WGU C211 OA
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - ANSWER-new
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 -
ANSWER-comparative
comparative advantage and absolute advantage stem from - ANSWER-factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - ANSWER-mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ANSWER-new
stage of the product life cycle where demand and ability to produce grow in other
developed nations - ANSWER-maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANSWER-standardized
comparative advantage may change over time because patterns of ______ change over
time - ANSWER-trade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success - ANSWER-strategic trade
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - ANSWER-new
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 -
ANSWER-comparative
comparative advantage and absolute advantage stem from - ANSWER-factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - ANSWER-mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ANSWER-new
stage of the product life cycle where demand and ability to produce grow in other
developed nations - ANSWER-maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANSWER-standardized
comparative advantage may change over time because patterns of ______ change over
time - ANSWER-trade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success - ANSWER-strategic trade
