GLOBAL ECON CHAPTER 1 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
What is an International Business - ✔✔• Business (firm) that engages in
international (cross-border) economic activities or the action of doing business
abroad
What is Global Business - ✔✔• Business around the globe including both
international (cross-border) activities and domestic business activities
What is a Multinational Enterprise (MNE) - ✔✔• A firm that engages in foreign
direct investments
What are Foreign Direct Investment (FDI) - ✔✔• Investments in, controlling, and
managing value-added activities in other countries
, Global business also addresses: - ✔✔• Domestic firms competing and/or
collaborating with foreign entrants
Global business in not limited to: - ✔✔• Firms competing in developed
economies
What are Emerging Economies (emerging markets) - ✔✔• A term that has
gradually replaced the term "developing countries" since the 1990s
What is Gross National Product (GNP) - ✔✔• Measured as the sum of value
added by resident firms, households, and government operating in an economy
What is Gross Domestic Product (GDP) - ✔✔• Total market value of all final
goods and services produced within a country in a given period of time usually a
calendar year
What is Gross National Income (GNI) - ✔✔• GDP plus income from nonresident
sources abroad - the term used by the World Bank and other international
organizations to supersede the GNP term
What is Purchasing Power Parity (PPP) - ✔✔• Adjustment made to the GDP to
reflect differences in the cost of living
What is the TRIAD - ✔✔• North America, Western Europe, and Japan
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
What is an International Business - ✔✔• Business (firm) that engages in
international (cross-border) economic activities or the action of doing business
abroad
What is Global Business - ✔✔• Business around the globe including both
international (cross-border) activities and domestic business activities
What is a Multinational Enterprise (MNE) - ✔✔• A firm that engages in foreign
direct investments
What are Foreign Direct Investment (FDI) - ✔✔• Investments in, controlling, and
managing value-added activities in other countries
, Global business also addresses: - ✔✔• Domestic firms competing and/or
collaborating with foreign entrants
Global business in not limited to: - ✔✔• Firms competing in developed
economies
What are Emerging Economies (emerging markets) - ✔✔• A term that has
gradually replaced the term "developing countries" since the 1990s
What is Gross National Product (GNP) - ✔✔• Measured as the sum of value
added by resident firms, households, and government operating in an economy
What is Gross Domestic Product (GDP) - ✔✔• Total market value of all final
goods and services produced within a country in a given period of time usually a
calendar year
What is Gross National Income (GNI) - ✔✔• GDP plus income from nonresident
sources abroad - the term used by the World Bank and other international
organizations to supersede the GNP term
What is Purchasing Power Parity (PPP) - ✔✔• Adjustment made to the GDP to
reflect differences in the cost of living
What is the TRIAD - ✔✔• North America, Western Europe, and Japan
