C211 WGU OA COMPREHENSIVE EXAM UPDATED
QUESTIONS AND ANSWERS GRADED A+
✔✔Some of the benefits of FDI to the host country are: - ✔✔Job creation
Advanced technology
Capital inflow
✔✔In addition to FDI, other ways a firm can enter foreign markets include: - ✔✔License
and trademark
Outsource
Import and export
✔✔Which of the following statements about the effects of FDI on host countries is true?
- ✔✔While FDI creates jobs and encourages the development of management know-
how within the host country, it can also lead to adverse effects on competition and
capital outflow.
✔✔Beyond the enforcement of antitrust laws, collusion often fails because: - ✔✔it has
incentive problems associated with the "prisoners' dilemma."
✔✔Which of the following industry characteristic makes collusion difficult? - ✔✔Low
entry barriers
✔✔Which of the following situation represents the LOWEST intensity of rivalry between
two companies? - ✔✔Low resource similarity and high market commonality
✔✔How do firms create value when engaging rivals? - ✔✔Hold a dominant position in
key markets.
Launch products in multiple markets.
Secure patents on key products.
✔✔Political view most hostile to FDI - ✔✔Radical View
✔✔Classical theories of international trade - ✔✔mercantilism
absolute advantage
comparative advantage
✔✔Location specific refers to - ✔✔benefits a firm reaps from features specific to a place
✔✔Competitive dynamics means - ✔✔actions or responses undertaken by competing
firms
✔✔Forward transaction is - ✔✔foreign transaction in which participants buy or sell
currencies for future delivery
, ✔✔The New Force is - ✔✔the theory that states the desire of Western economies to
exploit other countries through multinational enterprises
✔✔Resource base - ✔✔emphasizes economic gains due to unique, valuable and hard
to duplicate of goods and services
✔✔Balance of Trade is - ✔✔the aggregation of importing and exporting that leads to the
country level trade surplus or deficit
✔✔Strategic Trade theory - ✔✔states that government intervention can enhance an
enterprise's odds for international success (in certain industries)
✔✔International Monetary Fund - ✔✔promotes international monetary cooperation,
exchange stability and orderly exchange arrangements
✔✔Resource Similarity - ✔✔the extent to which a competitor possesses strategic
endowment comparable to those of the focal firm
✔✔What tools does the Federal Reserve have with regards to monetary control? -
✔✔Reserve requirement ratio of market operations and discount rate
✔✔What are open market operations? - ✔✔buying and selling of government securities
✔✔When the Fed buys bonds, what impact does this have on the money supply and
aggregate demand? - ✔✔Increases money supply and aggregate demand increases
✔✔When the Fed sells bonds, what impact does this have on the money supply and
aggregate demand? - ✔✔Decreases money supply and aggregate demand decreases
✔✔What is a discount rate? - ✔✔the minimum interest rate set by Federal Reserve for
lending to other banks
✔✔When the Fed reduces the discount rate, what impact will this have on the money
supply and the aggregate demand? - ✔✔increase in money supply
✔✔When the Fed increases the discount rate, what impact will this have on the money
supply and the aggregate demand? - ✔✔decrease money supply
✔✔What is a reserve ratio? - ✔✔what the banks are required to keep
QUESTIONS AND ANSWERS GRADED A+
✔✔Some of the benefits of FDI to the host country are: - ✔✔Job creation
Advanced technology
Capital inflow
✔✔In addition to FDI, other ways a firm can enter foreign markets include: - ✔✔License
and trademark
Outsource
Import and export
✔✔Which of the following statements about the effects of FDI on host countries is true?
- ✔✔While FDI creates jobs and encourages the development of management know-
how within the host country, it can also lead to adverse effects on competition and
capital outflow.
✔✔Beyond the enforcement of antitrust laws, collusion often fails because: - ✔✔it has
incentive problems associated with the "prisoners' dilemma."
✔✔Which of the following industry characteristic makes collusion difficult? - ✔✔Low
entry barriers
✔✔Which of the following situation represents the LOWEST intensity of rivalry between
two companies? - ✔✔Low resource similarity and high market commonality
✔✔How do firms create value when engaging rivals? - ✔✔Hold a dominant position in
key markets.
Launch products in multiple markets.
Secure patents on key products.
✔✔Political view most hostile to FDI - ✔✔Radical View
✔✔Classical theories of international trade - ✔✔mercantilism
absolute advantage
comparative advantage
✔✔Location specific refers to - ✔✔benefits a firm reaps from features specific to a place
✔✔Competitive dynamics means - ✔✔actions or responses undertaken by competing
firms
✔✔Forward transaction is - ✔✔foreign transaction in which participants buy or sell
currencies for future delivery
, ✔✔The New Force is - ✔✔the theory that states the desire of Western economies to
exploit other countries through multinational enterprises
✔✔Resource base - ✔✔emphasizes economic gains due to unique, valuable and hard
to duplicate of goods and services
✔✔Balance of Trade is - ✔✔the aggregation of importing and exporting that leads to the
country level trade surplus or deficit
✔✔Strategic Trade theory - ✔✔states that government intervention can enhance an
enterprise's odds for international success (in certain industries)
✔✔International Monetary Fund - ✔✔promotes international monetary cooperation,
exchange stability and orderly exchange arrangements
✔✔Resource Similarity - ✔✔the extent to which a competitor possesses strategic
endowment comparable to those of the focal firm
✔✔What tools does the Federal Reserve have with regards to monetary control? -
✔✔Reserve requirement ratio of market operations and discount rate
✔✔What are open market operations? - ✔✔buying and selling of government securities
✔✔When the Fed buys bonds, what impact does this have on the money supply and
aggregate demand? - ✔✔Increases money supply and aggregate demand increases
✔✔When the Fed sells bonds, what impact does this have on the money supply and
aggregate demand? - ✔✔Decreases money supply and aggregate demand decreases
✔✔What is a discount rate? - ✔✔the minimum interest rate set by Federal Reserve for
lending to other banks
✔✔When the Fed reduces the discount rate, what impact will this have on the money
supply and the aggregate demand? - ✔✔increase in money supply
✔✔When the Fed increases the discount rate, what impact will this have on the money
supply and the aggregate demand? - ✔✔decrease money supply
✔✔What is a reserve ratio? - ✔✔what the banks are required to keep
