C211 Study Guide questions with answers

C211 Study Guide questions with
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answers

What is Foreign Direct Investment? - CORRECT ANSWERS
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✔✔is direct investment in, control, and management of
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value-added activities in other countries. |\ |\ |\ |\




What different political views exist on FDI? - CORRECT
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ANSWERS ✔✔Radical, Free Market, and Pragramatic
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Nationalism


What benefits exist to a country receiving FDI? - CORRECT
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ANSWERS ✔✔Capital inflow, Technology, management,
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job creation
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What costs exist to a country receiving FDI? - CORRECT
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ANSWERS ✔✔Loss of sovereignty, adverse effects on
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competition, and capital outflow |\ |\ |\




How do resources and capabilities influence the
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competitive dynamics of a business? - CORRECT |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔Value, rarity, imitibility, and organization
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(VRIO)

,Globalization new view - CORRECT ANSWERS ✔✔A new |\ |\ |\ |\ |\ |\ |\ |\



force sweeping through the world in recent times
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Evolutionary globalization view - CORRECT ANSWERS |\ |\ |\ |\ |\ |\



✔✔long-run historical evolution since the dawn of human |\ |\ |\ |\ |\ |\ |\ |\



history


"Pendulum" view on globalization - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\



✔✔One that swings from one extreme to another from
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time to time
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What is resource similarity and how does this impact
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competitive dynamics? - CORRECT ANSWERS ✔✔The |\ |\ |\ |\ |\ |\



degree to which two firms with similar resources are likely
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to have competitive actions. ie: market commonality
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Give a description of the classical theory of international
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trade. - CORRECT ANSWERS ✔✔The major theories
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typically studied consist of mercantilism, absolute
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advantage, and comparative advantage |\ |\ |\




How would the modern theory compare to the classical
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theory? - CORRECT ANSWERS ✔✔the major theories
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typically studied consist of product life cycle, strategic
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trade, and national competitive advantage.
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, Absolute advantage - CORRECT ANSWERS ✔✔involves|\ |\ |\ |\ |\ |\



being more efficient than anyone else in the production of
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any good or service
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comparative advantage - CORRECT ANSWERS ✔✔is the |\ |\ |\ |\ |\ |\ |\



relative (not absolute) advantage in one absolute activity
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that one nation enjoys in comparison with other nations
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Mercantilism - CORRECT ANSWERS ✔✔Classical trade |\ |\ |\ |\ |\ |\



theory that viewed international trade as a zero-sum
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game


What are the critical features of the product life cycle? -
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CORRECT ANSWERS ✔✔An economic theory that |\ |\ |\ |\ |\ |\



accounts for changes in the patterns of trade over time
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How would you describe strategic trade? - CORRECT
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ANSWERS ✔✔A theory that suggests that strategic |\ |\ |\ |\ |\ |\ |\



intervention by governments in certain industries can |\ |\ |\ |\ |\ |\ |\



enhance their odds for international success |\ |\ |\ |\ |\




How are supply and demand related to the exchange rate
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of a country? - CORRECT ANSWERS ✔✔Exchange rates
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rise and fall based on the underlying economic conditions
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that prompt traders, investors and others to want more
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of a particular currency.
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