ch.9,10,11

Question 1

The stage of economic growth?

Answer 1

1-Affects the attitudes toward foreign business activity
2– The demand for goods
3– The distribution systems found within a country
4– The entire marketing

Question 2

The United Nations groups countries into three
categories

Answer 2

1– MDCs (more-developed countries) – USA, Japan, Germany …
2– LDCs (less-developed countries) – Latin America, Asia …
3– LLDCs (Land-locked Developing Countries) – Central Africa, Ethiopia

Question 3

Newly Industrialized Countries (NICs)

Answer 3

– Turkey, South Korea
– Countries that are experiencing rapid economic expansion and
industrialization
– Do not exactly fit as LDCs or MDCs
– Have moved away from restrictive trade practices
– Instituted significant free market reforms

Question 4

Infrastructure and Development

Answer 4

1- Infrastructure represents those types of capital goods that serve the activities of many industries
2- The quality of an infrastructure directly affects a country’s economic growth potential
3-The less developed a country is – the less adequate the infrastructure is for conducting business

Question 5

Economic growth factors for NICs?

Answer 5

1-Political stability in policies affecting their development
2-Economic and legal reforms
3-Entrepreneurship
4– Planning
5– Outward orientation
6– Factors of production
– Land, Labor, Capital, & Technolgy

Question 6

Industrialization

Answer 6

is the fundamental objective of
most developing countries

Question 7

Privatization

Answer 7

is currently a major economic
phenomenon in industrialized as well as in
developing countries

Question 8

Demand in a developing country

Answer 8

– Three distinct kinds of markets in each country
► Traditional Rural/Agricultural Sector.
► Modern Urban/High-Income Sector.
► Transitional Sector Usually Represented By Low-Income Urban Slums

Question 9

Emerging Nations?

Answer 9

growing rapidly and becoming more important on the
world economic stage

Question 10

Developing Nations?

Answer 10

struggling in comparison and still need help

Question 11

Emerging Countries?

Answer 11

high levels of
economic development, usually with rapid
industrialization.

Question 12

developing countries?

Answer 12

no longer rely primarily on agriculture, have made impressive gains in infrastructure and industrial growth,
and are experiencing increasing incomes and quick economic growth

Question 13

Big Emerging Markets (BEMs) share important traits?

Answer 13

1. Are all geographically LARGE
2. Have a significant POPULATIONS (>=5MILLION)
3. Represent considerable markets for a wide range of products – market SIZE
4. Have strong rates of GROWTH or the potential for significant growth
5. Have undertaken significant programs of ECONOMIC REFORM

Question 14

The IMF World Economic Outlook classifies 39 economies as “advanced,” based on factors as:

Answer 14

• High Per Capita Income
• Exports of Diversified Goods and Services
• Greater Integration into The Global Financial System

Question 15

Big Emerging Markets
Two Countries Were Excluded:

Answer 15

Nigeria because of its classification as a low-income country
- Qatar because of its population of less than 5 million

Question 16

Business Index covers 12 regulation areas affecting business:

Answer 16

1.Starting a business
2. Dealing with construction permits
3. Getting electricity
4. Registering property
5. Getting credit
6-Employing workers
7- Protecting minority investors

Question 17

As a country develop

Answer 17

1– Incomes change
2– Population concentrations shift
3– Expectations for a better life adjust to higher standards
4– New infrastructures evolve
5– Social capital investments made