C211 OA Exam Complete Questions And
Solutions | Already Passed
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's CORRECT ANSWERS 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 CORRECT ANSWERS
evolutionary
view that claims globalization is swinging from one extreme to another from time to time
CORRECT ANSWERS pendulum
investment in, controlling, and managing value-added activities in other countries
CORRECT ANSWERS 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 CORRECT
ANSWERS 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 CORRECT ANSWERS free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh
costs CORRECT ANSWERS pragmatic nationalis
what benefits exist to a country receiving FDI? CORRECT ANSWERS capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? CORRECT ANSWERS 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. CORRECT ANSWERS balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive
actions CORRECT ANSWERS high
a high degree of resource similarity but low market commonality = _______ intensity of
rivalry CORRECT ANSWERS highest
little resource similarity but high market commonality = _____ intensity of rivalry
CORRECT ANSWERS lowest
, mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade CORRECT ANSWERS classical
theory of international trade that relies on more realistic product life cycles and first
mover advantages CORRECT ANSWERS modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage CORRECT ANSWERS absolute
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
CORRECT ANSWERS comparative
comparative advantage and absolute advantage stem from CORRECT ANSWERS
factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer CORRECT ANSWERS mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US CORRECT ANSWERS new
stage of the product life cycle where demand and ability to produce grow in other
developed nations CORRECT ANSWERS maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations CORRECT ANSWERS
standardized
comparative advantage may change over time because patterns of ______ change over
time CORRECT ANSWERS trade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success CORRECT ANSWERS strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? CORRECT ANSWERS currency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it CORRECT ANSWERS transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of
the spot rate CORRECT ANSWERS hedging
Solutions | Already Passed
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's CORRECT ANSWERS 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 CORRECT ANSWERS
evolutionary
view that claims globalization is swinging from one extreme to another from time to time
CORRECT ANSWERS pendulum
investment in, controlling, and managing value-added activities in other countries
CORRECT ANSWERS 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 CORRECT
ANSWERS 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 CORRECT ANSWERS free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh
costs CORRECT ANSWERS pragmatic nationalis
what benefits exist to a country receiving FDI? CORRECT ANSWERS capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? CORRECT ANSWERS 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. CORRECT ANSWERS balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive
actions CORRECT ANSWERS high
a high degree of resource similarity but low market commonality = _______ intensity of
rivalry CORRECT ANSWERS highest
little resource similarity but high market commonality = _____ intensity of rivalry
CORRECT ANSWERS lowest
, mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade CORRECT ANSWERS classical
theory of international trade that relies on more realistic product life cycles and first
mover advantages CORRECT ANSWERS modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage CORRECT ANSWERS absolute
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
CORRECT ANSWERS comparative
comparative advantage and absolute advantage stem from CORRECT ANSWERS
factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer CORRECT ANSWERS mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US CORRECT ANSWERS new
stage of the product life cycle where demand and ability to produce grow in other
developed nations CORRECT ANSWERS maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations CORRECT ANSWERS
standardized
comparative advantage may change over time because patterns of ______ change over
time CORRECT ANSWERS trade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success CORRECT ANSWERS strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? CORRECT ANSWERS currency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it CORRECT ANSWERS transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of
the spot rate CORRECT ANSWERS hedging
