C211 OA ALL 500 QUESTIONS AND WELL EXPLAINED ANSWERS LATEST UPDATE JUST RELEASED THIS YEAR

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C211 OA ALL 500 QUESTIONS AND WELL
EXPLAINED ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR

Question: 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
ANSWER✔✔comparative




Question: comparative advantage and absolute advantage stem from - CORRECT
ANSWER✔✔factor endowments




Question: theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - CORRECT ANSWER✔✔mercantilism




Q:view that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - CORRECT ANSWER✔✔new




Question: 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
ANSWER✔✔evolutionary

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Question: view that claims globalization is swinging from one extreme to another from time to
time - CORRECT ANSWER✔✔pendulum




Question: investment in, controlling, and managing value-added activities in other countries -
CORRECT ANSWER✔✔foreign direct investment




Question: 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
ANSWER✔✔radical




Question: 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 ANSWER✔✔free market




Question: views FDI as having pros and cons and only approving FDI when its benefits outweigh
costs - CORRECT ANSWER✔✔pragmatic nationalis




Question: what benefits exist to a country receiving FDI? - CORRECT ANSWER✔✔capital inflow,
technology spillovers, advanced management know-how, creates jobs




Question: what costs exist to a country receiving FDI? - CORRECT ANSWER✔✔loss of
sovereignty, adverse effects on competition, net outflow in the capital account

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Question: The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit. - CORRECT ANSWER✔✔balance of trade




Question: firms with a _____ degree of resource similarity are likely to have similar competitive
actions - CORRECT ANSWER✔✔high




Question: a high degree of resource similarity but low market commonality = _______ intensity
of rivalry - CORRECT ANSWER✔✔highest




Question: little resource similarity but high market commonality = _____ intensity of rivalry -
CORRECT ANSWER✔✔lowest




Question: mercantilism, absolute advantage and comparative advantage belong to what theory
of international trade - CORRECT ANSWER✔✔classical




Question: theory of international trade that relies on more realistic product life cycles and first
mover advantages - CORRECT ANSWER✔✔modern




Question: under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - CORRECT ANSWER✔✔absolute

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Question: stage of the product life cycle where production of a new product that commands a
price premium will concentrate in the US - CORRECT ANSWER✔✔new




Question: stage of the product life cycle where demand and ability to produce grow in other
developed nations - CORRECT ANSWER✔✔maturing




Question: stage of the product life cycle where the previously new product is commoditized
and production will now move to low-cost developing nations - CORRECT
ANSWER✔✔standardized




Question: comparative advantage may change over time because patterns of ______ change
over time - CORRECT ANSWER✔✔trade




Question: theory that suggests that intervention by governments in certain industries can
enhance their odds for international success - CORRECT ANSWER✔✔strategic trade




Question: if a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? - CORRECT ANSWER✔✔currency hedging




Question: exchange rate risk associating with the time delay between entering a contract and
settling it - CORRECT ANSWER✔✔transaction risk