1. Health, Inc. is a company that produces low-fat foods in the United States. T
ID: 466736 • Letter: 1
Question
1. Health, Inc. is a company that produces low-fat foods in the United States. The company would like to enter into an international market and has looked into China and India. Company executives are reviewing the pros and cons for both China and India. Which of the following would weaken the argument for entering into the Chinese market?
2. The merchandise trade balance tracks the flow of goods that are imported and exported between the two countries. In 2015, the merchandise trade deficit that the United States ran with China hit a record high of $365,694,000,000, according to the U.S. Census Bureau and the Bureau of Economic Analysis.
Specifically, “The deficit with China increased $22.6 billion to $365.7 billion in 2015…exports decreased $7.5 billion to $116.2 billion and imports increased $15.1 billion to $481.9 billion.”
This large, ongoing imbalance in trade between the two countries has attracted the attention of many American politicians, who worry about the loss of domestic jobs. American consumers, however, benet from the lower prices and increased choices that international trade creates.
Which of the following conclusions is most strongly supported by the prompt?
3. You work for a company that makes televisions mostly in South Korea. The company also has a manufacturing branch in Japan.
Which of the following would be included in South Korea's GNI?
4. In Mexico, Cemex's Patrimonio Hoy program has widened access to cement and other building materials by organizing low-income customers into groups of three families that monitor each other's progress in constructing their own homes and collectively paying off small-scale debts at regular intervals.
Patrimonio Hoy and other Cemex programs have made home ownership a reality for tens of thousands of low-income Mexican families.
This situation describes the contribution of ________ to alleviating global poverty.
5. The tremendous macro-economic performance of China is well known. For the past three decades, multinationals have poured in. After the financial crisis, many companies looked to China for salvation. China’s market is still the world’s most enticing.
Although it accounts for only around 8 percent of private consumption in the world, it contributed more than any other country to the growth of consumption in 2011-13. Firms like GM and Apple have made fat profits there. Now there are worrisome signs that the gold rush is slowing and, some direly forecast, coming to an end.
Some companies are leaving. Revlon said in December 2013 that it was pulling out altogether. L’Oréal, the world’s largest cosmetics firm, said soon afterwards that it would stop selling one of its main brands, Garnier. Best Buy, an American electronics retailer, and Media Markt, a German rival, have already left, as has Yahoo, an internet giant.
Tesco, a British food retailer, has given up trying to go it alone, and entered a joint venture with a state-owned firm. Some of those who are staying are struggling. IBM this week said that revenues in China fell by 23% during the last quarter of 2013. Remy Cointreau, a French drinks group, reported that sales of its Remy Martin cognac fell by more than 30% during the first three quarters of last year because of a plunge in China.
Yum Brands, an American fast-food firm, said in September last year that same-store sales in China had fallen by 16% in the year to date. Indeed, a Sinodependency Index weight American multinationals by their China revenues; Sino-dependent firms used to outperform their peers, but in the past two years their share prices have done worse than others.
Foreign companies that want to stay and succeed in China will have to put in even more effort. Many will have to adjust their strategy for a changing market. A key strategic recommendation would include which of the following:
6. Suppose you are examining the per capita economic figures for China. What is a key point you should keep in mind when reviewing the data and creating an economic profile for China?
7. A European firm wishes to build a high-tech factory in a country in South America. As a rule, the country has been reluctant to allow outside investment, seeing it, at best, a way to simply exploit local labor and, at worse, the form of neocolonialism. However, business leaders in the country are encouraging the government to approve this particular foreign direct investment application.
Which of the following circumstances best explains why local business leaders would strongly encourage government officials to view this application as a particularly positive contribution to the local economy?
8. Economic measurements can be difficult because not all transactions can be easily measured. Which example best shows an activity that is NOT included in the measurements of a nation's transactions?
9. Nestlé has a variety of big data analysts in their headquarters back in Vevey, Switzerland. One enterprising analyst, concurring sales performance of various product lines between different types of countries, notices what appears to be an recurring anomaly that is, even though the GDP per capita reporter for a particular country, might be low to extremely low, sales trends in those markets, such as in Mozambique, Guatemala, Zambia, Cambodia, indicate surprisingly robust demand for basic food products.
Running and rerunning the data doesn’t resolve the problem. In frustration, he consults a colleague, asking what she think might be going on with his data.
His colleague would but probably suggest which of the following explanations to consider as a way to better fit his model to the data.
a. There is an increased cross-national cooperation between countries in Asia and those in the West.Explanation / Answer
Q1) Answer is e. The health food market is considered by many to be nearly saturated in China.
As health food market is considered as saturated in China, it makes little sense for Health Inc. to consider China for its expanion.
Q2) Answer is d. American unemployment is likely to continue to grow in the long term.
Trade deficit would result in more imports from China and less of make in US. This might result in unemployement growth in long term for US
Q3) Answer is e. The sum of incomes from both South Korea and Japan.
Gross National Income is the total domestic and foreign income earned by residents of the country
Q4) Answer is e. microfinance
Microfinance is lending small amounts to low income customers to alleviate poverty.
Q5) Answer is a. Shift from going for raw growth to enhancing operational efficiencies and productivity.
Previously, the growth was based on the overall market growth in China. But now, the firms need to prioritise on enhancing operational efficiencies and productivity and putting more effort to succees.
Q6) Answer is b. Coastal cities are far more economically developed than China's interior
This has to be highlighted in the economic profile to ensure that growth is uniform across China.
Q7) Answer is e. the country can gain access to the firm's technology
As the firm is from high tech industry, the local business leaders would be looking at the value that the firm's entry brings to the country in terms of the new technology.
Q8) Answer is d. Completing volunteer work
Rest all options are associated to either a product or a service purchase whereas volunteer work is difficult to measure.
Q9) Answer is d. It would probably make sense for the analyst aggregate data across types of countries, and the belief that doing so will smooth out the variance
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