C211 OA QUESTIONS AND
ANSWERS 2025/2026 (VERRIFIED
ANSWERS)
Which political view of foreign direct investment (FDI) is most widely used by governments in the
current international business environment? - ANSWER-(pragmatic) Nationalism
Which factors predict the degree of rivalry between a pair of competitors? 2 choices - ANSWER-
Market commonality
Resource similarity
Which factors predicts how local firms in emerging economics will respond to multinational
competitors - ANSWER-Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase before seeing more
dramatic increases? - ANSWER-Growth
Which factor determines the foreign exchange rate any currency? - ANSWER-Supply and demand for
the currency
Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?
- ANSWER-Transaction risk
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? - ANSWER-Fixed rate policy
Which term refers to trading currencies and currency derivatives in order to earn profits and help
make prices efficient? - ANSWER-Brokering
Which type of advantage is gained by a company based on where it operates? - ANSWER-Location-
specific
Who gains from erecting significant entry barriers for other entrants? - ANSWER-First movers
Which strategy for entering into a foreign market has the lowest degree of risk? - ANSWER-Licensing
What is a non-equity mode involving some type of contractual agreement? - ANSWER-Licensing
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? - ANSWER-Informal institution
What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses
issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers?
- ANSWER-NAFTA
What is one of the core propositions underpinning an institution-based view of global business? -
ANSWER-If formal constraints are not in place, the informal constraints will guide decision making
ANSWERS 2025/2026 (VERRIFIED
ANSWERS)
Which political view of foreign direct investment (FDI) is most widely used by governments in the
current international business environment? - ANSWER-(pragmatic) Nationalism
Which factors predict the degree of rivalry between a pair of competitors? 2 choices - ANSWER-
Market commonality
Resource similarity
Which factors predicts how local firms in emerging economics will respond to multinational
competitors - ANSWER-Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase before seeing more
dramatic increases? - ANSWER-Growth
Which factor determines the foreign exchange rate any currency? - ANSWER-Supply and demand for
the currency
Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?
- ANSWER-Transaction risk
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? - ANSWER-Fixed rate policy
Which term refers to trading currencies and currency derivatives in order to earn profits and help
make prices efficient? - ANSWER-Brokering
Which type of advantage is gained by a company based on where it operates? - ANSWER-Location-
specific
Who gains from erecting significant entry barriers for other entrants? - ANSWER-First movers
Which strategy for entering into a foreign market has the lowest degree of risk? - ANSWER-Licensing
What is a non-equity mode involving some type of contractual agreement? - ANSWER-Licensing
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? - ANSWER-Informal institution
What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses
issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers?
- ANSWER-NAFTA
What is one of the core propositions underpinning an institution-based view of global business? -
ANSWER-If formal constraints are not in place, the informal constraints will guide decision making
