C211 - PA Questions with verified detailed answers

C211 - PA Questions with verified detailed answers ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What are weaknesses of the theory of mercantilism? Choose two. - correct answer✔✔The
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theory leads to inefficient allocation of resources.
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Application of the theory reduces the wealth of the nation in the long run. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is the bandwagon effect? - correct answer✔✔The movement of investors in the same
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direction at the same time ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




A country has seen a decrease in inflation.What is the effect on the country's currency
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exchange rate? - correct answer✔✔It increases. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




A country has seen a decrease in inflation.What is the effect on the country's currency
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exchange rate? - correct answer✔✔Spot transactions ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Who are the primary and largest participants in the foreign exchange market? - correct
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answer✔✔Large international banks ||\\|//|| ||\\|//||




Which company has a natural resource-seeking strategic goal? - correct answer✔✔A
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company searching for a location where there is an abundance of oil ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Which entrant is able to erect significant barriers for other entrants? - correct
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answer✔✔First mover ||\\|//||




Direct exports have which advantage? - correct answer✔✔Capitalization of economies of
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scale in production in the home country
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, What are examples of equity modes of entry? Choose three. - correct answer✔✔Strategic
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alliances, Greenfields, Acquisitions ||\\|//|| ||\\|//||




One view of globalization claims that human civilization has always had some type of
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globalization. Which view is it? - correct answer✔✔The long-run historical view ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




The benefit attributed to firms that enter a market before other firms in the same market
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segment is best described by which term? - correct answer✔✔First-mover advantage ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




What is opportunity cost? - correct answer✔✔The lost potential from pursuing one activity
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at the expense of another activity, given the alternatives
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What is one of the OLI advantages outlined by John Dunning for why firms become
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multinational enterprises by engaging in foreign direct investment? - correct ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




answer✔✔Internalization advantages ||\\|//||




In which situation is the dodger strategy appropriate for responding to MNEs? - correct
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answer✔✔There is high industry pressure to globalize, and competitive assets are ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




customized to home markets. ||\\|//|| ||\\|//|| ||\\|//||




What are three characteristics of industries primed for collusion? Choose three. - correct
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answer✔✔A small number of rivals ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




A price leader
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Homogeneous products ||\\|//||




Which pillar of formal institutions represents the coercive power of governments? - correct
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answer✔✔Regulatory



What are represented by formal institutions? - correct answer✔✔Laws
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