Introduction to IB chapter `1

Question 1

Foreign direct investment (FDI)

Answer 1

Investments in, controlling and managing value-added activities in other countries

Question 2

Emerging economies

Answer 2

Recently established institutional frameworks that facilitate international trade and investment

Question 3

GDP (gross domestic product)

Answer 3

the sum of value added by resident firms, households and governments operating in an economy

Question 4

Gross national product (GNP)

Answer 4

GDP + income from nonresident sources abroad

Question 5

Gross national income (GNI)

Answer 5

Same thing as GNP. it is the term used by the world bank and other international organizations to supersede the term GNP

Question 6

Purchasing power parity (PPP)

Answer 6

Conversion that determines the equivalent amount of goods and services different currencies can purchase. Usually used to capture differences in cost of living in different countries

Question 7

Triple bottom line

Answer 7

Performance along economic, social and environmental dimensions

Question 8

Liability of outsidership

Answer 8

disadvantage that outsiders experience in a new environment because of their lack of familiarity

Question 9

Industry 4.0 (4th industrial revolution)

Answer 9

Disruptions of operations and supply chains through advances in digital technologies

Question 10

Liberalization

Answer 10

Removal of regulatory restrictions on business

Question 11

Cosmopolitan

Answer 11

People embracing cultural diversity and the opportunities of globalization