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 wouldx youx describex strategicx trade?x -x correctx answer-
Howx arex supplyx andx demandx relatedx tox thex exchangex ratex ofx ax countryx -
x correctx answer-
Whichx theoryx camex first,x mercantilismx orx modern-dayx protectionismx -x correctx answer-
Ifx ax companyx seeksx tox limitx foreignx exchangex ratex exposurex inx thex forwardx direction,x whatx isx thex
m
ostx effectivex wayx tox dox thisx -x correctx answer-
Whatx isx transactionx riskx -x correctx answer-
Explainx thex conceptx ofx "hedging"x asx itx relatesx tox reducingx variousx typesx ofx risk.x -
x correctx answer-
Whatx isx thex differencex betweenx currencyx hedgingx andx strategicx hedging?x -x correctx answer-
Whatx advantagesx existx withx firstx mover?x -x correctx answer-
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 wouldx youx describex strategicx trade?x -x correctx answer-
Howx arex supplyx andx demandx relatedx tox thex exchangex ratex ofx ax countryx -
x correctx answer-
Whichx theoryx camex first,x mercantilismx orx modern-dayx protectionismx -x correctx answer-
Ifx ax companyx seeksx tox limitx foreignx exchangex ratex exposurex inx thex forwardx direction,x whatx isx thex
m
ostx effectivex wayx tox dox thisx -x correctx answer-
Whatx isx transactionx riskx -x correctx answer-
Explainx thex conceptx ofx "hedging"x asx itx relatesx tox reducingx variousx typesx ofx risk.x -
x correctx answer-
Whatx isx thex differencex betweenx currencyx hedgingx andx strategicx hedging?x -x correctx answer-
Whatx advantagesx existx withx firstx mover?x -x correctx answer-
