Dushkina Yuliya
AMM 260.5096
Homework #2.
1. The Triad – a group of countries (Japan, the European Union, and the United States).
The Quad – the Triad plus Canada.
They are important to international business because those are highly developed
countries and much of the world's current economy is concentrated over there.
2. Differences in income levels and income distribution among countries affect
international business in terms of country's ability and desirability to international
business. For example, a country with high income level has much more investing
and purchasing power than the one with low income.
3.The U.S.A. play the vital role in the world economy. It possesses the largest economy
in the world. Also it has the world's third largest population and fourth largest land
mass. Although our country accounts for about one-eighth of world trade in goods
and services, international trade is a relatively small component of the U.S. economy.
Its exports of goods and services in 2005 totaled $1.3 trillion but were only 10.4
percent of GPD.
4. MITI has used its formal and informal powers to guide the production and investment
strategies of Japanese corporate elite.
5. Keiretsu – large families of interrelated companies that control Japanese industry.
6. South Korea, Taiwan, Singapore and Hong Kong are collectively known as the “Four
Tigers”. They are important to international businesses because they are the world's
most rapidly industrializing countries whose economic policies focus on export
promotion and reexporting.
7. Chaebol are large, privately owned, and family centered conglomerates that dominate
the Korean economy.
8. The role of natural resources and agriculture is very important in Africa's economy.
The export of natural resources is a vital part of GPD for such countries as Angola,
Gabon, Algeria and Libya. For the other countries, agriculture products are their main
exports (Ivory Cost, Rwanda, Gambia, Mozambique, Sierra Leone).
9. Import substitution policies had weakened the economies of Brazil and Argentina.
They caused a budget deficit of those countries, which led to inflation and destruction
of middle-class savings.