C211 OA PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS
GUARANTEED TO PASS.
⫸ A company is looking for a location with an abundance of ground-
breaking individuals, firms, and universities. Which type of strategic
goal is this company demonstrating? Answer: Innovation-seeking
⫸ What advantage comes with not sharing benefits with late
entrants? Answer: First-mover advantage
⫸ Which entry mode is a non-equity arrangement for a company
contemplating entry into a foreign market? Answer: Licensing
⫸ What size commitment is required for a non-equity mode of entry
into a foreign market? Answer: Small commitment
⫸ What are two supportive pillars for an informal institution?
Answer: Normative and cognitive
⫸ What is the key role of an institution, according to the institution-
based view? Answer: To reduce uncertainty
⫸ What are the rules, enforcement mechanisms, and organizations
that support market transactions? Answer: Institutions
, ⫸ What is a core proposition underpinning an institutional-based
view of global business? Answer: Bounded rationality
⫸ In which type of political system do citizens elect representatives
to govern the country on their behalf? Answer: Democracy
⫸ Which legal system uses comprehensive lists of rules and written
codes? Answer: Civil law
⫸ What are the legal privileges associated with the use of economic
property to obtain income and other benefits from its use? Answer:
Property rights
⫸ What is the purpose of having property rights and intellectual
property rights? Answer: To legally protect the use to tangible and
intangible property and allow its lawful owner to derive income and
other benefits from it
⫸ What are the two popular types of economies? Answer: Mixed
economies
Market economies
⫸ In addition to encouraging efficiency, why might a government
intervene in a market? Answer: To increase profits
⫸ What is the relationship between total and marginal cost? Answer:
Marginal cost is the change in total cost divided by the change in
quantity
QUESTIONS WITH ANSWERS
GUARANTEED TO PASS.
⫸ A company is looking for a location with an abundance of ground-
breaking individuals, firms, and universities. Which type of strategic
goal is this company demonstrating? Answer: Innovation-seeking
⫸ What advantage comes with not sharing benefits with late
entrants? Answer: First-mover advantage
⫸ Which entry mode is a non-equity arrangement for a company
contemplating entry into a foreign market? Answer: Licensing
⫸ What size commitment is required for a non-equity mode of entry
into a foreign market? Answer: Small commitment
⫸ What are two supportive pillars for an informal institution?
Answer: Normative and cognitive
⫸ What is the key role of an institution, according to the institution-
based view? Answer: To reduce uncertainty
⫸ What are the rules, enforcement mechanisms, and organizations
that support market transactions? Answer: Institutions
, ⫸ What is a core proposition underpinning an institutional-based
view of global business? Answer: Bounded rationality
⫸ In which type of political system do citizens elect representatives
to govern the country on their behalf? Answer: Democracy
⫸ Which legal system uses comprehensive lists of rules and written
codes? Answer: Civil law
⫸ What are the legal privileges associated with the use of economic
property to obtain income and other benefits from its use? Answer:
Property rights
⫸ What is the purpose of having property rights and intellectual
property rights? Answer: To legally protect the use to tangible and
intangible property and allow its lawful owner to derive income and
other benefits from it
⫸ What are the two popular types of economies? Answer: Mixed
economies
Market economies
⫸ In addition to encouraging efficiency, why might a government
intervene in a market? Answer: To increase profits
⫸ What is the relationship between total and marginal cost? Answer:
Marginal cost is the change in total cost divided by the change in
quantity
