Chapter 5 Emerging Economies

How does a country's economic development influence its participation in global trade?

• Economic development has no effect on trade.
• Low economic development guarantees high trade activity.
• Countries with high economic development are more likely to engage in global trade.
• Higher economic development leads to less trade.

What does GDP stand for, and why is it important in economic development?

• Gross Domestic Price; it indicates consumer spending.
• Gross Domestic Product; it measures a country's total economic output.
• Global Development Plan; it outlines trade agreements.
• General Debt Policy; it assesses national debts.

What is a common characteristic of developed countries?

• They are less involved in global trade.
• They have low GDPs.
• They have high quality of life and GDP.
• They primarily rely on agriculture.

Which of the following countries is considered an emerging economy?

• Germany
• Japan
• Brazil
• Canada

Based on the information provided, what can you infer about the future of emerging economies?

• They will not attract foreign investment.
• They will likely remain stagnant.
• They will always be less competitive than developed countries.
• They have the potential to grow and modernize.

Which of the following statements about emerging economies is accurate?

• They are always stable and secure.
• Emerging economies have no potential for growth.
• They show economic promise by paying off debts and promoting activity.
• Emerging economies are fully developed.

Which of the following is a potential benefit for businesses investing in emerging economies?

• No competition from developed countries.
• Low costs and potential for growth.
• Access to a fully developed market.
• Guaranteed high returns on investment.

How might a country looking to grow its manufactured exports benefit from building a plant in an emerging economy?

• It would not have access to local markets.
• It would face high labor costs.
• It would have to deal with strict regulations.
• It could do so affordably with growth potential.

Which of the following best describes an emerging economy?

• A country that is growing toward becoming more advanced.
• A country that is fully developed and stable.
• A country that only exports raw materials.
• A country that has a low GDP and quality of life.

What is one challenge that emerging economies face when competing with developed countries?

• They are less involved in global trade.
• They have higher GDPs.
• They often lack stability and resources.
• They have more advanced technology.