Exam 3: Economic and Other Related Environmental Variables

Euromoney uses a single factor in its ranking of countries.

In a centrally planned economy, private companies own and control resources.

In conducting country risk analysis, international companies consider those factors that expose them to various types of risks, including financial losses.

A country's economic activity is measured through sales of goods and services.

Scenario analysis assumes that

Inflation is defined as a change in a country's energy costs.

What is underground economy?

The micro competitive environment deals with

A strong manufacturing base is the reason for the success of the U.S. economy.

An economic system explains how a country allocates its resources.

Real interest rates are obtained by adding the rate of inflation to the nominal interest rate.

A market-based economy is more receptive to foreign companies and foreign investments.

Using GNI per capita, the World Bank classifies countries as upper class, middle class, and lower class.

What is scenario analysis? How do international companies make use of scenario analysis?

The current account in the balance of payment is made up of

Long-term inflation is caused by

The economic activities of a country is measured by

How important is the competitive environment?

Why is the economy of a country a critical environmental variable?

The 2008 financial crisis is a result of the credit crunch that followed a collapse in the U.S. mortgage-backed securities.