WGU C211 OA Exam 178 Questions with Verified
Answers
new - CORRECT ANSWER view that claims phenomenon of globalization was
initially driven by the desire of Western economies to exploit their power through
MNE's
evolutionary - CORRECT ANSWER 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
pendulum - CORRECT ANSWER view that claims globalization is swinging from one
extreme to another from time to time
foreign direct investment - CORRECT ANSWER investment in, controlling, and
managing value-added activities in other countries
radical - CORRECT ANSWER political view hostile to FDI. believes it is an
instrument of imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms
free market - CORRECT ANSWER suggests that FDI, unrestricted by government
intervention, will enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and services
,pragmatic nationalis - CORRECT ANSWER views FDI as having pros and cons and
only approving FDI when its benefits outweigh costs
capital inflow, technology spillovers, advanced management know-how, creates
jobs - CORRECT ANSWER what benefits exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in the capital
account - CORRECT ANSWER what costs exist to a country receiving FDI?
balance of trade - CORRECT ANSWER The aggregation of importing and exporting
that leads to the country-level trade surplus or deficit.
high - CORRECT ANSWER firms with a _____ degree of resource similarity are
likely to have similar competitive actions
highest - CORRECT ANSWER a high degree of resource similarity but low market
commonality = _______ intensity of rivalry
lowest - CORRECT ANSWER little resource similarity but high market commonality
= _____ intensity of rivalry
classical - CORRECT ANSWER mercantilism, absolute advantage and comparative
advantage belong to what theory of international trade
modern - CORRECT ANSWER theory of international trade that relies on more
realistic product life cycles and first mover advantages
, absolute - CORRECT ANSWER under free trade, a nation gains by specializing in
economic activities in which it has _____advantage
comparative - CORRECT ANSWER 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
factor endowments - CORRECT ANSWER comparative advantage and absolute
advantage stem from
mercantilism - CORRECT ANSWER theory that the wealth of the world is fixed and
that a nation that imports more and exports less will be richer
new - CORRECT ANSWER stage of the product life cycle where production of a
new product that commands a price premium will concentrate in the US
maturing - CORRECT ANSWER stage of the product life cycle where demand and
ability to produce grow in other developed nations
standardized - CORRECT ANSWER stage of the product life cycle where the
previously new product is commoditized and production will now move to low-
cost developing nations
trade - CORRECT ANSWER comparative advantage may change over time because
patterns of ______ change over time
Answers
new - CORRECT ANSWER view that claims phenomenon of globalization was
initially driven by the desire of Western economies to exploit their power through
MNE's
evolutionary - CORRECT ANSWER 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
pendulum - CORRECT ANSWER view that claims globalization is swinging from one
extreme to another from time to time
foreign direct investment - CORRECT ANSWER investment in, controlling, and
managing value-added activities in other countries
radical - CORRECT ANSWER political view hostile to FDI. believes it is an
instrument of imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms
free market - CORRECT ANSWER suggests that FDI, unrestricted by government
intervention, will enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and services
,pragmatic nationalis - CORRECT ANSWER views FDI as having pros and cons and
only approving FDI when its benefits outweigh costs
capital inflow, technology spillovers, advanced management know-how, creates
jobs - CORRECT ANSWER what benefits exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in the capital
account - CORRECT ANSWER what costs exist to a country receiving FDI?
balance of trade - CORRECT ANSWER The aggregation of importing and exporting
that leads to the country-level trade surplus or deficit.
high - CORRECT ANSWER firms with a _____ degree of resource similarity are
likely to have similar competitive actions
highest - CORRECT ANSWER a high degree of resource similarity but low market
commonality = _______ intensity of rivalry
lowest - CORRECT ANSWER little resource similarity but high market commonality
= _____ intensity of rivalry
classical - CORRECT ANSWER mercantilism, absolute advantage and comparative
advantage belong to what theory of international trade
modern - CORRECT ANSWER theory of international trade that relies on more
realistic product life cycles and first mover advantages
, absolute - CORRECT ANSWER under free trade, a nation gains by specializing in
economic activities in which it has _____advantage
comparative - CORRECT ANSWER 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
factor endowments - CORRECT ANSWER comparative advantage and absolute
advantage stem from
mercantilism - CORRECT ANSWER theory that the wealth of the world is fixed and
that a nation that imports more and exports less will be richer
new - CORRECT ANSWER stage of the product life cycle where production of a
new product that commands a price premium will concentrate in the US
maturing - CORRECT ANSWER stage of the product life cycle where demand and
ability to produce grow in other developed nations
standardized - CORRECT ANSWER stage of the product life cycle where the
previously new product is commoditized and production will now move to low-
cost developing nations
trade - CORRECT ANSWER comparative advantage may change over time because
patterns of ______ change over time
