WGU C211 SECOND OA EXAMPREP TESTED
QUESTIONS AND DETAILED SOLUTIONS
◉ view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist.
Answer: evolutionary
◉ view that claims globalization is swinging from one extreme to
another from time to time.
Answer: pendulum
◉ investment in, controlling, and managing value-added activities in
other countries.
Answer: foreign direct investment
◉ political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms.
Answer: radical
◉ suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
,advantages by specializing in the production of certain goods and
services.
Answer: free market
◉ views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs.
Answer: pragmatic nationalis
◉ what benefits exist to a country receiving FDI?.
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
◉ what costs exist to a country receiving FDI?.
Answer: loss of sovereignty, adverse effects on competition, net
outflow in the capital account
◉ The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit..
Answer: balance of trade
◉ firms with a _____ degree of resource similarity are likely to have
similar competitive actions.
Answer: high
, ◉ a high degree of resource similarity but low market commonality
= _______ intensity of rivalry.
Answer: highest
◉ little resource similarity but high market commonality = _____
intensity of rivalry.
Answer: lowest
◉ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade.
Answer: classical
◉ theory of international trade that relies on more realistic product
life cycles and first mover advantages.
Answer: modern
◉ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage.
Answer: absolute
◉ focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage.
QUESTIONS AND DETAILED SOLUTIONS
◉ view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist.
Answer: evolutionary
◉ view that claims globalization is swinging from one extreme to
another from time to time.
Answer: pendulum
◉ investment in, controlling, and managing value-added activities in
other countries.
Answer: foreign direct investment
◉ political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms.
Answer: radical
◉ suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
,advantages by specializing in the production of certain goods and
services.
Answer: free market
◉ views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs.
Answer: pragmatic nationalis
◉ what benefits exist to a country receiving FDI?.
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
◉ what costs exist to a country receiving FDI?.
Answer: loss of sovereignty, adverse effects on competition, net
outflow in the capital account
◉ The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit..
Answer: balance of trade
◉ firms with a _____ degree of resource similarity are likely to have
similar competitive actions.
Answer: high
, ◉ a high degree of resource similarity but low market commonality
= _______ intensity of rivalry.
Answer: highest
◉ little resource similarity but high market commonality = _____
intensity of rivalry.
Answer: lowest
◉ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade.
Answer: classical
◉ theory of international trade that relies on more realistic product
life cycles and first mover advantages.
Answer: modern
◉ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage.
Answer: absolute
◉ focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage.
