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C211 Global Economics for Managers (OA)
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sh
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1. Which two phrases represent the views of globalization? Choose two answers.
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a. A pendulum that swings from one extreme to another
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b. A competition among key financial centers and markets
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c. A continuing force sweeping through the world
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d. An unplanned result of corporate responses to a variety of
opportunities
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e. A trading of goods and services between the most and least
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sh
regulated countries
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2. What are two trade barriers? Choose two answers.
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a. Nontariffs
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b. Foreign languages
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c. The ocean
sh
Sp
d. Tariffs
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e. Shipping
3. What is the effect of tariff on a particular product for the country imposing the tariff?
la
a. Increases domestic production of the product
tz
sh
b. Decreases the deadweight cost of the country
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c. Increases domestic consumption of the product
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d. Decreases government trade revenues
la
4. Which benefits come to the host country as a result of foreign direct investment?
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Choose two answers.
sh
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a. Sovereign stability
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b. Capital outflow
c. Domestic resource allocation
la
d. Creation of domestic jobs
tz
sh
5. Which characteristic of firm resources affects competitive dynamics?
Sp
a. Tractability
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b. Divisibility
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c. Imitability
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d. Intensity sh
Sp
6. Which characteristic of firm resources affects competitive dynamics, according to the
ne
VRIO framework?
a. Variability
la
b. Optimization
tz
sh
c. Interpretability
Sp
d. Rarity
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7. Which theory is the forerunner to modern-day protectionism?
la
a. Free trade
tz
b. Mercantilism
sh
Sp
c. Absolute advantage
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d. Comparative advantage
8. Which aspect creates the daily changes in a country’s exchange rate?
la
a. Currency supply and demand
tz
sh
b. Level of domestic output
Sp
c. Balance of payments
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d. Domestic employment level
la
9. Which risk must a corporation minimize to effectively manage short-term currency
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fluctuations?
sh
Sp
a. Alpha risk
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b. Transaction risk
c. Beta risk
la
sh
Sp
This study source was downloaded by 100000829219024 from CourseHero.com on 11-19-2022 22:37:39 GMT -06:00
la
https://www.coursehero.com/file/105523183/C211-Global-Economics-for-Managers-OAdocx/
Sp
, ne
C211 Global Economics for Managers (OA)
tz
sh
ne
la d. Asymmetric risk
10. Which term describes using currency derivatives to reduce potential transaction,
tz
translation, and economic risks of currency movements that could lead to losses for a
sh
Sp
firm or investor?
ne a. An exchange position
b. A short position
la
c. Speculating
tz
sh
d. Hedging
Sp
11. What is the most effective method to limit foreign exchange rate exposure for future
ne
trade payments?
la
a. Floating transaction
tz
b. Forward transaction
sh
Sp
c. Short transaction
ne
d. Cross-currency transaction
12. What type of advantage do companies receive when operating in favorable areas
la
within a given country?
tz
sh
a. Labor-specific
Sp
b. Capital-specific
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c. Location-specific
la
d. Mineral-specific
tz
13. Which entrant has the opportunity to free ride on first-mover investments?
sh
Sp
a. Simultaneous mover
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b. Later mover
c. Early mover
la
d. Laggard
tz
sh
14. Which strategy for entering a foreign market has the highest degree of risk?
Sp
a. Licensing
ne
b. Wholly-owned subsidiary
la
c. Joint-venture
tz
d. Foreign acquisition sh
Sp
15. Which mode of entry provides advantages to a multinational firm that can be
ne
transferred within the firm at very low cost?
a. Indirect exports
la
b. Externalization
tz
sh
c. Licensing
Sp
d. Ownership
ne
16. Which pillar of uncertainty refers to the internalized behavior of an individual’s belief
la
and values?
tz
a. Regulatory
sh
Sp
b. Environmental
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c. Formal
d. Cognitive
la
17. What are three pillars that support format regulatory institutions? Choose 3 answers.
tz
sh
a. Norms
Sp
b. Attitudes
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c. Cultures
la
d. Laws
tz
e. Regulations
sh
Sp
f. Rules
ne
18. What are three aspects of a command economy? Choose 3 answers.
a. Government-owned production
la
sh
Sp
This study source was downloaded by 100000829219024 from CourseHero.com on 11-19-2022 22:37:39 GMT -06:00
la
https://www.coursehero.com/file/105523183/C211-Global-Economics-for-Managers-OAdocx/
Sp
C211 Global Economics for Managers (OA)
tz
sh
ne
1. Which two phrases represent the views of globalization? Choose two answers.
la
a. A pendulum that swings from one extreme to another
tz
b. A competition among key financial centers and markets
sh
Sp
c. A continuing force sweeping through the world
ne
d. An unplanned result of corporate responses to a variety of
opportunities
la
e. A trading of goods and services between the most and least
tz
sh
regulated countries
Sp
2. What are two trade barriers? Choose two answers.
ne
a. Nontariffs
la
b. Foreign languages
tz
c. The ocean
sh
Sp
d. Tariffs
ne
e. Shipping
3. What is the effect of tariff on a particular product for the country imposing the tariff?
la
a. Increases domestic production of the product
tz
sh
b. Decreases the deadweight cost of the country
Sp
c. Increases domestic consumption of the product
ne
d. Decreases government trade revenues
la
4. Which benefits come to the host country as a result of foreign direct investment?
tz
Choose two answers.
sh
Sp
a. Sovereign stability
ne
b. Capital outflow
c. Domestic resource allocation
la
d. Creation of domestic jobs
tz
sh
5. Which characteristic of firm resources affects competitive dynamics?
Sp
a. Tractability
ne
b. Divisibility
la
c. Imitability
tz
d. Intensity sh
Sp
6. Which characteristic of firm resources affects competitive dynamics, according to the
ne
VRIO framework?
a. Variability
la
b. Optimization
tz
sh
c. Interpretability
Sp
d. Rarity
ne
7. Which theory is the forerunner to modern-day protectionism?
la
a. Free trade
tz
b. Mercantilism
sh
Sp
c. Absolute advantage
ne
d. Comparative advantage
8. Which aspect creates the daily changes in a country’s exchange rate?
la
a. Currency supply and demand
tz
sh
b. Level of domestic output
Sp
c. Balance of payments
ne
d. Domestic employment level
la
9. Which risk must a corporation minimize to effectively manage short-term currency
tz
fluctuations?
sh
Sp
a. Alpha risk
ne
b. Transaction risk
c. Beta risk
la
sh
Sp
This study source was downloaded by 100000829219024 from CourseHero.com on 11-19-2022 22:37:39 GMT -06:00
la
https://www.coursehero.com/file/105523183/C211-Global-Economics-for-Managers-OAdocx/
Sp
, ne
C211 Global Economics for Managers (OA)
tz
sh
ne
la d. Asymmetric risk
10. Which term describes using currency derivatives to reduce potential transaction,
tz
translation, and economic risks of currency movements that could lead to losses for a
sh
Sp
firm or investor?
ne a. An exchange position
b. A short position
la
c. Speculating
tz
sh
d. Hedging
Sp
11. What is the most effective method to limit foreign exchange rate exposure for future
ne
trade payments?
la
a. Floating transaction
tz
b. Forward transaction
sh
Sp
c. Short transaction
ne
d. Cross-currency transaction
12. What type of advantage do companies receive when operating in favorable areas
la
within a given country?
tz
sh
a. Labor-specific
Sp
b. Capital-specific
ne
c. Location-specific
la
d. Mineral-specific
tz
13. Which entrant has the opportunity to free ride on first-mover investments?
sh
Sp
a. Simultaneous mover
ne
b. Later mover
c. Early mover
la
d. Laggard
tz
sh
14. Which strategy for entering a foreign market has the highest degree of risk?
Sp
a. Licensing
ne
b. Wholly-owned subsidiary
la
c. Joint-venture
tz
d. Foreign acquisition sh
Sp
15. Which mode of entry provides advantages to a multinational firm that can be
ne
transferred within the firm at very low cost?
a. Indirect exports
la
b. Externalization
tz
sh
c. Licensing
Sp
d. Ownership
ne
16. Which pillar of uncertainty refers to the internalized behavior of an individual’s belief
la
and values?
tz
a. Regulatory
sh
Sp
b. Environmental
ne
c. Formal
d. Cognitive
la
17. What are three pillars that support format regulatory institutions? Choose 3 answers.
tz
sh
a. Norms
Sp
b. Attitudes
ne
c. Cultures
la
d. Laws
tz
e. Regulations
sh
Sp
f. Rules
ne
18. What are three aspects of a command economy? Choose 3 answers.
a. Government-owned production
la
sh
Sp
This study source was downloaded by 100000829219024 from CourseHero.com on 11-19-2022 22:37:39 GMT -06:00
la
https://www.coursehero.com/file/105523183/C211-Global-Economics-for-Managers-OAdocx/
Sp
