Chapter 4

Question 1

Gross National Income (GNI)

Answer 1

/

Question 2

Purchasing Power Parity (PPP)

Answer 2

To account for difference in the cost of living, one can adjust GNI per capita by purchasing power.

Question 3

Human Development Index (HDI)

Answer 3

This was made to measure the quality of human life in different nations.

Question 4

Innovation

Answer 4

This is defined as not just new products, but also new processes. new organizations, new management practices, and new strategies.

Question 5

Entrepreneurs

Answer 5

First, commercialize innovative new products and processes, and entrepreneurial activity provides much of the dynamism in an economy.

Question 6

Deregulation

Answer 6

This involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate.

Question 7

First-mover advantages

Answer 7

This are the advantages that accrue to early entrants into the market.

Question 8

Late-mover disadvantages

Answer 8

This are the handicaps that late entrants might suffer.

Question 9

Political risk

Answer 9

This had been defined as the likelihood that political forces will cause drastic changes in a country´s business environment that adversely affect the profit and other goals of a business enterprise.

Question 10

Economic risk

Answer 10

This can be defined as the likelihood that economic mismanagement will cause drastic changes in a country´s business environment that hurt the profit and other goals of a particular business enterprise.

Question 11

Legal risk

Answer 11

This can be defined as the likelihood that a trading partner will opportunistically break a contract or expropriate property rights.