GRADED A+
Which political view of foreign direct investment (FDI) is most widely used by
governments in the current international business environment? ANSWER >>
Protectionism
Which factors credit the degree of rivalry between a pair of competitors? 2 choices
ANSWER >> Market Commonality
Cost Structure
Which factors credit 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 of any currency? ANSWER >>
Supply and demand for the currency
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, Which risk must 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 >> Non Governmental
Organization
What is the comprehensive free-trade settlement among Canada, US, and Mexico, that
address issues of protecting workers rights, the environment and reducing tariffs and
non-tariff trade barriers? ANSWER >> NAFTA
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