C211 Global Economics for Managers Practice Questions - Set 1 - Part 1

Test your knowledge of Global Economics for Managers concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: Which economic term refers to economies where people make less than $2,000 per capita per year?

a) Emerging markets

b) Bottom of the pyramid (BOP)

c) Developing economies

d) Triad

Question 2: Which countries are referred to by the acronym 'BRICA'?

a) Brazil, Russia, India, China, and Argentina

b) Brazil, Russia, India, Canada, and Australia

c) Brazil, Russia, India, China, and South Africa

d) Brazil, Russia, India, China, and Mexico

Question 3: What term has gradually replaced 'developing countries' since the 1990s?

a) Less developed countries

b) Emerging markets

c) Transitional economies

d) Low-income economies

Question 4: What is the term for a manager who works abroad?

a) Foreign manager

b) International manager

c) Expatriate manager

d) Global manager

Question 5: Which measure includes GDP plus income from non-resident sources abroad?

a) Gross National Income (GNI)

b) Gross National Product (GNP)

c) Gross Domestic Product (GDP)

d) Net National Product (NNP)

Question 6: What does the 'Group of 20' (G-20) represent?

a) 20 major developing economies

b) 20 largest economies in the world

c) 19 major countries plus the European Union

d) 20 countries focused on trade agreements

Question 7: What term refers to an inherent disadvantage that foreign firms experience in host countries because of their non-native status?

a) Expatriate liability

b) Liability of foreignness

c) Foreign market risk

d) Country risk disadvantage

Question 8: What theory suggests that barriers to market integration at borders are high but not high enough to completely insulate countries from each other?

a) Globalization theory

b) Full market integration theory

c) Semiglobalization theory

d) Trade liberalization theory

Question 9: What are the three modern trade theories?

a) Mercantilism, Absolute Advantage, Comparative Advantage

b) Product Life Cycle, Strategic Trade, Diamond

c) Classical Trade, Modern Trade, Dynamic Trade

d) Free Trade, Protectionism, Strategic Trade

Question 10: What theory suggests that governments should intervene in strategic industries to enhance competitiveness?

a) Free Trade Theory

b) Strategic Trade Theory

c) Comparative Advantage Theory

d) Mercantilism

Question 11: Which of the following is a risk associated with unauthorized diffusion of firm-specific knowledge?

a) Dissemination risk

b) Expropriation risk

c) Piracy risk

d) Sovereign risk

Question 12: What term describes the integration of countries and peoples around the world?

a) Globalization

b) Internationalization

c) Trade liberalization

d) Economic integration

Question 13: Which law prohibits exporting goods below cost with the intention of driving local competitors out of business?

a) Anti-dumping law

b) Antitrust law

c) Trade restriction law

d) Competitive pricing law

Question 14: What is the measure of the price level calculated as the ratio of nominal GDP to real GDP?

a) GDP Deflator

b) Consumer Price Index (CPI)

c) Producer Price Index (PPI)

d) Real Price Index (RPI)

Question 15: What theory is credited with being the forerunner of modern protectionism?

a) Mercantilism

b) Absolute Advantage

c) Comparative Advantage

d) National Competitive Advantage

Question 16: What advantage do firms enjoy when they are first to enter a market?

a) Late-mover advantage

b) First-mover advantage

c) Absolute advantage

d) Strategic advantage

Question 17: What is the economic condition in which a nation imports more than it exports?

a) Trade surplus

b) Trade deficit

c) Balanced trade

d) Negative balance of trade

Question 18: What does the 'current account' include?

a) Balance of trade, net factor income, and net unilateral transfers

b) Balance of trade and capital transfers

c) Net factor income and currency flows

d) Trade surplus and national income

Question 19: Which type of vertical FDI involves a firm engaging in a downstream stage of the value chain?

a) Horizontal FDI

b) Upstream vertical FDI

c) Downstream vertical FDI

d) Conglomerate FDI

Question 20: What refers to the inherent disadvantage foreign firms experience due to their non-native status in a host country?

a) Liability of foreignness

b) Expatriate risk

c) Foreign market disadvantage

d) Country-specific risk

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