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1) Explain how a countrys gross domestic product (GDP) is changed after adjusting for
purchasing power parity (PPP).
2) Identify the basic characteristics of formal and informal institutions.
3) Lehman Brotherss most valuable assets were its talents.
4) A large number of individuals and companies exchanging domestic currencies for US
dollars in order to exit their home country is referred to as capital flight.
5) Ethnocentrism is the quality of a society that perceives its own culture, ethics, and
norms as natural, rational, and morally right.
6) FDI creates jobs both directly and indirectly.
7) A multinational enterprise is a firm that engages in foreign direct investment by
directly investing in, controlling, and managing value-added activities in other
countries.
8) Discuss the characteristics of the modern theories of international trade.
9) South Africa, South Korea, Taiwan, and most Latin American countries practice
communist totalitarianism.
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