C211 COMPREHENSIVE EXAM PREP
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● Economic gains come from international trade because one country's
exported goods, services, or other items are unique, valuable, and
difficult to duplicate to the importing country. Which view does this
statement portray?
Answer: Resource-based view
●● What is the aggregation of importing and exporting that leads to the
country-level trade surplus or deficit?
Answer: Balance of Trade
●● What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational
enterprises (MNE)
●● Which type of managerial capability is both challenging and difficult
to imitate?
Answer: Intangible capability
, ●● What may precious, rare, and hard-to-duplicate resources and
capabilities lead to for a firm?
Answer: Sustained comparative advantage
●● Which theory of international trade states that poor countries often
experience faster rates of economic growth compared to wealthy
countries?
Answer: The catch-up effect
●● What is the financial environment in which exchange rates and
payments for goods and services are conducted.
Answer: Commodity exchange
●● What happens to a country's real exchange rate and nominal interest
rate as the price level increases, assuming all other factors are
unchanged?
Answer: Exchange rates depreciate, interest rates increase
●● What is the easiest method non-financial companies use to handle
currency fluctuations?
Answer: Commodity trading
●● Which strategy minimizes the risk of unanticipated changes in future
exchange rates?
QUESTIONS AND SOLUTIONS VERIFIED
STUDY RESOURCE
●● Economic gains come from international trade because one country's
exported goods, services, or other items are unique, valuable, and
difficult to duplicate to the importing country. Which view does this
statement portray?
Answer: Resource-based view
●● What is the aggregation of importing and exporting that leads to the
country-level trade surplus or deficit?
Answer: Balance of Trade
●● What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational
enterprises (MNE)
●● Which type of managerial capability is both challenging and difficult
to imitate?
Answer: Intangible capability
, ●● What may precious, rare, and hard-to-duplicate resources and
capabilities lead to for a firm?
Answer: Sustained comparative advantage
●● Which theory of international trade states that poor countries often
experience faster rates of economic growth compared to wealthy
countries?
Answer: The catch-up effect
●● What is the financial environment in which exchange rates and
payments for goods and services are conducted.
Answer: Commodity exchange
●● What happens to a country's real exchange rate and nominal interest
rate as the price level increases, assuming all other factors are
unchanged?
Answer: Exchange rates depreciate, interest rates increase
●● What is the easiest method non-financial companies use to handle
currency fluctuations?
Answer: Commodity trading
●● Which strategy minimizes the risk of unanticipated changes in future
exchange rates?
