C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
The resource-based view of global business differs from the institution-based view of global business in
that the resource-based view _____. - (answer)focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum view" perspective? -
(answer)Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
(answer)pendulum view
Which of the following is true of semiglobalization? - (answer)It is a type of globalization that lies
between total isolation and total globalization.
Globalization can be viewed as: - (answer)A new force sweeping through the world in recent times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization. - (answer)A recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - (answer)mercantilism
The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports. - (answer)protectionism
Which of the following is a modern trade theory? - (answer)National competitive advantage
,C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
The _____ theory is based on the assumption that the wealth of the world is fixed. -
(answer)mercantilism
Import quotas are a type of _____. - (answer)tariff barrier
According to the theory of absolute advantage, under free trade, - (answer)Each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - (answer)Cultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to produce one
ton of blueberries. France requires 30 units of resource to produce one ton of wine and 40 units of
resource to produce one ton of blueberries. Which of the following is true? - (answer)France has a
comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is in the
best interests of all countries? - (answer)Strategic trade theory
Free trade is defined as: - (answer)The idea that market forces should determine how much to trade
with little or no government intervention.
According to the theory of absolute advantage, under free trade, - (answer)each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - (answer)Cultural distance
Protectionism is similar to mercantilism as they both advocated _____. - (answer)government
involvement in international trade
,C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
OLI advantages refer to a firm's quest for _____via FDI. - (answer)ownership advantages, location
advantages, and internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and organizationally
embedded (VRIO) assets overseas in the context of FDI refer to _____. - (answer)ownership
Firms prefer FDI to licensing because FDI_____. - (answer)provides the firm with direct ownership to its
foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and cons and can
only be approved when its benefits outweigh costs? - (answer)Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - (answer)Learning from operations
Which of the following foreign exchange transactions provide protection to traders and investors from
being exposed to fluctuations of the spot rate? - (answer)Forward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement to revert
it back to the original currency at a specific Time 2 in the future. - (answer)Currency swap
Foreign exchange rates are influenced by: - (answer)Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered literate about
foreign exchange: - (answer)Understand the factors that influence exchange rates
, C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by financial
companies? - (answer)Swaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new manufacturing
plants, one in Poland and the other in Thailand. Its purpose is to offset currency losses through: -
(answer)strategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency hedging? -
(answer)They believe that the protection against fluctuations in exchange rates is not worth the
potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - (answer)currency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need to -
(answer)deploy overwhelming resources and capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? - (answer)Avoidance of clash with a dominant firm at
home
Which of the following is an equity mode of entry? - (answer)Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - (answer)Licensing
Which of the following is a disadvantage of licensing and franchising? - (answer)Little control over
marketing
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
The resource-based view of global business differs from the institution-based view of global business in
that the resource-based view _____. - (answer)focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum view" perspective? -
(answer)Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
(answer)pendulum view
Which of the following is true of semiglobalization? - (answer)It is a type of globalization that lies
between total isolation and total globalization.
Globalization can be viewed as: - (answer)A new force sweeping through the world in recent times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization. - (answer)A recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - (answer)mercantilism
The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports. - (answer)protectionism
Which of the following is a modern trade theory? - (answer)National competitive advantage
,C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
The _____ theory is based on the assumption that the wealth of the world is fixed. -
(answer)mercantilism
Import quotas are a type of _____. - (answer)tariff barrier
According to the theory of absolute advantage, under free trade, - (answer)Each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - (answer)Cultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to produce one
ton of blueberries. France requires 30 units of resource to produce one ton of wine and 40 units of
resource to produce one ton of blueberries. Which of the following is true? - (answer)France has a
comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is in the
best interests of all countries? - (answer)Strategic trade theory
Free trade is defined as: - (answer)The idea that market forces should determine how much to trade
with little or no government intervention.
According to the theory of absolute advantage, under free trade, - (answer)each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - (answer)Cultural distance
Protectionism is similar to mercantilism as they both advocated _____. - (answer)government
involvement in international trade
,C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
OLI advantages refer to a firm's quest for _____via FDI. - (answer)ownership advantages, location
advantages, and internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and organizationally
embedded (VRIO) assets overseas in the context of FDI refer to _____. - (answer)ownership
Firms prefer FDI to licensing because FDI_____. - (answer)provides the firm with direct ownership to its
foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and cons and can
only be approved when its benefits outweigh costs? - (answer)Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - (answer)Learning from operations
Which of the following foreign exchange transactions provide protection to traders and investors from
being exposed to fluctuations of the spot rate? - (answer)Forward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement to revert
it back to the original currency at a specific Time 2 in the future. - (answer)Currency swap
Foreign exchange rates are influenced by: - (answer)Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered literate about
foreign exchange: - (answer)Understand the factors that influence exchange rates
, C 211 GLOBAL ECONOMICS FOR MANAGERS FOR OA
EXAM WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by financial
companies? - (answer)Swaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new manufacturing
plants, one in Poland and the other in Thailand. Its purpose is to offset currency losses through: -
(answer)strategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency hedging? -
(answer)They believe that the protection against fluctuations in exchange rates is not worth the
potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - (answer)currency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need to -
(answer)deploy overwhelming resources and capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? - (answer)Avoidance of clash with a dominant firm at
home
Which of the following is an equity mode of entry? - (answer)Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - (answer)Licensing
Which of the following is a disadvantage of licensing and franchising? - (answer)Little control over
marketing
