C211 Second OA Questions With
Complete Solutions(A+ Graded)
The term "emerging economies" has replaced the term _____. - correct
answer...✔✔Developing countries
The gross domestic product plus the income from non-resident sources abroad gives
the ____. - correct answer...✔✔gross national product
More than 25% of global GDP comes from _____. - correct answer...✔✔BRICS
countries
Viewing the global economy as a pyramid, the Triad refers to _____. - correct answer...
✔✔North America, Western Europe, and Japan
People who earn _____ a year comprise the base of the global economic pyramid. -
correct answer...✔✔less than $2,000
Which of the following would be an example of a top down innovation? - correct
answer...✔✔Lowering prices and features of existing products to meet emerging
market needs
Which of the following is true of the Group of 20 (G-20)? - correct answer...✔✔It only
has 19 member countries.
Which of the following does the institution-based view of global business lay emphasis
on? - correct answer...✔✔Understanding the laws and values of the firm's host nation.
The resource-based view of global business differs from the institution-based view of
global business in that the resource-based view _____. - correct answer...✔✔focuses
on the internal strengths on the firm
The liability of foreignness is the inherent disadvantage faced by _____. - correct
answer...✔✔foreign firms in host nations due to their non-native status
Which of the following is true of globalization according to the "new force" perspective? -
correct answer...✔✔It is a western ideology focused on exploiting and dominating the
world through MNEs
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. - correct answer...
✔✔Semiglobalization
A GRADESOLUTIONS
,The strategy of treating each country as a unique market and in total isolation is referred
to as _____. - correct answer...✔✔Localization
MNEs from the Triad dominate the list of the 500 largest MNEs; their share has been
_____. - correct answer...✔✔Shrinking
A conversion that determines the equivalent amount of goods and services that different
currencies can buy is known as _____. - correct answer...✔✔purchasing power parity
Which of the following countries would be characterized as an emerging economy? -
correct answer...✔✔Brazil
Which of the following countries is represented in the Triad of the global economic
pyramid? - correct answer...✔✔Japan
People who earn _____ a year comprise the base of the global economic pyramid. -
correct answer...✔✔less than $2,000
A _____ is defined as an innovation that is adopted first in emerging economies and
then diffused around the world. - correct answer...✔✔reverse innovation
The _____ view suggests that the success and failure of firms are largely determined by
their environments. - correct answer...✔✔institution-based
The _____ view of global business focuses on internal factors that can help a firm
overcome its external environment. - correct answer...✔✔resource-based
Which of the following is true of globalization according to the "pendulum view"
perspective? - correct answer...✔✔Globalization is a not a one-directional
phenomenon
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. - correct answer...
✔✔semiglobalization
_____ is the strategy of treating the entire world as one market. - correct answer...✔✔
Standardization
Protectionism is similar to mercantilism as they both advocated _____. - correct
answer...✔✔government involvement in international trade
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports. - correct answer...✔✔
Protectionism
A GRADESOLUTIONS
, Which of the following is a modern trade theory? - correct answer...✔✔National
competitive advantage
Which of the following trade theories divides the nations of the world into three
categories? - correct answer...✔✔Product life cycle
Which of the following was the first international trade theory to account for changes in
the patterns of trade over time? - correct answer...✔✔Product life cycle theory
In the third stage of the product life cycle theory, the _____. - correct answer...✔✔
product is standardized
Which of the following describes resource mobility as assumed by the classical theories
of international trade? - correct answer...✔✔It is the assumption that a resource used
in producing a product for one industry can be shifted and put to use in another industry
The theory of comparative advantage _____. - correct answer...✔✔explains patterns of
trade based on factor endowments
Deadweight costs are net losses that occur when _____ are imposed. - correct
answer...✔✔import tariffs
_____ are government payments to domestic firms. - correct answer...✔✔Subsidies
Which of the following is true of voluntary export restraints? - correct answer...✔✔It is
an export quota levied by a country on the quantity of its exports.
_____ are tariffs levied on imports sold below costs to drive domestic firms out of
business. - correct answer...✔✔Antidumping duties
FPI refers to the _____. - correct answer...✔✔investment in a portfolio of foreign
securities that do not entail the active management of foreign assets
A vertical FDI refers to a type of FDI in which _____. - correct answer...✔✔a firm
moves upstream or downstream at different value chain stages in a host country
_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from
a country. - correct answer...✔✔FDI stock
OLI advantages refer to a firm's quest for _____via FDI. - correct answer...✔✔
ownership advantages, location advantages, and internalization advantages
____ refers to the replacement of cross-border markets with one firm locating in two or
more countries. - correct answer...✔✔Internalization
A GRADESOLUTIONS
Complete Solutions(A+ Graded)
The term "emerging economies" has replaced the term _____. - correct
answer...✔✔Developing countries
The gross domestic product plus the income from non-resident sources abroad gives
the ____. - correct answer...✔✔gross national product
More than 25% of global GDP comes from _____. - correct answer...✔✔BRICS
countries
Viewing the global economy as a pyramid, the Triad refers to _____. - correct answer...
✔✔North America, Western Europe, and Japan
People who earn _____ a year comprise the base of the global economic pyramid. -
correct answer...✔✔less than $2,000
Which of the following would be an example of a top down innovation? - correct
answer...✔✔Lowering prices and features of existing products to meet emerging
market needs
Which of the following is true of the Group of 20 (G-20)? - correct answer...✔✔It only
has 19 member countries.
Which of the following does the institution-based view of global business lay emphasis
on? - correct answer...✔✔Understanding the laws and values of the firm's host nation.
The resource-based view of global business differs from the institution-based view of
global business in that the resource-based view _____. - correct answer...✔✔focuses
on the internal strengths on the firm
The liability of foreignness is the inherent disadvantage faced by _____. - correct
answer...✔✔foreign firms in host nations due to their non-native status
Which of the following is true of globalization according to the "new force" perspective? -
correct answer...✔✔It is a western ideology focused on exploiting and dominating the
world through MNEs
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. - correct answer...
✔✔Semiglobalization
A GRADESOLUTIONS
,The strategy of treating each country as a unique market and in total isolation is referred
to as _____. - correct answer...✔✔Localization
MNEs from the Triad dominate the list of the 500 largest MNEs; their share has been
_____. - correct answer...✔✔Shrinking
A conversion that determines the equivalent amount of goods and services that different
currencies can buy is known as _____. - correct answer...✔✔purchasing power parity
Which of the following countries would be characterized as an emerging economy? -
correct answer...✔✔Brazil
Which of the following countries is represented in the Triad of the global economic
pyramid? - correct answer...✔✔Japan
People who earn _____ a year comprise the base of the global economic pyramid. -
correct answer...✔✔less than $2,000
A _____ is defined as an innovation that is adopted first in emerging economies and
then diffused around the world. - correct answer...✔✔reverse innovation
The _____ view suggests that the success and failure of firms are largely determined by
their environments. - correct answer...✔✔institution-based
The _____ view of global business focuses on internal factors that can help a firm
overcome its external environment. - correct answer...✔✔resource-based
Which of the following is true of globalization according to the "pendulum view"
perspective? - correct answer...✔✔Globalization is a not a one-directional
phenomenon
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. - correct answer...
✔✔semiglobalization
_____ is the strategy of treating the entire world as one market. - correct answer...✔✔
Standardization
Protectionism is similar to mercantilism as they both advocated _____. - correct
answer...✔✔government involvement in international trade
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports. - correct answer...✔✔
Protectionism
A GRADESOLUTIONS
, Which of the following is a modern trade theory? - correct answer...✔✔National
competitive advantage
Which of the following trade theories divides the nations of the world into three
categories? - correct answer...✔✔Product life cycle
Which of the following was the first international trade theory to account for changes in
the patterns of trade over time? - correct answer...✔✔Product life cycle theory
In the third stage of the product life cycle theory, the _____. - correct answer...✔✔
product is standardized
Which of the following describes resource mobility as assumed by the classical theories
of international trade? - correct answer...✔✔It is the assumption that a resource used
in producing a product for one industry can be shifted and put to use in another industry
The theory of comparative advantage _____. - correct answer...✔✔explains patterns of
trade based on factor endowments
Deadweight costs are net losses that occur when _____ are imposed. - correct
answer...✔✔import tariffs
_____ are government payments to domestic firms. - correct answer...✔✔Subsidies
Which of the following is true of voluntary export restraints? - correct answer...✔✔It is
an export quota levied by a country on the quantity of its exports.
_____ are tariffs levied on imports sold below costs to drive domestic firms out of
business. - correct answer...✔✔Antidumping duties
FPI refers to the _____. - correct answer...✔✔investment in a portfolio of foreign
securities that do not entail the active management of foreign assets
A vertical FDI refers to a type of FDI in which _____. - correct answer...✔✔a firm
moves upstream or downstream at different value chain stages in a host country
_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from
a country. - correct answer...✔✔FDI stock
OLI advantages refer to a firm's quest for _____via FDI. - correct answer...✔✔
ownership advantages, location advantages, and internalization advantages
____ refers to the replacement of cross-border markets with one firm locating in two or
more countries. - correct answer...✔✔Internalization
A GRADESOLUTIONS
