C211 EXAM SCRIPT VERIFIED QUESTIONS
AND SOLUTIONS COMPLETE REVIEW
MATERIAL
●● 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
Answer: evolutionary
●● view that claims globalization is swinging from one extreme to
another from time to time
Answer: pendulum
●● investment in, controlling, and managing value-added activities in
other countries
Answer: 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
Answer: 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
Answer: free market
●● views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
Answer: pragmatic nationalis
●● what benefits exist to a country receiving FDI?
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
●● what costs exist to a country receiving FDI?
Answer: 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.
Answer: balance of trade
●● firms with a _____ degree of resource similarity are likely to have
similar competitive actions
Answer: high
, ●● a high degree of resource similarity but low market commonality =
_______ intensity of rivalry
Answer: highest
●● 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
AND SOLUTIONS COMPLETE REVIEW
MATERIAL
●● 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
Answer: evolutionary
●● view that claims globalization is swinging from one extreme to
another from time to time
Answer: pendulum
●● investment in, controlling, and managing value-added activities in
other countries
Answer: 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
Answer: 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
Answer: free market
●● views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
Answer: pragmatic nationalis
●● what benefits exist to a country receiving FDI?
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
●● what costs exist to a country receiving FDI?
Answer: 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.
Answer: balance of trade
●● firms with a _____ degree of resource similarity are likely to have
similar competitive actions
Answer: high
, ●● a high degree of resource similarity but low market commonality =
_______ intensity of rivalry
Answer: highest
●● 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
