Ch. 5 - Economic Development of Nations

Which of the following is a true statement about economic development?

It refers to an increase in economic well-being, quality of life, and general welfare of a nation's people.

Which of the following is a highly industrialized and highly efficient country, and whose people enjoy a high quality of life?

Advanced country

Which of the following sets of countries can be classified as emerging markets?

Brazil, India, and Mexico

A developing country is a nation that

has low-quality infrastructure and low personal income.

Transactions hidden from authorities for monetary, regulatory, or institutional reasons are commonly included in

the shadow economy.

Which of the following is a definition of purchasing power?

Value of goods and services that can be purchased with one unit of a country's currency

An advantage of the human development index over purchasing power parity is that it

is a good indicator of a people's total well-being.

Government instability, military in government, and changing laws are traditional forms of

political risk.

Micro and macro are two categories of

political risk.

Which of the following is a forced transfer of assets to the government without compensation?

Confiscation

Which of the following is a forced transfer of assets to the government with compensation?

Expropriation

Government takeover of an entire industry is called

nationalization.

Forcing companies to use local raw materials, use parts from local suppliers, or employ local workers are examples of

local content requirements.

The three main methods of managing political risk include

adaptation, information gathering, and political influence.

Partnerships, localization, development assistance, and insurance are methods of

adaptation.

Which of the following describes the adaptation method of reducing political risk?

Incorporating risk into business strategies

An individual who meets with a public official to influence their position on specific issues is called a(n)

lobbyist.

Which of the following do favorable political relations help achieve?

Expand business opportunities, lower risk, and promote economic development

Which of the following was formed in the mid-1900s to foster peace and stability around the world?

United Nations

Economic transition is the process by which a nation changes its fundamental economic organization and

creates new free-market institutions.

One positive result of economic transition is the development of

higher-quality management practices.

Some of the troubles of South Korean automobile manufacturer, Daewoo, in Central Europe were rooted in

cultural differences.

China's development program to build reliable trade routes across Asia and into Africa is called the

Belt and Road Initiative.

Whereas China experimented with private ownership beginning in the late 1970s, Russia

remained staunchly communist until the 1980s.

If Russia wishes to attract international companies, it must, at a minimum,

become more peaceful, enact pro-business laws, and safeguard property rights.