C211 OA Exam 2026 Questions and
Answers
new - Correct answer-view that claims phenomenon of globalization was initially
driven by the desire of Western economies to exploit their power through MNE's
evolutionary - Correct answer-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
pendulum - Correct answer-view that claims globalization is swinging from one
extreme to another from time to time
foreign direct investment - Correct answer-investment in, controlling, and
managing value-added activities in other countries
radical - Correct answer-political view hostile to FDI. believes it is an instrument
of imperialism and vehicle for exploitation of domestic resources by foreign
capitalists and firms
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,free market - Correct answer-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
pragmatic nationalis - Correct answer-views FDI as having pros and cons and only
approving FDI when its benefits outweigh costs
capital inflow, technology spillovers, advanced management know-how, creates
jobs - Correct answer-what benefits exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in the capital
account - Correct answer-what costs exist to a country receiving FDI?
balance of trade - Correct answer-The aggregation of importing and exporting that
leads to the country-level trade surplus or deficit.
high - Correct answer-firms with a _____ degree of resource similarity are likely to
have similar competitive actions
highest - Correct answer-a high degree of resource similarity but low market
commonality = _______ intensity of rivalry
lowest - Correct answer-little resource similarity but high market commonality =
_____ intensity of rivalry
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, classical - Correct answer-mercantilism, absolute advantage and comparative
advantage belong to what theory of international trade
modern - Correct answer-theory of international trade that relies on more realistic
product life cycles and first mover advantages
absolute - Correct answer-under free trade, a nation gains by specializing in
economic activities in which it has _____advantage
comparative - Correct answer-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
factor endowments - Correct answer-comparative advantage and absolute
advantage stem from
mercantilism - Correct answer-theory that the wealth of the world is fixed and that
a nation that imports more and exports less will be richer
new - Correct answer-stage of the product life cycle where production of a new
product that commands a price premium will concentrate in the US
maturing - Correct answer-stage of the product life cycle where demand and ability
to produce grow in other developed nations
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Answers
new - Correct answer-view that claims phenomenon of globalization was initially
driven by the desire of Western economies to exploit their power through MNE's
evolutionary - Correct answer-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
pendulum - Correct answer-view that claims globalization is swinging from one
extreme to another from time to time
foreign direct investment - Correct answer-investment in, controlling, and
managing value-added activities in other countries
radical - Correct answer-political view hostile to FDI. believes it is an instrument
of imperialism and vehicle for exploitation of domestic resources by foreign
capitalists and firms
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,free market - Correct answer-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
pragmatic nationalis - Correct answer-views FDI as having pros and cons and only
approving FDI when its benefits outweigh costs
capital inflow, technology spillovers, advanced management know-how, creates
jobs - Correct answer-what benefits exist to a country receiving FDI?
loss of sovereignty, adverse effects on competition, net outflow in the capital
account - Correct answer-what costs exist to a country receiving FDI?
balance of trade - Correct answer-The aggregation of importing and exporting that
leads to the country-level trade surplus or deficit.
high - Correct answer-firms with a _____ degree of resource similarity are likely to
have similar competitive actions
highest - Correct answer-a high degree of resource similarity but low market
commonality = _______ intensity of rivalry
lowest - Correct answer-little resource similarity but high market commonality =
_____ intensity of rivalry
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, classical - Correct answer-mercantilism, absolute advantage and comparative
advantage belong to what theory of international trade
modern - Correct answer-theory of international trade that relies on more realistic
product life cycles and first mover advantages
absolute - Correct answer-under free trade, a nation gains by specializing in
economic activities in which it has _____advantage
comparative - Correct answer-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
factor endowments - Correct answer-comparative advantage and absolute
advantage stem from
mercantilism - Correct answer-theory that the wealth of the world is fixed and that
a nation that imports more and exports less will be richer
new - Correct answer-stage of the product life cycle where production of a new
product that commands a price premium will concentrate in the US
maturing - Correct answer-stage of the product life cycle where demand and ability
to produce grow in other developed nations
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
