C211 OA Test Exam (2026-2027 Latest
Update) with Authentic Exam Questions
and Expert-Verified Answers / Fully
Solved / Already Graded A+
view that claims phenomenon of globalization was initially driven
by the desire of Western economies to exploit their power through
MNE's
new
view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist
evolutionary
view that claims globalization is swinging from one extreme to
another from time to time
pendulum
investment in, controlling, and managing value-added activities in
other countries
foreign direct investment
political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms
radical
suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and
services
free market
,views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs
pragmatic nationalis
what benefits exist to a country receiving FDI?
capital inflow, technology spillovers, advanced management know-
how, creates jobs
what costs exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in
the capital account
The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
balance of trade
firms with a _____ degree of resource similarity are likely to have
similar competitive actions
high
a high degree of resource similarity but low market commonality =
_______ intensity of rivalry
highest
little resource similarity but high market commonality = _____
intensity of rivalry
lowest
mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade
classical
theory of international trade that relies on more realistic product
life cycles and first mover advantages
modern
under free trade, a nation gains by specializing in economic
activities in which it has _____advantage
absolute
focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage
comparative
, comparative advantage and absolute advantage stem from
factor endowments
theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer
mercantilism
stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US
new
stage of the product life cycle where demand and ability to produce
grow in other developed nations
maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost
developing nations
standardized
comparative advantage may change over time because patterns of
______ change over time
trade
theory that suggests that intervention by governments in certain
industries can enhance their odds for international success
strategic trade
if a company seeks to limit foreign exchange rate exposure in the
forward direction, what is the most effective way to do this?
currency hedging
exchange rate risk associating with the time delay between
entering a contract and settling it
transaction risk
forward transaction that protects traders and investors from
exposure to fluctuations of the spot rate
hedging
a means of spreading out activities in different currency zones in
order to offset the currency losses in certain regions through gains
in other regions
strategic heding
Update) with Authentic Exam Questions
and Expert-Verified Answers / Fully
Solved / Already Graded A+
view that claims phenomenon of globalization was initially driven
by the desire of Western economies to exploit their power through
MNE's
new
view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist
evolutionary
view that claims globalization is swinging from one extreme to
another from time to time
pendulum
investment in, controlling, and managing value-added activities in
other countries
foreign direct investment
political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms
radical
suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and
services
free market
,views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs
pragmatic nationalis
what benefits exist to a country receiving FDI?
capital inflow, technology spillovers, advanced management know-
how, creates jobs
what costs exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in
the capital account
The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
balance of trade
firms with a _____ degree of resource similarity are likely to have
similar competitive actions
high
a high degree of resource similarity but low market commonality =
_______ intensity of rivalry
highest
little resource similarity but high market commonality = _____
intensity of rivalry
lowest
mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade
classical
theory of international trade that relies on more realistic product
life cycles and first mover advantages
modern
under free trade, a nation gains by specializing in economic
activities in which it has _____advantage
absolute
focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage
comparative
, comparative advantage and absolute advantage stem from
factor endowments
theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer
mercantilism
stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US
new
stage of the product life cycle where demand and ability to produce
grow in other developed nations
maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost
developing nations
standardized
comparative advantage may change over time because patterns of
______ change over time
trade
theory that suggests that intervention by governments in certain
industries can enhance their odds for international success
strategic trade
if a company seeks to limit foreign exchange rate exposure in the
forward direction, what is the most effective way to do this?
currency hedging
exchange rate risk associating with the time delay between
entering a contract and settling it
transaction risk
forward transaction that protects traders and investors from
exposure to fluctuations of the spot rate
hedging
a means of spreading out activities in different currency zones in
order to offset the currency losses in certain regions through gains
in other regions
strategic heding
