2ND ATTEMPT STUDY QUESTIONS FOR C211 QUESTIONS
WITH CORRECT ANSWERS 2026
What is Foreign Direct Investment? - correct answer-
Putting money in activities that control and manage value-added activities in other countries
Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one
another? - correct answer-- new force in recent times
- long-running historical evolution
- pendulum swinging between extremes
What different political views exist on FDI? - correct answer-Radical view
Treats FDI as an instrument of imperialism and a vehicle for exploiting domestic resources, industri
es, and people by foreign capitalists and firms
Free market view
Unrestricted by government Intervention FDI will enable countries to tap into their absolute or co
mparative advantages by specializing in the production of certain goods and services
Pragmatic nationalism
Considering both the pros and cons of FDI and approving FDI only when its benefits outweigh its
costs
What benefits exist to a country receiving FDI? Elaborate. - correct answer-
Capital inflow, technology, management, job creation
What costs exist to a country receiving FDI? Elaborate. - correct answer-
Loss of sovereignty, competition and capital outflow
How do resources influence competitive dynamics of a business? - correct answer-
How do capabilities impact the competitive dynamics of a firm? - correct answer-
, What is resource similarity and how does this impact competitive dynamics? - correct answer-
Give a description of the classical theory of international trade. - correct answer-
How would the modern theory compare to the classical theory? - correct answer-
Compare absolute advantage to comparative advantage. What differences exist? - correct answer-
What is mercantilism and why is this an important term? - correct answer-
What are the critical features of the product life cycle? - correct answer-
How wouldz youz describez strategicz trade?z -z correctz answer-
Howz arez supplyz andz demandz relatedz toz thez exchangez ratez ofz az countryz -z correctz answer-
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Ifz az companyz seeksz toz limitz foreignz exchangez ratez exposurez inz thez forwardz direction,z whatz isz thez
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Whatz isz transactionz riskz -z correctz answer-
Explainz thez conceptz ofz "hedging"z asz itz relatesz toz reducingz variousz typesz ofz risk.z -
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Whatz isz thez differencez betweenz currencyz hedgingz andz strategicz hedging?z -z correctz answer-
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WITH CORRECT ANSWERS 2026
What is Foreign Direct Investment? - correct answer-
Putting money in activities that control and manage value-added activities in other countries
Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one
another? - correct answer-- new force in recent times
- long-running historical evolution
- pendulum swinging between extremes
What different political views exist on FDI? - correct answer-Radical view
Treats FDI as an instrument of imperialism and a vehicle for exploiting domestic resources, industri
es, and people by foreign capitalists and firms
Free market view
Unrestricted by government Intervention FDI will enable countries to tap into their absolute or co
mparative advantages by specializing in the production of certain goods and services
Pragmatic nationalism
Considering both the pros and cons of FDI and approving FDI only when its benefits outweigh its
costs
What benefits exist to a country receiving FDI? Elaborate. - correct answer-
Capital inflow, technology, management, job creation
What costs exist to a country receiving FDI? Elaborate. - correct answer-
Loss of sovereignty, competition and capital outflow
How do resources influence competitive dynamics of a business? - correct answer-
How do capabilities impact the competitive dynamics of a firm? - correct answer-
, What is resource similarity and how does this impact competitive dynamics? - correct answer-
Give a description of the classical theory of international trade. - correct answer-
How would the modern theory compare to the classical theory? - correct answer-
Compare absolute advantage to comparative advantage. What differences exist? - correct answer-
What is mercantilism and why is this an important term? - correct answer-
What are the critical features of the product life cycle? - correct answer-
How wouldz youz describez strategicz trade?z -z correctz answer-
Howz arez supplyz andz demandz relatedz toz thez exchangez ratez ofz az countryz -z correctz answer-
Whichz theoryz camez first,z mercantilismz orz modern-dayz protectionismz -z correctz answer-
Ifz az companyz seeksz toz limitz foreignz exchangez ratez exposurez inz thez forwardz direction,z whatz isz thez
m
ostz effectivez wayz toz doz thisz -z correctz answer-
Whatz isz transactionz riskz -z correctz answer-
Explainz thez conceptz ofz "hedging"z asz itz relatesz toz reducingz variousz typesz ofz risk.z -
z correctz answer-
Whatz isz thez differencez betweenz currencyz hedgingz andz strategicz hedging?z -z correctz answer-
Whatz advantagesz existz withz firstz mover?z -z correctz answer-
