECT ANSWER Nations with social or business activity in
the process of rapid growth and industrialization, Emerging economies exhibit improving
productivity, rising income, and growing prosperity, particularly relative to slower growing
developing economies.
Economic factors affecting business operations - CORRECT ANSWER 1. Type of
Economic environment in terms of its state of development
2. the economic freedom managers have to make investments and run operations
3. The orientation of the economic system that shapes its path of development, performance,
and potential
4. the drivers of economic change, particularly the moderators productivity, innovation, and
competitiveness
Whos who in the global business environment? - CORRECT ANSWER In IB, the
development level of a country is the single most important indicator of who's who. It
influences nearly every aspect of business, including the freedom one has to make effective
and efficient business decisions.
Broad classes of counties include
Developed Countries
Emerging Economies
Developing Countries
, developed countries - CORRECT ANSWER a wealthy country with an advanced
economy. Developed countries have many industries and provide a comfortable way of life
for most of their people.
developing countries - CORRECT ANSWER a country with relatively low levels of
industrialization and income
Developed Economies - CORRECT ANSWER Developed economies generally have
high income levels, extensive industrialzation, advanced techno- logical infrastructure, and
high standard of living.
relies on a broad mix of manufacturing and services to generate high income and deep
wealth.
Five Largest developed countries - CORRECT ANSWER United states, Japan,
Germany, The United Kingdom, and France
Developing Economies - CORRECT ANSWER Developing economies gener- ally
have low income levels, slight industrialization, incom- plete infrastructure, and lower
standards of living.
150 countries
5 largest developing economies - CORRECT ANSWER China, India, Russia,
Indonesia, and Brazil
Poverty - CORRECT ANSWER the state of having little or no money, few or no
material possessions, and limited access to education, health, and community. The worldwide
growth of business activity and economic progress depends on how they can alleviate poverty
The issue of different degrees in development - CORRECT ANSWER developed
countries are a far gap from the lower developing countries
QUESTIONS AND CORRECT ANSWERS
Chapter 4 - CORRECT ANSWER
Question 4-1: Transformations such as the comeback of the emerging economies happen
quite rarely. Their infrequency amplifies their impact on our lives. Identify from the case how
your life has changed, or will likely change, given the comeback. - CORRECT
ANSWER My life has changed in the past decade. This technology has exploded and I
can shop on the Internet with my device and buy goods all over the world. I am not sure what
will happen in the future, because these developing countries are developing and the United
States is back. I think things have continued in the past year and I hope they remain like that,
but I still have some uncertainty.
Question 4-2: Now, flip analysis and consider the implications of the possible collapse of
emerging economies to your life. How might it change - CORRECT ANSWER When
emerging economies collapse, investors will move their money to other areas of the world. If
more countries moved their investments into the united states our economy would grow and
we would see many years of great prosperity
International Economic Analysis - CORRECT ANSWER Studying an economic
environment helps managers make better investment choices and operating decisions. Also
resource restraints require managers to identify which countries in the world warrant
investment as well as which countries they should avoid. Managers study a country's
economic environment to assess its development, explain its performance, and estimate its
potential.
Complexity - CORRECT ANSWER models that definitively represent a country's
economic performance and potential as well as work reliably in all types of economic
environments is difficult. Managers struggle with identifying valid measures for economies
and developing relationships seeing trends and analyzing them. Rather than improving
analysis, expanding data streams often make a task harder
Dynamism - CORRECT ANSWER The market is always changing, todays accurate
measures can be inaccurate tomorrow. Evolving circumstances, compounded by disruptive
situations and puzzling trends, generate anomalies and exceptions that convert comebacks
,into collapses. What works in one country may be the opposite of what works in another, for
many different reasons ( cultural, economic, geographical). Managers have been tried and
tested in developed countries to try to adapt to expand into foreign countries. The
characteristics of an economic environment determine which, where, and when each
approach makes sense.
Interdependence - CORRECT ANSWER The consequences of cross-national
connections means that actions here influence outcomes there. Cross- national
interdependencies moderate the forces of supply, demand, and their pricing signals. Adjusting
analysis for actions and reactions across an expanding scope of markets complicates
interpretation.
Emerging Economy - CORRECT ANSWER Nations with social or business activity in
the process of rapid growth and industrialization, Emerging economies exhibit improving
productivity, rising income, and growing prosperity, particularly relative to slower growing
developing economies.
Economic factors affecting business operations - CORRECT ANSWER 1. Type of
Economic environment in terms of its state of development
2. the economic freedom managers have to make investments and run operations
3. The orientation of the economic system that shapes its path of development, performance,
and potential
4. the drivers of economic change, particularly the moderators productivity, innovation, and
competitiveness
Whos who in the global business environment? - CORRECT ANSWER In IB, the
development level of a country is the single most important indicator of who's who. It
influences nearly every aspect of business, including the freedom one has to make effective
and efficient business decisions.
Broad classes of counties include
Developed Countries
Emerging Economies
Developing Countries
, developed countries - CORRECT ANSWER a wealthy country with an advanced
economy. Developed countries have many industries and provide a comfortable way of life
for most of their people.
developing countries - CORRECT ANSWER a country with relatively low levels of
industrialization and income
Developed Economies - CORRECT ANSWER Developed economies generally have
high income levels, extensive industrialzation, advanced techno- logical infrastructure, and
high standard of living.
relies on a broad mix of manufacturing and services to generate high income and deep
wealth.
Five Largest developed countries - CORRECT ANSWER United states, Japan,
Germany, The United Kingdom, and France
Developing Economies - CORRECT ANSWER Developing economies gener- ally
have low income levels, slight industrialization, incom- plete infrastructure, and lower
standards of living.
150 countries
5 largest developing economies - CORRECT ANSWER China, India, Russia,
Indonesia, and Brazil
Poverty - CORRECT ANSWER the state of having little or no money, few or no
material possessions, and limited access to education, health, and community. The worldwide
growth of business activity and economic progress depends on how they can alleviate poverty
The issue of different degrees in development - CORRECT ANSWER developed
countries are a far gap from the lower developing countries
