Exam 4: Economic Systems and Development

Gross domestic product figures ________.

Scenario: Learning the American Way Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States. -Sergei knows that the key to a market economy is leaving nearly all economy-related decisions to the interplay of ________.

Transition replaces a people's dependence on government with greater reliance on social welfare and unemployment benefits.

Government can help control inflation through which of these?

Nations that have the poorest infrastructures and lowest personal incomes are called ________ countries.

All of the following comprise the ultimate goal of a mixed economy EXCEPT ________.

When we combine newly industrialized countries with those countries that have the potential to become newly industrialized, we arrive at a category often called developed countries.

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n) ________.

Nations are commonly classified as being either developed, newly industrialized, or developing.

Explain why many mixed economies are converting to market-based systems.

Monetary policy deals with taxation and government spending, whereas fiscal policy deals with controlling interest rates.

The value of all goods and services produced by the domestic economy over a one-year period is called ________.

Canada and the United States are examples of contemporary market economies.

In most failed centrally planned economies, ________.

Technological dualism occurs when a country uses the latest technologies in its economy but exports outdated technologies to developing countries.

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. -Should we avoid discussing our families and spouses?

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. -When should we expect to actually conduct business?

Explain what a market economy is and what it requires to function smoothly.

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. -Russia is an economy in transition from ________.

Guanxi is the Chinese term for "personal relationships."