C211 PRE-ASSESSMENT QUESTIONS
AND ANSWERS
Onetviewtoftglobalizationtclaimstthatthumantcivilizationthastalwaysthadtsomettypeto
ftglobalization.tWhichtviewtistit?t-tans-1.tThetlong-
runthistoricaltview*t(*tmeanstanswer)
2.tThetpendulumtview
3.tThetbusiness-over-culturetview
4.tThetunique-roletview
Thetbenefittattributedttotfirmstthattentertatmarkettbeforetothertfirmstintthetsametmar
kettsegmenttistbesttdescribedtbytwhichtterm?t-tans-1.tFirst-movertadvantage*
2.tTradetadvantage
3.tabsolutetadvantage
4.tscaletadvantage
Whattistopportunitytcost?t-tans-
1.tThetlosttpotentialtfromtpursuingtonetactivitytattthetexpensetoftanothertactivity,tgiv
entthetalternativest*
2.tThetextentttotwhichtdifferenttcountriestpossesstvarioustfactorstoftproductiontsucht
astlabor,tland,tandttechnology
3.tAtgovernmenttpaymentttotatdomestictfirm
4.tatnettlosstthattoccurstintanteconomytastatresulttofttariffs
Thetextentttotwhichtdifferenttcountriestpossesstvarioustfactorstoftproductiontsuchtas
tlabor,tland,tandttechnologyt-tans-1.tInternalizationtadvantages*
2.tLitigationtadvantages
3.tInternationaltcompetitiontadvantages
4.tOnlinetbusinesstadvantages
IntwhichtsituationtistthetdodgertstrategytappropriatetfortrespondingttotMNEs?t-tans-
1.tTheretisthightindustrytpressurettotglobalize,tandtcompetitivetassetstaretcustomize
dttothometmarkets.*
2.tTheretistlowtindustrytpressurettotglobalize,tandtcompetitivetassetstarettransferabl
etabroad
3.tTheretistlowtindustrytpressurettotglobalize,tandtcompetitivetassetstaretcustomized
ttothometmarkets
4.tTheretisthightindustrytpressurettotglobalize,tandtcompetitivetassetstarettransferab
letabroad
, Whattaretthreetcharacteristicstoftindustriestprimedtfortcollusion?t-tans-
1.tatsmallertnumbertoftrivals
2.tatpricetleader
3.thomogeneoustproducts
4.tlowtmarkettcommonality
5.tlowtortnotentrytbarriers
Whattaret2tweaknessestoftthettheorytoftmercantilismt-tans-
1.tThettheorytleadsttotinefficienttallocationtoftresources*
2.tApplicationtoftthettheorytreducestthetwealthtoftthetnationtintthetlongtrun*
3.tthettheorytinvitestalltkindstoftindustriesttotclaimttheytaretstrategic
4.twhentonetnationtistabsolutelytinferiorttotanother,tthettheorytistunablettotprovideta
nytadvice
5.tThettheorythastnottbeentcomprehensivelyttested
6.tmanytnewtproductstaretnowtlaunchedtsimultaneouslytaroundtthetworld
Whattistthetbandwagonteffect?t-tans-
1.tThetmovementtoftinvestorstintthetsametdirectiontattthetsamettime*
2.tAttheorytsuggestingtthattthetpricetfortidenticaltproductstsoldtintdifferenttcountriest
musttbetthetsametintthetabsencetofttradetbarriers
3.tThetideatthattatcountry'stexchangetratetistantindicatortoftsocioeconomictwell-
being
4.tThetgaintfromttakingtadvantagetoftinefficienttexchangetrates
Atcountrythastseentatdecreasetintinflation.tWhattisttheteffecttontthetcountry'stcurren
cytexchangetrate?t-tans-1.tIttincreases*
2.tittdecreases
3.tIttremainstthetsame
4.tittchanges,tbuttintantunknowntdirection
Whattistonetoftthetthreetprimaryttypestoftforeigntexchangettransactions?t-tans-
1.tSpotttransactions*
2.tstraddles
3.trootedttransactions
4.tcoveredtcalls
Whotaretthetprimarytandtlargesttparticipantstintthetforeigntexchangetmarket?t-tans-
1.tLargetinternationaltbanks*
2.tIndividualtinvestors
3.tGovernments
4.tLocaltbanks
Whichtcompanythastatnaturaltresource-seekingtstrategictgoal?t-tans-
1.tatcompanytsearchingtfortatlocationtwherettheretistantabundancetoftoil
2.tatcompanytsearchingtfortatlocationtwherettheretaretseveraltothertground-
breakingtfirms
AND ANSWERS
Onetviewtoftglobalizationtclaimstthatthumantcivilizationthastalwaysthadtsomettypeto
ftglobalization.tWhichtviewtistit?t-tans-1.tThetlong-
runthistoricaltview*t(*tmeanstanswer)
2.tThetpendulumtview
3.tThetbusiness-over-culturetview
4.tThetunique-roletview
Thetbenefittattributedttotfirmstthattentertatmarkettbeforetothertfirmstintthetsametmar
kettsegmenttistbesttdescribedtbytwhichtterm?t-tans-1.tFirst-movertadvantage*
2.tTradetadvantage
3.tabsolutetadvantage
4.tscaletadvantage
Whattistopportunitytcost?t-tans-
1.tThetlosttpotentialtfromtpursuingtonetactivitytattthetexpensetoftanothertactivity,tgiv
entthetalternativest*
2.tThetextentttotwhichtdifferenttcountriestpossesstvarioustfactorstoftproductiontsucht
astlabor,tland,tandttechnology
3.tAtgovernmenttpaymentttotatdomestictfirm
4.tatnettlosstthattoccurstintanteconomytastatresulttofttariffs
Thetextentttotwhichtdifferenttcountriestpossesstvarioustfactorstoftproductiontsuchtas
tlabor,tland,tandttechnologyt-tans-1.tInternalizationtadvantages*
2.tLitigationtadvantages
3.tInternationaltcompetitiontadvantages
4.tOnlinetbusinesstadvantages
IntwhichtsituationtistthetdodgertstrategytappropriatetfortrespondingttotMNEs?t-tans-
1.tTheretisthightindustrytpressurettotglobalize,tandtcompetitivetassetstaretcustomize
dttothometmarkets.*
2.tTheretistlowtindustrytpressurettotglobalize,tandtcompetitivetassetstarettransferabl
etabroad
3.tTheretistlowtindustrytpressurettotglobalize,tandtcompetitivetassetstaretcustomized
ttothometmarkets
4.tTheretisthightindustrytpressurettotglobalize,tandtcompetitivetassetstarettransferab
letabroad
, Whattaretthreetcharacteristicstoftindustriestprimedtfortcollusion?t-tans-
1.tatsmallertnumbertoftrivals
2.tatpricetleader
3.thomogeneoustproducts
4.tlowtmarkettcommonality
5.tlowtortnotentrytbarriers
Whattaret2tweaknessestoftthettheorytoftmercantilismt-tans-
1.tThettheorytleadsttotinefficienttallocationtoftresources*
2.tApplicationtoftthettheorytreducestthetwealthtoftthetnationtintthetlongtrun*
3.tthettheorytinvitestalltkindstoftindustriesttotclaimttheytaretstrategic
4.twhentonetnationtistabsolutelytinferiorttotanother,tthettheorytistunablettotprovideta
nytadvice
5.tThettheorythastnottbeentcomprehensivelyttested
6.tmanytnewtproductstaretnowtlaunchedtsimultaneouslytaroundtthetworld
Whattistthetbandwagonteffect?t-tans-
1.tThetmovementtoftinvestorstintthetsametdirectiontattthetsamettime*
2.tAttheorytsuggestingtthattthetpricetfortidenticaltproductstsoldtintdifferenttcountriest
musttbetthetsametintthetabsencetofttradetbarriers
3.tThetideatthattatcountry'stexchangetratetistantindicatortoftsocioeconomictwell-
being
4.tThetgaintfromttakingtadvantagetoftinefficienttexchangetrates
Atcountrythastseentatdecreasetintinflation.tWhattisttheteffecttontthetcountry'stcurren
cytexchangetrate?t-tans-1.tIttincreases*
2.tittdecreases
3.tIttremainstthetsame
4.tittchanges,tbuttintantunknowntdirection
Whattistonetoftthetthreetprimaryttypestoftforeigntexchangettransactions?t-tans-
1.tSpotttransactions*
2.tstraddles
3.trootedttransactions
4.tcoveredtcalls
Whotaretthetprimarytandtlargesttparticipantstintthetforeigntexchangetmarket?t-tans-
1.tLargetinternationaltbanks*
2.tIndividualtinvestors
3.tGovernments
4.tLocaltbanks
Whichtcompanythastatnaturaltresource-seekingtstrategictgoal?t-tans-
1.tatcompanytsearchingtfortatlocationtwherettheretistantabundancetoftoil
2.tatcompanytsearchingtfortatlocationtwherettheretaretseveraltothertground-
breakingtfirms
