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1. Which view claims that the phenomenon of global- The new-force view
ization was initially driven by the desire of Western
economies to exploit their power through multination-
al enterprise?
2. Economic gains come from international trade be- Resource-based view
cause one country's exported goods, services, or other
items are unique, valuable, and difficult to duplicate
to the importing countries. Which view does this state-
ment portray?
3. What is the aggregation of importing and exporting Balance of trade
that leads to the country-level trade surplus or deficit?
4. What is a cost of foreign direct investment? Developing countries may
be exploited by multina-
tional enterprises (MNE).
5. What may precious, rare, and hard-to-duplicate re- suming all
sources and capabilities lead to for a firm? other
factors are
6. Which theory states that patterns of international unchanged?
trade change across new, maturing, and standardized
states?
7. What is the financial environment in which exchange
rates and payments for goods and services are con-
ducted?
8. What happens to a country's real exchange rate and
nominal interest rate as the price level increases, as-
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, Sustained comparative advantage
Product life cycle theory
International monetary system
Exchange rates depreci- ate; interest rates increase
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