C 211 GLOBAL ECONOMICS FOR
MANAGERS WGU FOR OA EXAM
Q&A/ALL VERIFIED
Which of the following is NOT a nontariff trade barrier (NTB)? - CORRECT-
ANSWER-Cultural distance
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
The _____ theory is based on the assumption that the wealth of the world is
fixed. - CORRECT-ANSWER-mercantilism
,OLI advantages refer to a firm's quest for _____via FDI. - CORRECT-ANSWER-
ownership advantages, location advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. - CORRECT-ANSWER-provides the
firm with direct ownership to its foreign assets
Which of the following is a benefit of FDI to home countries? - CORRECT-
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? -
CORRECT-ANSWER-Forward transactions
Foreign exchange rates are influenced by: - CORRECT-ANSWER-All of these
If an IMF member country were to find itself in a severe balance of payments
crisis that threatened its financial stability, the IMF would most likely: - CORRECT-
ANSWER-give the country a loan but require the country to make long-term policy
reforms.
,A home appliance manufacturer located in The Netherlands decides to open two
new manufacturing plants, one in Poland and the other in Thailand. Its purpose is
to offset currency losses through: - CORRECT-ANSWER-strategic hedging.
Risk analysis of any country must include an analysis of the country's: - CORRECT-
ANSWER-currency risks.
Which of the following is an equity mode of entry? - CORRECT-ANSWER-Wholly
owned subsidiaries
Which of the following is a disadvantage of licensing and franchising? - CORRECT-
ANSWER-Little control over marketing
The following are examples of location-specific advantages: - CORRECT-ANSWER-
All of these
, Which of type of entry mode is a wholly owned subsidiary? - CORRECT-ANSWER-
Equity mode
Assume that a firm is looking to expand into a foreign market, but it needs an
opportunity that has low development costs and little risk. Its best choice would
be: - CORRECT-ANSWER-a contractual agreement.
With regard to foreign market entry, the resource-based view argues that foreign
firms need to - CORRECT-ANSWER-deploy overwhelming resources and
capabilities to offset their liability of foreignness.
Which of the following sets of words describes the initial set of actions a firm uses
to gain competitive advantage and the other firm's response to it - CORRECT-
ANSWER-Attack, counterattack
Which of the following is NOT a method used by competitors to signal their
intention to reduce competitive intensity to other competitors? - CORRECT-
ANSWER-Developing new markets where there is less competition
MANAGERS WGU FOR OA EXAM
Q&A/ALL VERIFIED
Which of the following is NOT a nontariff trade barrier (NTB)? - CORRECT-
ANSWER-Cultural distance
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
The _____ theory is based on the assumption that the wealth of the world is
fixed. - CORRECT-ANSWER-mercantilism
,OLI advantages refer to a firm's quest for _____via FDI. - CORRECT-ANSWER-
ownership advantages, location advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. - CORRECT-ANSWER-provides the
firm with direct ownership to its foreign assets
Which of the following is a benefit of FDI to home countries? - CORRECT-
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? -
CORRECT-ANSWER-Forward transactions
Foreign exchange rates are influenced by: - CORRECT-ANSWER-All of these
If an IMF member country were to find itself in a severe balance of payments
crisis that threatened its financial stability, the IMF would most likely: - CORRECT-
ANSWER-give the country a loan but require the country to make long-term policy
reforms.
,A home appliance manufacturer located in The Netherlands decides to open two
new manufacturing plants, one in Poland and the other in Thailand. Its purpose is
to offset currency losses through: - CORRECT-ANSWER-strategic hedging.
Risk analysis of any country must include an analysis of the country's: - CORRECT-
ANSWER-currency risks.
Which of the following is an equity mode of entry? - CORRECT-ANSWER-Wholly
owned subsidiaries
Which of the following is a disadvantage of licensing and franchising? - CORRECT-
ANSWER-Little control over marketing
The following are examples of location-specific advantages: - CORRECT-ANSWER-
All of these
, Which of type of entry mode is a wholly owned subsidiary? - CORRECT-ANSWER-
Equity mode
Assume that a firm is looking to expand into a foreign market, but it needs an
opportunity that has low development costs and little risk. Its best choice would
be: - CORRECT-ANSWER-a contractual agreement.
With regard to foreign market entry, the resource-based view argues that foreign
firms need to - CORRECT-ANSWER-deploy overwhelming resources and
capabilities to offset their liability of foreignness.
Which of the following sets of words describes the initial set of actions a firm uses
to gain competitive advantage and the other firm's response to it - CORRECT-
ANSWER-Attack, counterattack
Which of the following is NOT a method used by competitors to signal their
intention to reduce competitive intensity to other competitors? - CORRECT-
ANSWER-Developing new markets where there is less competition
