C211 OA Exam for the course C211 Global Economics at Western Governors University New update 2023/2024

C211 OA Exam for the course C211 Global Economics at Western Governors University New update 2023/2024 1. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international lbusiness environment? Radicalism Protectionism Communism nationalism 2. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market commonality Cost structure Resource similarity Organizational structure 3. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize Formal and informal institutions Market dominance and market fragmentation Cooperation and signaling 4. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? Introduction Maturity Growth Decline 5. Which factor determinesthe foreign exchange rate any currency? Universal trade of the currency Supply and demand for the currency The age of the currency Business economics of the currency 6. Which risk must a corporation minimize if it isto effectively manage short-term currency fluctuations? Beta risk Hedging Alpha risk Transaction risk 7. Which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? Clean float rate policy Fixed rate policy Flexible rate policy Floating rate policy 8. Which term refers to trading currencies and currency derivativesin order to earn profits and help makeprices efficient? Investing Brokering Day trading Speculation 9. Which type of advantage is gained by a company based on where it operates? Lifecycle-specific Innovation-specific Institution-specific Location-specific 10. Who gains from erecting significant entry barriersfor other entrants? Late mover Early movers Laggard First movers 11. Which strategy for entering into a foreign market hasthe lowest degree of risk? Wholly-owned subsidiary Joint venture Foreign acquisition Licensing 12. What is a non-equity mode involving some type of contractual agreement? Minority joint venturing Direct exporting Licensing Acquisition 13. After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? Informal institution Nongovernmental organization Formal institution Government agency