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ViewsfonfGlobalizationf-fCORRECTfANSWER-
New,fEvolutionary,fandfPendulum
"New"fviewfonfglobalizationf-fCORRECTfANSWER-
Afforcefsweepingfthroughfthefworldfinfrecentftimes.
"Evolutionary"fviewfonfglobalizationf-fCORRECTfANSWER-
Aflong-runfhistoricalfevolutionfsincefthefdawnfoffhumanfhistory
❖ "Pendulum"fviewfonfglobalizationf-fCORRECTfANSWER-
Onefthatfswingsffromfonefextremeftofanotherffromftimeftoftime
ForeignfDirectfInvestmentf-fCORRECTfANSWER-
Directfinvestmentfin,fcontrol,fandfmanagementfoffvalue-
addedfactivitiesfinfotherfcountries
PoliticalfviewsfonfFDIf-fCORRECTfANSWER-
RadicalfView,fFreefMarketfView,fPragmaticfNationalism
BenefitsftofafcountryfreceivingfFDIf-fCORRECTfANSWER-
CapitalfInflow,fTechnologyfSpillover,fAdvancedfManagementf
Know-How,fJobfcreation
, CostsftofafcountryfreceivingfFDIf-fCORRECTfANSWER-
LossfoffSovereignty,fAdversefeffectsfonfcompetition,f
❖ Capitalfoutflow.
Howfdofresourcesfandfcapabilitiesfinfluencefthefcompetitivefdy
namicsfoffafbusiness?f-fCORRECTfANSWER-
Resourcefsimilarityfandfmarketfcommonalityfcanfyieldfafpower
fulfframeworkfforfcompetitorfanalysis.
Resourcefsimilarityf-fCORRECTfANSWER-
Thefextentftofwhichfafgivenfcompetitorfpossessesfstrategicfendo
wmentfcomparable,finftermsfoffbothftypefandfamount,ftofthosef
offtheffocalffirm.
Howfdoesfresourcefsimilarityfimpactfcompetitivefdynamics?f-
fCORRECTfANSWER-
Firmsfwithfafhighfdegreefareflikelyftofhavefsimilarfcompetitivefa
ctions.f(Starbuck'sfinstantfcoffeef&fMcDonald'sficedfcoffee)
❖ Classicalftheoriesfoffinternationalftradef-
fCORRECTfANSWER-
Mercantilism,fAbsolutefadvantage,fandfComparativefadvantag
e
Modernftheoryfviewf-fCORRECTfANSWER-Dynamic
❖ Classicalftheoryfviewf-fCORRECTfANSWER-Static
❖ Absolutefadvantagef-fCORRECTfANSWER-
Thefeconomicfadvantagefonefnationfenjoysfthatfisfsuperiorftofo
therfnations
, Comparativefadvantagef-fCORRECTfANSWER-
Thefadvantagefonefeconomicfactivityfnationfenjoysfinfcomparis
onfwithfotherfnationsf(relative,fnotfabsolute)
Mercantilismf-fCORRECTfANSWER-
Aftheoryfthatfsuggestsfthatfthefwealthfoffthefworldfisffixedfandfth
atfafnationfthatfexportsfmorefandfimportsflessfwillfbefricher.
Featuresfoffthefproductflifefcycle?f-fCORRECTfANSWER-
New,fMaturing,fandfStandardized
❖ Strategicftradef-fCORRECTfANSWER-
Interventionfbyfgovernmentsfinfcertainfindustriesfcanfenhanceft
heirfoddsfforfinternationalfsuccess.
Howfarefsupplyfandfdemandfrelatedftofthefexchangefratefoffafco
untry?f-fCORRECTfANSWER-
Thefpricefoffafcommodity,fafcountry'sfcurrency,fisffundamental
lyfdeterminedfbyfthis.fStrongfdemandfleadsftofpricefhikes;fovers
upplyfresultsfinfpricefdrops.
Whichftheoryfcameffirst?f-fCORRECTfANSWER-
Mercantilismf(althoughfbothfarefoffthefideafthatfgovernmentsfs
houldfactivelyfprotectfdomesticfindustriesffromfimportsfandfvig
orouslyfpromotefexports)
Iffafcompanyfseeksftoflimitfforeignfexchangefratefexposurefinfth
efforwardfdirection,fwhatfisfthefmostfeffectivefwayftofdofthis?f-
fCORRECTfANSWER-
Forwardftransactions,fanfactfknowfasfcurrencyfhedging.