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C211 Oa Exam With Verified Detailed Answers

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C211 OA EXAM WITH VERIFIED DETAILED ANSWERS

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C211 OA EXAM WITH VERIFIED DETAILED ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




ANSWERS


view that claims phenomenon of globalization was initially driven by the desire of Western
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economies to exploit their power through MNE's - correct answer✔✔new
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view that claims globalization is a long-run historical evolution since the dawn of
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humanity. Says it is nothing new and that it will always exist - correct ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




answer✔✔evolutionary



view that claims globalization is swinging from one extreme to another from time to time -
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correct answer✔✔pendulum ||\\|//||




investment in, controlling, and managing value-added activities in other countries - correct ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




answer✔✔foreign direct investment
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political view hostile to FDI. believes it is an instrument of imperialism and vehicle for
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exploitation of domestic resources by foreign capitalists and firms - correct ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




answer✔✔radical



suggests that FDI, unrestricted by government intervention, will enable countries to tap
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into their absolute or comparative advantages by specializing in the production of certain
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goods and services - correct answer✔✔free market
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views FDI as having pros and cons and only approving FDI when its benefits outweigh
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costs - correct answer✔✔pragmatic nationalis
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,what benefits exist to a country receiving FDI? - correct answer✔✔capital inflow,
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technology spillovers, advanced management know-how, creates jobs ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




what costs exist to a country receiving FDI? - correct answer✔✔loss of sovereignty, adverse
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effects on competition, net outflow in the capital account
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The aggregation of importing and exporting that leads to the country-level trade surplus or
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deficit. - correct answer✔✔balance of trade ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




firms with a _____ degree of resource similarity are likely to have similar competitive
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actions - correct answer✔✔high ||\\|//|| ||\\|//|| ||\\|//||




a high degree of resource similarity but low market commonality = _______ intensity of
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




rivalry - correct answer✔✔highest ||\\|//|| ||\\|//|| ||\\|//||




little resource similarity but high market commonality = _____ intensity of rivalry - correct
||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




answer✔✔lowest
||\\|//||




mercantilism, absolute advantage and comparative advantage belong to what theory of ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




international trade - correct answer✔✔classical ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




theory of international trade that relies on more realistic product life cycles and first mover
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advantages - correct answer✔✔modern
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under free trade, a nation gains by specializing in economic activities in which it has
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_____advantage - correct answer✔✔absolute ||\\|//|| ||\\|//|| ||\\|//||

, focuses on the idea that if a country does not have absolute advantage, they can still choose
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to specialize in the production of one good where it has ______ advantage - correct
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answer✔✔comparative



comparative advantage and absolute advantage stem from - correct answer✔✔factor ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




endowments



theory that the wealth of the world is fixed and that a nation that imports more and
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exports less will be richer - correct answer✔✔mercantilism ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




stage of the product life cycle where production of a new product that commands a price
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premium will concentrate in the US - correct answer✔✔new ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




stage of the product life cycle where demand and ability to produce grow in other
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developed nations - correct answer✔✔maturing ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




stage of the product life cycle where the previously new product is commoditized and
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production will now move to low-cost developing nations - correct answer✔✔standardized ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




comparative advantage may change over time because patterns of ______ change over time ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




- correct answer✔✔trade
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theory that suggests that intervention by governments in certain industries can enhance
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their odds for international success - correct answer✔✔strategic trade
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if a company seeks to limit foreign exchange rate exposure in the forward direction, what is
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the most effective way to do this? - correct answer✔✔currency hedging
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