C211 OA Exam Questions and Answers
100% Solved
view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's -
✔✔new
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 -
✔✔evolutionary
view that claims globalization is swinging from one extreme to another from
time to time - ✔✔pendulum
investment in, controlling, and managing value-added activities in other
countries - ✔✔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 - ✔✔radical
suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
1
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,specializing in the production of certain goods and services - ✔✔free
market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs - ✔✔pragmatic nationalis
what benefits exist to a country receiving FDI? - ✔✔capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ✔✔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. - ✔✔balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions - ✔✔high
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - ✔✔highest
little resource similarity but high market commonality = _____ intensity of
rivalry - ✔✔lowest
mercantilism, absolute advantage and comparative advantage belong to
what theory of international trade - ✔✔classical
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, theory of international trade that relies on more realistic product life cycles
and first mover advantages - ✔✔modern
under free trade, a nation gains by specializing in economic activities in
which it has _____advantage - ✔✔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 - ✔✔comparative
comparative advantage and absolute advantage stem from - ✔✔factor
endowments
theory that the wealth of the world is fixed and that a nation that imports
more and exports less will be richer - ✔✔mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US - ✔✔new
stage of the product life cycle where demand and ability to produce grow in
other developed nations - ✔✔maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing nations
- ✔✔standardized
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
100% Solved
view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's -
✔✔new
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 -
✔✔evolutionary
view that claims globalization is swinging from one extreme to another from
time to time - ✔✔pendulum
investment in, controlling, and managing value-added activities in other
countries - ✔✔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 - ✔✔radical
suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,specializing in the production of certain goods and services - ✔✔free
market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs - ✔✔pragmatic nationalis
what benefits exist to a country receiving FDI? - ✔✔capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ✔✔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. - ✔✔balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions - ✔✔high
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - ✔✔highest
little resource similarity but high market commonality = _____ intensity of
rivalry - ✔✔lowest
mercantilism, absolute advantage and comparative advantage belong to
what theory of international trade - ✔✔classical
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, theory of international trade that relies on more realistic product life cycles
and first mover advantages - ✔✔modern
under free trade, a nation gains by specializing in economic activities in
which it has _____advantage - ✔✔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 - ✔✔comparative
comparative advantage and absolute advantage stem from - ✔✔factor
endowments
theory that the wealth of the world is fixed and that a nation that imports
more and exports less will be richer - ✔✔mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US - ✔✔new
stage of the product life cycle where demand and ability to produce grow in
other developed nations - ✔✔maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing nations
- ✔✔standardized
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
