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55 Cards in this Set
- Front
- Back
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What is GNI? |
(Gross National Income) is a measure of income per capita per year |
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What is the GINI index? |
Is a coefficient between 0 and 1 that measures income equality or distribution of a country
- Perfect equality = 0
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What is the GATSBY curve? |
Is the relationship between inequality (GINI) and intergenerational social mobility |
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Why is Emerging Markets important? |
- Advances in technology - Increase in world travel - Trend towards globalization |
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What are some characteristics of an Emerging Market? |
- GNI per capita per year < $10,000 - High birth rate - Low education - Underdeveloped infrastructure - Unstable government - Several languages - Less women in workforce |
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How does WTO and World Bank define Emerging Markets? |
WTO- Self selection criteria World Bank- Life expectancy, literacy, GDP |
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What are some common traits of big Emerging Markets? |
- Physically large - Significant Population - Wide range of products - Strong rate of growth |
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At what income per capita per year do people become brand conscious and at what level do they join the higher income level? |
< $5,000 per year
< $10,000 per year |
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List three International Agencies. What is their purpose? |
Organization for Economic Cooperation & Development (OECD) - Group of developed countries dedicated to promoting economic expansion in its member nations
Organization of Petroleum Exporting Countries (OPEC) - Cartel of 12 petroleum exporting ountries
WTO |
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What is the purpose of WTO? |
- Trade without discrimination - Free trade - Trade should be competitive - Encourage trade for developing countries |
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What is meant by the Bottom of the Pyramid? |
The largest, but the poorest socio-economic group |
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What are some strategies that businesses can be use in the Bottom of the Pyramid? |
- Low price more value - Less features - Bundling - Optimize value addition |
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What are some barriers in BOP markets? |
- High distribution costs - Difficult to penetrate scattered villages remote villages - Unpredictable demand - Mismatch priorities - Local trust and knowledge |
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How do costs change in BOP? |
Higher over all costs |
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What are some of the factors that effect strategies that can be implemented in an EM? |
Leadership- more involved - Socioeconomic-- low formal education - Culture-- high embedded hierarchy
Organizational Structure - More centralized - Collective society
Intraorganizational Structure - Social and relational identities
Learning |
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What are some myths about EM? |
- Are technology backwards - Consumers won't pay premium for brands - Cannot afford technology purchases - Tech. from mature markets will succeed in EM - Consumers focus on products, not services |
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What are some Emerging Markets Trading Blocks? |
Asia - Association of SouthEast Asian Nations (ASEAN) -Asia Pacific Cooperation (APEC)
Africa - Economic Council of West African States (ECOWAS) -Common Market for Easter and Southern Africa (COMESA)
South America - Mercosur (Mercosul) |
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What are the reasons developed countries say EM trade is unfair? |
- Unfair competition, low labour cost - Environmental, low environmental standards - Financial services, low capital/assets - Cultural - Tax, difference in corporate tax |
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What is the French Colonial Pact? List 4 clauses |
The French colonial spans across western Africa.
- 14 countries with the same currency. CFA - Currency is non convertible - 85% income is to be deposited in French banks - Can borrow that money at 20% interest |
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What are some of the arguments in favour of the French Colonial Pact? |
- Corruption - Not trained - Economy will go down - Diseases - We pay taxes |
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What is a Subsidy? |
Financial contribution, provided directly or indirectly by a government, which confers benefit |
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What is the Basel Convention? |
Is an international treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to less developed countries |
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World Bank, IMF, & WTO decision process |
World Bank & IMF - Votes based on shares
WTO - Each country has a vote |
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What are Genetically modified foods? |
Crops created for human/animal consumption using the molecular biology technique to get desired traits |
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What are the benefits of GM foods? |
- Rapid - Accurate - High yield - Low labour - Long shelf-life |
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What are the six main benefits of GM foods? List and describe |
Pest Resistance- less pesticides = less cost Disease Resistance- less disease = less cost Cold Resistance- cold resistance Drought Resistance Nutrition- increased nutrition Pharmaceuticals- edible vaccines |
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Criticism of GM foods |
- Environmental Hazards - Human Health Risks - Economic Concerns |
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Why study tourism? |
- Attain peace and prosperity - Promote understanding and trust - Economic development - Significant demand and consistent growth |
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Why is tourism important now? |
- Exchanging ideas and exploration - Cutting cost on defense - Share culture - Maintain ecosystem |
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What is Ecotourism? |
Travelling to undisturbed or uncontaminated natural areas to study, admire, enjoy |
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What are two international agencies that promote ecotourism? |
-UN Global Environmental Facility (GEF) - US Agency for International Aids |
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What are two types of Ecotourism? List and briefly describe |
Non-consumptive - Does not consume natural resources
Consumptive - Based on renewal if resources (Buying licence to kill elephant) |
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What are some pitfalls of Ecotourism? |
Can be problematic of not managed properly - Ecotourism uproots native people from normal habits - Income does not trickle down - 50% of income goes to airline, hotels, tour operators |
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What are the benefits of Ecotourism? |
Economic - Direct revenue from ecotourists - Direct employment Environmental - Incentive to protect enviroment - Ecotourists assist in habitat enhancement Socio-cultural - Good public relations - Aesthetic/spiritual beliefs - Foster environmental awareness |
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What are the costs of Ecotourism? |
Economic - Start up and ongoing expenses Environmental - Environmental capacity is limited - Difficult to measure impact Socio-cultural - Intrusive - Displacement of local cultures |
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Why do countries participate in Medical Tourism |
- Increase GDP - Upgrade medical facilities - Create jobs - Create more tourism - International relations |
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What is a World Heritage Site? List the qualifications |
A place with outstanding universal value 1. Cultural 2. Man made 3. Natural 4. Ruins |
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What is the UN global compact? |
UN's voluntary corporate initiative that adheres business to certain standards in - Human Rights - Labour Conditions - Environment - Anti-corruption |
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What are the principles of Human Rights? |
1. Support, respect and protect HR
2. Ensure businesses are not complicit in HR abuses |
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What are the principles of Labour Standards? |
1. Uphold freedom of association and right to collective bargaining 2. Elimination of forced and compulsory labour 3. Abolition of child labour 4. Elimination of discrimination in employment and occupation |
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What are the principles of Environment? |
1. Support precautionary approach to environment challenges 2. Initiate to promote environmental responsibility 3. Encourage development and diffusion of environmental friendly technology |
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What is the principle of Ant-corruption? |
Work against all forms of corruption |
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What is the Millennium Development Goals? |
Are the world's time-bound and quantified targets for addressing extreme poverty in its many dimensions-income poverty, hunger, disease, lack of adequate shelter, and exclusion-while promoting gender equality, education, and environmental sustainability |
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What is goal number 8 in the Millennium Development Goals? |
Develop a global partnership for development |
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What does goal number 8 looks to accomplish? |
- Open trading and financial system - Address special needs of developing countries - Address special needs of landlocked countries - Deal with debt problem in developing countries - Provide access to affordable pharmaceuticals |
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What are the contexts of Negligent Consumer Behaviour? |
- Product misuse - Consumption of hazardous products |
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What is Product misuse? |
Injuries resulting from misuse of a safe product |
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What are the types of Misleading Marketings? |
1. Telemarketing Fraud 2. Advertising to Children 3. Deceptive Advertising |
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What are the types of claims? |
1. Search Claim 2. Experience Claim 3. Credence Claim 4. Literal Claim 5. Implied Claim |
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What is a Search Claim? |
A claim that can be evaluated (researched) before purchasing the item |
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What is an Experience Claim? |
A claim can only be discovered by using the product |
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What is Credence Claim? |
A claim cannot be checked even after using the product |
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What is a Literal Claim? |
Most agree on its interpretation |
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What is an Implied Claim? |
Different interpretation to different people |
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What is the Schechter’s Approach? |
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