C211 OA COMPREHENSIVE TEST
SCRIPT 2026 QUESTIONS WITH
SOLUTIONS 100% CORRECT.
⩥ little resource similarity but high market commonality = _____
intensity of rivalry. Answer: lowest
⩥ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade. Answer: classical
⩥ theory of international trade that relies on more realistic product life
cycles and first mover advantages. Answer: modern
⩥ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage. Answer: 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. Answer: comparative
⩥ comparative advantage and absolute advantage stem from. Answer:
factor endowments
⩥ theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer. Answer: mercantilism
,⩥ stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US. Answer:
new
⩥ stage of the product life cycle where demand and ability to produce
grow in other developed nations. Answer: maturing
⩥ stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing
nations. Answer: standardized
⩥ comparative advantage may change over time because patterns of
______ change over time. Answer: trade
⩥ theory that suggests that intervention by governments in certain
industries can enhance their odds for international success. Answer:
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? Answer:
currency hedging
⩥ exchange rate risk associating with the time delay between entering
a contract and settling it. Answer: transaction risk
⩥ forward transaction that protects traders and investors from
exposure to fluctuations of the spot rate. Answer: 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. Answer: strategic heding
⩥ amount of resources committed to entering a foreign market.
Answer: scale of entry
⩥ how do institutions reduce uncertainty? Answer: by signaling
which conduct is legit and which is not
⩥ pillar of formal institution, coercive power of government. Answer:
regulatory
⩥ pillar of informal institution, the mechanism through which norms
influence individual and firm behavior. Answer: normative
⩥ pillar of informal institution, taken for granted values and beliefs
that guide behavior. Answer: cognitive
⩥ institutions represented by laws, regulations and rules. Answer:
formal
⩥ institutions represented by norms, culture and ethics. Answer:
informal
⩥ the necessity of making rational decisions in the absence of
complete information. Answer: bounded rationality
SCRIPT 2026 QUESTIONS WITH
SOLUTIONS 100% CORRECT.
⩥ little resource similarity but high market commonality = _____
intensity of rivalry. Answer: lowest
⩥ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade. Answer: classical
⩥ theory of international trade that relies on more realistic product life
cycles and first mover advantages. Answer: modern
⩥ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage. Answer: 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. Answer: comparative
⩥ comparative advantage and absolute advantage stem from. Answer:
factor endowments
⩥ theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer. Answer: mercantilism
,⩥ stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US. Answer:
new
⩥ stage of the product life cycle where demand and ability to produce
grow in other developed nations. Answer: maturing
⩥ stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing
nations. Answer: standardized
⩥ comparative advantage may change over time because patterns of
______ change over time. Answer: trade
⩥ theory that suggests that intervention by governments in certain
industries can enhance their odds for international success. Answer:
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? Answer:
currency hedging
⩥ exchange rate risk associating with the time delay between entering
a contract and settling it. Answer: transaction risk
⩥ forward transaction that protects traders and investors from
exposure to fluctuations of the spot rate. Answer: 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. Answer: strategic heding
⩥ amount of resources committed to entering a foreign market.
Answer: scale of entry
⩥ how do institutions reduce uncertainty? Answer: by signaling
which conduct is legit and which is not
⩥ pillar of formal institution, coercive power of government. Answer:
regulatory
⩥ pillar of informal institution, the mechanism through which norms
influence individual and firm behavior. Answer: normative
⩥ pillar of informal institution, taken for granted values and beliefs
that guide behavior. Answer: cognitive
⩥ institutions represented by laws, regulations and rules. Answer:
formal
⩥ institutions represented by norms, culture and ethics. Answer:
informal
⩥ the necessity of making rational decisions in the absence of
complete information. Answer: bounded rationality
