C211 SECOND OA EXAM GUIDE
C211 SECOND OA EXAM GUIDE |VERIFIED UPDATE |ACCURATE ANSWERS
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - Accurate Answer✅✅focuses on the internal
strengths on the firm.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
Accurate Answer✅✅pendulum view.
Globalization can be viewed as: - Accurate Answer✅✅A new force sweeping through the world
in recent times, or a long-run historical evolution since the dawn of human history, or a
pendulum that swings from one extreme to another from time to time.
According to the theory of absolute advantage, under free trade: - Accurate Answer✅✅Each
nation gains by specializing in economic activities in which a nation has absolute advantage.
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to
produce one ton of blueberries. France requires 30 units of resource to produce one ton of wine
and 40 units of resource to produce one ton of blueberries. Which of the following is true? -
Accurate Answer✅✅France has a comparative advantage in wine.
, Free trade is defined as: - Accurate Answer✅✅The idea that market forces should determine
how much to trade with little or no government intervention.
Which of the following is NOT a nontariff trade barrier (NTB)? - Accurate Answer✅✅Cultural
distance
Protectionism is similar to mercantilism as they both advocated _____. - Accurate
Answer✅✅government involvement in international trade
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - Accurate Answer✅✅protectionism
The _____ theory is based on the assumption that the wealth of the world is fixed. - Accurate
Answer✅✅mercantilism
OLI advantages refer to a firm's quest for _____via FDI. - Accurate Answer✅✅ownership
advantages, location advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. - Accurate Answer✅✅provides the firm with
direct ownership to its foreign assets.
Which of the following is a benefit of FDI to home countries? - Accurate Answer✅✅Learning
from operations
Which of the following foreign exchange transactions provide protection to traders and investors
from being exposed to fluctuations of the spot rate? - Accurate Answer✅✅Forward transactions
Foreign exchange rates are influenced by: - Accurate Answer✅✅Interest rates and money
supply, or relative price differences and purchasing power parity, or supply and demand of the
currencies.
C211 SECOND OA EXAM GUIDE |VERIFIED UPDATE |ACCURATE ANSWERS
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - Accurate Answer✅✅focuses on the internal
strengths on the firm.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
Accurate Answer✅✅pendulum view.
Globalization can be viewed as: - Accurate Answer✅✅A new force sweeping through the world
in recent times, or a long-run historical evolution since the dawn of human history, or a
pendulum that swings from one extreme to another from time to time.
According to the theory of absolute advantage, under free trade: - Accurate Answer✅✅Each
nation gains by specializing in economic activities in which a nation has absolute advantage.
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to
produce one ton of blueberries. France requires 30 units of resource to produce one ton of wine
and 40 units of resource to produce one ton of blueberries. Which of the following is true? -
Accurate Answer✅✅France has a comparative advantage in wine.
, Free trade is defined as: - Accurate Answer✅✅The idea that market forces should determine
how much to trade with little or no government intervention.
Which of the following is NOT a nontariff trade barrier (NTB)? - Accurate Answer✅✅Cultural
distance
Protectionism is similar to mercantilism as they both advocated _____. - Accurate
Answer✅✅government involvement in international trade
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - Accurate Answer✅✅protectionism
The _____ theory is based on the assumption that the wealth of the world is fixed. - Accurate
Answer✅✅mercantilism
OLI advantages refer to a firm's quest for _____via FDI. - Accurate Answer✅✅ownership
advantages, location advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. - Accurate Answer✅✅provides the firm with
direct ownership to its foreign assets.
Which of the following is a benefit of FDI to home countries? - Accurate Answer✅✅Learning
from operations
Which of the following foreign exchange transactions provide protection to traders and investors
from being exposed to fluctuations of the spot rate? - Accurate Answer✅✅Forward transactions
Foreign exchange rates are influenced by: - Accurate Answer✅✅Interest rates and money
supply, or relative price differences and purchasing power parity, or supply and demand of the
currencies.
