INTB 3355 MODULE 7 HOMEWORK EXAM QUESTIONS
AND ANSWERS
/.When a firm enters overseas markets, economic analyses become more complex
because now managers must operate in two new environments: domestic and
international. - Answer-✅False; When a firm enters overseas markets, economic
analyses become more complex because now managers must operate in two new
environments: foreign and international.
/.When conducting international economic analyses, it is usually the responsibility of the
local subsidiary to collect data and prepare reports. - Answer-✅False; The collection of
data and the preparation of reports are usually the responsibility of the home office.
/."Developing" is the term given to the world's lowest-income nations, which are
technically undeveloped. - Answer-✅False; Both low- and middle-income economies
are referred to as developing economies.
/.Socioeconomic data provide information on the number of people, and the economic
data tell us if they have purchasing power. - Answer-✅True; Socioeconomic data
provide information about the number of people, and the economic dimensions tell us
whether they have purchasing power.
/.Gross national income (GNI) is the total value of all goods and services produced by a
nation's residents from domestic activity as well as the income generated from abroad -
Answer-✅True; GNI is a measure of the total value of all income generated by the
residents of a nation, including both the domestic production of goods and services and
income generated from abroad, mainly through dividends and interest payments, minus
similar payments made to other countries.
/.Frequently, given the choice between investing in a nation with a lower GNI/capita but
a high growth rate, and a nation in which the conditions are reversed, management will
choose the former. - Answer-✅True; Frequently, given the choice between investing in
a nation with a lower GNI/capita but a high growth rate, and a nation in which the
conditions are reversed, management will choose the former. The rate of growth may
be more important to marketers because a high growth rate indicates a fast-growing
market—which is always desirable.
AND ANSWERS
/.When a firm enters overseas markets, economic analyses become more complex
because now managers must operate in two new environments: domestic and
international. - Answer-✅False; When a firm enters overseas markets, economic
analyses become more complex because now managers must operate in two new
environments: foreign and international.
/.When conducting international economic analyses, it is usually the responsibility of the
local subsidiary to collect data and prepare reports. - Answer-✅False; The collection of
data and the preparation of reports are usually the responsibility of the home office.
/."Developing" is the term given to the world's lowest-income nations, which are
technically undeveloped. - Answer-✅False; Both low- and middle-income economies
are referred to as developing economies.
/.Socioeconomic data provide information on the number of people, and the economic
data tell us if they have purchasing power. - Answer-✅True; Socioeconomic data
provide information about the number of people, and the economic dimensions tell us
whether they have purchasing power.
/.Gross national income (GNI) is the total value of all goods and services produced by a
nation's residents from domestic activity as well as the income generated from abroad -
Answer-✅True; GNI is a measure of the total value of all income generated by the
residents of a nation, including both the domestic production of goods and services and
income generated from abroad, mainly through dividends and interest payments, minus
similar payments made to other countries.
/.Frequently, given the choice between investing in a nation with a lower GNI/capita but
a high growth rate, and a nation in which the conditions are reversed, management will
choose the former. - Answer-✅True; Frequently, given the choice between investing in
a nation with a lower GNI/capita but a high growth rate, and a nation in which the
conditions are reversed, management will choose the former. The rate of growth may
be more important to marketers because a high growth rate indicates a fast-growing
market—which is always desirable.
