C211 (Global Economics for Managers) COMPETENCY
EXAM QUESTIONS AND ANSWERS WESTERN
GOVERNORS’ UNIVERSITY
, lOMoAR cPSD| 19857451
Competency 1
OLI advantages refer to a firm’s quest for via FDI.
a. outsourcing advantages, licensing advantages, and importing advantages
b. oligopolistic advantages, laissez-faire advantages, and intrafirm trade advantages
c. ownership advantages, location advantages, and internalization advantages
d. organization advantages, leadership advantages, and innovation advantages
The of globalization suggests that globalization is neither recent nor one-directional.
a. colonial view
b. long-run historical view
c. pendulum view
d. new-force view
With regard to foreign market entry, the resource-based view argues that foreign firms need to
a. deploy overwhelming resources and capabilities to offset their liability of foreignness.
b. take actions deemed legitimate and appropriate by the various formal and informal institutions
governing market entries.
c. understands the numerous differences in cultures, norms, and values.
d. be aware of the numerous regulatory risks and trade and investment barriers.
The theory is based on the assumption that the wealth of the world is fixed.
a. product life cycle
b. strategic trade
c. mercantilism
d. national competitive advantage of industries
A clean floating exchange rate policy is a government policy to .
a. link the exchange rate of a currency to the gold standard
b. allow selective government intervention in determining the exchange rate
c. set exchange rates purely on the basis of supply and demand
d. allow a currency’s value to fluctuate according to the foreign exchange rate
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view .
EXAM QUESTIONS AND ANSWERS WESTERN
GOVERNORS’ UNIVERSITY
, lOMoAR cPSD| 19857451
Competency 1
OLI advantages refer to a firm’s quest for via FDI.
a. outsourcing advantages, licensing advantages, and importing advantages
b. oligopolistic advantages, laissez-faire advantages, and intrafirm trade advantages
c. ownership advantages, location advantages, and internalization advantages
d. organization advantages, leadership advantages, and innovation advantages
The of globalization suggests that globalization is neither recent nor one-directional.
a. colonial view
b. long-run historical view
c. pendulum view
d. new-force view
With regard to foreign market entry, the resource-based view argues that foreign firms need to
a. deploy overwhelming resources and capabilities to offset their liability of foreignness.
b. take actions deemed legitimate and appropriate by the various formal and informal institutions
governing market entries.
c. understands the numerous differences in cultures, norms, and values.
d. be aware of the numerous regulatory risks and trade and investment barriers.
The theory is based on the assumption that the wealth of the world is fixed.
a. product life cycle
b. strategic trade
c. mercantilism
d. national competitive advantage of industries
A clean floating exchange rate policy is a government policy to .
a. link the exchange rate of a currency to the gold standard
b. allow selective government intervention in determining the exchange rate
c. set exchange rates purely on the basis of supply and demand
d. allow a currency’s value to fluctuate according to the foreign exchange rate
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view .
