WGU C211 SECOND OA FINAL PAPER
COMPLETE QUESTIONS AND ANSWERS
◉ 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.
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
COMPLETE QUESTIONS AND ANSWERS
◉ 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.
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
