Exam 4: Economic Systems and Development

Learning the secrets of good ________ is extremely important for success in China.

The price mechanism dictates supply and demand in a market economy.

Incentives and rewards for individual business initiatives are an important component of collectivist cultures.

Scenario: Cleanshot USA in Russia When Cleanshot USA, a photography products company, decided to enter the international arena it chose Russia as its main market. Although Russia has been in transition for years, Cleanshot believes it has tremendous opportunities there. -A challenge that Cleanshot may face in Russia is ________.

A country's level of economic development reflects all of the following EXCEPT its ________.

________ policies are used to control the money supply and interest rates.

Scenario: Stephanie Wong Chinese-American Stephanie Wong owns a consulting business that advises clients as they expand into China. Wong is preparing to lead a symposium on entering China for small and mid-sized exporters and is preparing by answering the following questions that symposium participants might ask. -What is more important, contacts or contracts?

At the time of their collapse, the standard of living in most centrally planned economies was at or above that of market economies.

In a centrally planned economy, government determines who produces what and the prices of ________, ________, and ________.

________ cultures tend to offer few incentives and rewards for individual initiatives.

One factor that contributed to the collapse of centrally planned economies is the failure to create political value.

________ is the value of goods and services that can be purchased with one unit of a country's currency.

If GDP per capita at PPP is lower in country X as compared with country Y, it costs more to buy the same basket of goods in country Y than it does in country X.

Entrepreneurs are businesspeople who accept the risks and opportunities involved in creating and operating new business ventures.

Who popularized the idea of central economic planning?

Volunteer work and unpaid household work are both counted in GNP and GDP.

Purchasing power parity is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries.

Many companies seeking partnerships in China overlook the importance of personal relationships.

Discuss the importance of economic development for international business.

In less advanced countries, coastal regions are usually more developed than interior regions.