Foreign Direct Investment and Purchasing Power Parity: A Vital Correlation

Categories: European Union
Mne
A firm that engages in foreign direct investments
Purchasing power parity is
A conversion that determines the equivalent amount of goods and services that different currencies can buy
What is an important reason to study global business
-Competence in interacting with foreign suppliers, customers and partners
-Expatriate assignments
-Advance career in global economy
The group g20 is
A group of 19 countries plus the European Union whose leaders meet to solve global economic problems
The liability of foreignness Is
The inherent disadvantage that foreign firms experience in host countries because of their non native status
The fundamental question in global business is
What determines the success and failure of firms around the globe
Globalization can be viewed as
-a new force sweeping through the world in recent times
-a long run historical evolution since the dawn of human history
-a pendulum that swings from one extreme to another from time to time
Semi globalization suggests
That there are barriers to market integration at borders which are high but not high enough to insulate countries from each other completely
BRIC countries is an acronym for the emerging of
Brazil , Russia , India and China
The size of the global economy at the beginning the 21st century (measured by total GDP) is ?
60 trillion
What is the difference between the traditional definition if international business and this texts definition of global business?
In many cases, international business refers to domestic firms expanding into international (cross border) economic activities ; here global business also includes domestic firms' strategies for competing against foreign firms entering their home territory.
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Choose the set of counties that are emerging economies
India China Thailand and Malaysia
The global economic pyramid
-Top tier $20,000 one billion ppl
-second tier $2000-$20000 one billion ppl
-base of pyramid <$2000 5 billion ppl
What are some possible benefits to studying global business ?
-expatriate assignments
-more competent to interact with foreign suppliers and partners on behAlf of your company
-depth of understanding of the global economy Will make you more employable
What is the definition of an institution based view of global business
An institution based view suggests the success and failure of firms are enabled and constrained by institutions, also known as the rules of the game, such as regulations , laws, cultures ethics and norms
From an institution based view a governments legal requirement for a business to pay taxes would be an example of
The influence of a formal institutions
What is the definition of a resource-based view of global business
The resource-based view focuses on a firms internal resources and capabilities
Which are the three views of globalization
A recent force a long-running evolution and a pendulum
Imagine you're manufacturing plant gets most of its raw materials from suppliers along the golf coast of the United States however you have alternate suppliers from other parts of the country lined up just in case the golf coast is hit with a devastating hurricane and your suppliers can't deliver the raw goods you have engaged in
Scenario planning
A group of activists known for their objection to globalization is picketing the headquarters of a very large international coffee distributor and retail operation.
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The activist believe this large firm does not pay fair prices to coffee growers in South America and Africa and other developing regions in general they are picketing because of

The extremely large size of the firm. The location of the firm in one of the largest and most affluent countries in the world. And the power the country derives in part from being home to this
A multinational enterprise is a firm that engages in foreign direct investment by directly managing value added activist in other countries
True
The term emerging markets refers to all markets other then developed markets
True
Gross domestic product is the sum of value added by resident firms households and government operating in an economy
True
Majority of the global GDP is contributed by the emerging market
False
Purchasing power parity is a conversion that determines the equivalent amount of goods and services different currencies can purchase
True
Purchasing power parity is calculated as the sum of the value added by resident firms household and government operating in an economy
False
Emerging markets contribute about 26% of global GDP without adjusting for purchasing power parity
True
More than half the GDP produced by emerging markets comes from outside the brick countries
False
On the global economic pyramid the triad refers to the developed economies consisting of North America and Western Europe and Japan
True
All the countries of the brick belong to the top tier of the global economic pyramid
False
Reverse innovations are innovations that are adopted first in the triad base multinationals and then diffused around the world
False
Reverse innovation is an example of bottom up innovation
True
The group G 20 includes the European Union a regional bloc
True
Globalization has driven up the salaries of low level jobs
False
And international premium is a significant pay raise awarded to expatriate employees working abroad
True
Approximately 80 million people worldwide are employed by foreign owned firms
True
Overall the focus on firm performance around the globe defines the field of global business more than anything else
True
Formal institutions include laws regulations and rules
True
The institution based view places emphasis on the external factors that could affect a firm
True
Focusing on a firms internal resources and capabilities is the main emphasis of the resource-based view
True
Liability of foreignness is the inherent disadvantage experienced by foreign firms in host countries because of their non-native status
True
Most opponents of globalization view globalization as a long run historical evolution since trade began
False
According to the pendulum view of globalization globalization is relatively new phenomenon triggered by the information revolution of the early 1990s
False
Scenario planning is a technique to prepare and plan exclusively for high-risk scenarios
False
Standardize Asian of markets would lead to a state of semi-globalization
FAlse
Semi globalization is primarily caused by the practice of total isolation
False
The current state of globalization around the world is that of semi globalization
True
Semi globalization calls for adopting one way of doing business for all conditions
False
The strategy of treating the entire world as one market is known as localization
False
A dragon multinational is a name given to MNEs from emerging markets
True
The term emerging economies has replace the term
Developing countries
The ____is measured as the sum of value added by resident firms households and government operating in an economy
GDP
Become version that determines the equivalent amount of goods and services the different currencies can buy is known as
Ppp
The gross domestic product plus income from nonresident sources abroad gives the ____
Gross national product
Without adjusting for PPP emerging economies contributes about 26% of global GDP adjusting for PPP they now contribute approximately 45% of the global GDP the reason there is a huge difference between the two measures is because
The cost of living in emerging economies tends to be lower than that in developed economies
Which of the following countries would be characterized as an emerging economy
A. Brazil
Which of the following groups is primarily composed of emerging economies
Bric
More than half of all GDP of emerging economies comes from
Bric
People who live in the triad countries comprise ______ of the global economic Peerman
Top tier
Viewing the global economy as a pyramid the triad refers to
North America, Western Europe, and Japan
Which of the following countries is represented in the triad of the global economic pyramid
Japan
Which of the following regions in the global economic pier made would comprise developed nations
The triad
People who ____ a year comprise the base of the economic Paremyd
Less than 2000
Which of the following is true of economies in the base of the global economic pyramid
They are largely ignored MNEs
A blank is defined as an innovation that is adopted first in emerging economies and then diffused around the world
Reverse innovation
Which of the following would be an example of a top-down innovation
A. Lowering prices and features of existing products to meet emerging market needs
B. Launching a product in and for emerging economies
C. Adopting an innovation first in emerging economies and then diffusing it around the world
D. Introducing products from emerging markets into developed market
Answer is a.
Imagine you're manufacturing plant gets most of its raw materials from suppliers along the golf coast of the United States however you have alternate suppliers from other parts of the country lined up just in case the golf coast is hit with a devastating hurricane and your suppliers can't deliver the raw goods you have engaged in
Which of the following would be an example of a product undergoing reverse innovation on the global economic pyramid
Base tier nation to triad nation
Which of the following is true of the group of 20
It only has 19 member countries
Approximately blank people are employed by foreign owned firms throughout the world
80 million
Which of the following does the institution based view of global business lay emphasis on
Understanding the laws and values of the firms host nation
The blank view suggest that the success and failure of firms are largely determined by their environments
Institution based
The blank view of global business focuses on external factors that affect a firm's performance
Institution based
The resource-based view of global business differs from the institution based view of global business in that the resource-based view
Focuses on the internal strengths of the firm
The blank view of global business focuses on internal factors that can help a firm overcome its external environment
Resource base
The liability of foreignness is the inherent disadvantage faced by
Foreign firms in host nations due to their non-native status
Which of the following is true of globalization according to the new force perspective
It is a western ideology focused on exploiting and dominating the world through mne
Which of the following is true of globalization according to the pendulum view perspective
Globalization is not a one directional phenomenon
The blank of globalization suggest that globalization is neither recent Nor one directional
Pendulum view
The concept of blank suggest that barriers to market integration at borders are high, but not high enough to completely insulate countries from each other
Semi globalization
Which of the following is true of semi globalization
It is a type of globalization that lies between total isolation and total globalization
The strategy of treating each country as a unique market and in total isolation is referred to as
Localization
Blank is the strategy of treating the entire world as one market
Standardization
Which of the following would lead to the standardization of world market
Total globalization
Which of the following would be regarded as a dragon MNE
MNE from emerging markets
What is the relationship between gross domestic product and purchasing power parity
Updated: Apr 29, 2023
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Foreign Direct Investment and Purchasing Power Parity: A Vital Correlation. (2017, Dec 21). Retrieved from https://studymoose.com/chapter-one-2-essay

Foreign Direct Investment and Purchasing Power Parity: A Vital Correlation essay
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