C211 Study Guide: Key Concepts in Global Economics for Managers
C211 Study Guide Questions V3
The following questions are developed as a study aid for C211 – Global Economics for
Managers. They cover important concepts in each competency. The questions are designed to
serve as an indicator of your preparedness to take the C211 assessment. You can use these to
help you take notes as you go through the chapters. You may also use them to reinforce your
understanding after covering the material.
Competency 1: Business Decision-Making in the Global Environment
Globalization (Peng Chapters 1, 5, 6, 11)
1. List and explain the two views (core perspectives) for global business in detail with
examples for each.
2. What is globalization? Explain the three views on globalization.
3. What is FDI? What are horizontal and vertical FDI?
4. What is the OLI advantage? Explain, providing an example of each.
5. What are the political views on FDI? (Explain)
6. Carrier (HVAC company) decided to close its manufacturing plant in Ohio and move it to
Mexico.
a. Which country is the host, and which is the home?
What are the costs and benefits of FDI to the host country?
What are the costs and benefits of FDI to the home country?
7. What is collusion, and what characteristics of a market make collusion difficult?
C211 Study Guide: Key Concepts in Global Economics for Managers
,C211 Study Guide: Key Concepts in Global Economics for Managers
8. How do resources and capabilities influence the competitive dynamics of a business?
(Give an example)
9. What is resource similarity and how does this impact competitive dynamics? (Give an
example)
10. What is the theory of attack/counterattack?
11. What is cooperation and signaling?
12. Explain the four strategies that local firms can take to fight MNEs.
International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
1. What are the trade deficit, trade surplus, and balance of trade?
2. Explain the three types of classical international trade theories.
3. Explain the three types of modern international trade theories.
4. What is the relationship between mercantilism and protectionism?
5. What is an exchange rate?
6. How do supply and demand determine the exchange rate of a country?
7. What does it mean if a country’s currency depreciates? Appreciates?
8. What are fixed, pegged, floating, and managed (dirty) float exchange rates?
C211 Study Guide Questions V3
The following questions are developed as a study aid for C211 – Global Economics for
Managers. They cover important concepts in each competency. The questions are designed to
serve as an indicator of your preparedness to take the C211 assessment. You can use these to
help you take notes as you go through the chapters. You may also use them to reinforce your
understanding after covering the material.
Competency 1: Business Decision-Making in the Global Environment
Globalization (Peng Chapters 1, 5, 6, 11)
1. List and explain the two views (core perspectives) for global business in detail with
examples for each.
2. What is globalization? Explain the three views on globalization.
3. What is FDI? What are horizontal and vertical FDI?
4. What is the OLI advantage? Explain, providing an example of each.
5. What are the political views on FDI? (Explain)
6. Carrier (HVAC company) decided to close its manufacturing plant in Ohio and move it to
Mexico.
a. Which country is the host, and which is the home?
What are the costs and benefits of FDI to the host country?
What are the costs and benefits of FDI to the home country?
7. What is collusion, and what characteristics of a market make collusion difficult?
C211 Study Guide: Key Concepts in Global Economics for Managers
,C211 Study Guide: Key Concepts in Global Economics for Managers
8. How do resources and capabilities influence the competitive dynamics of a business?
(Give an example)
9. What is resource similarity and how does this impact competitive dynamics? (Give an
example)
10. What is the theory of attack/counterattack?
11. What is cooperation and signaling?
12. Explain the four strategies that local firms can take to fight MNEs.
International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
1. What are the trade deficit, trade surplus, and balance of trade?
2. Explain the three types of classical international trade theories.
3. Explain the three types of modern international trade theories.
4. What is the relationship between mercantilism and protectionism?
5. What is an exchange rate?
6. How do supply and demand determine the exchange rate of a country?
7. What does it mean if a country’s currency depreciates? Appreciates?
8. What are fixed, pegged, floating, and managed (dirty) float exchange rates?
