WGU C211 OA Global Economics for Managers Test – With Complete Solutions (Graded A+)

WGU C211 OA Global Economics for Managers Test – With Complete Solutions (Graded A+) WGU C211 OA Global Economics for Managers Test – With Complete Solutions (Graded A+) view that claims phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through MNE's - ANSWER - 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 - ANSWER - evolutionary view that claims globalization is swinging from one extreme to another from time to time - ANSWER - pendulum investment in, controlling, and managing value-added activities in other countries - ANSWER - 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 - ANSWER - radical 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 - ANSWER - free market views FDI as having pros and cons and only approving FDI when its benefits outweigh costs - ANSWER - pragmatic nationalis what benefits exist to a country receiving FDI? - ANSWER - capital inflow, technology spillovers, advanced management know-how, creates jobs what costs exist to a country receiving FDI? - ANSWER - 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. - ANSWER - balance of trade firms with a _____ degree of resource similarity are likely to have similar competitive actions - ANSWER - high a high degree of resource similarity but low market commonality = _______ intensity of rivalry - ANSWER - highest little resource similarity but high market commonality = _____ intensity of rivalry - ANSWER - lowest mercantilism, absolute advantage and comparative advantage belong to what theory of international trade - ANSWER - classical theory of international trade that relies on more realistic product life cycles and first mover advantages - ANSWER - modern